< Previous18 NIPSEA LFG SUSTAINABILITY REPORT 2020 Employees are our biggest assets Our employees are key to our long-term growth and success. We strive to empower and support our people in their professional and personal development through the provision of diverse advancement pathways, and building an environment where people stay fulfilled and supported by an inclusive culture. PEOPLEPAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 19 People Development NIPSEA Group recognises the key to building a sustainable business is investing in a people-first strategy. We seek to be a workplace of choice by fostering a culture that attracts and retains talent comprising professionals, industry experts and young talent. We focus on three core dimensions aimed at empowering employees at all levels to succeed during their career with us. This ensures that we are powered by a dynamic and skilled workforce to be well-positioned to take advantage of emerging opportunities and tackle challenges brought about by an ever-evolving business landscape Training and Education Workforce Safety and Well-being Fair Employment Practices20 NIPSEA LFG SUSTAINABILITY REPORT 2020 NIPSEA Group ensures that all employment policies and practices are aligned with the guidelines set by local authorities. We pride ourselves in embracing a diverse workforce comprising different genders, generations, nationalities, and expertise across regions to produce better business outcomes for customers and communities, while cultivating a sense of belonging and inclusion within the workforce. In FY2020, the Group’s new hire rate measured 21.6% , an increase of 753 people as compared to the year before. We believe in hiring local talents in the countries we operate in. Local talent not only forms our competitive advantage in capturing market share, but also enables us to create job opportunities in these markets. In FY2020, the proportion of senior management 4 at NIPSEA Group hired from local communities measured 86.0% . Our diverse culture also includes valuing our multi-generational employees for their years of industry experience. We look to offer re-employment contracts to employees before their retirement date as mentors to train the next generation of staff, where possible. Return to work rate of employees that took parental leave Retention rate 5 of employees that took parental leave Female 92.5%88.3% Male 98.7%88.4% To create a supportive work environment, we offer a wide range of benefits to employees during their term of employment. These vary by country and include some or all of the following: Group Term Life Insurance Medical Coverage (inpatient and outpatient care, private or specialist treatment, treatment for personal accidents, etc.) Paid Parental Leave Retirement Provision (provident fund, social insurance, retirement payout, etc.) Allowances (performance bonuses, meal and transport reimbursements, etc.) In the event of operational changes that affect employees, a period of 1-3 months’ notice period is given. Depending on the seniority of the employee, a longer notice period may be applied. The notice period ranges the same for employees under a collective agreement. As of FY2020, our Group’s turnover rate decreased to 15.5% , as compared to the FY2019 measurement of 17.4%. In FY2020, we increased the proportion of senior management 4 hired from local communities by approximately 2% as compared to FY2019’s figure. “While the paint and coatings industry is a traditionally male-dominated industry given the nature of operations, we have steadily increased our female to male ratio at NIPSEA Group across the years. To further support our gender-balanced agenda, we look to increase digitalisation in our operations and embark on a new era of automation-driven work to increase efficiency and to reduce the amount of strenuous physical work.” - Ms Grace Tan, Head of Human Resources Ensuring Fair Employment Practices 4 Director level and above 5 Number of employees who have returned to and remained at work for at least one financial year, after the end of parental leavePAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 21 NIPSEA Group adopts a Group-level learning framework that necessitates the holistic development of our employees with the relevant skills and competencies required at different job levels. We provide an array of training and educational programmes in different functional areas, ranging from technical to leadership upskilling. Training programmes are tailored at the country level depending on the findings of a yearly training needs analysis. In FY2020, we administered a total of 341,448 training hours for our employees. In FY2020, we increased training hours for employees by >28% as compared to FY2019’s hours. Average Training Hours Per Year, Per Employee Category Pursuing Continuous Training & Education Management 24.05 Hours Executives & Supervisors 30.78 Hours Rank & File 15.50 Hours Average Training Hours Per Year, Per Gender Category Male 18.55 Hours Female 23.37 Hours22 NIPSEA LFG SUSTAINABILITY REPORT 2020 Employee safety is NIPSEA Group’s number one priority and we place great emphasis on the physical and mental well-being of our people. We achieve this through the enforcement of safe behaviours and the provision of good health and working conditions under local laws and regulations, as well as the Group’s Quality, Environment, Safety and Health (QESH) protocol. These policies set the company-wide tone that governs actions within the Group, including the interactions we have with our suppliers, customers, or any other related third party. Occupational health and safety committees oversee the management of workplace safety, chaired directly by Senior Management. Preventing Work-Related Incidents Our occupational health and safety (OHS) measures focus on the prevention of safety and