Responsible Supply Chain

The creation of a responsible supply chain based on ESG criteria and in accordance with the Company’s Suppliers and Business Partners Code of Conduct. In addition, in 2023, Metlen created a special central Responsible Supply Chain Policy proving its commitment to promoting responsible entrepreneurship and, by extension, strengthening the sustainability of the supply chain.

Effects

Existing positive effects

Since 2019, Metlen has developed the "Code of Conduct for Suppliers and Partners", while in 2023 it proceeded with the development and publication of its Responsible Supply Chain Policy, seeking to develop positive effects, in the medium and long term, such as: ensuring better risk management in its supply chain, exploiting business opportunities and creating responsible suppliers and partners who can create expanded economic and social value.

Potential negative impacts

The lack of responsible practices in Metlen's supply chain may be a source of negative effects such as: problems in the supply of raw materials, materials and services, increased environmental impact, Health and Safety risks, violation of human rights, ethical and compliance risks, with consequences to the Company's reputation and credibility as well as potential financial sanctions.

Main Risks

The lack of responsible practices in the Company's supply chain can be a source of different risks, such as: problems in the supply of raw materials, materials and services, increased environmental impact, Health and Safety risks, risks of human rights violations, risks related to ethical and compliance issues, with financial consequences for the Company, but also consequences for its reputation and credibility.

• Development and publication of a "Code of Conduct for Suppliers and Partners", which is a prerequisite when signing a contract or other agreement with a supplier (its observance is a contractual obligation).
• The Company, in the context of its "zero tolerance" policy on these issues, reserves the right to terminate any form of cooperation with its Supplier / Partner that does not comply with the principle of integrity as well as with the applicable legislation and the relevant regulations against corruption and bribery, in the countries where it operates.
• Implementation of training seminars to the Company's Greek key suppliers for the effective understanding of the responsible entrepreneurship framework, as well as the enhancement of the level of maturity.
• Implementation of regular working meetings with its Procurement/Purchasing Departments, from all its Sectors and subsidiaries, aiming at understanding the framework of the Policy and the commitments undertaken through it.
• Participation in the initiative "Greek Sustainable Business Pact".
• Supply chain evaluation with ESG criteria seeking to identify critical issues, provide support as well as continuous improvement of key suppliers.

• 14,133 active suppliers and partners of Metlen in Greece and abroad.
• 1,120 new suppliers with whom the Company collaborated for the first time in 2023, across the spectrum of its activity and in 61 of them it was deemed necessary to be additionally audited based on Environmental and Social criteria.
• €2.1 billion in total expenditure by Metlen to its suppliers in Greece for the production of products, the provision of services and the development of projects.
• 40.7% of the total purchase budget allocated to local suppliers, contributing to both job retention and income generation.
• 47% of key suppliers were assessed against ESG criteria by the Company's Business Sectors and Central Services.
• 92% of key suppliers assessed show that they operate responsibly, in the context of sustainable development, while 4.5% were classified as serious risk.
• 82% of the total costs to suppliers are observed by the Energy Sector, which now has the largest number of suppliers.