< PreviousNIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 1716 CHAPTER 3 SUSTAINABILITY AT NIPSEA GROUP Materiality Matrix The 17 ESG topics are plotted on the materiality matrix and categorised as “High Priority”, while the other eight topics are categorised as “Emerging Priority”. The category of “High Priority” refers to topics that are most significant to NIPSEA Group and our stakeholders, driving the organisation’s sustainability leadership. These topics will guide our business strategies moving forward, and targets will be set to track progress of our efforts. The category of “Emerging Priority” refers to topics to be considered by the group in the near future as part of fulfilment to rising stakeholder expectations and regulatory trends. Topics classified under this category can eventually be included in subsequent reports as “High Priority” when they become of greater significance to NIPSEA Group and our stakeholders. Following the GRI principles, all 25 topics have also been classified according to the categories of Economic, Environmental and Social. The colour legend provides the reference to the categorisation of topics according to the GRI Standards. Management Philosophy At NIPSEA Group, we lead by the philosophy of “Mutual Prosperity” in the governance of our sustainability matters at the corporate group level. We believe that success can take place in a sustainable manner, where business viability goes hand in hand with protecting the planet and sharing our success with communities. We aim to bring together the diverse competencies of our companies in NIPSEA Group to maximise impact across Environmental, Social and Governance topics, to ensure that we are well-positioned for strong sustainable growth through the next decade and beyond. Management Structure NIPSEA Group’s sustainability commitments are led by our Group Chief Executive Officer (GCEO), and guided by the Sustainability Steering Committee which is made up of the heads of departments from our five core business functions: Branding, Business Excellence, Employee Relations, Finance, and Research & Development. The committee advises on ESG strategies that shape the organisation’s efforts across six broad themes – Customer, Environment, People, Community, Organisational Health, and Technical Capability, to maximise value creation and impact. Materiality Prioritisation A materiality prioritisation exercise was conducted to determine Environmental (E), Social (S) and Governance (G) topics that are key and relevant to NIPSEA Group. Through peer benchmarking and global trends research, 25 ESG topics were identified. We further sharpened our sustainability focus in a materiality assessment and prioritisation workshop with key stakeholders to derive 17 material topics that NIPSEA Group is confident in creating the most impact through our core competencies. Head of Sustainability Steering Committee Sustainability Steering Committee Sustainability Pillars GCEO Branding Business Excellence Employee Relations Finance Research & Development CustomerEnvironment People & Community Organisational Health Technical Capability Peer Benchmarking Global Trends Research Materiality Assessment and Prioritisation Workshop “High Priority” Material Topics Targets Mapping Materiality Matrix Material Topics Strategic Objectives Strategic Analysis Recommendations and Roadmap Stakeholder Engagement RefHigh Priority Topics 1 GRI 201–Economic Performance 2 GRI 202–Market Presence 3GRI 203–Indirect Economic Impacts 4GRI 301–Materials 5 GRI 302–Energy 6 GRI 303–Water 7 GRI 305–Emissions 8GRI 306–Effluents and Waste 9 GRI 308–Supplier Environmental Assessment 10 GRI 401–Employment 11 GRI 402–Labour/Management Relations 12 GRI 403–Occupational Health & Safety 13GRI 404–Training & Education 14 GRI 413–Local Communities 15 GRI 416–Customer Health & Safety 16 GRI 417–Marketing & Labelling 17GRI 418–Customer Privacy RefEmerging Priority Topics 18 GRI 204–Procurement Practices 19 GRI 205–Anti-Corruption 20GRI 304–Biodiversity 21 GRI 405–Diversity & Equal Opportunity 22GRI 408–Child Labour 23 GRI 409–Forced Compulsory Labour 24 GRI 42–Human Rights Assessment 25GRI 414–Supplier Social Assessment 12 19 9 22 23 21 25 24 11 10 17 14 15 13 16 20 5 7 8 6 4 18 3 2 1 Low Emerging High Low Emerging High Materiality Matrix - NIPSEA Importance to Stakeholders Significance to NIPSEA Group Economic Environmental Social Our Approach to Sustainability Management NIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 1918 CHAPTER 3 SUSTAINABILITY AT NIPSEA GROUP Stakeholder Engagement We are committed to staying involved and connected with our stakeholders to build mutually beneficial and enduring partnerships that create value on both sides of the equation. Close collaborations that entail the exchange of knowledge, information, and creative concepts help us stay ahead of challenges and in the know of trends taking place in today’s increasingly complex sustainability sphere. We regularly engage our stakeholders through a variety of means that include