MESSAGE FROM THE BOARD OF DIRECTORS

SCGP ESG Committee

The Sustainable Supply Chain Committee, consisting of managers and executives from the procurement department and related value chain, has been tasked with the following responsibilities:

1. Establish Policies and Strategies: Develop policies, strategies, goals, and plans to promote sustainable business development based on the sustainable supply chain concept.
2. ESG Risk Assessment: Assess the environmental, social, and governance (ESG) risks associated with products and services provided by suppliers and contractors. Implement supplier ESG programs and prioritize the importance of these business partners.
3. Collaborative ESG Initiatives: Formulate joint action plans and projects with suppliers, such as greenhouse gas (GHG) reduction initiatives, to benefit both the company and its business partners.
4. Set ESG Performance Criteria: Establish criteria or expectations for ESG performance that are proportional to the level of risk associated with the use of products and services from suppliers and contractors.
5. Transparency and Disclosure: Study and publicly disclose information on supply chain management that impacts stakeholders and ESG raters.
6. Supervise and Monitor Progress: Oversee, monitor, and track the progress of activities to ensure that business partners are developing sustainably in alignment with established plans.

• All supplier ESG programs and actions generated by the Sustainable Supply Chain Committee are discussed in the ESG Committee meetings, led by the CEO and other executive management, which are held every three months. During these meetings, ESG performance and supplier-related programs are reviewed, ensuring alignment with global ESG trends and regulations, and adapting them into SCGP’s action plan.
• For example, diversity has been integrated into the supply chain by surveying suppliers and engaging in activities to promote inclusivity. SCGP has structured its organization, designated responsible staff, and reinforced its corporate governance to align with its business operations.
• The company strives to maintain a systematic check-and-balance approach to ensure effective corporate governance. This is crucial in creating value and opportunities for sustainable growth, providing confidence that SCGP operates with responsibility, transparency, and fairness, while setting a strong example of ethical corporate governance.

SCG Packaging’s Supplier Code of Conduct

SCGP has established SCG Packaging’s Supplier Code of Conduct so that all business partners follow the same guidelines. It is used as a standard for business operations along with five principles :

1) Business Ethics

2) Labor & Human Rights

3) Occupational Health & Safety

4) Environment and Climate Resilience

5) Laws and Requirements

Introduced the concept to suppliers by adopting SCG Packaging’s Supplier Code of Conduct as a business guideline, with the goal of encouraging suppliers to be good citizens in parallel with the integrating of social and environmental commitments into corporate governance beyond legal and regulatory requirements.

Vendors may file a complaint on unfair treatment under the SCGP corporate governance principle through the specified channel at Whistleblowing System SCG Packaging

Supplier Diversity

At SCGP, we firmly believe that a diverse supplier base not only enriches our company but also strengthens the communities and society. We embrace diversity as a core value and recognize that diverse suppliers bring unique perspectives, experiences, and innovations to our supply chain.

Therefore, we are open to providing enterprise procurement opportunities to small businesses owned by women, people with disabilities, veterans, minorities, and LGBTQ+ individuals.

Conflict minerals

At SCGP, we have implemented measures to ensure that we do not source or utilize conflict minerals, namely tantalum, tin, tungsten, and gold, that have been extracted or brokered by armed groups.

These minerals, mined from the Democratic Republic of the Congo and its neighboring countries, have long been associated with significant international concerns. They serve as a source of funding for armed groups and contribute to the escalation of conflict, human rights violations, and environmental degradation.

SCGP’s Sustainable Procurement Framework ensures that every step of its procurement process is aligned with sustainability principles. The framework outlines SCGP’s commitment to responsible sourcing, supplier evaluation, and continuous monitoring of supplier performance to drive sustainability.

Procurement Process and Monitoring

SCGP follows a six-step procurement process to ensure suppliers are regularly evaluated for their ESG performance. This process includes supplier selection, evaluation, risk assessment, and continuous monitoring. The company uses KPIs to measure supplier performance and ensure that they align with SCGP’s sustainability objectives.

