< Previous48 NIPSEA LFG SUSTAINABILITY REPORT 2020 Customer-First Innovation NIPSEA Group is committed to a strategy of co-creation with customers, for customers, in our approach towards innovation excellence to unlock opportunities and deliver value that improve lives daily. We continue to build this commitment on the foundation of pivoting our resources in the areas of digitisation, and talent and people, to drive our competitive advantage in product innovation and process efficiency. Product Innovation Developing new and improved products and services Divisional Operations Enhancing efficiency of operating systems and processes NIPSEA Group’s R&D Innovation Centre in Shanghai is our main gateway to customer-inspired innovations. The Centre houses more than 100 experienced professionals across various fields such as chemistry, materials and chemical engineering, focusing on the two core aspects of our innovation agenda – Product Innovation and Divisional Operations. It also serves as a knowledge hub for employees, partners, and customers to connect and grow through our Group- wide network. This platform has enabled us to collectively scale up our proficiency in developing new ideas and solving upcoming challenges through rapid design and prototyping to address evolving needs in the market. We are in the midst of building a campus in the R&D Innovation Centre in Shanghai, in which we aim to employ more than 300 R&D and Innovation professionals by 2025. We also have a R&D Centre in Singapore that focuses on colour technology innovation, primarily serving the Association of Southeast Asian Nations (ASEAN) market. Shanghai Singapore NIPSEA Group R&D Innovation ASEAN R&D Centre • Colour Technology Group Core R&D • Colour Technology • Advanced Materials • Process Technology • Measurement Science Group Innovations • Architectural Coatings • Automative Coatings • Industrial Coatings • Frontier TechnologyPAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 49 In FY2020, we made progress in three innovation areas that delivered business, community, and environmental benefits. Lowering Energy Usage with Infrared-Reflective Paints Nippon Paint Singapore has developed a total cool paint solution embedded with infrared (IR)-reflective technology to reflect IR radiation from the sun away from horizontal (roof tops) and vertical (building facades) surfaces and into the atmosphere. This reduces thermal heat accumulation on the surfaces to reduce indoor temperatures by up to 5°C. Buildings painted with the IR-reflective solution will thus require lower energy consumption due to the decreased need for air conditioning, while presenting occupants with greater thermal comfort. Encouraging Low-Carbon Solutions with New Technologies We developed MonoShine TM – a high-solid waterborne technology that utilises a unique crosslinking system to combine the primer, basecoat and clearcoat into a single film, as compared to the conventional layer-by-layer coating system. This allows for a rapid coating process that reduces the amount of energy consumption required and volatile organic compounds (VOCs) emitted, as well as less raw material input while maintaining a quality high-gloss finish. Altogether, it presents both environmental and cost efficiencies. The technology can adapt to a wide range of temperature and humidity fluctuations to achieve stable coating quality throughout the year, making it applicable across a variety of construction project types. At present, our paints that incorporate MonoShine TM are now the preferred coating solution for commercial vehicle applications. Environment-Friendly Products Achieving Environmental Efficiencies with Improved Technology IPP (Integrated Painting Process) technology is the preferred OEM paint process in markets today due to its economic and environmental efficiencies. Relative to conventional methods, this technology requires lower energy usage and produces less VOC emissions as a result of its unique wet-on-wet painting process between the coating layers of primer and basecoat. Nippon Paint built upon the technology to create a proprietary Gen 2 IPP technology platform – NIPPBASE IPP, to produce paint outputs with higher solid content, lower VOC emissions and an overall improved appearance. We developed a new type of acrylic emulsion latex made up of higher solid content (45%- 48%) and designed with a