MANAGEMENT APPROACH Commitment We believe in procuring responsibly to ensure a sustainable supply of goods and services to meet business needs. We are committed to managing our suppliers ethically and effectively to ensure a robust supply chain. We are also committed to procure locally where feasible and work with the local suppliers in growing their capabilities to support our business needs. Governance and Organisation Our procurement community champions the effective management of our suppliers to align business behaviours, drive greater efficiencies, streamline processes and enable greater visibility. Our Responsible Procurement Framework helps us to work with our suppliers to embed our principles of responsible procurement. Our approach towards responsible procurement is guided by five principles: • We are committed to ethical procurement • We do not compromise on the quality and safety of our products and services • We practise value for money procurement • We safeguard the health and safety of workers • We protect the environment These principles underpin our Responsible Procurement framework which comprises three pillars: • Vendor Conduct – this is aligned to our sustainability agenda, defines our principles and standards, and lays down the basic behaviours and practices we require of our suppliers concerning their responsibilities towards their stakeholders and the environment • Vendor Management – this streamlines the systems and processes we employ to screen, onboard and assess the performance of our suppliers, giving them a consistent experience working with the Group • Vendor Relationship – this segments our suppliers based on profit impact and supplier risks into four categories; namely strategic, leverage, bottleneck and non-critical, for more effective management of the relationships SOCIAL → Responsible Procurement RESPONSIBLE PROCUREMENT FRAMEWORK Vendor Conduct Provides a firm foundation through sound guiding principles and standards for responsible procurement Vendor Management Ensures processes to implement principles and standards are efficient and effective Vendor Relationship Categorises and manages performance for continuous improvement Vendor Code of Conduct Principles and Policies Vendor Management Processes Vendor Management Systems Surveys and Feedback Vendor Relationship Management 44 ST ENGINEERING SUSTAINABILITY REPORT 2021 OVERVIEW OUR SUSTAINABILITY APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE AWARDS INDEX
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