reviews, forums, seminars, surveys, visits, working groups, amongst others. The table below details the engagement mechanisms used specific to each stakeholder group, as well as the frequency in which stakeholders are engaged using each method. StakeholdersEngagement MechanismsFrequency of Engagement Employees Internal communication channelsOn a regular basis Teambuilding activitiesOn a regular basis Employee welfare reviewsAnnually CustomersClient meetingsOn a regular basis Forums, seminars, and conferencesOn a regular basis Customer service surveysAnnually SuppliersSite auditsAnnually Sustainability performance questionnairesAnnually Tender processAs and when needed Investors Shareholder meetingsQuarterly Planning with Board and senior management committees Quarterly Shareholder sustainability performance surveysAnnually Government and Regulators Compliance review and auditsAs and when needed Collaborative projectsAs and when opportunities arise Forums, seminars, and conferencesAs and when opportunities arise Business PartnersClient meetingsOn a regular basis Customer service surveysAnnually Sustainability performance questionnairesAnnually NGOs and Industry Groups Performance outcome surveysAnnually Collaborative projectsAs and when opportunities arise Sustainability performance questionnairesAnnually Sustainability Pillars All “High Priority” topics are classified into business themes to allow us to effectively communicate our sustainability commitment, reflecting our aligned purpose to stakeholder expectations. Our sustainability strategies are based on five* overarching pillars – Customer, Environment, People & Community, Organisational Health and Technical Capability. • Economic Performance NIPSEA Group‘s Sustainability Pillars Creating sustainable value for all stakeholders • Materials • Energy • Water • Emissions • Effluents and Waste • Supplier Environmental Assessment • Customer Privacy • Marketing and Labelling • Indirect Economic Benefits • Market Presence • Employment • Training and Education • Occupational Health and Safety • Labour / Management Relations • Local Communities • Customer Health and Safety Organisational Health Ensuring continued economic viability Environment Minimising our environmental footprint People & Community Investing in the well-being of our employees, and building and enabling better communities Customer Serving the needs of our customers well * For this report, the material topic of Economic Performance is disclosed under the section of “A Recap of Our 2019 Achievements”. For next year’s report, it will be disclosed in the chapter of Organisational Health, when a higher level of maturity of content disclosure for additional topics under the pillar is established. Technical Capability Innovating to drive progress and betterment for societyNIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 2120 CHAPTER 4 NIPSEA’S FOCUS Chapter 4 NIPSEA Group’s FocusNIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 2322 CHAPTER 4 NIPSEA’S FOCUS Environment Elevating the Game on Climate Change NIPSEA Group recognises our role and responsibility in caring for the planet, and is committed to take action by minimizing our own environmental footprint through a variety of measures across our supply chain. In our planet-positive agenda, we strive to ensure that we deliver more value to stakeholders, while concurrently lessening the impact on the environment in an economically sustainable manner. Transforming into an Eco-Friendly, Green & Digitized Business 6 focus areas of environmental impact: MaterialsEnergy Emissions Water Effluents Supplier Environmental Assessment * All intensity calculations in this chapter are based on the production output for the year NIPSEA Group’s environmental strategy is focused on delivering creative solutions that drive progress within the limits of our planet. Through our quality, environmental, health and safety management systems (QEHSMS), we take action across our value chain to embed eco-efficiency within our operations to reduce our environmental footprint while improving the overall efficacy of our economic activities. We drive actions around the improvement of processes and talents, as well as work closely with our external suppliers to align on our planet-positive approach. Our management plays an active role in the transformation to circularity, undertaking activities to initiate and review QEHS objectives, targets, and programmes. All efforts are supported with site-specific initiatives and goals set by respective regional divisions to propel us towards achieving the ambitious environmental targets set out for FY2020.NIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 2524 CHAPTER 4 NIPSEA’S FOCUS Sustainable Sourcing of Materials Materials used by weight, in tons Non-renewable materials used Renewable materials used 1,023,032 4,421,207 We believe that it is our responsibility to explore the use of new and more sustainable materials while leveraging technological innovations to strategically plan and mitigate any associated