< PreviousCUSTOMERS Upholding customer trust and confidence Ensuring responsible business practices has been of paramount importance to the customers we serve. In this aspect, NIPSEA Group remains committed to adopting safe and ethical business practices throughout our operations and supply chain to assure customers of our product quality and ultimately maintain their satisfaction and trust in us. 36 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 37 Customer Trust NIPSEA Group’s culture of integrity ensures our line of product offerings live up to customer satisfaction and experience. At the same time, we seek to minimise any unintended negative implications that may arise from their usage. Two aspects of material focus to our customers have since been identified – Health and Safety and Data and Privacy – across the customer value chain. By focusing on these primary aspects, we remain committed to building trust and engaging with our customers, which has solidified our reputation as the leading paint solution for almost 60 years. Health & Safety Data PrivacyPrioritising Customer Health and Safety Ensuring customer health and safety remains at the forefront of our priorities when it comes to product and service consumption. As such, NIPSEA Group strictly adheres to internal and external health and safety regulations while also leveraging technological advancements to strengthen product performance. Our product safety and legal compliance standards cover the entire product lifestyle – from product conceptualisation to product application. Where the former emphasises product safety as the primary consideration, the latter involves orientating and equipping end-users with the necessary knowledge for product utilisation. As such, we have been adopting the Raw Material Safety and Regulatory Compliance review process when introducing our products to our customers to reduce the related health and safety risks from the start of the product lifecycle. Our participation in the worldwide Responsible Care program likewise helps improve the safety of our chemical products during their usage. Our product and services development and manufacturing processes are guided by the following international health and safety standards — ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. At NIPSEA Group, annual reviews are conducted to ensure our practices are congruent with international standards and best practices. Furthermore, we actively solicit customer feedback and takes special care in ensuring that their concerns are addressed. In working closely with our suppliers, carriers, distributors and customers across the product life cycle, we are able to provide technical support alongside health, safety, and environmental advice towards reducing safety and health-related risks. Health and safety impact assessments were conducted on significant products and services 99.4% Chromium (“Cr”) free primer for the construction industry With the recent issuance of different regulations regarding pollution control for VOCs and heavy metals, environmental protection has been gaining currency in the construction industry. NIPSEA Group Technology has developed a Cr-free primer for coil coatings, which has now become an important element in industrial applications. This environmentally friendly coating can be widely applied to large areas of metal for decoration or protection. Occupational Safety and Health Administration (“OSHA”) studies have determined that hexavalent chromium poses significant medical risks to users. Not only is it considered a potential lung carcinogen, but it can also cause nose, throat and lung irritation, with prolonged exposure resulting in ulcers and perforation of the septum. With this new Cr free coil coating primer, NIPSEA Group can help to eliminate the medical risks to users and meet the relevant regulatory requirements. This new technology also boasts excellent corrosion resistance and mechanical properties, surpassing industrial oil-based primers. Protecting Customer Data and Privacy Respecting and protecting our customers’ data and privacy is of utmost importance to us. NIPSEA Group takes utmost care and precaution to ensure that any customer data shared with us is protected against unauthorized and/ or unintended use, access, or disclosure. Any customer data can only be used in strict adherence to data protection laws across the markets we operate in. All customer information is retained only for as long as there is a business or legal need. In cases where additional precaution is required, NIPSEA Group also encrypts and anonymizes the information collected. Organisations overseas are also mandated to observe similar confidentiality and data protection obligations if cross-border sharing of information occurs. In FY2021, we recorded 0 substantiated complaints concerning breaches of customer privacy and 0 cases of identified leaks, thefts, or loss of customer data. In the event of a breach of privacy, customers are immediately notified and are constantly updated on developments by our employees. Regular internal audits are likewise carried out to ensure the safety and security of our data information properties and systems. In FY2021, we recorded substantiated complaints concerning breaches of customer privacy cases of identified leaks, thefts, or loss of customer data 0 0 38 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 39 •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 •Participation in a competition, lucky draw, or survey. •Companies in the NIPSEA Group •Business partners and vendors, we work with to deliver services customers have engaged to •Industry regulators or other government organisations, as mandated