Additional Components:

Commitment: The process begins with a clear policy and expectations that guide the company’s approach to working with suppliers, emphasizing sustainability.

Measure:Throughout the process, performance is measured to ensure progress towards goals, and key metrics are tracked.

Reporting & Communication: Results and progress are communicated internally and externally, ensuring transparency and accountability in supplier relationships and sustainability efforts. This cyclical approach promotes ongoing monitoring, evaluation, and improvement, ensuring that the supplier base evolves to meet sustainability standards effectively.

Step 1. Supplier Selection + Approved Vendor List (AVL)

This step involves selecting suppliers based on predetermined criteria that align with company policies, especially concerning sustainability and ESG (Environmental, Social, Governance) goals. Approved suppliers are added to the Approved Vendor List (AVL), ensuring only those that meet the necessary standards are engaged.

Step 2. Spend Analysis

Spend analysis evaluates the financial impact of each supplier by analyzing procurement expenditures. This helps prioritize suppliers based on their spend volume and identify those that have a critical impact on the business or carry higher risk based on their ESG profiles.

Step 3. Supplier Assessment

Supplier assessment involves evaluating suppliers' capabilities and ESG performance. This process includes gathering data on how suppliers align with the company's sustainability goals, conducting audits, and assessing compliance with labor practices, environmental regulations, and governance standards.

Conduct risk assessment and certify all suppliers annually and continually, applying enterprise risk management framework covering environmental, Social, and Governance issues and spend analysis.

In 2023, From ESG Risk Assessment, SCGP have No High ESG Risk (High Potential Sustainability Risk) on our suppliers.

Step 4. Supplier Segmentation

Suppliers are categorized into different segments based on their risk level, performance, and strategic importance. Typical segments might include general tier 1 suppliers, critical suppliers, and high ESG risk suppliers. Segmentation helps prioritize resources and efforts, ensuring high-risk suppliers receive focused attention.

Supplier Segmentation at SCGP

At SCGP, suppliers are segmented into four distinct groups based on their product & service and their potential impact on sustainability and business operations. This segmentation ensures that SCGP can manage risks, particularly ESG (Environmental, Social, Governance) risks, and maintain strong partnerships with suppliers critical to the company's operations.

General Tier 1 Suppliers
High potential sustainability risk (ESG) suppliers
Critical Suppliers
Critical Non-tier1 suppliers

1. General Tier 1 Suppliers

General Tier 1 suppliers refer to manufacturers and distributors of products and services that do business directly with SCGP. These suppliers provide goods and services but do not fall into the high-risk or critical categories in terms of sustainability or business operations.

However, if their product & service is critical because of high purchasing volume, critical components, or non-substitutable products. These suppliers are classified as:

2. Critical Suppliers

Critical Suppliers, also referred to as critical tier 1 suppliers, provide products or services that are vital to SCGP’s operations. These suppliers often account for a significant portion of SCGP’s procurement spend or provide non-substitutable products. This criticality must be determined as to what caused it by these suppliers. Therefore, these suppliers have to survey which supplier is critical to them. That leads to the next segmentation.

3. High Potential Sustainability (ESG) Risk Suppliers

High Potential Sustainability Risk Suppliers are manufacturers or distributors whose operations pose significant ESG risks, such as poor labor practices, environmental harm, or governance failures. Examples include risks related to human rights violations, improper waste management, or legal non-compliance.

4. Critical Non-tier 1 Suppliers

Critical Non-tier 1 Suppliers refer to manufacturers and distributors of products and services that do not do business directly to SCGP but deal with products services that are important to SCGP's Critical Suppliers.