risks of material usage in our production processes. NIPSEA Group actively deploys two criteria in our approach to material sourcing: 1. Our process efficiency should not be hindered by the availability of materials stemming from supply chain disruptions and price volatility 2. The management of materials has to be performed in a sustainable manner that provides a value-add to stakeholders The usage of renewable and non- renewable materials is constantly monitored and tracked. At present, a significant proportion of materials used in production still consists of non-renewables such as oils and fossil fuels. However by leveraging technology, NIPSEA Group has achieved the use of 23% of renewable materials in production in FY2019. NIPSEA Group has also plans to gather such information from all of its suppliers for monitoring purposes. Striving to go beyond regulatory compliance, Nippon Paint Singapore has set up a Technical Department that works on developing alternative sources of raw materials, or re-formulating current products to optimise or minimise the use of raw material input. Monthly management meetings with the Production and Procurement department are also carried out to address any inefficiencies or develop new solutions. Going the extra mile for the environment To ensure that materials sourced are indeed environmentally-positive, Nippon Paint India enforces an additional material inspection check by staff focusing on aspects of the materials that could contribute to CO 2 emissions, before materials are approved to be sent to the manufacturing sites. We also adhere to supplementary standards on top of the standard compliance frameworks to include the Green CO audit system for the manufacturing sites and Green Pro process for product evaluations. An internal team is assembled annually to rate the organisation’s performance in material consumption, performance impact, and recycling status, before improvement actions are suggested. All audit actions and results are shared with stakeholders, and reviewed by the relevant authorities. Currently, our manufacturing process for primary products and services does not include the use of recycled material inputs. Instead, we look at prioritising the re-usability of materials where applicable. Tank cleaning at our facilities uses recycled water for multiple tank washes. As a Group, we monitor and review the effectiveness of our processes on a regular basis with a two-fold approach: 1. Benchmarking against global standards that include ISO 9001:2015, ISO 14001:2015, and SMP management systems 2. Evaluating results against organisational targets set out at the beginning of each year To achieve the best outcomes for NIPSEA Group, we ensure the robustness of our production systems according to global standards, while tailoring requirements to our own operations. Climate change is one of the greatest challenges that society faces today. Being part of the chemical industry, we recognise that a significant part of our environment footprint is contributed by greenhouse gas (GHG) emissions. NIPSEA Group views this as an opportunity to focus our environmental drive on energy efficiency as we rethink and reinvent applications of processes through an integrated risk and opportunity approach. We use a combination of renewable and non-renewable sources of electric energy that include hydro turbines and solar panels, and petrol and diesel respectively to power both our operations-related and non-production related activities. In FY2019, our total energy consumption as a Group totals 906,048GJ, while our energy intensity ratio for the organisation measures 236.28 MJ/ton. Our actions are guided by a Group Environmental Policy to reduce both direct and indirect energy consumption Regenerating Energy and Reducing Carbon Emissions within our business value chain. To achieve the impacts we desire, we deploy a variety of rules of conduct for the organisation. Our Group Environmental Policy for Energy and GHG emissions • Our efforts in energy conservation aim to go above the regulatory compliances of the markets we operate in • By providing employee skills training, we continue to improve the efficiency of current energy resources by supporting innovation in design and procurement aspects of machinery, tools, and production equipment • Each year, management teams review and renew environmental work plans and targets. All updates are communicated to employees after Doing more with less resource input at Nipsea Chemical Co., Ltd Total energy consumption by 4.35%, Production volume by 2.39%, and CO 2 emissions by 5% Harnessing the power of new solar panels has decreased electricity usage at Nippon Paint India -– IU division by 24% • Energy conservation and GHG emissions are to be considered the responsibility of all owners, executives, and employees at all levels, in complying with the specified measures. Nippon Paint India IU division has taken the initiative to implement company- wide installation of solar panels atop its manufacturing sites. Similarly, Deco division