ECONOMI C PERFORMANCE Sect ion 05 31 SUSTAINAB I L I TY Report 2022 ECONOMI C PERFORMANCE The tender is initiated by the relevant department, monitored by the Tender Secretary, evaluated by Tender Committee and approved by the CEO or Board of Directors. All tender documents come with clear and precise instructions for participation. Aspects covered include the procurement budget, tender process, tender committee, contractor registration and evaluation, emergency procurement, sole sourcing, approval and payment terms. The aforementioned tender process is closely adhered to, to ensure there is equal and fair opportunity for all eligible tenders to participate on a meritorious basis. All tenders are evaluated by the Board of the Tender Committee or Quotation Committee. Evaluations are conducted based on a set criteria. The only exception when a tender is not called is due to emergency situations where a quick appointment is necessary to prevent severe loss to assets, infrastructure or even to people. In FY2022, an overwhelming majority of contracted suppliers were local: PERCENTAGE OF LOCAL PROCUREMENT Operating Company FY2020 (%) FY2021 (%) FY2022 (%) Ranhill SAJ 99 100 100 RWS 100 100 100 RWT 98.2 96 97 RPI & RPII 94 98 94 RBSB 87 93 100 RW 81 71 100 Ranhill SAJ SUPPLIER ASSESSMENT Sub-contractors and suppliers are monitored and assessed regularly based on their performance. Following are the results of supplier performance – with Grade A being excellent and D being poor. Contractors rated D will be removed from the Approved Supplier List, and cannot be hired for one (1) year. Supplier’s Performance FY2020 FY2021 FY2022 Supplier A 380 353 304 Supplier B 456 476 490 Supplier C 58 54 54 Supplier D 15 19 21 Total Number of Suppliers 909 902 869 Total Number of Local Suppliers 909 902 869 Percentage of Local Suppliers (%) 100 100 100 GOVERNANCE OF THE SUPPLY CHAIN Increasingly, Ranhill has been expanding its sustainability focus to its supply chain – requiring that suppliers, vendors and contractors ensure a high level of regulatory compliance while also conforming where relevant, to the Group’s spirit of good ESG practices. In particular, Ranhill SAJ has established the Procurement Policy & Procedures (“P&P”) which have stipulations for suppliers to display good ESG practices. In essence, ESG performance is also progressively being considered as a criteria for being invited to participate in tenders as well as a selection criteria for awarding. The P&P has been developed to establish systemised transparency and accountability within the supply chain as well as the procurement process. The Group has thus far, not discovered any negative social or environmental impacts arising from its supply chain and will look to strengthen supply chain audit and assessments going forward.
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