by local law and regulations •Financial institutions (e.g., for purposes such as facilitating GIRO payments). •Research institutions for market analysis purposes •Personal information (e.g., address, telephone number, email address, etc.). •Interactions with us(e.g., a note or recording of a call or email to us). •Information on our products or network (e.g., product feedback on public sites). •Indication of preferences (e.g., how a customer would like to be contacted). •Information from other organisations (e.g., fraud-prevention agencies, business directories, credit reference agencies, etc.). What information do we collect? How do we collect the information? Who do we share the information with?40 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 41 COMMUNITY Community Impact To maximise our regional impact, we consolidated our CSR initiatives under one CSR Umbrella that is made up of the three key approaches: Approach #1 We understand ‘colouring’ to mean ‘making things better and more beautiful’. We achieve this not just by using our paints, but also through our 3 CSR pillars – Education, Empowerment and Engagement. Approach #3 Colouring is the present participle of the verb ‘colour’. Articulating our commitment to ‘colour’ in the present continuous tense represents our commitment to continuous action towards colouring lives through our CSR initiatives. Approach #2 We understand that ‘lives’ encompasses all living beings. Our 3 CSR pillars guide the way we impact lives – beautifying spaces through our paints to positively impact all lives that inhibit those spaces. We also celebrate lives by championing diversity and inclusivity in the communities we operate in. Community Impact at a Glance (2019 - 2021) 152 217,945 CSR initiatives conducted Hours committed 7,379 > US $13.7 million Employees engaged allocated to CSR initiatives conducted > 2.3 million > 4.9 million Litres of paint contributed Lives impacted Building and enabling better communities NIPSEA Group is committed to accelerating positive and sustainable change in communities, with a greater emphasis placed on the markets we operate in. As we continue to embark on value-added community initiatives, our priorities lie in investing in localised programmes and tackling socio- economic challenges across three key pillars: Education, Empowerment, and Engagement. Providing access to education for children and youths through establishing a collaborative learning platform and art & colour educational programmes. Enhancing the well-being of the communities we operate in and ensuring that livelihood needs are met, especially during emergency circumstances. Equipping members of the community with skills and knowledge through vocational empowerment, training and certification programmes, as well as the facilitation of job opportunities. Refurbishing communal spaces to improve living conditions and preserve the local cultural heritage sites. Education Engagement Empowerment Health & Well-beingProtection & Preservation * All monetary values reported in this Community chapter (i.e., pages 38 to 49) are in USD, unless otherwise stated. * Wat Khanham School Phra Nakhon Si Ayutthaya ProvinceOur Continued COVID-19 Support Across Asia Protecting Frontline Healthcare Workers Nippon Paint Indonesia and a government-owned construction firm (Wijaya Karya) worked together to protect the well-being of healthcare workers at Wisma Atlet COVID-19 Emergency Hospital in Central Jakarta. We refurbished the hospital towers using 800 litres of Anti-Microbial Silver-Ion paint spanning 3,487 square metres. Through the provision of anti-microbial paint, we sought to provide frontline workers with an added layer of protection against the virus, as healthcare workers play a vital role in ensuring a functioning healthcare system. All of this occurred amidst the state’s exponential increase in COVID-19 cases in July 2021, reaching a daily count of 13,000. NPI also sponsored the painting of the COVID-19 treatment ward at the Tzu Chi Hospital in Jakarta. The project spanned a total area of 8,300 square metres, requiring 2,900 litres of anti- microbial paint – NIPPON VIRUSGUARD and VINILEX SILVER-ION. Supporting Our Migrant Workers Nippon Paint Singapore worked together with Legardia and Expedia to launch a combined programme ‘Mighty with ARTSe’ to provide relief for migrant workers who have been most affected by the COVID-19 pandemic. For these migrant workers in Singapore, the possibility of travelling or returning home during the pandemic has been close to none; hence, this project provided them with care packs and a free suitcase to lift their spirits and encourage them to stay hopeful during this tough and uncertain period. Overcoming The Fear of COVID-19 Together Nippon Paint Vietnam was the main sponsor and co-organiser with Tien Giang Provincial Youth Union and Ben Tre Provincial Youth Union to launch the contest of composing a video with the theme – Overcome the fear of nCoV. This contest was targeted at students, youths, union members, and other community members in the Tien Giang and Ben Tre provinces, with the aim to spread awareness about the benefits of exercising and the importance of leading a healthy and spiritual life for all Vietnamese people. Getting Through The Crisis Together Nippon Paint Thailand established the project – Nippon Paint stands with you, let’s get through this COVID-19 crisis together – to alleviate the burden of our partners in the construction landscape and motivate community members whose lives have been affected by the persistence of the COVID-19 virus. This project was launched in view of Thailand government’s announcement that construction and transformation sites