Sustainable Supply Chain Policy
1.0 OBJECTIVE
This Sustainable Supply Chain Policy is part of SM’s Sustainability Management System to ensure the full practice of the Sustainability Policy and uphold good corporate governance principles espoused in our Corporate Governance Framework. This Policy aims to provide implementing guidelines on how the Company promotes sustainability and inclusive supply chain practices within SM.
2.0 OUR SUSTAINABLE SUPPLY CHAIN POLICY
With SMIC serving as lead and exemplary to the group, all business units within the SM group are expected to develop their respective Sustainable Supply Chain Policy that stipulates its approach to incorporating sustainability standards in its accreditation processes, awareness campaigns and engagement with the company’s suppliers. This policy is limited to the items procured for the SMIC parent company. Services rendered by the SMIC Procurement team shall align and implement the Sustainable Supply Chain policies of the respective company it provides the service.
3.0 OUR COMMITMENT AND INITIATIVES
With SMIC serving as lead and exemplary to the group, all business units within the SM group are expected to develop their respective Sustainable Supply Chain Policy that stipulates its approach to incorporating sustainability standards in its accreditation processes, awareness campaigns and engagement with the company’s suppliers. This policy is limited to the items procured for the SMIC parent company. Services rendered by the SMIC Procurement team shall align and implement the Sustainable Supply Chain policies of the respective company it provides the service.
3.1 Adherence to Human and Labor Rights
We adhere to the standards of human and labor rights stipulated in the UN Global Compact principles of no child labor, no compulsory labor or not complicit in any form of human rights; protecting the rights of employees to freedom of association and collective bargaining; and no forms of discrimination.
3.2 Precautionary Approach to Environmental Impacts
We adhere to the standards of human and labor rights stipulated in the UN Global Compact principles of no child labor, no compulsory labor or not complicit in any form of human rights; protecting the rights of employees to freedom of association and collective bargaining; and no forms of discrimination.
3.3 Promote Greater Environmental and Social Responsibility
We adhere to the standards of human and labor rights stipulated in the UN Global Compact principles of no child labor, no compulsory labor or not complicit in any form of human rights; protecting the rights of employees to freedom of association and collective bargaining; and no forms of discrimination.
3.4 Support Circular Systems
Whenever possible, we shall promote the use of products that support circular systems at the end of life cycle, particularly in information technology, materials usage and other items requiring high volumes.
3.5 Sustainability Journey Process: Awareness, Assessments, Verification and Evaluation
We work with our suppliers through our Sustainability Journey Process: helping raise their awareness and understanding of sustainability, incorporating sustainability in accreditation assessments to help them through the journey, a verification process with the support of the SM Sustainability Office and an evaluation method on progress and corrections implemented by the suppliers.
3.6 Integrity and Transparency in Sustainable Supply Chain Practices
We uphold the highest integrity in the selection and our dealings with our suppliers. We practice our SM Code of Conduct and ore liable to internal audit of our company. Our suppliers ore also expected to conduct their dealings with SMIC following the guidelines stipulated by the SM Code of Conduct and applicable company policies, at all times. We provide avenues for our suppliers to whistleblowing following our Whistleblowing Policy.
3.7 Supply Chain Risk Assessments
We shall incorporate supply chain risks and opportunities as part of the ESG Risk Management. The ESG Risk Management Framework is an active document that is regularly reviewed and updated. It is aligned with the Enterprise Risk Management of the Company. This assessment is done through the partnerships of the Governance, Risk and Compliance Office, Procurement Office and the SM Sustainability Office.
This policy is part of the SM Sustainability Management System to ensure the full realization of the SM Sustainability Policy and uphold good corporate governance principles espoused in our Corporate Governance Framework. This policy shall be regularly reviewed and updated as necessary.