1.1 This Sustainable Procurement Policy (“this Policy”) sets out PSC Corporation Ltd. and its subsidiaries’ (“the Group”) commitments to integrate environmental, social, and governance (ESG) considerations into its procurement practices.
1.2 The Group acknowledges and recognizes our responsibility to ensure that the goods and services we purchase are sourced in a manner that is responsible, ethical, and aligned with our sustainability goals and stakeholder expectations.
1.3 The Group is committed to sustainable procurement by:
(i) minimizing environmental impact through responsible sourcing and selection of eco-friendly products;
(ii) promoting fair labour practices, diversity, and human rights across the supply chain;
(iii) fostering ethical conduct and anti-corruption standards among all suppliers;
(iv) supporting local and inclusive economies through engagement with SMEs, social enterprises, and diverse suppliers.
2. SCOPE
2.1 This Policy applies to:
(i) all procurement activities across the Group;
(ii) all employees involved in purchasing or supplier engagement;
(iii) all suppliers, contractors, and service providers.
3. PRINCIPLES OF SUSTAINABLE PROCUREMENT
3.1 We adopt the following principles in all procurement activities:
(a) Environmental Responsibility
(i) Prefer suppliers who implement environmental management systems (e.g., ISO 14001) and/or comply with environmental permits and local regulations;
(ii) Promote products with lower carbon footprint, energy efficiency, less packaging and/or sustainable packaging;
(iii) Avoid purchasing single-use plastics or products containing hazardous substances.
(b) Social Responsibility
(i) Work only with suppliers who uphold internationally recognised human rights and labour standards (e.g., ILO Conventions, UN Guiding Principles on Business and Human Rights);
(ii) Prohibit forced labour, child labour, unsafe working conditions, and discrimination;
(iii) Encourage suppliers to provide fair wages, working hours, and freedom of association.
(c) Ethical Conduct
(i) Suppliers must comply with all applicable anti-bribery, anti-corruption, and data protection laws;
(ii) Conflicts of interest must be disclosed and managed;
(iii) Procurement decisions must be based on merit and integrity.
(d) Local and Inclusive Sourcing
(i) Support local suppliers where feasible;
(ii) Engage with diverse and inclusive suppliers, including women-owned businesses and social enterprises;
(iii) Provide capacity-building support to small and medium suppliers.
4. SUPPLIER EXPECTATIONS AND DUE DILIGENCE
4.1 We require all suppliers to:
(i) comply with the Group’s Supplier Code of Conduct
(ii) undergo periodic sustainability assessments or audits;
(iii) submit relevant certifications or documentation (e.g., ISO, Fairtrade, RSPO, FSC, etc.);
(iv) cooperate with corrective action plans, if required.
4.2 Failure to comply may result in suspension or termination of business relationships.
5. ROLES AND RESPONSIBILITIES
Party
Responsibilities
Procurement Team
Ensure suppliers meet sustainability criteria; maintain documentation and audit trail.
Business Units
Support adoption of sustainable practices and raise concerns over supplier risks.
Suppliers
Comply with this Policy and all related codes and procedures.
6. MONITORING AND REVIEW
6.1 This Policy will be regularly reviewed by Audit & Risk Committee (“ARC”) and updated as needed to ensure it continues to be adequate and effective.
7. COMMUNICATION
7.1 This Policy shall be communicated to the employees and all existing and new suppliers.
8. KEY CONTACT
8.1 For questions regarding this policy or its implementation, please contact: corpcomms@psccorporation.com.
