Oversight and Responsibilities The procurement department is responsible for all aspects of supply chain management and is assisted by the compliance team during the supplier onboarding process. Regional sustainability teams provide support for the integration of ESG criteria. Policies • Supplier Code of Conduct • Sustainable Procurement Policy Targets and Commitments We maintain strict adherence to ethics, compliance and sustainability throughout our supply chain. Suppliers must meet the standards outlined in our Supplier Code of Conduct, and we leverage our Sustainable Procurement Policy to source products and services that minimize environmental impact. We prioritize working with local businesses, small and medium enterprises (SME’s) and diverse suppliers to be a catalyst for business growth in the communities we serve. Strategy Our supply chain process ensures our standards are met through three phases of supplier engagement: onboarding, risk identification, and performance evaluation and relationship management. Onboarding: Before suppliers are cleared to work with Sands, we conduct stringent assessments for suitability via our third-party due diligence process. Risk Identification: We perform an annual assessment that thoroughly evaluates risk in the areas of compliance (overall compliance risk and 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). Through this assessment, we categorize suppliers into low, medium and critical risk levels. Performance Evaluation and Relationship Management: To ensure suppliers meet our standards, the supplier management team or thirdparty auditor visits select suppliers to review their performance and detect signs of violations. If Sands or the independent third-party auditor identifies a corrective need, we share audit findings and require an action plan to address the issue. Training and Communications Our Supplier Code of Conduct is communicated to every supplier and is affirmed through acknowledgment or contractual terms. Annual training on the code of conduct is conducted for suppliers with higher risk categorizations. Our annual Sands Supplier Excellence Award recognizes top-performing suppliers across seven categories. We utilize other supplier communication channels, including internet-based communication, meetings, surveys, suggestion boxes and forums to ensure communication of our standards and expectations. We place additional focus on supporting small- and micro-sized enterprises, “Made in Macao” businesses and young entrepreneurs. These suppliers may access financial assistance such as advanced payment on purchase orders, participate in invitational matching sessions to promote their products and services for potential buys, and attend training and development programs to gain business knowledge and skills for working with large-scale international companies. Evaluation and Adjustments All company policies, including the Supplier Code of Conduct and Sustainable Procurement Policy, are routinely reviewed and updated. Periodically, we receive feedback and appreciation from suppliers on our engagements with them. Positive feedback is acknowledged and shared with Team Members. Negative feedback is addressed and rectified. Suppliers By Region Number Spend North America 931 $293,010,000 South America 5 $736,000 Europe 147 $52,104,000 Asia 3,604 $1,429,165,000 Africa 2 $23,000 Oceania 36 $2,997,000 By Operation Marina Bay Sands 1,805 $760,649,000 Sands China 2,048 $740,772,000 Sands Corporate 872 $276,614,000 Total 4,725 $1,778,035,000 MANAGEMENT APPROACH SUPPLY CHA I N MANAGEMENT 63 More information and data on sourcing can be found in the Appendix on page 63. 2022 ESG REPORT 88
RkJQdWJsaXNoZXIy MTYzNzU=