Governing a Sustainable Supply Chain

Our sustainability efforts extend beyond our internal operations. To ensure that we are aligned with our values, we have created a specific governance system that enables us to work closely with our value chain partners. The Sustainable Procurement Strategy Committee (“SPSC”) oversees our procurement practices. The SPSC sets high-level project directions and annual objectives and evaluates our performance to ensure that we are aligned with the Group’s overall strategy.

To ensure our suppliers meet our high standards, we conduct thorough due diligence, assessing accuracy, pricing, response time, after-service quality and operational regions. Our supplier screening process includes the completion of assessment questionnaires covering business ethics, regulatory compliance, anti-corruption measures, environmental performance, labour practices (including the prohibition of forced and child labour) and occupational safety and health systems. We will also give preference to suppliers who have obtained sustainability certifications during the supplier selection process.

In March 2022, we introduced an enhanced Sustainable Procurement Guideline that guides our procurement decisions towards maximum sustainability, minimises our environmental impact and helps us achieve positive social outcomes. We recognise the significance of comprehensive supply chain management and regularly evaluate our supply chain in accordance with our sustainable procurement commitments and environmental and social standards. To manage supply chain risks and maintain a high level of sustainability performance standards, we refined our Suppliers’ Code of Conduct (“SCOC”) to further integrate ESG considerations into the procurement process. The SCOC defines the Group’s expectations and requirements of its suppliers and the responsibility of suppliers towards their stakeholders, society and the environment. The SCOC was developed in accordance with our business values to promote sustainable development. All registered suppliers are required to comply with the SCOC, and failure to do so may result in penalties such as contract termination. New and existing suppliers may submit relevant environmental and safety certifications or standards during the bidding and submission stage to support their proposals.

For more details about sustainable procurement and our decarbonisation efforts, please refer to the “Sustaining our Planet”chapter.