is embarking on its solar panel installation this year. To reduce energy usage further, the manufacturing sites are refitting all light sources with LED lighting systems and replacing old- generation equipment with modernized upgrades that are more energy efficient.NIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 2726 CHAPTER 4 NIPSEA’S FOCUS As of FY2019, we have reduced our energy consumption by 3641.34GJ as a direct result of conservation, and achieved a 0.95MJ/ton reduction in energy requirements of products and services. This was achieved as a result of the following actions taken across the Group: 1. Maintenance and monitoring programmes that keep track of electrical power consumed per equipment per unit of output, based on the requirements of the ISO 14001 standard 2. Impact assessments that identify inefficient energy users across the facility’s process chain. At Nippon Paint Singapore, we use Innovative Quality Circle programmes to flag up such machinery or processes, and set aside an annual expenditure budget for capital upgrades or replacements 3. Monthly management meetings that discuss energy and emissions performances allow for quick course revisions whenever necessary GHG emissions are managed directly at the operating facilities under the ISO 14001:2015 environmental management systems. At each stage of the product development life cycle, an environmental impact control check for GHG emissions is conducted. In FY2019, our total GHG emissions for FY2019 totals 160, 845, 964 kgCO 2 , while our emissions intensity measures 41.94kgCO 2 /ton. Greenhouse Gas Emissions (kgCO 2 ) Direct (Scope 1) GHG emission Energy indirect (Scope 2) GHG emissions 21,439,380 139,406,584 We also manage emissions through a systematic, long-term assessment of pollutant levels through Ambient Air Quality Monitoring. Performed twice a year, we collect and measure ambient air quality, stack emissions, Volatile Organic Compounds (VOCs) level and chemicals emitted. Air pollution control devices such as wet scrubbers, dust collectors, and spray paint booths have also been installed to reduce the amount of chemical pollutants released in the air. Our total water consumption as an organisation in FY2019 totals 1,669 mega litres. To achieve our overall goal of reducing water usage intensity on a year-to-year basis, water management at NIPSEA Group can be viewed from two lenses: Reducing Usage Encouraging Reuse and Recycle 1. Feedback Systems Internal communication and reporting systems are in place for employees to report any issues or suggestions for improvement. 2. Self-initiated Campaigns Self-starter water saving campaigns are kick-started by individual organisations. Nipsea Chemical Co., Ltd conducts regular internal campaigns to encourage staff to minimise the output of waste water. As a result, we generated 578 tons of waste water as of FY2020 -– a decrease of 2.4% YoY. 3. Use of Management Systems and Regulations Under ISO 14001:2015 and local laws such as the Sewerage and Drainage (Trade Effluent) Regulations in Singapore, we use Systems, Applications and Products (SAP) to monitor the status of aspects such as machinery life cycle and water usage at consumption points across operation processes. Infrastructural areas that can improve efficiency are identified and rectified on a priority basis. 1. Leveraging Technology We adopt technology that uses ultra- violet light and reverse osmosis to filter Effluent Treatment Plant (ETP) water to be reused in our products during the paint manufacturing process. Sewage Treatment Plant (STP) water is also recycled via the same process and used for gardening purposes. 2. Coordination Amongst Facilities Close cooperation across production facilities of various products allow for cross-production recycling activities. For example, the wastewater of the binder production facility can be used as the raw water for the formulation of certain water-based paints. Enabling Water PositivityRegenerating Energy and Reducing Carbon Emissions Wastewater that cannot be reused or recycled Such wastewater are disposed as industrial waste and collected by a licensed collector for further treatment in accordance with local laws. Wastewater that requires treatment before disposal Wastewater from lab basins are first treated in a dilution tank and tested by a third-party assessor, before they can be released as public sewage. Wastewater that can be disposed directly Wastewater from toilets and wash basins are linked directly to public sewage. Environmental pollution from wastewater generation is something we take seriously as well. We impose checks such as soil testing around the site to guard against pollution issues that can arise from water seepage. In the event of a chemical spill, spill kits and emergency response teams are readily on-hand. At different levels, strict treatment regulations are imposed on wastewater discharge. Water is central to the survival of the planet and the livelihood of its inhabitants, essential at both the human and economic level. It is no different at NIPSEA Group, with water being a critical raw material in our manufacturing processes.NIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 2928 CHAPTER 4 NIPSEA’S FOCUS NIPSEA Group places great emphasis on waste disposal due to our regional scale of production and the chemical nature of our business. As such, we commit to prioritizing a responsible long-term strategy towards managing hazardous and non-hazardous waste across four action areas. It is also mandatory that all manufacturing plants keep a running unit inventory of the following metrics in detail, combined with a yearly review to improve efficiency shortfalls through technology upgrades and maintenance. 