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56 About Strategy and Governance Our People Our Business Our Outcome Appendix30 A supplier that is based in the same geographic market as the reporting operation.31%u2002 DKSH defines significant operations as all markets with more than 500 employees. This includes the 11 markets of Australia, Cambodia, Hong Kong, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Taiwan, Thailand, and Vietnam.Non-Trade ProcurementAn important part of our business model of providing market access through highly specialized marketing and distribution services is local service delivery, for which we typically rely on the services of a variety of business partners. Inbound and outbound transport logistics, including some outsourced warehouse logistics, represent a significant portion of our local spending, along with marketing expenses incurred through media agencies and promotional service providers. Other supply chain-related procurement includes working with importers, exporters, and customs agents in cross-border business, with labor and other service providers to assist with logistics operations and adapting products to regulatory or marketing requirements, and with packaging and other materials and equipment suppliers to support logistics operations. We selectively engage the services of intermediaries, such as distributors or sub-distributors, wholesalers, sales and tender agents, or consultants, to assist with revenue-generating activities.We estimate that procurement from local suppliers30 in significant locations of operation31 supporting our local service delivery accounted for 100 % of our spending.%u2023 GRI 2-6, GRI 204-1Ensuring a Responsible Supply ChainWe are committed to the integrity of our supply chain by operating our business in keeping up with the highest ethical standards, as reflected in our Code of Conduct. Our Responsible Procurement Policy and the associated Supplier Business Conduct Policy further detail our principles, our commitments, and our expectations from our suppliers. These Policies %u2013 approved by the Executive Committee and endorsed by the Board of Directors %u2013 reflect our commitment to the principles of the United Nations Global Compact, national and international legislation and standards for responsible business conduct, such as the Organization for Economic Co-operation and Development%u2019s (OECD) Guidelines for Multinational Enterprises and the International Labour Organization%u2019s Declaration on Fundamental Principles and Rights at Work. In 2022, we adopted the Responsible Procurement Policy and the Supplier Business Conduct Policy, in conformity with new Swiss regulations setting disclosure requirements on non-financial matters and due diligence obligations, effective January 2022. Implementation preparation and activation started in the same year and continued throughout 2023. These policies operate alongside our Third-Party Intermediary and the Non-Trade Procurement Policies. The diverse nature of our business and products requires that we take variations in our management approach rather than a one-size-fits-all model without, however, compromising on our standards.In line with the principles expressed by our policy framework, we do not want to maintain business relationships with suppliers that do not share our commitment to integrity and responsible business conduct. All suppliers that are deemed relevant and important in the overall context of our supply chain (proportionality and criticality) representing a potential risk exposure will be assessed against our standards and expectations, as further described in the pertinent sections in this chapter.Risks associated with ethical business conduct and the integrity of our supply chain are high on the agenda of DKSH%u2019s Board of Directors. Its Audit Committee bears overall responsibility for overseeing the Group%u2019s risk management processes and procedures. It receives regular updates on risks in our supply chain via the frameworks and processes described in the Sustainability Governance and Risk Management chapters. Moreover, the Audit Committee is kept informed of responsible procurement, due diligence procedures, and performance measurements via a Sustainability Scorecard issued by Group Sustainability, supporting the Board%u2019s assessment of the effectiveness of our risk management procedures. %u2023 GRI 2-23, GRI 2-24