fine “core-shell” structure to enable it to interact with inorganic layered silicate additives resulting in the formation of a pseudoplastic complex. These properties enable the production of a high-solid IPP painting system, yielding products of lower viscosity at a high shear rate, while improving spray atomisation for ease of application. We have since successfully commercialised NIPPBASE IPP platform products in the painting lines of Auto manufacturers in China.50 NIPSEA LFG SUSTAINABILITY REPORT 2020 Protecting Frontliners with Anti-Viral Paint NIPSEA Group Technology has formulated Clear Shield ® , Virus Clear & Health Shield, our latest CIAA 8 -certified anti-microbial paint technology that offers a layer of continuous protection to consumers’ living environments. This new technology adds to our existing safety and protection paint solutions portfolio that ranges from VirusGuard ® to Protecton ® , offering a total solution to ensure consumers’ health and safety. We have incorporated Clear Shield ® across a range of our indoor paint products, building on their current list of benefits to create a comprehensive paint solution. This includes the Nippon Odour-Less Interior Emulsion Paint with anti-bacteria, anti-mold, and anti-virus features; waterborne grout, clear top coat and powder coating with anti-microbial properties; and Nippon Paint DURA/ FLEKS’s microbial pollution reduction features from the Coil Coating product range. Community Health and Wellness Creating Safe Indoor Environments for Young Children’s Growth Development Nippon Paint Malaysia launched the country’s first-ever Child Wellness Range, a series of functional coatings that enables a clean air and safe touch environment targeted at three critical child growth milestones – infants, toddlers, and children. The water-based coatings leverage an Active Carbon Technology that is designed to absorb formaldehyde in the air, converting them into water vapour for cleaner air. The coatings are also lead- and mercury-free, thus enabling a low VOC content. It also contains a Silver Ion Technology that reduces the spread of viruses and growth of bacteria on walls, effectively reducing transmission of viruses such as Influenza A (H1N1) and Coxsackievirus A16 that causes hand, foot and mouth disease, as well as bacteria such as E. coli, S. aureus and MRSA. The range also includes an Anti-Stain Technology, allowing stains to be easily cleaned. 8 Chinese Industry Alliance for Antimicrobial Materials & ProducesPAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 51 Improving Performance and Quality Composite materials are increasingly favoured as an alternative to traditional raw material input such as metals and plastics due to their light weight and high strength property advantages. The R&D team in Nippon Paint created NP SPARLITE ® – a range of innovative composite coating solutions that offer increased design flexibility in terms of surface appearance and coating process versatilities, as well as reduced surface quality issues commonly related to composite substrates. The solutions can be used across a wide range of market applications, from lightweight electrical cars, aerial vehicles and high-speed trains, to construction, sports equipment, and wind industries. Performance and Functionality Enhancing Design Efficiency TuffLac and BeudLac are scratch-resistant coating films that are commonly applied on car surfaces today. To boost their scratch-resistance performance, Nippon Paint developed the CyGLAZ ® technology – a novel class of polymer with hyper-branched, near-3D symmetrical molecular architecture to be incorporated into the coating films to create a uniform network with a high crosslinking density. This increases the structural integrity of the coating films and thus the toughness of the coating layer. The technology also possesses unique re-flow characteristics that enable “self-healing” of the coating film when put under stress, to offer a comprehensive protection solution against scratches while maintaining long-lasting gloss retention.52 NIPSEA LFG SUSTAINABILITY REPORT 2020 CHAPTER 4APPENDIXPAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 5354 NIPSEA LFG SUSTAINABILITY REPORT 2020 GRI Topic GRI DisclosureDescriptionMetric GRI 201 Economic Performance 201-1 Direct economic value generated and distributed Direct Economic Value Generated: RevenuesUSD