NIPSEA Group's fourth consecutive Sustainability Report, SR2022, encompasses the sustainability performance of our operations in 22 locations from January 1st to December 31st, 2022. SR2022 highlights our strategies, performance, and initiatives regarding Environmental, Social, and Governance (“ESG”) issues that are significant to our operations and stakeholders. Unless otherwise specified, all data and information presented in this report apply to 46 reporting units (1) across the 22 geographical locations (2) . There are also no restatements made in this report. GRI Standards In adherence to the Global Reporting Initiative Sustainability Reporting Standards (“GRI Standards”), this report has been prepared, offering a structured framework for organisations to disclose their economic, environmental, and social performance and impacts. Our sustainability disclosures and reporting line have been updated to align with the 2021 revision of GRI's Universal Standards. For further information on the related topics and references, please refer to the GRI Content Index under the Appendix section of this report. SASB Standards In addition to following the GRI Standards, we have integrated the use of the Sustainability Accounting Standards Board (“SASB”) Standards into our reporting framework. The SASB standards enable us to identify, manage, and report on financially material sustainability information, specifically within our industry. Our sustainability disclosures have been updated to align with both GRI and SASB standards. For additional information on the relevant topics and references, please refer to the GRI Content Index and the SASB disclosure mapping table located at the end of this report. External Assurance All data and information presented in this report have not undergone external assurance at present. NIPSEA Group will evaluate possibilities to externally assure sections of significant materiality once a more advanced level of reporting maturity has been attained. Feedback At NIPSEA Group, we place significant importance on the opinions and feedback of our stakeholders. We welcome any suggestions that can help us enhance our sustainability reporting and practices. If you would like to share your thoughts on how we can further our sustainability commitments, please reach out to NIPSEA Group's Sustainability Working Group at sustainability@nipsea.com.sg. We remain committed to monitoring our business activities closely, ensuring that the Group creates long-term value for our business and stakeholders in an open and strategic manner. ( 1 ) Reporting units are neither legal entities nor business units. ( 2 ) The 22 geographic locations are Bangladesh, Czech Republic, Egypt, France, Germany, Greater China (including Hong Kong and Taiwan), India, Indonesia, Kazakhstan, Korea, Malaysia, Myanmar, Pakistan, Philippines, Singapore, Slovakia, Sri Lanka, Thailand, Turkiye, United Arab Emirates (“UAE”), United Kingdom, and Vietnam ABOUT THE REPORTCONTENT Overview A Message from the Group Chief Executive Officer 2022 Key Highlights Business Brand and Legacy Our Approach to Sustainability Stakeholder Engagement Management Philosophy GRI-SASB Materiality Assessment Sustainability Goals Safeguarding the Environment Energy and Emissions Reduction Strategy Water Conservation Strategy Waste Management Strategy Creating a Safe, Diverse, and Skilled Workforce Workforce Safety and Well-being Diversity and Inclusion Training and Development Developing Sustainable Communities Community Impact Driving Innovation for a Better World Sustainably Advantaged Products 04 04 06 07 08 10 11 12 14 16 18 21 23 28 30 33 35 36 37 62 63 Appendix ESG Performance Data SASB Chemicals Industry Disclosures Membership Associations 72 GRI Content Index Delivering Safe and High-quality Products Product Safety Design 68 70“WE BELIEVE THE CAREFUL CHOICE AND COMMITTED FOCUS ON OUR LONG TERM SUSTAINABILITY OBJECTIVES GO HAND IN HAND WITH BUSINESS SUCCESS.” WEE SIEW KIM A MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER Dear Valued Partners and Stakeholders, After 3 years, the world has declared that the pandemic is behind us. Over this past period, beyond the usual expected challenges, organisations wrestled with supply chain disruptions, geopolitical conflicts, run-away inflation and now, the looming threat of a recession. At NIPSEA Group, we should not let these challenges detract us from our long-term sustainability objectives. We believe the careful choice and committed focus on our long-term sustainability objectives go hand in hand with business success. As the Group Chief Executive Officer, I am proud to share our unwavering commitment to our employees, communities, and customers as our top priorities. Our sustainability approach is anchored on five key pillars: (1) Environment, (2) People, (3) Community, (4) Innovation, and (5) Customers. Safeguarding the Environment Creating a Safe, Diverse, and Developing Sustainable Communities Driving Innovation for a Better World Delivering Safe Products Energy and Emissions Reduction Strategy Water Conservation Strategy anagement Strategy and Well-being Diversity and Inclusion Training and Development Community ImpactSustainably Advantaged Products Product Safety Design PEOPLECOMMUNITYINNOVATIONCUSTOMERS ENVIRONMENT NIPSEA GROUP’S SUSTAINABILITY PILLARS 4This year, the NIPSEA Group has adopted the SASB Standard to enhance our commitment to sustainability. Through this alignment, we transparently report our progress on