Page 73 - SD RATCH EN

4. Supplier risk management
RATCH assessed risks and economic, social and environmental impacts possibly caused by suppliers’ operations, to define preventive measures.
RATCH Group PCL.
Sustainability Report 2020
73
Aspect
Risk factor
Preventive measures
2020 Performance
Economic
Suppliers’ financial status and stability
1) Collateral/Bank Guarantee placement 2) Checking financial statements dating
back 2 years
No price collusion or conflict of interest
Collusion and conflict of interest
1) Define supplier qualification assessment criteria 2) Check information through documents and
questioning of individuals in the industry
3) Verify certification letters
4) Put them in the blacklist if found irregularity
No price collusion or conflict of interest
Suppliers with over 10 million baht contracts
1) Collateral requirement
2) Inspect compliance with contract and
delivery
3) Set a condition to make payment in
instalments, based on work progress 4) make a company visit
2 suppliers were awarded contracts worth more than 10 million baht for RATCH and 7 suppliers served Ratchaburi power plants.
Job desertion/
failureto meet products and services delivery schedule or product/ service specifications not meeting specified standards
1) Define penalty
2) Confiscate collateral 3) Put on the blacklist
• None of RATCH’s suppliers missed delivery deadline or delivered products/services which did not meet specified standards
• None of RGCO’s suppliers abandoned work.
Social
Employment of child/ illegal labor and viola- tion of human rights or use of forced labor
1) Define supplier qualification assessment criteria 2) Make a suppliers’ company visit
3) Report workers’ essential information
4) Registration documents for migrant workers
5) Put on the blacklist if violated against the Company’s rules
No supplier employing child/illegal alien labor and violating human rights.
Workers’ safety and occupational health
1) Assess safety-related risks prior to start of work / orientation
2) Require use of safety equipment necessary for workers written in the contract
• 4 key suppliers of RATCH underwent risk evaluation.
• All sub-contractors, numbering 49, of RGCO underwent risk evaluation.
Social & Economic
Suppliers’ sub-contractor management
1) Assess safety-related risks prior to start of work
2) Set ESG conditions on sub-contractors in the main
contract with the contractors
3) Monitor compliance with the Company’s safety
measures
• NoneofRATCH’ssuppliersweresub-contractors. • RGCO having EGAT as a supplier requested all sub-contractors to comply with specified
requirements.
Environment
Suppliers’ environmental management and waste management
1) Set conditions in the contract and monitor compliance
2) Make a suppliers’ company visit
3) Make it part of the supplier qualification assess-
ment criteria
Environmental management on risky jobs was a condition in RATCH’s contracts with suppliers.