Applying the Supplier Code of Conduct

The Code forms part of the supply tenders and contracts managed by our local offices. Suppliers, both new and existing, are expected to comply with the standards described in this Code by completing a questionnaire as part of the selection process. In anticipation of a revision to the Code of Conduct in early 2012, we have deferred the distribution of this questionnaire to our suppliers this year. We expect to resume the questionnaire approach to confirm their level of compliance with our local and outport-based supplier once the revised Code is published.

We are developing a suppliers’ compliance checking system. Using an internally developed risk matrix, we classify our suppliers based on the impact and likelihood of the risks each of them poses to our business. Each risk ranking will carry varying levels of follow-up actions ranging from supplier initiated self-assessment for low risk suppliers, background checks of publically available documents, to a comprehensive site visit for suppliers deemed to be in the highest risk category. We expect that this approach will allow us to more systematically monitor and manage our sustainable development risks relating to our supply chain. We will further report on this in the Sustainable Development Report 2012.

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