Through continuous improvement of management and service quality, the Group has established long-term, stable and trustful partnerships with many suppliers and jointly promote sustainable development.
Verification and Approval of Suppliers
The Group has formulated and implemented the Procedures for Procurement of Materials to impose strict measures in supplier approval and management, and made efforts to reduce possible environmental and social risks in the supply chain. The Group reviews the performance of potential suppliers in project progress, quality, safety, health and environmental protection, and develops a list of approved suppliers. Meanwhile, the Contract Department is responsible to assess all suppliers regularly on an annual basis, and review and update the list based on the assessed result.
Supply Chain Risk Management
Sustainability Risk Assessment
The Group regularly evaluates suppliers’ sustainability risks including environmental and social aspects to ensure that the suppliers are not involved in negative situations such as serious environmental pollution, child labour, or forced labour.
Achieve Contract Requirements and Engage Eligible Suppliers
The Contract Department elaborates detailed and specific safety, health, and environmental requirements on the material procurement to the suppliers and includes those special terms and conditions in the contract.
Prioritize Sustainable Products
For those without specific requirements in the contract, the purchaser should consider the product quality, safety, health, and environmental factors during product delivery, such as noise, energy consumption, dust, exhaust, waste, chemicals, etc. On this basis for evaluation, the purchaser should select appropriate suppliers with priority on safer, healthier, and more environmentally friendly products.
Green Procurement for Low Carbon Operation
During the procurement process, the Group fully considers the environmental impact of procurement, actively implements green procurement principles and prioritises the employment of local suppliers, in order to reduce pollutants and greenhouse gas emissions during transport in the supply chain. In the future, the Group will continue to refine the selection criteria of green suppliers, establish a robust system, and promote green procurement in the Group in wider extent.
