Sustainability Report Our Sustainable Procurement Policy also sets out the following principles: - adopts internationally recognised standards of health and safety measures - protects our environment by minimising impact of our business on environment and - conduct our business in a socially responsible and ethical manner This policy applies to all Megachem employees, vendors, contractors and providers of products and services to Megachem. • Supplier Assessment Megachem evaluates and selects suppliers based on criteria such as quality, price, lead time, quality of management, technical standards and abilities as well as its sustainable procurement policies and practices. Internal processes were enhanced to check and ensure that sustainability criteria are taken into consideration when introducing a new supplier. The new assessment of supplier is done through self-audit questionnaire that consists of 5 categories, i.e. management responsibility, resource management, quality management system, health, safety & environment (HSE) management system and corporate social responsibility (CSR). • Supplier Code of Conduct Megachem expect our suppliers to comply with our Supplier Code of Conduct which includes among others adhering to applicable laws and regulations as well as internationally recognized environmental, social and corporate governance standards (ESG standards). Megachem also expect our suppliers to implement these standards with their suppliers and subcontractors. The Supplier Code of Conduct is sent to suppliers and is also available at our Company’s website. Performance Highlight Target 2024 Status Score To assess existing suppliers contributing to Top 80% of total chemical spend 80% reassessed 82% of respondents scored A & B. Target 2024 Status Score 100% of new suppliers assessed 100% assessed 67% of respondents scored A & B. 2024 Score % of Top 80% Spend Vendors who achieved min 80% score in CSR evaluation 64.23% % of Group Spending for Top 80% that achieved min 80% score in CSR evaluation 61.20% % of Top 80% Spend Vendors who achieved min 80% score in HSE evaluation 76.42% % of Group Spending for Top 80% that achieved min 80% score in HSE evaluation 68.10% 2022 2023 2024 2025 Target EcoVadis – Sustainable Procurement component 70 70 na >=70 na - not available at time of printing SOCIAL - Labour Practices & Work Environment Objective To sustain our human capital to achieve our long-term goals. Approach Megachem is influenced by the effects of demographic changes worldwide. The rising life expectancy, shrinking and aging population represent challenges for companies’ human resources management. We at Megachem have an important role to play in mastering the demographic challenges of the future. From the way in which we address these challenges, we can shape the social environment which we operate in and at the same time secure competitive advantages. Sustaining our human capital therefore becomes critical for us to achieve our long-term goals. 90 ANNUAL REPORT 2024
RkJQdWJsaXNoZXIy NTkwNzg=