84 Environmental, Social and Governance Report 2023 PILLAR 3: CORPORATE PERFORMANCE Supply Chain Management Our operations team conduct both periodic and ad-hoc suppliers’ risk assessment and performance evaluation and perform audits on-site to check suppliers’ performance against agreed contractual obligations/requirements as well as compliance with Group policies and applicable local laws and regulations. These obligations/requirements include aspects such as human rights violations, health & safety lapses, environmental management, and sustainable procurement amongst others. After every completed engagement, ESR evaluates the performance of suppliers to provide them with feedback for improvement with a corrective action plan. Suppliers that do not meet or breach the requirements are penalised or terminated based on the contractual terms. By following our stringent procurement processes and Supplier Code of Conduct, we aim to encourage our suppliers to adopt sustainable practices. Refer to additional information on Counterparty Risk Management on page 77 & 78 which sets out mechanism on due diligence on selection of suppliers.
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