Nevertheless, if we consider general tier-1 suppliers on potential impact on sustainability and business operations, The suppliers that are likely to cause adverse impacts from their improper operations are classified as:

This segmentation process enables SCGP to prioritize engagement and risk management by focusing on suppliers that are either critical to business operations or pose significant ESG risks. For instance, significant suppliers identified as having high ESG risks or being critical to operations undergo further evaluation and are included in supplier programs for improvement, such as initiatives to reduce GHG emissions or improve governance practices.

By monitoring and managing both direct and indirect suppliers, SCGP ensures a sustainable, transparent, and compliant supply chain, continuously advancing toward its ESG goals.

Step 5. Supplier Evaluation & Audit

This step involves continuous evaluation and formal audits to ensure suppliers meet the company's sustainability and performance standards. Audits may include site visits, ESG assessments, and monitoring adherence to contractual obligations.

SCGP has a process for regularly Supplier desk assessments and Supplier on-site assessments and evaluating suppliers’ performance in terms of delivery scheduling covering product and service quality, as well as criteria for assessing environmental, social and governance (ESG) risks in their operation which considers the impacts on environment, society along with business continuity comply with international standard such as ISO9001, ISO14001, ISO45001, ISO50001, TIS/OHSAS18001, UDHR, UNGC, UNGP, and ILO etc.

Suppliers shall meet a minimum requirement 70%.

Approach

• Evaluate supplier’s capability by taking into account Environmental, Social and Governance (ESG) impact.
• Use Site Visit Questionnaire/Supplier Desk Assessments/Third-Party Audit (Independent Accredited Auditing Company) to inquire into business practice as well as ESG impact.
• Conduct On-Site Visit/Supplier Desk Assessments/Third-Party Audit (Independent Accredited Auditing Company) , and inform results of assessment along with supplier development plan, to increase the capacity of sustainable enterprise management.

Significant Supplier-Critical Supplier

Conduct Supplier Assessment, according to the type of business risks efficiently, including the following:

• Plant Reliability Assessment, through site visit and review of business operation/approach
• Supplier Desk Assessments
• On-site Audit to be conducted by an internal entity within the BU/company
• Monitor critical non-tier 1 supplier, using Significant Supplier-Critical Supplier Questionnaire or through interviewing, or conducting media and stakeholder analysis
• Third-Party Audit (Independent Accredited Auditing Company), or business assessment criteria, as well as Environmental, Social and Governance impact.

Significant Supplier-High Potential Sustainability (ESG) Risk Supplier

Perform Supplier on-site assessments through either a Third-Party Audit (Independent Accredited Auditing Company) or by an internal entity within the Business Unit.The ESG assessment encompasses specific criteria, accompanied by actionable recommendations aimed at addressing any identified gaps. In terms of audits, there are Supplier Desk Assessments, On-Site Audit, and Third-Party Audit(Independent Accredited Auditing Company) . If a supplier is unable to meet the specified standards and criteria, the company will consider temporarily suspending the purchase or removing the supplier from the list of vendors. By conducting an ESG assessment, if they are identified as a Significant Supplier-critical supplier with a high risk rating, SCG will conduct thorough investigations and develop timely corrective and preventive actions, ensuring continuous follow-up and re-assessment until improvements are achieved.

Step 6. Initiative & Improvement Plan

Based on evaluations, improvement plans are developed to address any gaps in supplier performance. This could involve corrective actions, such as targeted training, collaboration on ESG projects, or process improvements. These initiatives aim to enhance both the supplier's and the company’s sustainability performance.

Examples of Corrective Actions and Improvement Plans:

1. For Critical Suppliers:

• Monitoring Supply Chains: SCGP monitors critical suppliers' operations and related supply chains to ensure compliance with sustainability goals.
• Supplier Diversification: The company diversifies its supply base to reduce risks associated with dependency on critical suppliers.
• Supplier Audits and Selection: Continuous supplier evaluation and selection processes ensure high standards are maintained.
• Long-Term Contracts and Collaboration: SCGP fosters long-term relationships with suppliers, encouraging deeper collaboration on sustainability initiatives.
• Supplier Risk Mitigation: Regular audits, risk assessments, and corrective actions help mitigate risks posed by critical suppliers.

