UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 MANAGEMENT DISCUSSION & ANALYSIS 79 78 MINIMISING ENVIRONMENTAL IMPACT As a responsible corporation, the Group undertakes various initiatives to contribute to the global climate agenda. We continuously seek to improve energy consumption at our premises and at premises of our clients by promoting the use of renewable energy and energy efficiency solutions as well as reducing the resultant emissions from our operations and across our value chain. In 2021, our EPC are examples of the way we work with clients to assist them in reducing their carbon emissions, which in turn translate to annual energy cost savings. In-line with the 12th Malaysia Plan to achieve carbon neutrality by 2050, we are enhancing the measurement and monitoring mechanisms of our carbon footprint to enable us to set our climate goals and ultimately support the nation’s net zero emission target. Additionally, we are committed to contributing towards global climate agenda by continuing to provide energy efficiency and renewable energy solutions. The Group also focuses on waste, material and water management as part of our environmental management programmes. In response to our substantial use of these resources, UEM Edgenta attempts to promote efficiencies through efforts such as the usage of recycled content materials and consuming resources thoughtfully. SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT Responsible supply chain management is crucial to the productivity and efficiency of our operations. To ensure a reliable supply chain, we are required to uphold ethical procurement practices, while maintaining a strong relationship with our suppliers. We also support local vendors in areas where we operate. Responsible Supply Chain Management In selecting our vendors for participation in our tenders, we carry out screening of vendors' background and credentials to ensure legible vendors are invited. The process is part of our requirement for vendors to participate in our tender exercise. Depending on the nature and scope of work, some of the vendors are required to possess the license related to their scope of work. Onboarded vendors are also required to read and fully understand the Code of Conduct for Business Partner and Letter of Declaration to ensure that they are fully compliant with our business ethics and integrity practices. In 2021, we enhanced our screening process by: • Submitting our vendors records through the Credit Tip Off System (“CTOS”) to assist us in mitigating the risk of onboarding vendors with financial and legal issues that could impact their operations. • UEMS Singapore conducting environmental impact assessments on 42 suppliers and initiating Health and Safety assessments and training programmes. • Initiating Projek Perintis, a Contractor HSSE Development Programme that involved 15 contractors, where the contractors' health and safety practices were refined to meet UEM Edgenta’s HSSE standards. We have also continued to make the procurement process more efficient and transparent for our suppliers as demonstrated by our Oracle Procure to Pay self-service system which enables vendors to self-manage administrative procedures such as profile updates, participation in Requests for Proposals and tender exercises, and payment, among others. In 2021, we organised seven training sessions for our Healthcare Support vendors to enable them to better understand the system. UEM Edgenta will continue to enhance our supply chain by incorporating more sustainable criteria beyond health and safety requirements in our supplier assessments. Meanwhile, our Property & Facility Solutions division (Operon Middle East) plans to implement ISO 14001 in 2022 and carry out supplier environmental screening in 2023. On the other hand, the Healthcare Support division aims to bring onboard suppliers that provide environmental friendly detergents. Providing Business Opportunities UEM Edgenta focuses on the procurement of materials and services from local suppliers, as well as capacity development of suppliers. Since 2014, we have been supporting the Bumiputera Vendor Development Programme (“BVDP”) which forms part of the Government’s Bumiputera Empowerment Agenda. In line with this, we have given priority in our procurement exercise to capable and credible Bumiputera vendors who met our requirements without compromising on our governance and policy standards. We will continue to assist our local suppliers and develop our Bumiputera vendors. Malaysian Operations: Percentage of procurement budget spent on Bumiputra vendors FY2021 FY2020 Vendors RM951.0 million for 1,605 vendors RM801.9 million for 1,756 vendors Total outsourced contracts for Bumiputra vendors RM617.0 million (65%) RM335.3 million (41.8%) Moving forward, UEM Edgenta will expand our supply chain disclosures to include local supplier procurement details. SUPPLY CHAIN MANAGEMENT
RkJQdWJsaXNoZXIy NDgzMzc=