How We Create Value Limiting operational risks through responsible supply chain management All new suppliers will be screened and assessed based on their financial performance, background and historical records. Digi mandates for all its suppliers to sign on the Agreement of Responsible Business Conduct (ABC) so as to ensure they meet our standards and requirements in areas of Health, Safety and Security (HSS), ethical conduct, human rights and environmental management. From the inspections carried out, non-compliances were identified on matters-related to health and safety, prohibited business practices, human rights, environment, cyber security and breach of regulatory compliance.We required suppliers to develop corrective action plans based on the outcome of the inspections conducted. Suppliers who fail to meet the minimum requirements will be given time to work on the corrective action plan, failing which will result in serious consequences such as suspension or even termination. 179* New suppliers who signed the ABC (FY2020: 130) 2,099 Total suppliers who have signed the ABC to date (FY2020: 1,920) Number of inspections conducted Number of findings Unannounced 509 (FY2020: 463) (FY2019: 429) Announced 1 (FY2020: 48) (FY2019: 30) Total 510 (FY2020: 511) (FY2019: 459) Major 16 (FY2020: 5) (FY2019: 9) Minor 45 (FY2020: 194) (FY2019: 203) Number of suppliers terminated 2 (FY2020: 3) (FY2019: 1) Total supplier training hours We conducted periodical trainings to advocate on best practices including laws and regulation on HSS and human rights aspects. In 2021, 5,635 training hours were recorded.The increase in training hours for 2021 was partly attributed to the mandatory supplier training assessment implemented towards mid last year. Promoting sustainable local procurement As part of responsible sourcing practices, Digi promotes local procurement to reduce our carbon miles and to support the local economy.The spending percentile breakdown of local and foreign suppliers is shown below. 5,635 training hours (FY2020: 2,426) (FY2019: 2,594) Number of suppliers appointed Local Suppliers Foreign Suppliers FY2019 FY2020 FY2021 266 238 28 235 216 19 197 181 16 5.2% 1.5% 0.9% 94.8% 98.5% 99.1% Percentile of Total Expenditure Percentile of Total Expenditure Percentile of Total Expenditure * Number of new suppliers signing Digi’s ABC FY2021 has been independently assured by KPMG PLT 77 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information
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