Supply Chain
Organizational Importance and Commitment
The Company emphasizes building a sustainable collaborative network throughout the supply chain. The management approach focuses on driving business success while simultaneously reducing social and environmental impacts and enhancing stakeholder engagement across all areas.
Opportunities and Impact
Effective supply chain management is a key factor influencing operations, helping to increase profit efficiency and enhance competitiveness, while also creating business opportunities and supporting organizational sustainability. However, poor supply chain management can cause environmental, social, and economic impacts, leading to business disruptions, legal violations, fines, operational losses, and reputational damage. Therefore, careful supply chain planning and management are crucial factors for the organization’s long-term sustainability.
Supporting the SDGs Goals
Goal 9:
Stakeholders Directly Impacted
Management Guidelines
1. Risk Assessment from Supplier Operations
The Company places importance on effective supply chain management by implementing policies for quality procurement processes, both for central procurement and project-specific procurement. This is achieved through supplier evaluations to ensure that partners have the capability to deliver quality products and services that meet the specified criteria, quantities, timelines, and delivery procedures as defined by the Company. In addition, partners must comply with labor laws, environmental laws, and relevant quality management system standards.
The Company analyzes and classifies its trade partners into 5 priority groups as follows:
Criteria for Selecting Suppliers for Risk Assessment
Risk Factors Considered
Environment Factor
- Compliance with environmental laws and standards
- Energy management
- Water management
- Waste and pollution management
- Environmental impact from production processes and services
- Climate change
Social Factor
- Compliance with labor laws and human rights
- Occupational health and safety
- Fair and equal treatment of workers
- Prohibition of forced labor and child labor
- Employee compensation and benefits
Economy and Corporate Governance Factor
- Confidentiality
- Intellectual property rights
- Anti-corruption
- Conflict of interest
- Fair competition
- Quality and delivery of product and service
Key Developments
Number of suppliers who signed to acknowledge the Suppliers’ Code of Conduct
463suppliers
an increase of 112 suppliers from 2024
The Company prioritizes building a sustainability partnership network with business allies, business partners, government agencies, the private sector, and academic institutions. This network facilitates the exchange of knowledge, technology, and best practices, and enables collaborative projects focused on environmental stewardship, efficient resource management, greenhouse gas reduction, and social progress – all of which contribute to a stronger, more resilient business ecosystem in the long term.
