PERFORMANCE SUSTAINABILITY DISCLOSURES ON MATERIAL MATTERS SUSTAINABILITY STATEMENT Sec 3 95 We drive sustainability within our supply chain by advocating sustainability practices across the ecosystem, from raw material extraction to end-of-life disposal. MM 9 Sustainable and Responsible Supply Chain Our commitment to local sourcing has resulted in a tangible economic impact, contributing to job creation and economic stability within the community. By engaging local vendors, we actively promote the uplifting of local capabilities and competencies, creating opportunities for a wide range of businesses to thrive. Vendor Development Ecosystem Vendor Communication Channel Vendor Opportunities Vendor Performance Evaluation Vendor Capability Building Vendor ESG Programme Considerations are given to environmental, social and governance impacts to ensure a responsible procurement process. The TNB Procurement & Supply Chain Policy and Procedures govern the executionof best-value procurement, upholding transparent and ethical practices to our vendors and contractors by implementing the TNB Code of Business Ethics and Procurement Code of Conduct. We support local Malaysian suppliers and understand the importance of our role in strengthening the local value chain ecosystem. We engage with our strategic suppliers and set gradual expectations aligned with our sustainability goals in respecting human rights and reducing carbon emissions and environmental footprint, among others. This will improve transparency in emissions accounting and enable reductions within our Scope 3 emissions. Recognising our small and medium-sized enterprise vendors’ struggles, a Vendor Management Programme is ongoing to educate and develop vendor capabilities. MANAGEMENT APPROACH SUSTAINABILITY DISCLOSURES ON MATERIAL MATTERS TENAGA NASIONAL BERHAD Integrated Annual Report 2023 96 Through our Bumiputera Manufacturers and Contractors Programme, we have appointed 726 Kontraktor Kerja Bumiputera (KKB) and Kontraktor Perkhidmatan Bumiputera (KPB)