2. For High Potential Sustainability (ESG) Risk Suppliers:

• Environmental Impact Reduction: Initiatives such as the reduction and effective use of non-renewable resources, alongside collaborative efforts to find alternative raw materials, are put in place.
• Hazardous Waste Management: Specific actions are taken to address hazardous waste generated by suppliers and ensure compliance with environmental regulations.
• Collaborative ESG Projects: SCGP collaborates with suppliers to develop products that use fewer resources without compromising quality, helping both parties meet sustainability targets.

3. Supplier Collaboration & Partnership: SCGP encourages active participation from its suppliers, particularly those providing raw materials like wood logs and chips, in sustainable sourcing initiatives. These initiatives include:

• Training Programs: Suppliers are provided with targeted training sessions to enhance knowledge and competencies in ESG practices, such as improving safety standards or sustainable resource usage.
• On-site Visits and Audits: SCGP conducts on-site visits to give feedback, suggestions, and recheck compliance with sustainability and operational standards.
• Addressing Raw Material Impact: Collaboration with suppliers ensures that the impacts of raw materials on the environment are minimized through joint actions and projects.

We encourage our wood logs & wood chips suppliers to participate in our sustainable sourcing initiatives:

• Set work instruction to address and assess risk of the origin of wood logs/chips
• Conduct training to enhance knowledge and competency
• On-site visit to give suggestion and recheck compliance

Collaboration with suppliers to address impacts of raw materials

Sustainable Supply Chain Measurement

To ensure implementation of sustainability by supplier, and efficient proceeding of procurement as well as compliance and compatibility with the Sustainable Development Framework under governance principle, performance has to be measured by taking into account the following:

Participation Approaches

• Visit suppliers/contractors’ places to exchange of ideas and listen to their suggestions or recommendations for improvement.
• Cultivate safety consciousness, raise awareness, and promote working behavior to build a safety culture.
• Organize seminars to share new knowledge and trends that may affect business partners’ operations.
• Enhance the performance of transportation contractors through assessment and development under the annual Sustainability Program.
• Establish measures for business partners, including the application of digital and online

Supplier Training and Development

SCGP provides training programs for suppliers through events like Supplier Day, where suppliers receive education on human rights, governance, climate action, and greenhouse gas (GHG) reduction. In addition, SCGP offers resources and support to build supplier capacity and improve their overall sustainability performance.

Supplier Day 2023

SCGP organized the SCGP Supplier Day 2023 to engage with business partners on various ESG topics, including COC, Human Rights, Anti-corruption, and GHG. The event also covered topics related to Safety, such as LSR-GSR and Good transportation. A total of 650 business partners (with 1,300 attendees) were invited to participate in the event, which took place in 7 rounds throughout the months of April and May 2023.

Supplier Day 2022

SCGP, together with SCG and affiliates, organized “Supplier Day 2022” to communicate and encourage participation in solving world problems by applying ESG 4 Plus and the revised Supplier Code of Conduct which addresses the important issues that are in the interest of stakeholders such as forced labor and environmental data collection to suppliers. Moreover, the workshop on topic 1. Human Rights, 2. Climate Change and 3. Governance and Business Ethics was held to share ideas and acknowledge as well as support needed for the future development of the partnership. There were 123 participants from 81 key suppliers.

Enhance Competency in Service with Waste Management Suppliers

SCGP has undertaken a project to develop a waste management supplier in order to reduce the potential risk of waste transportation from SCGP's factory to the supplier’s site. The training to the supplier's employees to raise awareness on safety and providing quality services with heart provided by expert instructors from SCG Skills Development School. In result there was no complaints of safety violations or service issues in 2022. In the future, key performance indicator (KPI) evaluations will be conducted every quarter to create lasting change.

