Supplier Due Diligence
The Company integrates sustainability criteria into the selection and assessment of suppliers to promote responsible operations in line with the Sustainable Sourcing Policy and Supplier Guiding Principle. Suppliers are screened based on secondary data analysis (Desktop Research) from credible data sources, combined with annual risk assessments of suppliers using tools aligned with the supply chain ESG management approach, including:
“New suppliers” must meet both quality and sustainability criteria before commencing transactions with the Company, which includes completing a self-assessment questionnaire (SAQ). While “existing suppliers” are required to conduct a sustainability self-assessment (Self-Assessment Questionnaire) and review on a predefined interval, to evaluate risk levels and plan suitable follow-ups. Critical suppliers, defined as those with high purchasing value, those providing critical raw materials for production, or those that are non-substitutable or have long replacement times, must complete a more detailed and rigorous self-assessment questionnaire. If high risks are identified, the Company will conduct an on-site assessment through a Second-Party Audit or a Third-Party Audit.
In 2025
of critical and high-risk tier-1 suppliers in the Thailand and Vietnam operations have undergone on-site ESG audits.i
In the Thailand operations, five supplier categories—food ingredients, packaging, equipment and machinery, fuels, and chemicals—received third-party audits conducted by TÜV SÜD, an independent assessment organization certified to ISO/IEC 17021-1 standards.
Remark: i This covers Thailand and Vietnam operations. Thailand operations cover 9 groups of products and services including Processed animal feed raw materials, Unprocessed animal feed raw materials, Food ingredients, Packaging, Equipment and machinery, Fuel, Chemicals, Logistics, and Other critical raw materials. Scope of Vietnam operations covers all products and service groups.
Sustainability Screening and Assessment of Significant Suppliersi in 2025
Supplier Screening
Total tier-1 suppliers
classified as significant suppliers
significant tier-1 suppliers ii
significant non tier-1 suppliers
Supplier Assessment
significant suppliers undergone ESG assessment
found with substantial actual/potential negative impacts
found with substantial actual/potential negative impacts with agreed corrective action plan
was terminated
Supplier Support
supported in corrective action plan implementation
in capacity building program
Remarks:
i The scope covers Thailand and Vietnam operations. Significant suppliers refer to those suppliers identified as having high ESG risk, or critical suppliers, or both.
ii Accounts for 44% of total spending on tier-1 suppliers.
In case incompliances are identified, the Company collaborates with suppliers to establish corrective measures and continuously monitors progress. Additionally, it implements projects or activities to enhance capabilities in related areas to elevate performance. In cases where suppliers cannot implement corrective measures in line with sustainability requirements within the specified timeframe, the matter will be escalated to the relevant committee for consideration, and the status of the supplier relationship may be terminated as deemed appropriate.
The Company communicates the results of sustainability evaluations transparently to suppliers and is in the process of developing a system for displaying performance comparisons among suppliers in the same category for ongoing improvement. Simultaneously, data from all sustainability risk assessments has been analyzed to identify common incompliance topics for systematic management. As of 2025, the top three areas of improvement include:
- Climate change management
- Occupational health and safety
- Labor practices
