AT A GL ANCE P I L L AR Governance STRATEGY Supply Chain Management Onboarding Assess new suppliers for suitability via our third-party due diligence process Risk Identification Review and categorize suppliers based on risk levels Monitoring and Evaluation Monitor and mitigate risk in our supply chain Relationship Management Collaborate with our suppliers to ensure compliance with our Supplier Code of Conduct Risk Identification As part of our Supplier Risk Evaluation Framework, Sands annually performs a risk assessment for suppliers that conducted business with us in the previous year. We thoroughly assess risk in the areas of compliance (overall compliance risk as well as category-specific risk), business disruption (business reliance and financial risk) and social and environmental risk (health, safety, fair pay, and labor and slave labor risk), and categorize each supplier into low, medium and critical risk levels. Onboarding Before suppliers are cleared to work with Sands, we conduct stringent assessments for suitability via our third-party due diligence (TPDD) process, which categorizes businesses by risk level. All suppliers are reviewed against real-time due diligence monitoring systems and databases, which assess various risks ranging from bribery and money laundering to human trafficking. Suppliers deemed high risk must undergo a broader range of due diligence processes and procedures, such as more frequent TPDD rechecks and background investigations. All supplier contractual agreements are linked to our Supplier Code of Conduct, which is aligned with international best practices to protect human rights, labor rights, worker health and safety, environmental compliance and responsibility, and overall ethics and compliance. We also encourage suppliers to promote the Sands Supplier Code of Conduct or a similar code of conduct with their vendors. Critical suppliers are those who are determined to have the ability to significantly impact business operations. These suppliers may be non-substitutable, provide critical services, sourced at a high volume or have specific ESG risk factors. From this assessment, we determine a course of action based on the supplier’s risk level, with ongoing monitoring for suppliers deemed to be of medium risk and further evaluation of criticalrisk suppliers through self-assessment surveys, site visits and audits performed by Sands personnel or third-party auditors. SUPPLY CHA I N MANAGEMENT Sands’ corporate responsibility commitment would be incomplete without responsible supply chain management as an extension of our dedicated efforts to address issues impacting the environment and local communities. Our supply chain process ensures our standards are met and potential risks are mitigated. Sands Supplier Risk Evaluation Framework Critical Supplier Identification Third-Party Due Diligence Recheck Sands Quality Control Audits Independent ThirdParty Audits Engagement Corrective Action Plans RI SK I DENTI FI CATI ON RELATI ONSHIP MANAGEMENT MONI TORI NG AND EVALUATI ON ONBOARD I NG Supplier Code of Conduct Third-Party Due Diligence Procurement Policies 2022 ESG REPORT 44
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