Conduct training sessions to provide legal knowledge related to work

Waste Management

From the announcement of the Ministry of Industry regarding the management of waste or unused materials in the year 2023, which was recently enacted, SCGP has implemented and conveyed this to relevant suppliers in mid-2024. Expert speakers from the Department of Industrial Works were invited to explain and answer questions. There was significant interest from suppliers, with 29 participants from 11 companies that manage waste for SCGP attending the session.

Supplier support (remote/on-site) on implementation of corrective/improvement actions

SCGP follows suppliers’ action at site. In case, we find gap for improvement so we will inform relevant suppliers to solve problems together such as Brush-up training on scaffolding as attached. SCGP support working in safe condition and improving working efficiency at the same time.

Supplier Collaboration & Partnership ; wood logs and wood chips suppliers

We actively encourage our wood logs and wood chips suppliers to participate in our sustainable sourcing initiatives through the following actions:

1. Establish Work Instructions: Set clear guidelines to assess and address the risks associated with the origin of wood logs and wood chips.
2. Training Programs: Provide training to enhance suppliers' knowledge and competencies related to sustainable practices.
3. On-site Visits: Conduct regular on-site visits to offer suggestions, monitor progress, and ensure compliance with our standards.
4. Collaborative Impact Mitigation: Work closely with suppliers to address and minimize the environmental and social impacts of raw material sourcing.

This approach fosters strong partnerships and ensures that suppliers contribute to our sustainability goals.

SELF-LEARNING

Providing Knowledge and Enhancing ESG Skills for Company Buyers

• The Sustainable Supplier Committee developed an E-learning system to enhance company buyers' knowledge and abilities regarding ESG programs and procurement practices.
• The system supports the implementation of the Sustainable Procurement Framework, which is a guideline for SCG Group companies to adopt sustainability practices with suppliers.
• The framework focuses on risk management processes for economic, environmental, social, and governance (ESG) issues.
• The approach aligns with different risk levels, focusing on:
  • Quality and quantity of products and services.
  • Timely delivery according to customer requirements.
  • Compliance with laws and quality assurance systems to prevent and mitigate risks.
• The online learning module takes approximately 30 minutes to complete.

A post-test system is included to assess participants' knowledge after completing the training.

SCGP is committed to reducing greenhouse gas (GHG) emissions throughout its supply chain. Through innovation, collaboration, and sustainable practices, SCGP works with suppliers to reduce their carbon footprint, adopt renewable energy sources, and develop greener logistics.

SCGP Encourages Businesses in Packaging Value Chain to Transform for Greenhouse Gas Reduction

Read More

Energy Management and Climate Change

• Gathered information and calculated GHG Scope 3 using the emission factor provided by Thailand Greenhouse Gas Management Organization (Public Organization) or TGO. Information was reviewed by third parties and continued into 2023. Buyers had an opportunity to learn about GHG Scope 1, 2, and 3, including the carbon footprint of products through a special training to raise their awareness and support GHG measurement of suppliers. The training was attended by 160 buyers in total.
• Cooperated with 2 suppliers to calculate the emission factors of each product. With 2023 as the first year of this program, the focus was on Carbon Footprint for Organization (CFO) and Carbon Footprint of Products (CFP) in order to facilitate future GHG reduction planning in an efficient manner.
• Held 2023 Supplier Day to share and raise awareness on ESG knowledge and guidelines of SCGP. The topic on operations to reduce GHG emission were also included.
• According to materiality through value chain, Climate Action has been identified as the top priority. Therefore, greenhouse gas (GHG) reduction is a significant environmental focus, with direct effects on lowering GHG emissions from both SCGP’s activities and those of our suppliers, particularly in the acquisition and delivery of raw materials. SCGP has set a GHG reduction target of 25% by 2030 for GHG Scope 1, 2, and 3 emissions. This target extends to the supply chain, especially for suppliers related to Category 1 (Raw Materials) and Category 3 (Fuel) in Scope 3. As part of this initiative, SCGP organized a training program on carbon footprint assessment for its business partners. The purpose of this program was to provide an understanding of SCGP’s ESG policies and guidelines, with a specific focus on GHG Scope 3 emissions. The training, which covered the process and methods for collecting carbon footprint data, was held online on February 15, 2023.Moving forward, GHG reduction projects will be a major focus starting from 2023, in alignment with SCGP's broader climate goals.