hygiene hazards that could potentially arise from crucial manufacturing and operational activities such as chemical use and storage, production and manufacture of paints and allied products, waste disposal machine use, or forklift truck use in factories. We adhere to international safety management systems to facilitate compliance and continuous improvement of safety standards across our operations, in particular, OHSAS 18001 and ISO 45001:2018. If an entity does not certify to the above two standards, they will adhere to the safety management systems of NIPSEA Group instead. We ensure that our health, safety, and environmental (HSE) efforts cover the following areas: Emphasising Workforce Safety and Well-Being Employee awareness and training of health and safety measures and services We use a variety of communication channels such as noticeboards to raise the awareness of health and safety measures amongst employees, including the roles and responsibilities of top Management, HSE Committee, Heads of Departments, and employees. We keep employees up-to-date on latest HSE precautions through training workshops and briefings on subject matters such as chemical and PPE safety, machine use, or techniques that include life-saving and occupational first-aid taught by internal or external experts. A tailored training calendar is developed yearly per site based on a competency assessment, specific to work scope activities, site hazards, and safety standards. At select sites, we maintain occupational health centres (OHC) that house more than 10 trained first-aid providers with medical essentials that include first-aid boxes, an ambulance, and emergency wash areas to provide immediate assistance in the event of emergencies. 1 Regular review meetings to review HSE performance We organise yearly Management Review Meetings and monthly Occupational Health and Safety Board Meetings to review HSE performance and assign responsibilities to act on areas of improvement, where required. Resource planning for HSE implementation, maintenance and improvement We allocate budgets for human resources, special talents, and technological improvements to ensure that HSE performance is either maintained or improved. These budgets cover activities such as conducting safety inspections, permit-to-work systems, training programmes, safety checklists, response plans, and investigations. Availability of grievance mechanisms In line with the Union’s requirements, we avail grievance channels to employees that include email, face-to-face opportunities with the safety department or abnormal or near-miss forms to report any abnormality or hazardous conditions. Pertaining to the issue reported, employees are allowed to stop work till precautionary measures are taken. Objective and target setting on key HSE performance indicators (KPIs) We plan and track objectives and targets in a regional database that also houses industry best practices and suggested solutions to common issues to achieve continuous improvements in KPIs. 2 3 4 5PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 23 Taking Proactive Corrective Action If a case on a potential safety hazard is filed, the OHS team will investigate the reported incident. Employees who report the incident will not be penalised. Findings will be shared with the Safety Committee at monthly management meetings with corrective or improvement actions taken to prevent recurrences, if necessary. The Safety Committee comprises employee and management representatives to facilitate joint discussions. These incidences are also shared at bi-annual town-halls, as well as included in HSE training material as examples. In FY2020, we set up a NIPSEA Safety and Sustainability Council (NSSC) to lead safety audits and ensure that safety standards are adhered to across all Group factories. NSSC meetings are held quarterly with the HSE managers of respective factories to discuss safety targets, workplans, and sharing of updates or latest best practices. We manage hazards in the workplace by tracking and monitoring performance, operational control, and compliance to standards through a variety of processes. These include: In FY2020, we report 0 cases of recordable work-related ill health 6 All employees (including contractors) Contractors only Number of recordable work-related injuries 10817 Rate of recordable work-related injuries per 200,000 hours worked 0.620.48 Rate of recordable work-related injuries per 1,000,000 hours worked 3.122.40 Risk Assessments Safety persons-in-charge are trained by certified training institutions to evaluate risks at the workplace using a 5x5 risk scoring matrix or a Fine–Kinney method. Action plans are then developed to address the significant risks and opportunities for compliance obligations and continual improvement. External and Internal Audits We carry out a NIPSEA Group corporate-guided safety diagnosis as well as engage third-party companies to conduct surveillance audits to ensure that our OHS standards are regularly re-certified. Monitoring Activities This includes hazard assessments, evaluations, line and professional self assessments, peer reviews, third-party validation testing, and internal audits. In addition, control postures are assessed and reports generated that inform of key measurements, process owners, control points, validation testing, and action plans for any corrective actions needed. Employee Participation We adopt a consultative approach to provide employees opportunities to voice safety concerns or contribute ideas to better revise current HSE policies or programmes through channels such as an annual employee survey, safety suggestion boxes, open discussions on social media platforms, or message boards. 