Suppliers that have been identified in our screening process as having ESG risks or who do not meet our expectations will be further reviewed, investigated and determined if corrective actions need to be taken. We will re-evaluate the business relationship with suppliers who violate our ESG criteria or are unwilling to take corrective actions in order to comply with our Supplier Code of Conduct. We refined the critical supplier evaluation process by categorising them into low, medium and high risk suppliers. Processes are in place to engage with our critical suppliers on areas such as ESG risks and business continuity measures, ensuring that our supply chain risks are regularly monitored. In 2024, we did not identify any suppliers as having significant negative environmental or social impact. We Partner with our Suppliers for Growth We engage suppliers through our supplier management programmes and maintain close relationships. We also believe in tandem growth with our suppliers and aim to procure locally where possible. Furthermore, we continuously collaborate and engage with local SMEs to expand their capabilities, and work with sustainabilityconscious suppliers to improve their ESG focused practices. This continuous engagement ensures that our suppliers are in turn, able to support the Group’s growth in technology, product capability and competitiveness. Transforming our Production Structure for Quadruple Benefits Traditionally, customised low-volume seat production involves importing machine-cut foam blocks, resulting in significant waste from foam offcuts. To minimise wastage, our Land Systems business area switched from an overseas supplier’s machine-cut foam blocks to a local vendor’s customised foam blocks. The project team collaborated closely with the local supplier to research, develop and utilise moulded foam, which eliminates offcuts, reduces energy consumption and ensures consistent shapes. The moulded foam and covers are shipped directly to Singapore to fit and assemble onto locally manufactured structures, eliminating the logistical complexities. This approach not only cuts down our lead time and overall production costs, but also minimises our carbon footprint whilst enabling us to support our local industry. 23 OVERVIEW OUR SUSTAINABILITY APPROACH ECONOMIC ENVIRONMENTAL GOVERNANCE INDEX SOCIAL
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