106 SECTION 06 AL-`AQAR HEALTHCARE REIT SUSTAINABILITY STATEMENT SUSTAINABLE SUPPLY CHAIN (CONT’D) Indicator FY2023 FY2024 FY2025 Percentage of new suppliers that were screened using environmental criteria 50% 40% 100% Percentage of suppliers assessed for environmental impacts (new & existing) 61% 53% 48% Percentage of the REIT’s total property portfolio certified to a recognised building management standard for property (GBI & MyCrest) - - 17% Proportion of spending on local suppliers FY2025 FY2024 FY2023 87% 100% 87% This year, there were zero case reported on violations to the law or the supplier assessment criteria. In line with the commitment to advancing the wellbeing of the local communities around the REIT, it prioritises local procurement when selecting vendors. This helps create regional demand that contributes to job creation in areas where the REIT operates. While local procurement benefits communities and regional economies, the REIT also benefits from reduced logistical routes, which lead to a lower environmental and GHG footprint, as well as shorter transportation times and fewer delays. In FY2025, the REIT sourced 87% of the materials from local suppliers, showcasing the commitment to supporting local businesses. In conclusion, Al-`Aqar’s structured approach to supplier ESG screening, compliance declarations, and local procurement reflects the commitment to responsible supply chain management. The continued emphasis on local sourcing further supports community wellbeing, strengthens supply chain resilience, and contributes to lower environmental and greenhouse gas impacts. By embedding environmental, social, and governance considerations into vendor selection and ongoing assessments, the REIT reduces exposure to regulatory, operational, and reputational risks while promoting ethical business conduct.
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