would be closed temporarily due to the pandemic. Our volunteer team packed and distributed survival kits to workers in the 24 construction sites of our partners, with each survival kit containing bottled water, instant noodles, canned fish, rice and other essential items. Number of lives reached Number of migrant workers reached Number of contractors impacted Total project execution cost Total project execution cost 1,370 80 24 $1,000 $6,521 Number of healthcare workers impacted Number of patients lives impacted 3,251 6,378 42 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 4344 NIPSEA LFG SUSTAINABILITY REPORT 2021 Education Nurturing The Next Generation of Talents NIPSEA Group launched its first Asia Young Designers Awards, now known as the AYDA Awards, in 2008 as part of our vision to nurture the next generation of Architectural and Interior Design talents. It serves as a platform to inspire young talents to develop their skills through cross-learning opportunities and networking with renowned industry players, as well as their fellow peers in the region. As our flagship programme, AYDA Awards has grown to become one of the top premier student design awards, receiving more than 47,000 entries from over 1,200 tertiary education institutions every year across 16 geographical locations globally since its inception. In FY2021, NIPSEA Group attracted the highest number of entries since 2008, expanding our platform for participants to gain first- hand industry knowledge and receive coaching by experienced professionals. This year, Turkey also became the 16th country to join the AYDA Awards. PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 45 Number of university students impacted Total project execution cost 120,960 $1,042,790 Inspiring The Minds Of Youths and Children Each year, Nippon Paint China organises 100 teams of college students from more than 50 colleges and universities to venture into the countryside and conduct research on traditional village architecture and cultural heritage at rural schools. In the process, students were also tasked to carry out “colour” art classes and provide colour-picking activities. This initiative was developed in response to the 19th National Congress to build a “Beautiful China” by encouraging college students to help less advantaged children while promoting rural education and economic development. Despite the challenges faced during the project implementation phase due to the COVID-19 pandemic, the college students were able to overcome the challenges faced by adapting existing practices. At the end of the year, awards were given to selected university teams during the awards ceremony. Number of youths/ children impacted Total project execution cost 28,000 $230,769 Refurbishing Learning Environments Together with the Jane Goodall Institute Taiwan, Nippon Paint Taiwan worked on a classroom repaint project to refurbish 6 classrooms in Longshan elementary school which is more than a century old. Through sponsoring anti-viral paint in this project, we were delighted to have provided students with a refreshing new environment to learn and grow in. Number of youths/ children impacted Total project execution cost 30 $3,572 46 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 47 Empowerment Encouraging Women To Pursue Financial Independence Nippon Paint India established an extensive training programme – nShakthi – to empower women living in rural areas. A total of 15 women between the ages of 18 – 35 were shortlisted and employed under Nippon Paint’s PROceed training academy, where they underwent a 12-day wall painting course from professional trainers. Upon graduation, the newly trained painters were awarded with appropriate certification and introduced to contractors and dealers for future job opportunities. Through this project, we sought to be changemakers in creating a new generation of women painters in Tamilnadu, where women feel empowered to achieve financial independence and be the breadwinners in their families. Making A Meaningful Impact One Step At A Time Upon receiving a request from the mother who sought to enhance the living environment of her child suffering from neuroblastoma, Nippon Paint Hong Kong sponsored Eco Essence Kid’s Interior Emulsion Paint for repainting their home. Despite being small-scale in nature, the project was meaningful where we were able to renew the patient’s home under professional recognition from his doctor and create a positive impact on his life. Promoting Rural Revitalisation Nippon Paint China and its employees worked on the rural revitalisation project in Chengde County in Hebei province. We repainted all the exterior walls of villagers’ homes in an effort to improve their living conditions and encourage them to pursue job opportunities in the construction industry. Nippon Paint Pakistan launched a CSR initiative – Nippon- Nisa – to empower underprivileged women in Pakistan by training them to become painters in what was previously considered a male-dominated industry. We collaborated with The Hunar Foundation, which assisted with identifying eligible candidates and provided their facility for training. The training session encompassed surface preparation (i.e. sealer, sandstone, putty) and top coats (i.e. water and solvent), as well as methods to paint on an already painted surface, or on wood and metal surfaces. At the end of this programme, a graduation ceremony was also held for the women at the Nippon Paint Plant on 16 December 2021 to celebrate their achievement and journey towards gaining financial independence. Number of women reached Number of employees involved Number of women reached Total project execution cost Total project