Sustainability Projects
Supply Chain Management 2025
Building Organizational Capability in Responsible Sourcing
EGCO Group strengthened its supply chain management practices by integrating more stringent environmental, social, and governance (ESG) and safety requirements into procurement processes.
Key enhancements included the incorporation of enhanced safety criteria into the Self-Assessment Questionnaire, the inclusion of ESG requirements in supplier contracts, the implementation of daily contractor inspection checklists, and the modernization of evaluation tools.
To ensure consistent and effective implementation, EGCO Group provided structured training sessions for buyer representatives from all business units as internal stakeholders, focusing on their roles in the supplier ESG program. This initiative strengthened internal capability to apply responsible sourcing practices and mitigate ESG risks in routine procurement operations.
Benefits of the Project
- Enhance internal capability to implement responsible sourcing practices in accordance with ESG standard.
Implementation Approach
- Upgrade supply chain management procedures and integrate ESG requirements.
- Conduct workshop for relevant internal stakeholders.
ESG Supporting Program for Suppliers
EGCO Group promotes sustainable supply chain management by systematically assessing and enhancing supplier performance across environmental, social, and governance (ESG) dimensions.
EGCO Group assesses key suppliers based on their ESG risk levels. Upon completion of the assessment, EGCO Group communicates individual assessment results to each supplier and provides the access to ESG benchmarking data compared to peers. This enables suppliers to analyze their performance, identify areas for improvement, and effectively prioritize mitigation actions.
Beyond assessment, EGCO Group also provides in-depth technical support programs to build supplier capacity and ESG performance in suppliers, and support for the implementation of corrective/improvement actions through annual remote and on-site training programs.
The training covers the following topics:
High-Risk Work Activities
- Working at height
- Confined space
- Hot work
- Electrical work
Workplace Ergonomics
- Office work ergonomics
- Onsite work ergonomics
Workforce Practices
- Fair labor practices (Legal requirements)
- Prohibition of child labor
- Living wages practices
These actions form part of supplier communication and training on ESG standards for EGCO Group’s suppliers to ensure understanding of relevant processes and requirements, as well as to reinforce awareness of EGCO Group’s Supplier Code of Conduct.
EGCO Group subsequently monitors the implementation of mitigation actions through structured follow-up processes to strengthen responsible practices across the value chain.
Benefits of the Project
- Enhance supplier ESG capability and operational safety awareness.
- Enable targeted performance improvement through benchmarking insights.
- Strengthen alignment with sustainability and governance expectations.
Implementation Approach
- Conduct ESG risk assessments via desktop reviews and onsite/online evaluations.
- Provide technical guidance and structured training engagements.
- Monitor mitigation progress through periodic follow-up processes.
Communication of Business Ethics through the Supplier Code of Conduct (SCOC)
EGCO Group communicates its business ethics requirements to suppliers through Supplier Code of Conduct (SCOC) and is committed to obtaining acknowledgement of these requirements from all suppliers that conduct business with EGCO Group. The SCOC covers key topics such as the anti-corruption policy and guidelines on giving and receiving gifts, entertainment, and hospitality, to ensure that suppliers conduct their business in accordance with EGCO Group’s standards.
In addition, EGCO Group monitors and reviews suppliers’ compliance with relevant ESG requirements, including adherence to business ethics principles among significant suppliers on an annual basis.
Based on the above initiatives, EGCO Group’s supplier management performance in 2025 was as follows:
1) Communication of Anti-Corruption Measures
- Number of suppliers: 373 suppliers registered in the Vendor Registration system and significant suppliers that underwent ESG assessments.
- Selection criteria: All new suppliers registered in EGCO Group’s system and significant suppliers identified as having a high ESG risk level.
- Response rate: All 373 new and significant suppliers acknowledged and accepted the anti-corruption requirements set out in the Supplier Code of Conduct.
2) Communication of the Policy on Gifts, Entertainment, and Hospitality
- Communication approach: The policy on giving and receiving gifts is communicated through the EGCO Group website and to all new suppliers registering in EGCO Group’s system, as well as significant suppliers identified as having a high ESG risk level.
- Number of suppliers: A total of 373 suppliers received communications regarding the policy through various channels.
- Selection criteria: The policy is communicated to all new suppliers registering through the Vendor Registration system, as well as significant suppliers identified as having a high ESG risk level.
Benefits of the Project
- Enhance supplier awareness and understanding of business ethics requirements, including the EGCO Group’s ESG standards.
- Reduce risks related to fraud, corruption, and ESG issues arising from suppliers through assessment processes.
Implementation Approach
- Communicate the Supplier Code of Conduct to all new suppliers and conducted assessments of compliance with the Code among significant suppliers with high ESG risk.
- Require suppliers to acknowledge and sign the Supplier Code of Conduct and the Gift Giving and Receiving Policy prior to commencing business engagements with EGCO Group.