1. Amount of waste generated 2. Efficiency rates of the treatment process 3. Amount of recyclable material regenerated The effectiveness of our waste management programmes based on the figures recorded is evaluated against targets set out at the beginning of the financial year. Through year-end management meetings, improvement suggestions that typically involve process changes will then be suggested and implemented. Minimizing Waste and Effluents Discharge Checks and Balances Under ISO 14001 and local waster disposal laws regulations, we conduct impact assessments to identify and track sources of effluents and waste generation to put in place procedures to manage them efficiently. 1 Employee Awareness We design programmes that promote a Reduce, Reuse and Recycle mind-set at work to cultivate a circular mentality amongst our employees. 2 Product Labelling We provide clear labelling that advises the proper disposal method of our products even after they have left our premises, on top of minimizing waste generation throughout the product development lifecycle. 3 Disposal Treatments Depending on the type of waste, different treatments are accorded. Recyclable materials such as metal and wooden pallets are reused and recycled by third-party contractors or done in-house. Other types of waste that cannot be recycled will be sent to landfills, composted, or incinerated. 4 Adopting A Systems Perspective to be an Ethical Business The Supplier Code of Conduct will communicate clear expectations for new and existing suppliers the minimum requirements on conducting an ethical business. To monitor the suppliers’ adherence to the Code, this entails us carrying out activities such as an annual supplier evaluation exercise performed by the procurement department via assessment reports. Suppliers are also encouraged to attain additional accreditations by Supplier Code of Conduct local advocacy groups to cover a wider range of green assessments that include water, material, and power management. We also recently raised the level of safety and environmental protection in the latest supplier evaluation chart from 10% to 20%. In the event that suppliers are unable to pass the evaluations due to raised standards, we provide solutions and guidance in elevating the supplier’s processes. The Supplier Code of Conduct covers three main areas: 132 Business Practices and Ethics: Our standard corporate policies that focus on legal and regulatory compliances such as anti-corruption and fair competition laws Health and Safety: Our commitment to ensuring the health and safety of people in the workplace Environmental Regulation and Protection: Our commitment to protecting and preserving a healthy and sustainable planet Nippon Paint China reduced the costs of waste management by ~18.83 mil USD (130 mil RMB ) in FY2019 through the use of streamlined production processes that reduce the use of nylon packaging bags by 630,000 pieces and drums usage by 4,191 drums. As a Group, • We subjected 71% (322) of new suppliers (453) to environmental criteria screening in FY2019 • Sourcing from local vendors is also another area of priority that we undertake as part of our commitment to engage with communities. At Nippon Paint Thailand, out of a base of 140 material suppliers, 130 of them are local vendors.NIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 3130 CHAPTER 4 NIPSEA’S FOCUS Delivering Value to People and Places Powered by innovation, NIPSEA Group seeks to deliver outstanding products and services to our customers by producing solutions that meet the exacting standards of their needs – ranging from consumer to industrial purposes. With every high-performance and cost effective solution we create, NIPSEA Group ensures that a fine balance of protecting and safeguarding a healthy and sustainable living is maintained. Customers At NIPSEA Group, we take a serious view of ensuring the safety of our customers’ health and well-being when they use our products. The commitment to keep them safe and protected from any potential risks guides our product stewardship. We engage modern technology to enhance the performance of the materials that go into our products without compromising the standards of health and safety that we consistently seek to uphold. Product safety and legal compliance considerations begin from the solution formulation stage where we