• Knowledge Sharing session with suppliers: ESG Awareness with Edgenta’s Business Partners Webinar I n November 2022, GPCM, in collaboration with the ESG team, conducted a webinar to raise awareness on ESG. The webinar received participation from 201 active suppliers, with feedback received indicating that the webinar improved their understanding of ESG In future, along with our plan to segmentise vendors into one of the four areas - Strategic, Critical, Operational and Transactional - we intend to embed ESG capability criteria in our vendor segmentation assessment to evaluate the impact vendors have on the Group from various aspects such as business operations, profitability and continuity. RESPONSIBLE SUPPLY CHAIN MANAGEMENT As part of our impartial and transparent procurement procedures, we have in place a stringent due diligence process whereby potential new suppliers are thoroughly vetted before any form of engagement. During an onboarding process, supplier information is submitted through the Credit Tip Off System (“CTOS”) as an additional risk-reduction strategy to screen out vendors that may carry potential financial/legal threats to the Group. Once a potential supplier has successfully completed the onboarding process, they are required to understand, acknowledge and pledge their commitment to ethical business practices, as outlined in the Code of Conduct for Business Partner (“COCBP”) and Business Partner Letter of Declaration (“BPLOD”). Besides, other efforts carried out include the continuation of our “Projek Perintis” (a Contractor HSSE Development Programme), review exercises of the health and safety impact of our products and services, and enhancements to our procurement process to be more efficient and transparent. Further information on Projek Perintis can be found within the “Occupational Health and Safety” disclosures, on page 158 of the report. As part of our continued effort to uphold the Group’s environmental standards across our supply chain, suppliers in UEMS Singapore undergo strict screening procedures to ensure they are equipped with Singapore Green Labelling Scheme (“SGLS”) certification. With that, the Group works closely with these suppliers to enhance our sustainable product offerings to our customers. In supporting our robust procurement framework, enhancements have been made to our procurement process during the year in review. With the goal of driving greater efficiency and transparency, the Oracle Procure-to-Pay (“PTP”) self-service system was designed for suppliers to manage administrative procedures such as updating their vendor profiles, participating in Requests-for-Proposals and/ or Tender exercises, making payments and more by themselves. This digital transformation in our procurement operations has been communicated to suppliers via training sessions to ensure understanding of the system and its intended purpose. At the same time, our approach in establishing a responsible supply chain is closely associated with our pledge towards climate protection. This is further bolstered by our support towards the Ministry of Health Malaysia’s Sustainability Programme’s goal of achieving net carbon neutrality in healthcare facilities by 2045. Parallel to this national aspiration, our Singapore office - UEMS Singapore - is determined to continue along its path of improving resource conservation through various sustainable procurement initiatives, which promotes the purchase and use of green consumables, materials and chemicals in its facilities. In 2022, our healthcare unit UEMS Malaysia added to their usage of environmentally friendly detergents. Green detergent* Green detergent* 2021: 4 2022: 11 *Note: Types of biodegradable detergents used p.127 1 2 3 4 5 6 7 8 9 SUSTAINABILITY STATEMENT SUSTAINABLE ECONOMIC GROWTH p.126 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 SUSTAINABLE ECONOMIC GROWTH Supply Chain Management Uphold our occupational health and safety standards by providing a healthy and safe workplace for their employees and maintaining compliance with all relevant local health and safety laws, regulations and standards, including site-specific safety requirements Comply with all applicable local labour, employment and human rights legislation, including but not limited to minimum wage, minimum age for employment and maximum hours of work Be guided by our Sustainability Policy to strengthen efforts in addressing environmental issues, such as waste, energy and emissions DRIVING A RESPONSIBLE AND LOCAL SUPPLY ECOSYSTEM As an entity with a global footprint, we are mindful of the benefits that a responsible supply chain, local to our operations brings. Positive impacts have been acknowledged from maintaining a transparent supply chain, which include benefits for overall business efficiency. Likewise, an optimised supply chain can also potentially contribute to cost reductions which in turn increase the tangible value of the products and services we are able to offer to our stakeholders. Besides, developing trust-based supplier relations is similarly a vital cornerstone towards crisis-proof governance, ensuring that exposure to compliance risks is tactfully managed and mitigated. Ultimately, upholding high ethical standards in our supply chain will broadly help us consistently deliver seamless consumer experiences, safeguarding our reputation and position as a leader in the industry. We are looking at establishing key policies which can form core expressions of our sustainability and compliance based procurement framework. In this regard, we will strive to inculcate Environment Social and Governance factors in our Procurement Vendor Management Policy as part of the criteria for vendor selection or performance evaluation. For instance, our business partners as well as third parties supplying on-site services have the obligation to: In addition to that, the Group’s Procurement and Contract Management (“GPCM”) has executed various ESG initiatives according to our Sustainability Roadmap, with our suppliers during our year in review which include: Conducted ESG assessments on 675 vendors selected based on average spend and volume of order to evaluate their ESG maturity and understanding, with capacity-building initiatives conducted to raise their ESG literacy levels Commenced evaluation and identification of parameters to track and compute Scope 3 emissions within our supply chain Identification of dedicated persons-in-charge from GPCM to lead ESG initiatives and data collation
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