{"id":10782,"date":"2026-05-18T04:27:04","date_gmt":"2026-05-18T04:27:04","guid":{"rendered":"http:\/\/10.10.7.12\/sappe\/csr\/?page_id=10782"},"modified":"2026-05-22T03:45:23","modified_gmt":"2026-05-22T03:45:23","slug":"sustainable-procurement","status":"publish","type":"page","link":"https:\/\/www.sappe.com\/sd\/en\/sustainable-procurement\/","title":{"rendered":"Sustainable Procurement"},"content":{"rendered":"\t\t
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The Company recognises suppliers as strategic partners and places strong emphasis on supplier relationship management to build a transparent, responsible, and sustainable supply chain that enables long-term shared growth. The Company systematically integrates environmental, social, and governance (ESG) considerations into its procurement processes, covering supplier selection and risk assessment, the establishment of supplier requirements and business standards, and ongoing monitoring, auditing, and performance evaluation.<\/h5>
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This approach is designed to ensure that suppliers operate in accordance with the Company\u2019s ethical standards, applicable legal and regulatory requirements, and relevant international standards, including principles relating to human rights and social responsibility throughout the supply chain.<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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Sustainable Supplier Engagement Target<\/strong><\/h3>
– Achieve 100% monitoring and assessment coverage of key suppliers against the Company\u2019s Supplier Code of Conduct.<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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Performance on Sustainable Supplier Engagement\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Key suppliers<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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32 suppliers [%]<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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No material cases of non-compliance identified<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t
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New suppliers<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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12 suppliers [%]<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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No material cases of non-compliance identified<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t
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Management Approach<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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SAPPE is committed to conducting its business in line with sustainable growth principles, with a strong focus on quality, innovation, and good corporate governance, while systematically integrating environmental, social, and governance (ESG) considerations into its procurement and supply chain management processes.To support this commitment, the Company has established a Supplier Code of Conduct as a minimum standard applicable to all suppliers. The Code covers key areas including business ethics, anti-corruption, human rights, labour standards, and environmental management, with the aim of strengthening risk management and promoting transparency throughout the supply chain.

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Compliance with the Supplier Code of Conduct forms part of the Company\u2019s supplier selection, registration, and ongoing performance evaluation processes. In addition, the Company actively promotes supplier capability development to enhance operational standards and align supplier practices with the Company\u2019s ESG expectations, thereby creating shared value and supporting long-term sustainable growth across the supply chain.<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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Supplier Selection and Qualification <\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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SAPPE\u2019s supplier selection and qualification process is conducted under an ethical and sustainability framework. All new suppliers are required to undergo a Supplier Pre-qualification and ESG Screening process prior to formal supplier registration. The assessment covers key criteria including business stability, delivery capability, product quality and safety, business transparency, as well as compliance with environmental and social requirements. The supplier evaluation criteria and methodology are outlined as follows:<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t
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New suppliers<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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All new suppliers are required to undergo a Supplier Pre-qualification process, which integrates assessments of business capability, quality, food safety, and ESG-related risks, including verification of relevant certifications and supporting documentation. The Company applies a risk-based approach to raw material assessment and conducts quality testing prior to approval for use. In addition, packaging materials are required to comply with applicable food safety requirements in each respective market. Suppliers meeting the established criteria are formally approved and enrolled in the Company\u2019s supplier management system, which includes ongoing monitoring and periodic performance evaluation.<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\r\n\t\t
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Existing suppliers<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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SAPPE conducts ongoing supplier performance evaluations covering product quality, delivery performance, commercial terms, and compliance with ESG principles, with assessment results regularly used to support supplier development and continuous improvement. For key or higher-risk suppliers, the Company conducts additional in-depth audits covering quality standards, safety requirements, and business ethics. Where deficiencies are identified, corrective action plans are established and systematically monitored, with supplier status subject to review where improvements are not achieved in line with the Company\u2019s requirements.<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t
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Supplier Classification <\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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The Company classifies suppliers based on their level of criticality and potential risk to business operations, with particular emphasis placed on Critical Suppliers, which may significantly impact production continuity, product quality, and ESG-related risks. These suppliers are subject to more rigorous assessment and monitoring processes compared to other supplier groups, in line with the Company\u2019s systematic risk management approach. Suppliers are categorized into two main groups as follows:<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t
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\n\t\t\t\tSupplier Composition by Significance (Suppliers that are primary manufacturers and distributors of goods or services critical to the Company\u2019s production processes, and are listed in the approved vendor list.)\t\t\t<\/p>\n\t\t\t<\/div>\n\t

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