Annual Report 2023

51 2023 Annual Report Transport International Holdings Limited Supply Chain Management We believe an integrated upstream supply chain management is key to quality and logistics control. We work closely with our business partners to develop new buses and services that are adapted to the local climate and operational environment, whilst prioritising energy efficiency and the latest emission standards. We encourage fair and open competition with the aim of developing long-term relationships with suppliers based on mutual trust. Our supply chain policies and procedures are in place to ensure ethical procurement of supplies and services, which allow us to deliver high-quality end products that our customers can trust. In 2023, KMB and LWB added 70 new suppliers considering their potential capability and also considering social criteria (100% of new suppliers were screened). Meanwhile, in 2023, KMB and LWB procured from 408 local and 34 non-local suppliers and carried out vendor appraisal on 116 active suppliers (26% of active suppliers) assessing on their performance on quality, continuity of supply and their general services, allowing us to continually improve their services or terminate relationships if they fail. The proportion of spending on local suppliers was 83%. Our Green and Sustainable Procurement Policy spells out the environmental and social risk considerations that should be taken into account in every purchasing decision. To ensure our suppliers comply with our social and environmental requirements, we require all of them to declare compliance with our guidelines upon supplier registration: Environmental care; Health and safety; The prohibition of forced and child labour; and Anti-corruption. Procurement and Tendering Procedures Our criteria for procurement and tendering of services and goods are based on price, quality, requirements, green and sustainable procurement and other relevant factors. The principles of our procurement and tendering procedures are as follows: Fair competition; Selection of appropriate contract types according to requirements; Compliance with laws, relevant regulations and contractual obligations; Consideration on environmental and social factors; and Adoption of an effective monitoring system, management controls and practices: to prevent bribery, fraud or other malpractices; and to ensure the declaration of conflicts of interest by staff involved in the selection. Safety Number of mechanical failures of bus fleet ↓ over 20% in December compared to the same period last year. Environment The largest electric bus fleet in Hong Kong. Customer Newly-added 1,000 priority seats in bus fleet. Employee 8.16% of employees were female. Community Over 21,000 voluntary hours. Supply Chain A Green and Sustainable Procurement Policy is in place. Performance Highlights