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🎯 Strategic Procurement · P-POL-013

Sustainable and ESG Procurement

Sustainable & ESG procurement — supplier ESG self-assessment, preferred categories, and sustainability KPIs.

Group Policy & Procedure

Document No.

P-POL-013

Group Supply Chain

Ver. No. | Rev Date

0.4 | 08 APR 2026

Title: Sustainable & ESG Procurement

Effective Date

08 April 2026

BUKHATIR GROUP

Strength through Diversity

Group Policy and Procedure

Group Supply Chain (GSC)

Sustainable & ESG Procurement

Environmental, Social & Governance Sourcing

Document No: P-POL-013

Copyright © 2026 Bukhatir Group

Revision Control

This document is issued under the authority of Bukhatir Group and applies when carrying out the activities described. Revisions may be issued as necessary under the authority of the Group Head of Procurement. Revision history is recorded below with every revised policy.

Revision History

Ver. No.

Effective Date

Description

02

September 2016

Original Procurement Policy

0.3

March 2026

Procurement Policy – Sustainable & ESG Procurement

0.4

08 April 2026

Redesign, content modernization & flowcharts – Sustainable & ESG Procurement

Revision Sign-Off

Approving Committee

Name

Signature

Endorsed by — Group Head of Supply Chain

Mohamad Koussa

Reviewed by — BIIL CEO

Mr. Ayman Ismail

Reviewed by — Group Chief Financial Officer

Mohamad Adnaan Sait

Approved by — Group Vice Chairman & Group CEO

Mr. Salah Bukhatir

Distribution List

#

Departments

1

Business Unit Procurement Departments

2

Group Supply Chain (GSC)

3

Finance, Legal, Compliance, Internal Audit

4

Business Unit Management

1. Purpose

This policy embeds environmental, social and governance (ESG) criteria into the Bukhatir Group sourcing lifecycle. It supports the UAE Net Zero 2050 strategy, Emiratisation and In-Country Value (ICV) objectives.

2. Scope

Applies to all sourcing events, supplier onboarding and contract management activities across the Group.

3. ESG Evaluation Criteria

Dimension

Examples of Criteria

Weight in SOP 2 Scoring

Environmental

Carbon footprint, waste management, energy efficiency, water use, recycled content, ISO 14001

4 – 6%

Social

Labour rights, wage protection, diversity, HSE record, community impact, Emiratisation

3 – 5%

Governance

Anti-bribery, data protection, board oversight, financial transparency

3 – 4%

4. Minimum Standards for Suppliers

  • Compliance with all UAE environmental and labour regulations.
  • Signed Supplier Code of Conduct (see P-POL-006 / SOP 5).
  • No use of child or forced labour anywhere in the supply chain.
  • Documented HSE management system for Tier 1 and Tier 2 suppliers.
  • Willingness to disclose Scope 1 and Scope 2 emissions for strategic suppliers.

5. ICV & Emiratisation

Suppliers holding a valid ICV certificate receive weighted preference in evaluation. Bukhatir Group shall progressively increase local content share in line with UAE national policy.

6. Monitoring

ESG performance is tracked in the Supplier Scorecard and reported quarterly to the GSC–BU Steering Committee.

7. Reference Form

Form F-ESG-01 — Supplier ESG Self-Assessment Questionnaire.

8. Definitions & Acronyms

Acronym / Term

Definition

ASL

Approved Supplier List

BU

Business Unit

ESG

Environmental Social and Governance

GSC

Group Supply Chain

KPI

Key Performance Indicator

UAE

United Arab Emirates