execution cost Total project execution cost Total project execution cost 150 100 57 $500 $28,300 $164,229 $1,50048 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 49 In collaboration with Vellore Police Department for over three months, Nippon Paint India worked towards beautifying the National Highway near Ranipet of 47,341 square ft. through murals of eminent artists. The project aimed to convey the importance of eco-friendliness, sustainability, and cherishing our flora and fauna, and was thereby themed – Living in Harmony with Nature. Paintings of agriculture, wildlife, and portraits of people from all walks of life lined the highway among many others. litres of paint sponsored Total project execution cost 4,400 $8,670 Engagement HEALTH AND WELL-BEING Educating Children On Good Hygiene Practices Nippon Paint Vietnam was honoured to become the main sponsor for the publishing and printing of Japanese EHON comic books called Ban voi nuoc rao rao, which published 5,000 hard copies. These Japanese EHON comic books educated children on how to wash their hands in the proper manner with colourful and creative images. All employees Nippon Paint Vietnam, Nippon Paint Vinh Phuc and business partners received this comic book for free and were encouraged to take a picture with their child and the comic book and post it on their Facebook accounts with the hashtags – #SonNippon #Baovesuckhoe #Banvoinuocraorao – to spread awareness and engage a wider audience. PROTECTION AND PRESERVATION Promoting Environmental Awareness Nippon Paint Vietnam worked alongside Mekong One, Ben Tre Provincial People’s Committee, and Tam Long Vang Foundation to launch the project of planting 10 million trees in Ben Tre province to raise awareness about environmental protection. The ongoing project was established in support of the Prime Minister Nguyen Xuan Phuc’s initiative to plant one billion trees in 2021 – 2025. This project required synchronous implementation of planting green trees alongside urban development and technical infrastructure development planning to take measured steps in protecting against land encroachment. Supporting Painters’ Livelihoods Nippon Paint Turkey sought to support the livelihood of painters through the provision of food packages and workwear on occasion throughout the year. Doing so allowed us to interact and engage with our painters to find out more about their needs and how we can address them. Number of children reached Number of trees planted Number of painters supported Total project execution cost Total project execution cost 5,000 684,547 18,500 $6,184 $200,00050 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 51 Safeguarding Cultural Heritage Sites Nippon Paint China collaborated with mural artists and designers all over the world to create murals within cities and schools in rural areas. The theme of murals was ‘Child Care and Animal Protection’, with the aim to garner students’ appreciation of art and bring joy to the rural communities. In FY2021, we created a total of 24 murals, together with support from 120 of our employee volunteers. Nippon Paint Sri Lanka partnered with the Central Environmental Authority to launch Surakimu Ganga, a National Programme on the Conservation of Rivers in Sri Lanka. We sponsored and distributed 20,000 Jasmine flower plants to low-income families, creating a potentially viable revenue stream for them through the sale of flowers to vendors at Katharagama, a sacred pilgrimage town. This programme would also reduce the environmental pollution of Menik Ganga, a sacred river in Katharagama where many people would usually conduct their rituals with plastic flower garlands. Nippon Paint Myanmar also directly delivered paint to two Buddhist Monasteries and another Christian Church in the Bago Region to support refurbishment efforts. We also delivered daily necessities (e.g. food, water, masks, etc.) to a Nun’s School and Magway Monastery. Number of artists involved Number of lives impacted litres of paint sponsored Total project execution cost Total project execution cost 31 55,935 531 $332,640 $2,100 Refurbishing Facilities For Highly Vulnerable Groups Nippon Paint China encouraged our employees to participate in projects involving refurbishing the residences of vulnerable groups, such as nursing homes and children’s hospitals. 120 employees joined in our effort to repaint the interior and exterior walls of such residences close to our factories. Nippon Paint Singapore also sponsored 1,170 litres of paint to volunteers from Amazon Singapore who identified organisations and charities that needed a fresh coat of paint to refresh, protect, and beautify their premises. These included North West CDC, Willing Hearts Charity, Early Intervention Programme for Infants and Children (EIPIC) and Centre for Children of Special Needs. Number of employees involved No. of children with autism supported Number of painters involved litres of paint sponsored 120 65 50 1,170Customer-Centric Innovation At NIPSEA Group, we are committed to co-creating with our customers and for them by unlocking opportunities that deliver lasting value towards improving their daily lives. In the past year, we have continued to build on this commitment by optimising our resources to steer our competitive advantage in product innovation and process efficiency. NIPSEA Group’s R&D Innovation Centre situated in Shanghai forefronts our approach toward customer-inspired innovations. Through housing around 300 experienced professionals across different fields of expertise, we emphasise two core features of our innovation agenda – Product Innovation and Divisional Operations. The R&D Innovation Centre also serves as a knowledge hub by