ANNUAL REPORT 2021 71 SUSTAINABILITY The Group holds a firm stance on our ABAC policy and there is no excuse for non-compliance as all participants in our supply chain have been briefed and have knowledge of our policies. Therefore, any breach of our policies will be subject to the appropriate consequences and actions being taken. IDENTIFICATION OF HIGH-RISK SUPPLIERS MYEG has identified top-ranking high-risk suppliers in regard to the suppliers’ purchase value, critical item suppliers and sole suppliers from the annual purchase analysis. High-risk suppliers are identified due to the nature of items they are supplying, such as IT hardware and software, kiosks, COVID-19-related project equipment as well as renovation and maintenance works. The Group annually conducts Vendor Performance Evaluation on suppliers with a purchasing value that contributes 80% or more of annual purchases. We do this to ensure the consistent supply from major suppliers and the overall supply chain continues smoothly and with integrity. We evaluate suppliers in terms of their contract term and specification compliance, price competitiveness, timeliness of their work, professionalism, customer service, communication and accessibility, prompt and effective correction of situations and conditions as well as documentation and records received in a timely manner. Obtaining the most competitive price is done through a price comparison exercise as it allows us to compare and contrast the different prices available on the market. To further ensure the price obtained is the most cost-efficient, purchases go through multiple levels of approval from Management before approval. In addition to continuing our Vendor Performance Evaluation on an annual basis, MYEG is also closely monitoring its stock level by reviewing stock reports on a weekly basis and are constantly on standby to buffer its stock. We are also working on expanding our sourcing strategy in order to source for backup suppliers to work with. NUMBER OF SUPPLIERS AUDITED ANNUALLY MYEG’s best practice in supplier audits is to always audit its suppliers, especially new suppliers. However, as the COVID-19 pandemic in the country continued from FY2020 into FY2021, most of our suppliers’ operations remained interrupted. Thus, we were still unable to carry out an adequate physical audit on-site due to the announcement of the Movement Control Order (“MCO”), Conditional Movement Control Order (“CMCO”) or Recovery Movement Control Order (“RMCO”) by the government. Nevertheless, as mentioned previously, we still managed to continue conducting our annual Vendor Performance Evaluation on top-ranking suppliers and regular-purchase suppliers, in place of supplier audits. We evaluated the performances of suppliers that contributed 80% or more of annual purchases. With nation-wide lockdowns now easing and most of the population already fully vaccinated, we aim to safely and effectively carry out extensive audits on our suppliers in FY2022. DUE DILIGENCE ON NEW AND EXISTING SUPPLIERS We are always practicing due diligence on new and existing suppliers. MYEG ensures that all new vendors are registered via the New Vendor Registration form and that they declare their compliance to ABAC standards. This standard of due diligence is practised regularly to ensure our suppliers comply with our regulations. Furthermore, on ABAC compliance, we also brief, exercise and seek vendor’s clear acknowledgment and commitment to comply with our ABAC Policy. Vendors who are non-compliant will be immediately phased out of our supply chain. SUSTAINABILITY GOVERNANCE (CONT’D)
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