Rotana Corporate Sustainability Report 2017

79 Since Rotana is a hospitality service industry operator, our supply chain is comprised primarily of tens of thousands of suppliers of products and services required to serve our guests across our many properties. We maintain a complex inflow of diverse goods and services ranging from furniture and fittings, food and beverages, equipment, transportation, IT, communications and other technology support systems. Our supply base is local to the country of operation and in few cases, directly imported. A thorough understanding of our supply chain enables us to create value for suppliers and our community at large. Wherever we source products, we believe the workers that have produced them, the communities living near the sourcing locations and the environment around it should not be negatively impacted. We want to ensure that there is no link between our business activities and adverse environmental and social impacts through our business relationships. We take a holistic approach to managing these supply chain risks. This includes the development and implementation of the Rotana Code of Responsible Purchasing and continuous monitoring to evaluate compliance and manage foreseeable risks and social impact from our supply chains. OUR COMMITMENT • We will address sustainability issues in our supply chains, with the goal of minimising the negative environmental and social impacts of our procurement decisions whilst meeting our financial and quality requirements; • We will assign preference to locally sourced products and from sustainable sources in order to support local communities and environment. OUR FOCUS AND KEY ACHIEVEMENTS Responsible Supply Chain In 2017, we issued the Rotana Code of Respon- sible Purchasing. It details Rotana’s expectations regarding the minimum responsible, environ- mental and sustainable business conduct of our supply chain partners. 61 corporate agreements were signed with 56 companies resulting in an annual saving of USD 2.36 million, an increase of 15% in 2016 vs 2015 (USD 2.02 million in 2015). 26% of all food and beverage, linen and general procurements are governed by corporate agree- ments, an increase of 2% year on year (2014: 22%, 2015 : 24%, 2016 : 26%). We have launched a Supplier Satisfaction Survey to assess Rotana’s collaboration, responsiveness and relation as experienced and perceived by our suppliers. The survey will help us to ensure a sustainable partnership with our suppliers. Supply Chain