1. Purpose
1.1 China Resources Mixc Lifestyle Limited ("China Resources Mixc Lifestyle" or "the Company") is committed to implementing sustainable procurement practices by integrating environmental, social, and governance (ESG) factors into the procurement decision-making process. The Company encourages its suppliers and other partners to jointly adhere to the sustainable procurement policy and collaborate in building a sustainable supply chain.
1.2 This policy should be adopted alongside the Company's "Procurement Management Rules," "Supplier Management Implementation Rules," and other internal management systems, as well as the "Supplier Code of Conduct" and related policies.
1.3 This policy applies to China Resources Mixc Lifestyle and its subsidiaries and encourages all partners and suppliers to comply with this policy.
2. Transparent Procurement
2.1 Uphold the Company’s "Honesty and Integrity" corporate culture, follow the principles of "openness, fairness, and equity" in transactions, and integrate the concept of transparent procurement into all aspects of the value chain. The aim is to avoid any interference from personal interests and to refrain from using unfair competition methods, such as malicious competition.
2.2 Attach the Company’s "Integrity Agreement with Partners," "Integrity Compliance Commitment," and "Supplier Social Responsibility Initiative" as appendices to all tender invitations. Ensure that 100% of contracts signed with partners include these attachments, creating an atmosphere of integrity, efficiency, and transparency in cooperation.
3. Green Procurement
3.1 Integrate the concept of green and low-carbon procurement into the early stages of the supply chain management process, including category research, supplier sourcing, qualification pre-assessment, and tendering. Prioritize the use of green materials and low-carbon services during the procurement process to reduce adverse environmental and social impacts. When appropriate, prioritize the procurement of materials and services that: reduce raw material use in production processes; decrease energy and water consumption; lower the environmental impact across the product or service lifecycle; enhance material recycling and reuse; and are non-toxic and non-polluting to both humans and the environment.
3.2 In the procurement process, continuously promote a national centralized procurement model to achieve efficiency in management, optimize supplier resources, and enhance the efficiency of procurement operations while implementing a low-carbon and environmentally friendly procurement philosophy. Encourage partner suppliers to obtain green environmental certifications and give preference to suppliers with green environmental certifications when conditions are equal.
3.3 Stay in line with technological trends by introducing digital tools to strengthen sustainable procurement practices. Use an electronic tendering procurement platform throughout the entire procurement process to digitize tender documents, standardize bid submissions, and automate the review process, ensuring the fairness, transparency, and efficiency of tendering. Use electronic signature platforms for document signing to reduce paper consumption and carbon emissions during delivery.
3.4 For categories such as cleaning and landscaping, encourage the promotion and application of modern intelligent equipment to reduce water usage in traditional operations and improve work efficiency.
4. Incorporating Social Responsibility into Procurement Metrics
In managing the entire lifecycle of the supply chain, incorporate human rights protection, health and safety, business ethics, and employee diversity into the evaluation criteria based on the characteristics of different categories. Integrate sustainable development into the supplier admission or performance evaluation process. Prioritize cooperation with suppliers that demonstrate outstanding social responsibility performance, promoting the sustainable development of suppliers.
5. Establishing and Promoting the "Supplier Code of Conduct"
Develop the "Supplier Code of Conduct" to clarify requirements in areas such as business ethics, labor and human rights, health and safety, and environmental protection. Provide necessary training, promotion, and guidance to employees, suppliers, and other stakeholders. Suppliers must comply with all applicable laws and regulations in the business location and adhere to the requirements set forth in the "Supplier Code of Conduct" concerning business ethics, labor and human rights, environmental protection, and other relevant areas.
