SHR is committed to managing its supply chain responsibly and sustainably, alongside proactive risk management and continuous development opportunities. The Company takes into account the impacts on stakeholders, society, and the environment, while promoting good governance, transparency, and ethical business conduct. This approach aims to ensure long-term business resilience and create sustainable value

Business Opportunities and Risks

SHR places great importance on proactive risk management alongside identifying opportunities for sustainable development and growth. Risk assessment is integrated into strategic planning, new project development, and investment decision-making processes to ensure the Company can effectively respond to change. SHR encourages the active participation of management and employees at all levels in identifying and managing risks, with Risk KPIs established to drive tangible results in risk management.

On the opportunity side, SHR recognizes that changes such as environmental trends, climate change, and increasing sustainability demands from investors and customers serve as drivers for business innovation. This includes the development of environmentally friendly projects, efficient resource management, and strengthening stakeholder collaboration to create long-term value.

Supply Chain Management Strategy

SHR is committed to managing its supply chain responsibly, transparently, and sustainably, guided by principles of good governance and consideration for social, environmental, and stakeholder impacts throughout the entire process.

Our key approaches include:

• Managing the supply chain with fairness, transparency, and traceability
• Conducting procurement under fair contractual terms that respect human rights
• Encouraging suppliers to develop high-quality, cost-effective, and environmentally friendly products, services, and innovations
• Strictly adhering to anti-corruption policies and avoiding conflicts of interest in transactions
• Not engaging in business with suppliers involved in illegal activities or violations of fundamental rights, such as intellectual property infringement, fraud, or privacy violations
• Managing supply chain risks to ensure business continuity, including contingency planning in case suppliers fail to deliver on time

Commitment and Goals

SHR is dedicated to establishing a transparent and fair framework for supply chain management that considers the best interests of the Company, stakeholders, society, and the environment. The Company strives to promote a circular economy and enhance local economic development—particularly in operational areas—through local employment and procurement. The procurement team evaluates the appropriateness and pricing of goods and services accordingly.

Indicators and Targets

Indicator	Target	Achievement
Communication of the Supplier Code of Conduct to promote compliance	100%	100%
Number of complaints related to violations of the Supplier Code of Conduct	0 cases	0 cases

Responsible and Sustainable Procurement Policy

Procurement Policy

The Company has established procurement guidelines to ensure transparency, fairness, and alignment with Singha Estate Group’s procurement practices. These guidelines define roles, duties, and responsibilities consistent with the procurement tasks and processes.

Green Procurement Policy

The Company emphasizes and promotes environmental protection and the enhancement of local economies through local employment and procurement of locally produced goods. Green procurement must be fair and ethical, prioritizing the purchase of clean and hygienic food products and raw materials to create farm-to-table menus.

In this regard, the Green Procurement Policy encourages all types of suppliers to avoid using substances that are harmful to health and the environment. Additionally, products and goods must not directly or indirectly impact biodiversity and must be naturally biodegradable or recyclable.

Therefore, the procurement department and relevant parties are required to carefully consider purchases, avoiding conflicts of interest of both parties.

Supplier Code of Conduct

The Company requires all suppliers to study and strictly adhere to the Supplier Code of Conduct and other company policies, emphasizing responsible, transparent, and fair business practices. This approach aims to balance economic, social, and environmental factors for sustainable development in the future.

The Company manages supplier risks by analyzing compliance with the Supplier Code of Conduct and other relevant policies. Additionally, the Company conducts supplier evaluations (ESG due diligence) before transactions, covering issues or impacts related to sustainable development, community and environmental balance management, safety, occupational health and working environment management, fair labor practices, respect for human rights, conflict of interest prevention, and more.

Supplier Credit Management Policy

The Company emphasizes transparent and fair business practices with suppliers, ensuring business growth together. The Company typically manages liquidity within a 30–60 day credit period, with exceptions for special cases requiring extended periods.

Average Credit Term
2022	2023	2024
35 Days	35 Days	40 Days

Key Supplier Identification Approach

From the assessment, the Company has identified 4 key suppliers categorized as Critical Tier 1, which play a vital role in the Company's core operations. There are no suppliers identified in the Critical Non-Tier 1 category. In addition, the Company has identified 4 key suppliers that are significant to its sustainability development approach.

In 2024, the Company conducted on-site ESG risk assessments with two of its suppliers to evaluate their alignment with environmental, social, and governance standards.

Supplier Sustainability Risk Assessment

The Company conducts an annual assessment of supplier sustainability risks to ensure that suppliers possess the capability to operate in alignment with the Company’s sustainability principles.

According to the most recent evaluation, no suppliers were identified as having high-risk sustainability issues, as detailed in the table below

High-Risk Supplier Types	Number of Supplier
High-Risk Tier 1 Suppliers	0
High-Risk Critical non-tier 1 Suppliers	0

Business Partner Seminar 

At SHR, we believe strong partnerships are key to building a sustainable future. That is why we actively engage our business partners through dedicated seminars that foster open communication, knowledge sharing, and alignment on sustainability goals.

SHR joined Singha Estate in co-hosting the “S Together” seminar, also known as the Supplier Seminar, for the second consecutive year. The event focused on urgent global issues, including climate change and Thailand’s national targets for achieving carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065. It also emphasized the importance of addressing social issues such as human rights, fair labor practices, and inclusive growth, all of which are essential to responsible business conduct.

This seminar served as a platform for stakeholders across the business value chain to reaffirm their shared commitment to responsible and forward-thinking practices. By coming together, we aim to turn these conversations into impactful actions that address both environmental and social challenges while supporting long-term sustainable growth.