2018 UEM Edgenta Annual Report

UEM Edgenta Safety Performance Indicator 2016 2017 2018 Injury Rate 1.1 1.7 2.2 Lost Time Injury case 28 31 46 Number of Fatalities 5 12 3 Occupational Diseases case 0 1 0 Vendor Development Programme (“VDP”) In our effort to encourage and support small and medium enterprises (“SME”) and Bumiputera entrepreneurs, we have been actively working with the Ministry of International Trade and Industry (“MITI”) to participate in the Vendor Development Programme. The programme is aimed at creating and developing sustainable and competitive Bumiputera entrepreneurs by providing them with the opportunity to work with us in areas such as construction, facilities management services, pavement works, traffic management, as well as healthcare support services. Our VDP of Business Excellence Framework are conducted through workshops and consultancy, from which participants would gain knowledge and insights on the technical and business process aspects of running a business. During the year, 12 training sessions were conducted from which, thirteen (13) selected Bumiputera vendors have benefitted from the VDP programme. Responsible Procurement In 2017, we launched an online vendor management portal on our corporate website to digitalise the process of registering; renewing registrations and updating registered profiles for our vendors. All vendors – suppliers, contractors and sub contractors, including their employees – must also conform to requirements outlined by ISO 14001 and OHSAS 18001, as well as the Environmental Quality Act 1974 and Occupational Safety and Health Act 1994. Periodic and random checks are carried out to ensure that registered vendors comply with statutory requirements, enactments, orders, regulations and legislations. There is also a Whistle Blower Policy established for the group, as we encourage stakeholders to report any irregularities in the business process; signs of collusion; instances of unethical behaviour; actual or suspected fraud; or violation of the Company’s Code of Conduct. In addition, and to continuously improve the quality of our supply chain management, we conduct periodic vendor performance reviews. Appended below are some key indicators from our procurement activities in 2018. E-Sourcing In 2017, the group procurement has launched E-Sourcing platform to drive minimum 4% target savings and 10% stretched target for cost sustainability. During the year under review, RM1.47 million savings was recorded from total sourcing of RM10.2 million, equivalent to 14.4%. Product and Service Responsibility We are committed to our vision of optimising assets to improve lives by managing the total asset lifecycle – quality management, product innovations, enhancing the economic lives of pavement assets and client satisfaction through improving efficiencies, reducing costs and enhancing performance, all with the end goal of delivering credible and reliable services, as well as managing environmental impacts. Bi-annually client satisfaction surveys are conducted to gauge our clients’ satisfaction, feedback and address their concerns raised for improvement. In H2 2018, we achieved an average client satisfaction score of 83% (2017:82%). 4,083 Approved Vendors Disbursed a Total of RM621.09 million in contract value to 1,839 of these vendo’s based on the value and category of works the vendors are qualified for A Total of RM255.59 million worth of contracts, which constitutes 43.12% of sub contract value awarded to Bumiputera contractors in 2018 Nurtured 13 selected Bumiputera vendors, additional of 2 more vendors compared to 2017 136 new Bumiputera vendors registered in 2018, an increase of 6.71% Appended below are some key indicators from our VDP initiatives in 2018. Financial Review Stakeholder Information AGM Information 97 Governance Review of Sustainability Activities