Supplier Risk Assessment Methodology and Procedure

This document is a guide that outlines the methodology for assessing supplier risk based on various factors, including environmental, human rights, corruption, and ESG (Environmental, Social, and Governance) criteria. The assessment process begins with the classification of country-level risks and the collection of supplier-specific ESG data from public sources, followed by direct engagement and third-party audits. The methodology details the risk assessment process in several steps, starting with initial classification using country and public supplier ESG data, followed by risk rating and classification based on a point-based system. The guide specifies actions required for suppliers based on their risk scores, ranging from intolerable to low risk, and emphasizes the necessity of corrective action plans and third-party audits for higher-risk suppliers. The document concludes by reinforcing the importance of engaging with responsible suppliers to mitigate risks associated with ESG and human rights.