SUSTAINABILITY STATEMENT The Group conducts its yearly Vendor Performance Evaluation on suppliers with a purchasing value that contributes 80% or more of annual purchases. This is done to ensure the consistent supply from major suppliers and the overall supply chain continues smoothly and with integrity. Data on MYEG’s suppliers’ assessment for the past two years are as follows: FY2021 FY2022 Number of suppliers screened / audited for good ESG performance 64 72 Number of suppliers removed from procurement list or cautioned for poor ESG performance Nil Nil Number of suppliers endorsed under Anti-Bribery &Anti-Corruption policies 64 72 Vendor’s score based on assessment/ESG performance No. of Vendor FY2021 FY2022 91% to 100% 0 1 81% to 90% 1 2 71% to 80% 4 65 Below 70% 59 4 Suppliers are assessed on 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. Suppliers are also subjected to product quality assessment and customers’ satisfaction survey. Obtaining the most competitive price is achieved through a price comparison exercise, which allows MYEG to compare and contrast the different prices available on the market. To further ensure that the price obtained is the most cost-efficient, purchases go through multiple levels of approval from Management before being approved. In addition to continuing the Group’s Vendor Performance Evaluation annually, MYEG also closely monitors its stock level by reviewing stock reports on a weekly basis and is constantly on standby to buffer its stock. The Group continuously expands its sourcing strategy to source 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 on the average of one supplier per month. With the COVID-19 pandemic having entered the endemic phase and all economic sectors having since opened up in full capacity, MYEG begun carrying out on-site physical audits. These supplier audits continued to be supported by the annual Vendor Performance Evaluation on top-ranking suppliers and regular-purchase suppliers. MYEG evaluated performances of top suppliers that contributed 80% or more of annual purchases. DUE DILIGENCE ON NEW AND EXISTING SUPPLIERS Due diligence on new and existing suppliers is always done by MYEG. The Group ensures that all new vendors are registered via the New Vendor Registration form and that they declare their compliance to ABAC standards. This due diligence standard is practised regularly to ensure that MYEG’s suppliers comply with the Group’s regulations. Furthermore, on ABAC compliance, MYEG also briefs, communicates and seeks the vendor’s clear acknowledgment and commitment to comply with the Group’s ABAC Policy. Vendors who are non-compliant will be immediately phased out of MYEG’s supply chain. SUSTAINABILITY GOVERNANCE (cont’d) 73
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