Supply Chain Management

Commitment


To create a sustainable practice throughout the entire supply chain by enforcing appropriate ESG risk management, promoting green procurement, and collaborating with and supporting suppliers to improve their social and environmental performance

Materiality


We recognize that society expects the business sector to play a larger role in managing social and environmental impacts that may arise from the operation of its business or suppliers in its supply chain, as well as its potential reputational risks. We therefore place great importance on properly managing environmental, social, and governance (ESG) risks in the Bank’s supply chain, promoting the procurement of environmentally friendly products, and supporting the Bank’s suppliers to conduct their business with social and environmental responsibility. We treat all suppliers equally and fairly and have prepared a Supply Chain Code of Conduct to reflect our expectations of suppliers regarding ESG. All suppliers are encouraged to conduct their business responsibly in accordance with the Bank’s Supplier Code of Conduct so we can jointly create a stable, effective supply chain which will create sustainable value to the environment and society.
Management Approach
We have prepared a Supplier Code of Conduct to clearly indicate our expectations of suppliers regarding ESG. We expect our suppliers to strictly comply with the Code of Conduct including conducting their business based on ethics and good governance, respecting human and labor rights, caring for the environment, and complying with relevant laws and related regulations to prevent risks and impacts to the Bank’s business and other suppliers and stakeholders. We communicate the Bank’s Supplier Code of Conduct to all suppliers via the Bank’s website and specifically in this year requested cooperation from all major suppliers to sign an acknowledgment of the Supplier Code of Conduct. We monitor suppliers’ compliance with the Supplier Code of Conduct and support them to fully comply with it. We have a supplier screening process that covers ESG issues and also evaluate risks associated with critical suppliers regularly. This is to ensure that our suppliers uphold good ESG performance standards and have an acceptable level of ESG risk. We also attach great importance to expanding the Anti-Corruption Coalition by inviting our suppliers and business partners to join the Thai Private Sector Collective Action Against Corruption.

Key Activities

Supplier Screening

We have established a systematic supplier screening process covering competence, credibility, and ESG performance to ensure that all suppliers are secure and reliable, have the ability to produce products or provide quality services that meet the Bank’s requirements, and have policies and practices that are consistent with the Bank’s Supplier Code of Conduct. Potential suppliers are invited to meet us to discuss their products and services as well as to give them a good understanding of the Bank’s guidelines and practices. We investigate the suppliers’ qualifications based on our evaluation criteria for service performance and reliability. Staff of the relevant business units may visit the supplier’s business for further screening and evaluation. For outsourced service providers, the screening committee will consider applications for internal registration of suppliers based on the screening guidelines for the outsourced company. For the ESG assessment, suppliers must each complete an ESG Self-Check List and pass the assessment criteria set by the Bank before they can qualify as our registered suppliers. If they qualify, they can sign a procurement contract with the Bank.

In the past year, the Bank revised the supplier’s ESG Self- Check List to make it clearer and more comprehensive covering several aspects such as environmental impact management, respect for human rights in compliance with international principles and standards, respect for basic rights at the workplace in compliance with the International Labor Organization (ILO) Convention, illegal use of child labor and forced labor, prevention and protection of personal information, prevention of corruption, etc. In addition, the Bank requires suppliers to provide documentary evidence for our evaluation to support their responses to the ESG Self-Check List, such as their related policies or measures.

Assessment of Risks Related to the Environment, Society, and Governance in the Supply Chain

In assessing ESG risks of our suppliers in the supply chain, the Bank attaches great importance to the risk assessment associated with our critical suppliers, such as those suppliers with whom we have high spending; critical component suppliers which produce essential goods and services for the Bank; and non-substitutable suppliers which produce products and services that cannot be easily replaced by other sources. Specifically, the Bank has identified material risks based on likelihood and severity of the risks for assessing our critical suppliers as follows:

  • Environment: 1. Greenhouse gas emissions, 2. Energy management, and 3. Waste and hazardous material management
  • Social: 1. Human rights, 2. Labor practices, and 3. Occupational health and safety at the workplace
  • Governance: 1. Corruption, 2. Privacy Protection, and 3. Fraud

If any supplier is found to have a high level of risk, we will determine specific measures to prevent and mitigate these risks. If the overall supplier risk is assessed to be higher than the Bank’s acceptable level, we will improve our risk management process to be more efficient and effective.

Monitoring and Evaluation of Supplier Performance

Business units involved in the procurement of supplies have a duty to monitor, audit and evaluate the supplier’s performance in various aspects such as reliability, quality, production capability of goods or services, and ESG issues. They are also responsible for tracking news and information about their suppliers’ practices and conduct that are to be inconsistent with the law and the Bank’s Supplier Code of Conduct. Such news and information is used for reviewing registered suppliers in the following year or upon the expiration of the procurement contract. This is to ensure that the Bank’s suppliers can perform their work properly in compliance with the contracts and have social and environmental responsibility.

Procurement that Promotes Environmentally Friendly Products

Besides supporting suppliers to conduct their business sustainably, we also promote the production and distribution of environmentally friendly products by choosing and procuring a wide range of environmentally friendly products such as photocopy paper that has a mixture of recycled material and pure wood pulp, photocopier with eco-fiber component, printing ink certified to international environment preservation standards, employee uniforms with the Cool Mode label, non-CFC water mist fire extinguishers, and office supplies certified by Leadership in Energy and Environmental Design: LEED).

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