million Economic Value DistributedUSD million Economic Value RetainedUSD million 201-3 Defined benefit plan obligations and other retirement plans Estimated value of resourcesUSD million 201-4 Financial assistance received from government Financial assistance from governmentUSD million GRI 202 Market Presence 202-2 Proportion of senior management hired from the local community Number of senior managers at significant location of operation hired from local community (%) % Total number of senior management at significant location of operation – Number of senior managers at significant location of operation hired from local community – GRI 203 Indirect Economic Impacts 203-1 Infrastructure investments and services supported Qualitative information not available in this table ESG Performance DataPAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 55 Greater China Group Korea Group Malaysia Group Thailand Group India Group Singapore Group Others NIPSEA Group Not applicable – calculated at the NIPSEA Group level 4,461 3,861 600 32 29 57.0%100.0%76.5%78.6%95.0%80.0%100.0%72.2% 114 135114201518 245 65 133911191218 177 Refer to ‘Chapter 3: Community’ for details56 NIPSEA LFG SUSTAINABILITY REPORT 2020 GRI Topic GRI DisclosureDescriptionMetric GRI 301 Materials 301-1Materials used by weight or volume Non-renewable material usedtonnes Renewable material usedtonnes 301-2Recycled input materials used Weight of recycled input materialstonnes GRI 302 Energy 302-1 Energy consumption within the organization Total energy consumptionGJ Non-renewable energyGJ Renewable energyGJ 302-3Energy intensity Energy intensity ratio for the organizationMJ/tonne 302-4Reduction of energy consumption Amount of reductions in energy consumption achieved as a direct result of conservation GJ 302-5 Reductions in energy requirements of products and services Reductions in energy/production vol in tonnesMJ/tonne GRI 303 Water & Effluents 303-1 Interactions with water as a shared resource Qualitative information not available in this table 303-2 Management of water discharge related impacts 303-3Water withdrawal Total water withdrawal from all areas and a breakdown of this total by the following sources: Surface waterMegalitres GroundwaterMegalitres Produced waterMegalitres Third-party waterMegalitres A breakdown of total water withdrawal from each of the sources listed above, by the following categories: Freshwater (≤1,000 mg/L Total Dissolved Solids) Megalitres Other water (>1,000 mg/L Total Dissolved Solids) Megalitres 303-4 Water discharge by quality and destination Total water discharge from all areas and a breakdown of this total by the following sources: Surface waterMegalitres GroundwaterMegalitres Third-party waterMegalitres A breakdown of total water discharge from each of the sources listed above, by the following categories: Freshwater (=1,000 mg/L Total Dissolved Solids) Megalitres Other water (>1,000 mg/L Total Dissolved Solids) Megalitres ESG Performance Data owing sources: ve, by the following categories: ollowing sources: e, by the following categories:Total water withdrawal from all areas and a breakdown of this total by the following sources: A breakdown of total water withdrawal from each of the sources listed above, by the following categories: Total water discharge from all areas and a breakdown of this total by the following sources: A breakdown of total water discharge from each of the sources listed above, by the following categories: PAINTING THE WAY FORWARD BEYOND COATINGS. BEYOND ASIA 57 Greater China Group Korea Group Malaysia Group Thailand Group India Group Singapore Group NIPSEA Group 3,474,164.23,051.5477,587.943,337.646,052.066,080.24,110,273.5 1,613,799.327,573.2228,612.9298.33,300.057,618.21,931,201.8 0.00.019,061.30.051.0137.419,249.7 580,035.010,284.3439,997.170,416.414,931.037,036.91,152,700.8 580,035.010,284.3439,997.170,416.413,156.237,036.91,150,926.0 0.00.00.00.01,774.80.01,774.8 164.1359.5622.42,003.7218.8485.4259.0 183.2602.644,019.60.01,364.0116.646,286.0 32.771.42,079.60.020.015.82,219.5 Refer to ‘Chapter 3: Environment’ for details 0.00.00.00.03.70.03.7 177.00.07.40.00.04.5188.8 0.00.00.00.016.10.016.1 1,435.837.1315.187.99.664.21,949.7 1,612.837.1322.487.929.468.72158.2 0.00.00.00.00.00.00.0 565.99.030.90.00.017.3623.2 0.00.02.70.00.00.02.7 0.01.784.670.20.025.4181.9 0.09.094.670.20.042.6216.4 0.01.723.70.01.40.126.8Next >