6 Work-related injuries and ill health, including diseases, illnesses, and disorders, are those that arise from exposure to hazards at work24 NIPSEA LFG SUSTAINABILITY REPORT 2020 Improving Health and Wellness at the Workplace NIPSEA Group organises Employee Total Wellness programmes comprising e-courses and workshops to support employees mentally and physically, covering topics such as stress and weight management. We also organise recreational clubs that allow employees to enjoy a wide range of activities together, from sporting events to arts, music, and CSR activities. Depending on the nature of operations per country, we avail a range of medical services to our employees. These include health counselling and an annual in-house health check-up for all employees. Alternatively, employees can be treated at a list of panel clinics. Select employee groups that handle hazardous chemical materials are scheduled to receive check-ups on a more frequent basis. PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 25 Advancing the planet-positive agenda NIPSEA Group is committed to minimising our environmental footprint to protect the planet. We take proactive action across our operations and extended business networks to reduce our environmental impact and transit successfully toward operating in a low-carbon future. ENVIRONMENT 26 NIPSEA LFG SUSTAINABILITY REPORT 2020 Climate change is one of the greatest challenges of our time and NIPSEA Group recognises our role in the management of our environmental resources. NIPSEA Group’s environmental approach strives to embed eco-efficiency within our operations while maintaining overall productivity. To do so, we work closely with our people to improve processes and conceive solutions that help us meet our planet-positive commitment. This also involves engaging with suppliers across our supply chain to influence positive change. Our environmental approach focuses on six aspects which we have identified as material to our industry, operations and stakeholders. We ensure environmental compliance across these six aspects by adopting recognised environmental management systems and standards that include ISO 9001 (Quality), ISO 14001 (Environment) and ISO 45001 (Health & Safety). We also take into account all requirements from the local authorities or regulatory bodies and expectations from key stakeholders such as shareholders where we operate, to ensure that all requirements or needs are met from a legal standpoint. At times, we engage third-party consultants to inform of latest updates on regulations and laws. Environment Positivity 1 Materials 4 Water 2 Energy 5 Waste 3 Emissions 6 Supplier Engagement We manage the six aspects through quality, environmental, health and safety management systems (QEHSMS). Our Group level management takes the lead role in initiating and reviewing QEHS objectives and goals, while regional divisions drive initiatives and programmes, to propel us toward achieving continuous progress year on year. Monitoring frameworks are put in place and impact assessments conducted at least once a year. All findings are kept or submitted to relevant authorities if required for improvement or audit purposes, particularly in the case of licence and permit renewal. Any variances from standards or targets are addressed through review meetings and corrective action initiated, where applicable.PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 27 Continuously, we look to increase green investments in digitalisation and innovation, as well as seek out ecosystem partnerships that drive progress in our environmental agenda. Below, we share the key advancement highlights in progress for each of our six key environmental aspects. NIPSEA Group’s Environment Focus Highlights Materials We are looking into improving our recycling practices to increase circularity within our production processes and thus minimise overall usage of materials. At present, we are in the midst of developing recyclable pallets embedded with digital technology to provide analysable data and thus drive action to improve pallet design, as compared to the current non-recyclable wood versions. Energy & Emissions We are working with research centres to develop non-burn technology through electrolytic means , to reduce the amount of Volatile Organic Compounds (VOCs), as compared to the current oxidation methods. In parallel, we continue to optimise and adjust our product composition towards water-based and solvent-free paint products to reduce VOC volatilisation. This involves investing in treatment facilities to improve our technological capabilities in recycling and reusing unavoidable VOCs. Water We are looking into development research through industry partnerships on bettering wastewater recycling systems with the goal of achieving zero discharge to the environment. This includes looking into the reuse of treated wastewater, enhancing wastewater treatment activities , and even into sanitisation levels of the wastewater that leave our plants. Waste We implement lifecycle land assessments in key factories, coupled with regular periodic checks to ensure that waste material from our factories do not contribute to land pollution in surrounding areas. Supplier Engagement We consider factors such as environmental protection and sustainable development in the process of supplier management. In China, we ensure that our factories adhere to local “green factory” accreditation guidelines on production and logistic matters. This ensures that our supplier actions are accounted for and kept up to the “green standard” required. We are in the midst of developing a NIPSEA Green Plan to direct the advancement of NIPSEA Group’s sustainable development to put in place policies, programmes and targets in a structured way to achieve carbon neutrality and other environmental goals that are key for the organisation and our stakeholders. We look forward to sharing more details on the plan in the next report.Next >