GHG reduction project (GHG Scope 1,2,3)

SCGP is collaborating with a significant suppliers that has a relatively high energy consumption in their production process. The collaboration aims to study the feasibility of utilizing renewable energy, specifically solar cells. The goal is to reduce the amount of electricity purchased and increase the use of renewable energy sources.

SCGP follows SCG Supply chain decarbonization to engage suppliers (Strategic Suppliers and High Impact Suppliers) to share emission factors for accurate calculation on GHG Scope 3 and techniques to collect data for GHG calculation so SCGP can benchmark data from suppliers. At the same time, they can share each other to improve and leverage their solutions and practice as standardization. Strategic Suppliers starts decarbonization with SCGP first due to their readiness and potential to reduce GHG. After that, SCGP works with High Impact Suppliers (In 2023-2024, SCGP takes efforts on strategic suppliers. In 2025, SCGP will focus on high impact groups).

Sourcing EV Transportation Service Suppliers to Reduce Greenhouse Gas Emissions

SCGP is commited to reducing greenhouse gas emissions in its operations and has partnered with a supplier providing electric vehicle (EV) transportation services, which are efficient and can meet various types of work requirements. This is intended to replace the coventional use of fossil fuel vehicles. The initiative began with EV delivery trucks, after studying and testing them with suppliers since 2021. For Transporting paper rolls and pulp between factories in Ratchaburi Province and Saraburi Province, SCGP invests in the installation of electric charging stations at origin and destination, and will begin operations for finished product transportation at the beginning of 2023 with 7 vehicles from selected suppliers, and will expand its operation to other product groups and shuttle buses for employees in the future. Additionally, electric vehicle (EV) trucks for transporting goods can reduce greenhouse gas emissions by 475,087 kilograms of carbon dioxide equivalent per truck per year, and reduce energy costs by 50-60% compared to a diesel truck.

Innovation in Sustainable Sourcing

SCGP continuously explores innovative approaches to sustainable sourcing. This includes reducing waste, using eco-friendly packaging materials, and developing energy-efficient processes. SCGP’s suppliers are encouraged to embrace these innovations to improve sustainability and reduce environmental impact.

SCGP guarantee the origin of pulp, wood logs and wood chips used in our manufacturing through FSC™ Certification
Pulp Sourcing​
100% of our imported pulp is FSC™-certified
Wood Logs & Wood Chips Sourcing
100% of wood logs & wood chips used in our manufacturing is FSC™-certified
- 5% is FSC™-FM (Forest Management) from SCGP forestry products and contracted farms
- 95% is FSC™-CW (Controlled Wood) from external sourcing (FSC™ controlled wood mitigates the risk of forest products originating from unacceptable sources)

Wood pulp procurement policy

SCGP can trace the recycled paper bales back to a country of origin of 100% suppliers which sell the recycled paper bales (OCC). We have imported OCC paper bales from various countries around the world. To be certain about their quality and where they come from, our sourcing and supply chain management have inspection standards including some procedures to examine imported waste paper before getting into the mills.

SCGP is committed to transparency in its sustainability efforts. The company regularly publishes reports on supplier performance, audit outcomes, and overall progress toward sustainability goals. These reports provide stakeholders with clear insights into how SCGP is meeting its environmental, social, and governance targets.

Credit Term Policy for Suppliers

Current situation resulted in an economic recession, causing entrepreneurs to have lack liquidity. SCGP realized the situation and wanted to maintain the supply chain as well. Therefore, SCGP encouraged SCGP's SME partners to continue their business without any financial liquidity problems by setting 'Credit Term Policy' to reduce the credit term to allow business partners to increase the working capital faster with payment in 7-180 days depends on products categories.

