Supporting National Aspirations and Empowering Sustainable Businesses
Tenaga Nasional Berhad (TNB) recognises the crucial role of sustainable vendors as integral partners in driving responsible business practices for a shared future. We are committed to supporting the goals we share, which include fostering a more sustainable and innovative business ecosystem. This encompasses driving innovation in clean energy technologies and empowering vendors across the entire value chain. By championing best practices, we're proud to introduce our Sustainable Procurement Code of Conduct (SPCC), fostering a collaborative environment where responsible businesses can thrive alongside TNB.
Aligning Procurement with Shared Values
Established in 2006, the Procurement Code of Conduct (PCoC) primarily focused on ethical practices and supplier capabilities. Recognizing the growing importance of Environmental, Social, and Governance (ESG) considerations, our Procurement and Supply Chain (P&SC) division undertook a comprehensive review. The SPCC builds upon the PCoC's core principles of integrity, accountability, and capability declarations while expanding to encompass six additional sustainability elements that benefit both TNB and our vendor network.
Here are the key enhancements of the SPCC:
Environmental Responsibility
Suppliers and contractors are required to adhere to environmental regulations and are encouraged to adopt sustainable practices within their operations. This aligns with Malaysia's National Energy Transition Roadmap (NETR), which aims to reduce greenhouse gas emissions and promote renewable energy sources.
Prioritising Health & Safety
The SPCC emphasises compliance with occupational safety regulations and the creation of safe work environments that safeguard employee well-being. This aligns with TNB's commitment to providing a safe and healthy workplace for all.
Respecting Labour Rights
TNB is committed to upholding labour rights within our supply chain. The SPCC reflects this commitment by prohibiting modern slavery and child labour and fostering a diverse and inclusive culture, all in accordance with Malaysian law.
Fostering Innovation
The SPCC encourages collaboration with suppliers and contractors to support TNB's open innovation initiatives, driving value creation for a more sustainable future. This could lead to the development of cleaner energy technologies, further supporting NETR's focus on innovation in the energy sector.
Data Security and Privacy
The SPCC mandates that suppliers and contractors comply with relevant data protection laws and TNB's policies to safeguard personal data security. This ensures the responsible handling of sensitive information throughout the procurement process.
Protecting Information & Intellectual Property
The SPCC ensures transparency by requiring suppliers to provide necessary information for security vetting and fulfil reasonable requests for additional documentation. This protects TNB's intellectual property and minimises security risks.
Building a Sustainable Future, Together
The SPCC aligns with industry best practices, promoting responsible procurement within our supply chain. By emphasising environmental compliance, occupational safety, labour rights, and data protection, the SPCC creates a framework for sustainable and ethical procurement practices.
The introduction of the SPCC, approved in February 2024, signifies a significant step forward in our shared sustainability journey. This initiative demonstrates TNB's commitment to partnering with businesses that share our values, environmental leadership, social well-being, and strong governance.
Our SPCC establishes a benchmark for responsible procurement while reinforcing TNB's position as a sustainability leader. We remain dedicated to continuous improvement of our procurement processes, driving positive change for a more sustainable future.