Transparent and Fair Procurement
Doing business with suppliers who demonstrate social and environmental responsibility not only reduces business disruption risks but also enhances the company’s operational efficiency. Therefore, the company prioritizes transparent, fair, and non-discriminatory procurement practices by establishing supplier selection guidelines based on various criteria, including:
- Potential for sustainable business operations and good corporate governance
- Ability to deliver quality products that meet standards, on time, environmentally friendly or with low carbon emissions
- Compliance with occupational health, safety, and environmental standards, as well as labor laws and human rights principles
Furthermore, the company has announced a Sustainable Supply Chain Policy and Supplier Code of Conduct as guidelines for suppliers to follow, communicating the company’s expectations regarding its commitment to creating sustainable value for stakeholders while emphasizing environmental and community concerns.
ESG-Based Supplier Screening and Selection
The company has integrated ESG criteria as part of the screening, selection, and management of suppliers. We have improved the supplier assessment form to include various dimensional criteria such as occupational health, safety and environment, service quality, facility readiness, technical qualifications, management, etc. This form is used as a unified standard across all countries where the company operates. This standard covers the procurement process from 1) supplier registration to 2) contract signing and 3) ongoing business collaboration.
The ESG criteria incorporated into the preliminary supplier qualification assessment include:
- Social criteria, such as health and safety, community impact, etc.
- Environmental criteria, such as waste management, etc.
- Governance criteria, such as business ethics, etc.
The above assessment form is designed as a questionnaire that contractors can use as a tool to self-evaluate their ESG performance, referencing their past performance. The company will send this assessment form to suppliers to initially evaluate ESG efficiency, and scoring will be based on answers supported by evidence.
Simultaneously, the company has developed ESG supplier assessment standards to evaluate significant negative impacts that occur or may occur during operations. This serves as a foundation for improving operations related to the company’s suppliers and for monitoring and addressing impacts throughout the supply chain.
These processes ensure that the company’s supplier selection not only meets production requirements for goods or services but also aligns with its commitment to creating a sustainable supply chain. These standards apply to both current suppliers and new partners wishing to work with the company.
Sustainable Collaboration and Business Operations with Suppliers
The company promotes the involvement of suppliers, contractors, and business partners to develop energy products and innovations that meet customer needs and enhance the capabilities of partners throughout the supply chain for sustainable growth. This is achieved through diverse operations that encompass economic, community, social, and environmental dimensions.
In 2024, the company has encouraged the participation of suppliers / contractors / business partners through various activities, such as:
- Encouraging Key Partners to Assess Water Risks: Implementing annual measures to prevent and mitigate the impact of water usage to alleviate potential water shortages and ensure sufficient water resources for consumption and usage across all sectors.
- Promoting Cooperation with Contractors in Community Development Work: The company has coordinated efforts to jointly implement community development projects, including planning, budget allocation, personnel allocation, knowledge exchange, experience sharing, and information dissemination. This results in more efficient community development projects, benefiting more recipients and reducing redundancy in project management within the area.
- Collaborating with Leading Partners to Deliver Optimal Solutions: For instance, the company has partnered with Alto Tech, a developer of energy management platforms and automated control systems, to utilize AI in enhancing the efficiency of energy management systems (EMS). Additionally, the company has collaborated with Singapore Power Group (SP Group) to provide centralized cooling systems (DCS).
- Working with Partners in the Energy Technology Business: This includes platforms for carbon exchange or comprehensive energy trading using AI systems to enhance service capabilities and resolve various issues for customers. The company aims to strengthen business operations, build robust energy technology, and create a strong business ecosystem. This involves embracing technology and ideas from new startups to complement comprehensive clean energy services through investment support and jointly bringing innovations to create new business concepts or foster business growth. Together, they aim to deliver the best solutions that meet the needs of each customer.