In 2023, the average payment period was 32 days (2 day reduction from 2022 that was average at 34 days).

Significant Supplier Monitoring and Assessment Criteria Overview (2020-2023)

Remarks: In 2023, Total number of Tier-1 suppliers = 2491, %Critical Tier-1 = 0.16, %Critical Non Tier-1 = 0.88

In 2023, 4 Critical Suppliers (Critical tier 1) are assessed by Non-substitutable/Oligopoly/OEM with the number of critical non-tier 1 (from these 4 suppliers, counted as 1, 0, 20, 1 critical non-tier 1 suppliers, respectively). All suppliers has no High ESG Risks.

Procurement Spend Ratios by Supplier Categories in 2023

Examples of corrective action

• Reduce and effectively use non renewable natural resource in production as well and seek substitute raw material
• Follow up operation of medium ESG risk supplier and reduce activities caused environmental impact
• Collaborate with supplier to develop product to use less resource with same property/quality

Corrective actions have been monitored under the oversight of SCGP Sustainable Supply Chain Committee

Performance 2023

The total number of business partners operating totaled

2,491

100%

of procurement value from suppliers with a commitment to comply with the SCGP's Supplier Code of Conduct.

100%

of suppliers in procurement spend passed the annual Environmental, Social, and Governance (ESG) risk assessment.

transportation contractors certified as major transportation contractors, representing 100% of all major transportation
contractors.

Green procurement purchased*
5,474 million Baht
or accounted for 18%
of total procurement

100%

of employees in the supply and purchasing function had training on the ESG knowledge

Notes : *Environmentally friendly procurement means to supply products and services that cause the least impact on the environment,following SCG Guidelines for Green Procurement. This drives manufacturers to overhaul and speed up the development of products and services that are more environmentally friendly to the society. The criterion for environmentally friendly procurement originates from these two factors:
1) the impact on the environment caused by objects/things and services throughout the lifecycle of use and
2) an environmental management system

Supplier Governance and Enhance towards Sustainability

Strategy

Select and assess suppliers with the capability for sustainable business.

Implementation

Evaluate vendors in terms of quality, cost and delivery (QCD Supplier Evaluation).

Target

100% suppliers under Approved Vendor List (AVL) receive vendor evaluation (QCD Supplier Evaluation)

Strategy

Conduct risk assessment and supplier segmentation to formulate strategy and supplier development plan corresponding with the risks.

Implementation

Conduct a supplier assessment program and segmentation of critical suppliers with a systematic approach.

Implementation

Conduct sustainability risk assessment and supplier segmentation since 2018.

Target

100% suppliers of the procurement spend pass the annual ESG risk assessment every year.

Strategy

Develop and enhance supplier's capability towards sustainability.

Implementation

• Promote and audit suppliers for registration in the Green Procurement List.
• Purchase products and services according to the Green Procurement List.

Implementation

Promote and support suppliers to participate in the assessment of Green Industry (GI)*

Strategy

Develop and enhance supplier's capability towards sustainability.

Implementation

• Raise awareness and behavioral change to create safety culture.
• Use safety management system to uplift contractors safety standard.
• Having contractors informed and signed for Life Saving Rules in every access for work.

Target

100% Operation contractors certified under Contractor Safety Certification System

Target

100% major carrier certified under Fleet Carriers Standards.

Target

Zero Lost Time Injury Frequency Rate (LTIFR) by 2024

Strategy

Select and assess suppliers with the capability for sustainable business.

Implementation

• Conduct following to Supplier Code of Conduct
• Started supervising new and main suppliers to commit to comply SCGP Supplier Code of Conduct

Target

90% of the procurement spend comes from suppliers who commit to comply with SCGP Supplier Code of Conduct