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) alongside26 local manufacturers in our vendor ecosystem. In 2023, we allocated RM1.1 billion towards these Bumiputera contractors, an increase of 11.72% compared to 2022 and RM331 million for Bumiputera manufacturers in alignment with the Bumiputera Spend Share Policy. The vendor development programmes are integrated and conducted with ILSAS. Strategic business matching activities are pivotal in our journey towards sustainable procurement: • Data-driven matching - data analytics to identify suppliers with proven track record of sustainable practices. • Stakeholder collaboration - with industry associations and government-linked companies, to identify and connect with suppliers that prioritise sustainable initiatives. • Matchmaking events - to expand supplier base through events with SME Corp, Business Opportunity, Business Partnership Retreat and Vendor Day. In 2023, we embarked on a survey to assess the ESG readiness of our active vendors. Approximately 20% had responded by the end of 2023. We are developing a comprehensive ESG programme to ensure that our vendors are in harmony