sustainability matters, including our efforts to mitigate environmental risks, promote diversity and inclusion, ensure workplace safety, and contribute to the well-being of our communities. Effective communication of our sustainability performance to all our partners and stakeholders is important as we work together to make informed decisions to drive positive changes and business success. In FY2022, we made significant progress in different areas. We installed more solar panels across our sites and generated a total of 8,502.1 MWh of electricity, reducing our reliance on fossil fuels and decreasing our carbon footprint. In addition, our water conservation initiatives resulted in a 6.4% reduction in total water consumption even as our operations intensity grew. Furthermore, 23.9% of the waste generated has been directed toward reuse, recycling, and other recovery operations. Nonetheless, we can still do more toward our commitment to the circular economy and reduction of waste generation. Investing in the development of our workforce is a priority for us, and in FY2022, NIPSEA Group clocked a total of 1,626,370 training hours for all employees, with an average of 59.7 hours per employee. This underscores our commitment to building a safe, diverse, and skilled workforce that is equipped to tackle the challenges of the future. We are also proud of our progress in Green Design Review, with almost 60% of projects completing it by the end of 2022. Out of those that completed this review, 53% were identified as sustainable products. This ensures that our products are developed with sustainability in mind, and we are constantly striving to improve the environmental performance of our products and processes. This year, we have invested over $4.2 million in our CSR initiatives. The Group’s global CSR vision focused on “Growth with Communities” directs our inclusive business approach to create tangible social impact in communities by "Colouring Lives" in countries where we operate. Our continued business success must go hand-in-hand with the improvements to the quality of life in these countries. Through targeted localised programmes, we intend to tackle socioeconomic challenges across three key CSR pillars: Education, Empowerment, and Engagement. However, success can only be assured through close collaborations with local governments, business partners, and NGOs. At NIPSEA Group, we recognise that sustainability cannot be approached from short-term considerations but with real measured steps through long-term commitment. As we navigate the current challenges in the global landscape, we remain committed to harnessing the power of innovation to create sustainable and meaningful solutions. We continue to be inspired by our stakeholders, including our customers, employees, and communities, to continue pushing the boundaries of what is possible and to make a positive impact on the world. Thank you for your continued support on this journey. 52 0 22 K E Y HIGHLIGH T S Adopted SASB Standards CUSTOMERS improvement on health and safety impacts. Assessed ENVIRONMENT of solar energy. Generated reduction in total Achieved a recovery operations. Diverted INNOVATION ESG-Innovation Committee “sustainably advantaged products” Generated in revenue from sustainably advantaged products PEOPLE of fatalities as a result of Achieved representation 0 cases in both management and emerging leader categories. Introduced the goal of achieving training hours. COMMUNITY CSR initiatives carried out globally, the highest number to date. million in CSR initiatives. Invested man-hours and litres of paint Committed 6NIPSEA Group, formed in 1962 through a partnership between Nippon Paint, our parent company, and Wuthelam Holdings Pte Ltd, has grown to become a prominent paint and coatings solutions company serving various sectors in Asia. Our growth in the region has been substantial, with expansions into 22 locations to date. A new era for NIPSEA Group began in 2007 when we acquired consolidated subsidiaries across the Asia Pacific, enabling us to advance as the fourth-largest paint and coatings solutions company worldwide. Nippon Paint, established in 1881 by Mr. Moteki Jujiro and known for pioneering Japan's first paint plant, has evolved into Asia's leading coatings manufacturer. NIPSEA Group has been a wholly-owned subsidiary of Nippon Paint Holdings since 2021. The NIPSEA Brand At present, the NIPSEA Group holds a position of leadership in the industry on a global scale and is committed to pursuing sustainable growth by placing the needs of customers at the forefront. We are driven by the aspirations and requirements of the people we serve, and as a collective, we harness our capabilities to deliver innovative solutions with compassion and prioritise our employees as an integral part of our organisation. At Nippon Paint, we draw inspiration from our customers, and their needs remain the cornerstone of our endeavours. Our unyielding drive to focus on our customers and provide innovation that works best for all our stakeholders is demonstrated at NIPSEA Group, where we maximise value by pushing boundaries to deliver high-quality solutions. Asia Pacific’s No. 1 Paint and Coatings manufacturer Over 27,000 employees Headquartered in Singapore More than 135 NIPSEA companies spread through 22 geographical locations. in both production and sales revenue. with 102 manufacturing facilities and operations. BUSINESS BRAND AND LEGACY 7CHAPTER 2 OUR APPROACH TO SUSTAINABILITYNext >