Sustainable Supply Chain

The sustainable supply chain is one of the four pillars of M&G Stationery's sustainable development strategy. We adhere to the concept of responsible procurement, continuously optimizing theentire supply chain management process, strictly implementing risk control, strengthening communication and cooperation with suppliers,and building a responsible supply chain management system. This allows us to achieve coordinated development across the industrial chain.

Case: Supply Chain ESG Assessment

In 2022, M&G Stationery aimed to enhance its supply chain ESG risk identification and response capabilities. To achieve this, the Company's Procurement Center and ESG Working Group established apreliminary supply chain ESG assessment system. The system conducts systematic ESG audits on key suppliers, evaluating 145 data points infive dimensions: general principles, environment, health and safety,labor and human rights, business ethics, and sustainable procurement.Supplier ESG performance is assessed through self-assessment, M&G review, and on-site audits, effectively promoting suppliers'attention and action on ESG issues. ESG audits were conducted onnearly 70 suppliers in 2022. Based on the assessment results, the Company formulated special ESG improvement targets for suppliers from 2023 to 2025, with the aim of increasing the proportion of suppliers passing the ESG audit and building a sustainable supply chain.

M&G's stationery supply chain ESG assessment dimensions