strictly adhere to quality controls laid out by internal and external safety regulations and requirements, to the product application stage where trainings are conducted and safety data sheets and safety labels are in place to guide end- users with the necessary knowledge to use our products. We also work closely with our retailers to maintain packaging quality to prevent any leakages or defects during the point of purchase. Health and safety impact assessments* are conducted on 62% of our significant product and service categories *Criteria assessed against include 1) Eco-friendly product, 2) SDS compliances, 3) Local government requirements (safety & health), 4) Customer requirements (safety & health), and 5) Professional certification. We are guided by the following international standards: • ISO 9001:2015 • ISO 14001:2015 • ISO 45001:2018 We carry out annual reviews in accordance with the standards to discuss change and improvement, and any customer feedback or issues are recorded and deliberated, with countermeasures implemented accordingly. At Nippon Paint Thailand, compliance tests are also carried out at the product- finish stage. Third-party labs are engaged to carry out independent lab tests on products, ensuring that products are independently assured to be safe for use. At our Malaysia Group, line managers of on-ground teams and the department heads adopt a seamless reporting structure and process flow that follows a tight reporting schedule, to ensure the facility’s quality compliance to ISO 14001. NIPSEA Group is also in the process of devising an integrated information system that collects evidence and documents from our seven groups across 18 countries, barring certain differences that may arise due to handling of information differently according to local regulations. The integrated review will allow our management to have a consistent and clear feedback loop of information across all markets and enable a systematic approach in addressing all aspects of health and safety across the product life cycle. Replacing Hazardous Materials One Innovation at A Time Leading Product Stewardship with a Focus on Health and Well-Being Korea Group continues to develop non-hazardous substitute materials to replace hazardous ones in products. In FY2019, we developed a material called “ADDITIVE 5” that contains 75% less hazardous material. It made up 3.57% of total products newly registered in the year. In FY2020, we aim to develop three more non-hazardous substitute materials.NIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 3332 CHAPTER 4 NIPSEA’S FOCUS Ensuring clean air indoors Industry-First Solutions with Family Wellness in Mind Adding colours and comfort to the lives of families around the world has always been the primary value we seek to offer our customers. In recent years, we have extended our mission to not only take care of our customers’ well-being, but also help them protect the environment which they thrive in. Keeping common illnesses at bay Respecting and protecting our customers’ data privacy is of utmost importance to us. While we collect information to deliver better value for our customers, we ensure that any data provided to NIPSEA Group is protected against unauthorised or unintended use, access or disclosure. Externally, our businesses are in strict adherence to the respective data protections laws across the markets that we operate in, such as Personal Data Protection Act in Singapore and Malaysia, Data Privacy Act 2012 in Philippines, and Personal Information Protection Act in Taiwan and South Korea. Internally, we have also set up a policy framework of strict guidelines in how we collect, use, share, and protect our customer’s personal information, called the Nippon Paint Data Protection Policy. In FY2019, we recorded 0 substantiated complaints concerning breaches of customer privacy 0 cases of identified leaks, thefts, or loss of customer data All information is only retained for as long as there is a business or legal need. In certain cases, we take additional precaution to encrypt and anonymise the information. If cross-border sharing of information is required, we ensure that the organisations overseas also observe strict confidentiality and data protection obligations. In the event of a data privacy issue, customers are immediately notified and kept closely in touch with our staff. We also conduct regular internal audits on the safety and security of our data information properties and systems. Bridging the Trust Gap in Customer Privacy and Data How? We collect the information Subscribing to our services Registering for our product or service Signing up for our alerts or products Contacting us with a question or request for assistance Participating in a competition, lucky draw or survey Who? We share the information with Companies in the NIPSEA Group Business partners and vendors we work with to deliver services customers have engaged to Industry regulators or other goverment organisations, as required by local law and regulations Financial institutions