Supply Chain Management

Supporting the Sustainable Development Goals (SDGs)

Good Health and Well-Being

Clean Water and Sanitation

Decent Work and Economic Growth

Responsible Consumption and Production

Partnerships for the Goals

Goals and Performance Highlights

Goals

Maintains the quality of products and services, with the customer contract termination rate maintained at no more than

%

Promote the use of environmentally friendly, safe, traceable construction materials that align with sustainable development practices

Performance

Customer contract terminations due to substandard products and services remaining below

%

of the Company’s total purchase value consists of environmentally friendly products

Commitment, Challenge and Opportunity

The Company places great importance on supply chain management, recognizing suppliers as key business partners who play a critical role in supporting the organization’s sustainable operations. Under a policy that upholds transparency, fairness, and consideration of impacts on communities, society, and the environment in all dimensions, the Company has established criteria for selecting capable, high-quality suppliers. Priority is given to product and service standards, on-time delivery, compliance with labor laws and human rights, as well as all relevant requirements and regulations. These practices helps strengthen a transparent and well-governed procurement system and reduce long-term business risks.

In the context of rapid global supply chain changes, the Company acknowledges several key challenges, such as raw material cost volatility, shortages of skilled labor, and risks related to the continuity of critical suppliers. At the same time, the Company sees opportunities to raise the standard of collaboration with suppliers through systematic selection and evaluation processes, as well as by building long-term, stable business relationships.

With a commitment to grow, while creating value for all stakeholders, the Company continues to develop a robust, transparent, and resilient supply chain. This includes promoting ethics and sustainability in every process to meet the expectations of customers and stakeholders in an era defined by circular economy principles and sustainable competitiveness.

Management and Strategic Approach

The Company places great importance on selecting suppliers and products based on ESG principles (Environmental, Social, and Governance) to promote shared responsibility throughout the supply chain, particularly in relation to environmental stewardship and business ethics. Therefore, all suppliers and contractors are required to undergo a systematic application and selection process, including the disclosure of relevant ESG information, including any potential impacts arising from supply chain management that may affect the Company’s reputation and business credibility.

During the supplier capability assessment process, the Company works collaboratively with the Supplier Selection Committee, which comprises relevant departments such as Procurement, Construction, Product and Project Development, Marketing, and others. This ensures that the selection process is comprehensive across all dimensions, including product quality, pricing, delivery capability, and environmental responsibility. For example, selecting materials produced through environmentally friendly manufacturing processes, and establishing quality standards for products with longer lifespans to enhance the quality of materials and services used in construction projects.

The Company also implements a project-based waste material management initiative that upcycles leftover materials into new products, for example, using washed concrete waste to produce subbase materials and precast floor panels for use in other projects.

The Company also promotes collaboration among the organization, business partners/suppliers, and external experts by providing platforms for dialogue, such as focus groups or stakeholder exchange forums on key issues including risks, stakeholder expectations, brand reputation, service quality, corporate governance and sustainable product development. Examples include joint initiatives with the CAC for SME suppliers to promote anti-corruption practices, as well as CSR activities conducted with partners in local communities under the “Supalai Creates Goodness” program, such as projects that enhance the health, quality of life, and well-being of construction workers and contractors within the Company’s projects.

Through these approaches, the Company remains committed to building a strong, transparent, and responsible supply chain that grows sustainably alongside its partners and stakeholders over the long-term.

Stakeholders Directly Impacted

Positive Impacts

Work with suppliers who meet quality and ethical standards, gain greater understanding of sustainable supply chain management, and reduce risks in procurement.

Expected Impacts / Risks

May have to deal with more complex supplier selection processes and adjust working methods to align with sustainability criteria.

Positive Impacts

Gain the opportunity to build partnerships with organizations that prioritize sustainability, building credibility and opportunities for long-term joint growth.