providing our employees, partners, and customers with a means to connect and grow through our company-wide network. In doing so, the platform propels our ability to collectively scale up our proficiency in idea-generation and addressing prospective challenges through rapid design and prototyping. Currently, we are in the process of building a campus in the R&D Innovation Centre in Shanghai. NIPSEA Group also has an R&D Centre situated in Singapore that anchors our innovation strategy on colour technology, primarily catering to the needs of the Association of Southeast Asian Nations (“ASEAN”) market. Product Innovation Developing new and improved products and services Divisional Operations Enhancing efficiency of operating systems and processes 52 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 53 TECHNICAL CAPABILITY NIPSEA Group R&D Innovation ASEAN R&D CENTER GROUP CORE R&D GROUP INNOVATIONS Singapore Shanghai Colour Technology Colour Technology Advanced Materials Process Technology Measurement Science Architectural Coatings Automative Coatings Industrial Coatings Frontier Technology Customer first innovation for a better life Through expanding and leveraging on our R&D capabilities, NIPSEA Group catalyses product and process innovation while driving value creation as sustainability becomes increasingly salient in today’s landscape. Doing so allows us to be better positioned to meet our customers’ needs and allows us to create lasting impact for the future.54 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 55 Performance and FunctionalityEnvironmentally Responsible Products In FY2021, we continued making progress in three innovation areas that delivered business, community, and environmental benefits. Reducing energy consumption and ensuring minimal product waste One of NIPSEA Group’s most exciting new developments, the ACECRON® 130TF E-coat, is an industry-leading electrophoretic paint that cures at 130°C without the addition of heavy metals such as lead and tin. ACECRON® 130TF provides excellent film appearance, workability, bath stability and outstanding corrosion resistance. It has been successfully adopted by one of China’s largest compressor providers. It helps customers to reduce energy consumption and increase productivity without oven upgrading and reconstruction. ACECRON® 130TF E-coat achieves REACH and RoHS Compliance and helps meet the requirements of customers all over the world. Reducing energy consumption with ACECRON 130TF Ultra-low curing temperature powder coating was developed to save energy and boost production for Agricultural, construction and equipment (“ACE”). When compared to the traditional coatings with standard curing temperatures of 180-200°C for 10-15 minutes, this innovative product NPD ACE ULT can be cured at as low as 130 °C for 30 minutes or 140 °C for 20 minutes, or only 5-6 minutes with standard curing temperatures of 180 °C, achieving excellent appearance, storage stability and protection against chemicals, corrosion, and weathering. The reduction in temperature allows coating applicators to reduce their energy consumption and increase line outputs. Moreover, powder coatings contain no solvent and the application process results in minimal product waste. Waterborne Polyacrylate A key step in NIPSEA Group’s commitment to a green future is realised by the successful commercialisation of our waterborne polyacrylate dispersion resin platform. With the aim of reducing solvent emissions, improving air condition, and bringing a healthier home to everyone, NIPSEA Group has been providing waterborne paints and coatings to the world for many years. Building on years of dedicated research, NIPSEA Group has gone one step further: In 2021, we have successfully commercialised a resin platform of waterborne polyacrylate dispersion. This raw material platform provides new technology, new material, less solvent, and better performance to many of our coatings. This new waterborne resin platform builds on the success of our waterborne polyurethane dispersion platform, and has greatly improved our in-house waterborne resin capability. It has also formed the foundation of our transition from solvent-borne coatings to waterborne coatings. Colour Technology Colour Technology is committed to leading research and innovation on colour material, colourant, and colour science. It seeks to render colour diversity and differentiation while reducing VOC emission, energy consumption, and significantly improving productivity. By creatively designing and employing versatile colour materials, NIPSEA brings more colours to the world. We have developed 10 colourant platforms which have revitalised traditional offering portfolios, and also provide a powerful impetus to enable green technology and colour innovation across a variety of application areas such as automotive coatings, general industrial coatings, coil coatings, and decorative paints. The integration of flourishing artificial intelligence with colour science in 2021 has presented an opportunity to transform traditional colour matching into a data-driven process than can better meet the needs of our customers. Hybrid engine powered technology decomposing formaldehyde Formaldehyde-Buster 3in1 interior latex paint utilises Hybrid-Engine independent-technology. Distinct from the traditional product, this product effectively scavenges free formaldehyde in the air using both anti- formaldehyde emulsions and agent. The VOC emission level meets both A+(France) and the US Green Guard Certification and also has properties such as mildew resistance, alkali resistance, and scrub resistance, making it suitable for indoor areas, commercial area decoration, and renovation.Next >