for purposes such as facilitating GIRO payments Research institutions for market analysis purposes What? Information we collect Personal information (e.g. address, telephone, number, e-mail address etc,) Interactions with us (e.g. a note or recording of a call or e-mail to us) Information on our products or network (e.g. feedback about our products on public sites) Indication of preferences (e.g. preferences as to how a customer would like to be contacted) Information from other organisations (e.g. fraud-prevention agencies, business directories, credit reference agencies, etc) In FY2019, Nippon Paint Bangladesh produced the first-ever anti-bacterial paint - Nippon Paint Spotless Plus, specifically formulated to safeguard home surfaces against bacteria and stains. The water-based interior paint uses a proprietary Silver-Ion Anti-Bacterial Technology that effectively protects against a variety of bacteria strains such as MRSA, E-Coli, and Staphylococcus Aureus. It also provides excellent wash properties through its Stain Guard Technology that facilitates the transformation of waterborne stains into beads, such that contaminated surfaces can easily be cleaned. In addition, this is an ultra-low volatile organic compound (VOC) paint that has been formulated without lead, mercury, and heavy metals, to ensure that it is non-toxic to the human touch. Formaldehyde is a common indoor air contaminant that can pose a health hazard to young children, even at low levels. Research has shown that negative effects include the development of childhood asthma from prolonged exposure to the gas. The Nippon Paint Kidz Paint created by Nippon Paint India features a Pure Acrylic Emulsion with Active Carbon Technology that absorbs formaldehyde in the air. Performing triple-duty, it also possesses anti-bacterial and easy-wash properties to thoroughly provide a hygienic and healthy living indoor environment ideal for children development.NIPSEA LFG SUSTAINABILITY REPORT 2019 PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 3534 CHAPTER 4 NIPSEA’S FOCUS Year-on-year, we continuously build on our technical capabilities to create breakthrough innovations that create a positive correlation between economic and societal benefits. Driving industrial cost- efficiencies $0.2 mil USD/yr cost-savings The Nippon Paint NC-COAT 5901 for steel application was developed in Nipsea Chemcial Co., Ltd to help industrial customers reduce the cost of paint. The paint allows for a natural reverse roll coating application that enables lesser paint to be used overall, thus reducing costs for customers. Further, this method of paint application allows for easy control of coating thickness, as compared to the typical natural coating method. Innovation that Makes a Tangible Difference Improving the structural resilience of homes With more than 25% of homes in Taiwan being structurally old, “wall cancer” in homes is a common occurrence caused by chloride and mold as a result of water leakage from rainfall. Nippon Paint Taiwan thus developed a range of waterproof and anti-mold repair products to strengthen the roofs and overall structure of the building, thereby protecting homes against leaks and the resulting “wall cancer”. Making beautiful homes economically viable for low- income communities Understanding the needs of the community, Nippon Paint Sri Lanka developed the Nippon Paint Atom 2-in-1 with the intention to offer beautiful homes at a fraction of the cost. Through close consultations with our decorating partners, combined with extensive in-house research and development, the paint is a multi- purpose emulsion that is ideal for both interior and exterior surfaces. To further stoke economic development within the community, all complementing paint products for paint application such as brush handles and bristles are sourced directly from a local supplier – Brush Lanka Industries. Propelling never before- seen colour trends A first-of-its-kind green on the road Nippon Paint Philippines and popular Japanese automobile company Suzuki collaborated to produce the Nippon Paint Jackal Green – a never-before- seen colour, when debuting the new Suzuki Smash 115 motorbike. Inspired by social trends, we leveraged our expertise in colour creation to develop a one-of-a-kind colour paint to capture the youthful and confident personalities of young Filipino riders. Our design team first did a market study on social, economic and design trends taking place in the Philippines, before coming up with the colour that expressed exactly how our customers would want to colour their lives on the road. Technical Capability Leveraging Our Culture of Innovation to Improve Lives NIPSEA Group is committed to a strategy of innovation excellence to unlock opportunities and solutions that improve the standards of living for today’s society. By understanding key trends that shape the appetites and preferences of our stakeholders today, we prioritize our investments in areas and pathways that deliver maximum value to them, while catalyzing growth for us.Next >