Supply Chain Management

SHR is committed to managing its supply chain in Thailand and globally, 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 

Targets and Performances

Targets

What We Achieved

· 100% of suppliers received communication on the Anti-Corruption Policy and Supplier Code of Conduct.  · 100% of suppliers were assessed for sustainability risks covering Environmental, Social, and Governance (ESG) aspects.  · Zero complaints related to violations of the Supplier Code of Conduct.  · Source 100% of guest room wet amenities in refillable formats to minimize resource use by 2026. · Increase the proportion of green procurement from total procurement spend.

· 100% of suppliers received communication of the anti-fraud and corruption policy and supplier code of conduct. · Zero complaints related to violations of the Supplier Code of Conduct · No suppliers were identified as having high sustainability risk. · ESG on-site audit was conducted for 1 key supplier. · All guest room amenities are procured in bulk, and all wet amenities are provided in refillable formats.

Business Opportunities & Risk 

Managing our supply chain well means being ready for whatever comes — and turning challenges into opportunities. We integrate risk management into our supply chain processes so that disruptions, regulatory shifts, and rising ESG expectations from customers and investors don't catch us off guard. Instead, they push us to work more closely with our suppliers, source more responsibly, and use resources more efficiently — all of which make us a stronger, more trusted business in the long run. 

Responsible Sourcing 

Our procurement activities are guided by the Company's Procurement Policy, Green Procurement Policy, and Supplier Code of Conduct, ensuring that environmental, social, governance (ESG), and business integrity considerations are embedded throughout every stage of the sourcing process. Sustainability is integrated into supplier pre-qualification and selection, making responsible procurement a fundamental part of how we conduct business.

We prioritise eco-friendly, sustainable, and locally sourced products, particularly food and raw materials that support farm-to-table concepts, strengthen local economies, and create employment opportunities within local communities. Purchasing decisions are based on quality, suitability, value, sustainability, and transparency, with strict measures in place to prevent conflicts of interest.

In 2025, we spent THB 5 million on locally sourced food and beverage products, reflecting our commitment to supporting local communities while reducing transportation-related emissions across our supply chain.

Supplier Code of Conduct 

Our suppliers are partners in how we create sustainable value, and we expect them to uphold the highest standards of ethical, social, and environmental responsibility. Every supplier is required to acknowledge and comply with our Supplier Code of Conduct and relevant company policies, including our Anti-Corruption Policy. These requirements establish a shared commitment to conducting business responsibly, transparently, and fairly while balancing economic performance with positive social and environmental outcomes.

Suppliers are expected to assess and appropriately manage the impacts of their operations on communities and the environment, comply with all applicable laws, regulations, and recognised industry standards, and continuously work to prevent, minimise, and mitigate environmental impacts. We also encourage suppliers to conserve natural resources, protect biodiversity, engage responsibly with local communities, and adopt environmentally friendly technologies, products, services, and business practices that contribute to sustainable development.

To support these expectations, we conduct ESG due diligence before onboarding suppliers and continue to monitor supplier performance throughout the business relationship through supplier self-assessments, regular performance evaluations, and ESG audits. Sustainability performance is considered when determining ongoing engagement and future procurement decisions.

Our supplier assessments cover the issues that matter most to us:

• Energy Management: We encourage suppliers to improve energy efficiency, monitor energy consumption, and disclose greenhouse gas emissions.
• Water Management: Suppliers are encouraged to use water responsibly, minimise pollution, and reduce impacts on surrounding ecosystems and biodiversity.
• Labour and Human Rights: Suppliers must comply with our requirements on child labour, forced labour, non-discrimination, freedom of association, collective bargaining, fair wages, occupational health and safety, and working hours.
• Environmental Standards: Suppliers are expected to manage waste, pollution, resource consumption, and environmental impacts responsibly while complying with applicable environmental laws and recognised standards.
• Community Responsibility: Suppliers are encouraged to operate responsibly, minimise impacts on local communities, and contribute positively to local economic and social development.
• Biodiversity and Natural Resources: We encourage suppliers to understand, manage, and reduce their impacts on biodiversity while conserving natural resources through responsible operational practices.

How We Identify Key Suppliers 

We classify our key suppliers into two groups — because not all supplier relationships carry the same weight. 

Critical Tier 1 Suppliers are essential to our core operations. To qualify, a supplier must meet all three of the following: 

• Provide hotel-standard products or services 
• Have an annual procurement value exceeding THB 3 million 
• Supply products or services that cannot easily be substituted in the short term, or are significantly important to our core operations

Key Suppliers are those who play an important role in advancing our sustainability goals.

In 2025, we identified 4 Critical Tier 1 suppliers and 4 Key Suppliers — each playing a meaningful role in how we deliver on our sustainability commitments. 

Supplier Sustainability Risk Assessment 

We adopt a risk-based approach to managing sustainability across our supply chain. By assessing suppliers' ESG performance, we identify potential risks that could affect business continuity, operational resilience, or stakeholder trust. Suppliers are prioritised based on their business importance and potential sustainability risks, with higher-risk suppliers receiving enhanced due diligence and on-site ESG audits.

Our assessments cover a wide range of sustainability topics, including legal compliance, environmental performance, pollution prevention, efficient use of resources, labour practices, human rights, occupational health and safety, business ethics, and community responsibility. The results of supplier assessments, ESG audits, and annual performance reviews are considered when making decisions on supplier approval, ongoing engagement, and future sourcing opportunities.

When opportunities for improvement are identified, we work closely with suppliers to develop corrective action plans, provide guidance where needed, and monitor progress over time. If significant issues remain unresolved, we may review or discontinue the business relationship in line with our procurement and supplier management requirements.

In 2025, no suppliers were identified as having high sustainability risks, and one key supplier completed an on-site ESG audit as part of our ongoing supplier assurance programme.

Building Our Partners' Capabilities

We don't just expect our partners to meet our standards — we actively help them get there. We see capability building as a two-way investment: when our suppliers are stronger on sustainability, so are we. 

Through regular communication, engagement activities, and knowledge-sharing platforms, we provide guidance on the topics that matter: climate change, national climate targets, human rights, fair labour practices, health and safety, and inclusive growth. These conversations aren't just about compliance — they're about building a shared vision for responsible business across our entire value chain. 

By fostering open dialogue and genuine collaboration, we're working to build a supply chain that's resilient, ethical, and ready for the future.

Building Internal Capabilities

Building a sustainable supply chain starts with our own people. We continuously strengthen the knowledge and capabilities of employees responsible for procurement and supplier management through training and professional development on climate change, biodiversity, human rights, business ethics, carbon management, and sustainable sourcing. By enhancing internal expertise, we improve our ability to integrate ESG considerations into procurement decisions, supplier engagement, and supply chain risk management.
Examples of training programmes and workshops attended by our team members include:

• Advanced Organizational Carbon Footprint Assessment
• Fundamentals and Application of Climate Projection Data
• Training: Understanding Climate Data
• Human Rights & Business Ethics Implementation Bootcamp 2025
• Marine Protected Areas and the 30x30 Target: Pathways to Ocean Nature Recovery
• Lessons Learned from Protected Area and Conservation Management in Thailand
• Sustainability in Practice: Strategy, Carbon Management & Reporting Assurance

These learning opportunities strengthen our expertise in climate action, biodiversity conservation, human rights, responsible business conduct, and sustainability management, enabling us to continuously improve environmental and social performance across our operations and supply chain.

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	2025
35 Days	35 Days	40 Days	42 Days