Skip to content

Responsible Sourcing Practices

In FY2024, Thong Guan formally adopted a responsible sourcing policy, which is not only morally imperative but also beneficial for business continuity, brand reputation, and long-term success. This commitment reflects our dedication to ethical sourcing and responsible consumption, ensuring that the products manufactured by us are sustainable.

Adopting a responsible sourcing policy is essential for:  

Ethical Considerations

A responsible sourcing policy ensures that the materials used in products are obtained in an ethical manner, without exploiting labour, harming communities, or contributing to human rights abuses.

Environmental Impact

Responsible sourcing policies prioritize sustainable practices, reducing the environmental impact of resource extraction, manufacturing processes, and transportation. This helps mitigate climate change, preserve biodiversity, and protect ecosystems.


Many jurisdictions have regulations governing sourcing practices.  Adopting a responsible sourcing policy helps ensure compliance with these laws and regulations, reducing the risk of legal issues and penalties.

Supply Chain Resilience

Responsible sourcing policies promote long-term relationships with suppliers who adhere to ethical and sustainable practices. This fosters trust and collaboration throughout the supply chain.

Business Continuity

Sustainable sourcing practices help secure access to vital resources and reduce dependency on finite or environmentally damaging materials. This enhances business continuity by mitigating risks associated with resource scarcity.

To strengthen our supply chain management, we have enhanced our vendor assessment documentation and implemented a system to conduct assessments on suppliers with annual purchases exceeding RM1,000,000 at least once every three years. The assessment is also compulsory for new suppliers with estimated annual purchases exceeding RM1,000,000.  

These assessments serve as a vital platform which we communicate our expectations regarding sustainable supply practices to our suppliers, fostering an open dialogue to understand the challenges they face through their invaluable feedback. Moreover, they play a crucial role in mitigating our social and environmental risks by actively engaging both potential and existing suppliers in comprehensive risk assessments.

In addition, to facilitate the transition of SME suppliers towards more sustainable practices and enhance their understanding of such practices, we recommended relevant training sessions tailored to the needs of SME suppliers.