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Supplier Management

Banpu Power recognizes that supplier performance directly and indirectly affect the Company’s performance. The Company therefore strives to support suppliers’ sustainable operation in accordance with the Company. That is to expand the Company’s sustainable governance framework to surrounding societies, creating sustainable values throughout the supply chain.

The Company has announced Sustainable Supply Chain Policy and Supplier Code of Conduct for communicating and be a guideline for supplier sustainability implementation, consisting of seven key areas i.e.

1) Business Ethics
2) Labor and Human Rights
3) Occupational Health and Safety
4) Environment
5) Community and Society
6) Business Continuity
7) Supply Chain Collaboration

The Company has operating guidelines to achieve its goal to create sustainable values throughout the supply chain as follows;

• Integrate environmental, social and governance (ESG) objectives into our supply chain strategy and other supply chain related policies to leverage opportunities and mitigate risks arising throughout our supply chain
• Conduct Supplier ESG Due Diligence to ensure that sustainability risks in the supply chain are identified and properly managed
• Conduct procurement transparently in accordance with Corporate Code of Conduct
• Engage with supplier who conducts business adhering to ethical, social and environmental responsibility, with the respect for human rights, and being aligned with our Supplier Code of Conduct and other related policies
• Ensure that our suppliers comply with all local regulatory requirements as well as international labor standards (where applicable)
• Support local procurement in every country where we operate
• Encourage our suppliers to extend our sustainability practices across their supply chain through continuous improvement and process innovation
• Publicly disclose sustainability performance of our supply chain on a regular basis to related stakeholders

Performance

• No complaints relating to supplier management regarding to environment, social and governance aspects
• No suppliers’ incident relating to non-compliance and violation to human rights and labor
• Sustainably driving supplier management in production units through the integration of management system standards (ISO9001), occupational health and safety management standards (ISO45001) and environmental management system standards (ISO14001)
• Proportion of local procurement accounting for 87%
• Conducting a satisfactory survey among the supplier group on co- working with the Company. The findings show 95% of suppliers satisfied with the Company while the rest of 5% quite satisfied

Sustainable Supply Chain
Supplier Code of Conduct

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