< PreviousNippon Paint China’s Transformation into a Carbon-Neutral Industrial Green Park NIPSEA Group's Nippon Paint Jinshan facility is dedicated to transforming into a carbon-neutral industrial green park. As part of our commitment to supporting the green movement in China, Nippon Paint (Shanghai) Company Limited's Regenerative Thermal Oxidiser (“RTO”) project has successfully treated volatile organic compounds (“VOCs”), meeting China's regulatory standards and consistently maintaining low emission levels. This effort has not gone unnoticed, as the Jinshan district news agency reported on 25th June 2022 that air quality around the park has significantly improved, as confirmed by nearby residents. One resident commented, "there is no longer any strong chemical smell," a testament to the green initiatives implemented by factories operating within the industrial park, including Nippon Paint Jinshan. Despite encountering some unsuccessful attempts to find alternative solutions, the factory invested over 20 million RMB in upgrading its VOC system. In April 2022, the RTO system achieved initial operational capabilities, with an average emission figure of 35 mg/cubic, well below the standard of <50 mg/cubic. The RTO system uses a zeolite runner system that effectively adsorbs organic solvents in waste gas with a purification efficiency of over 98%. NIPSEA Group is committed to developing energy-efficient solutions and reducing our overall emissions. To achieve this, we will expand our energy consumption monitoring activities to include buildings and various types of machinery used in key manufacturing processes. We are increasing the use of greener technology, adopting decentralised generation models, and optimising our production. Additionally, we are developing plans to expand the role of solar energy in our energy mix and increase the use of electric vehicles in our operations. Our efforts are aimed at reducing our environmental impact and supporting the transition to a more sustainable future. We will continue to explore and implement innovative solutions to improve our energy efficiency and reduce emissions throughout our operations. PROJECTED REDUCTION OF ENERGY AND EMISSIONS INTENSITY 20 30% 20Green Energy Projects by Nippon Paint China Water Conservation Strategy 2022-2023, the Group installed solar panels in 9 factories located in China (refer to the map below). These installations have resulted in a total electricity generation of 8,502.1 MWh. Additionally, 13 more factories are set to follow suit and get solar panels installed in 2023, estimated to generate 26,900.5 MWh of electricity. The Group is also exploring alternative energy-sourcing methods for high energy-consuming systems. One initiative involves the use of air-sourced heat pump systems, which replace electricity-sourced water heating. Another proposal is to replace fuel forklifts with electric forklifts, which will significantly reduce carbon emissions. Through the adoption of green energy solutions, NIPSEA Group aims to further its commitment to sustainability and reducing carbon emissions in its operations. NIPSEA Group values water as a vital resource for our manufacturing processes. We continually optimise our processes to enhance water efficiency and treat all wastewater leaving our facilities to prevent environmental pollution. Soil testing and spill kits are in place to mitigate potential issues, and our treatment requirements vary depending on the wastewater type. In 2022, our total water consumption reduced by 6.4%, totalling 1,941.9 megalitres with an intensity of 382.9 litres/tonne. This represented a 10.2% increase in water intensity due to the decrease in total production output; hence, we did not achieve our yearly reduction target of 2% for water intensity. We will enhance our water conservation efforts to achieve our overall goal of reducing our water intensity by 8% by 2025 against a 2021 baseline. Nippon Paint New Materials (Henan) Co., Ltd. Nippon Paint New Materials (Shandong) Co., Ltd. Suzhou Nippon Paint New Materials Technology Co., Ltd. Nippon Paint (Henan) Co., Ltd. Nippon Paint (Hubei) Co,. Ltd Guangzhou Nippon Paint Co., Ltd. Nippon Paint (Qingyuan) Co., Ltd. Nippon Paint (Jiangsu) Co., Ltd. Nippon Paint New Materials (Hunan) Co., Ltd. INSTALLATION OF SOLAR PANELS GENERATED A TOTAL OF OF ELECTRICITY 8,502.1 MWH REDUCTION OF TOTAL WATER BY 6.4%, TOTALLING WITH AN INTENSITY OF 1,941.9 MEGA LITRES 382.9 LITRES TONNE SAFEGUARDING THE ENVIRONMENT 21Discharge Treatment Requirements by Wastewater type 1. Wastewater that cannot be reused or recycled Such wastewater is disposed of as industrial waste and collected by a licensed collector for further treatment in accordance with local laws. 2. Wastewater that requires treatment before disposal Wastewater from lab basins is first treated in a dilution tank and tested by a third-party assessor before it can be released as public sewage. 3. Wastewater that can be disposed directly Wastewater from toilets and wash basins is linked directly to public sewage. NIPSEA Group is committed to operating sustainably and adhering to local regulations and guidelines for wastewater management. In collaboration with our industry partners, we are working towards achieving zero discharge to the environment through better wastewater recycling systems. We are also co-developing various initiatives aimed at enhancing wastewater treatment activities, reusing treated wastewater, and improving the sanitisation levels of the wastewater that leaves our plants. REDUCING USAGE ENCOURAGING REUSE AND RECYCLE FEEDBACK SYSTEM Internal communication and reporting systems are in place for employees to report any ideas or suggestions for improvement. SELF-INITIATED CAMPAIGNS Individual organisations are encouraged to initiate self-starter wider saving campaigns. USE OF MANAGEMENT SYSTEMS AND REGULATIONS Under ISO14001:2015 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 water efficiency are identified and rectified on a priority basis. LEVERAGING TECHNOLOGY We adopt technology that uses ultra-violet light and reverse osmosis to filter Effluent Treatment Plant (“ETP”) water to be reused. Sewage Treatment Plant (“STP”) water is also recycled via the same process and used for gardening purposes. COORDINATION AMONGST FACILITIES We facilitate close cooperation across different production plants to enable cross-production recycling activities. For example, the wastewater of the binder production facility can be used as raw water for the formation of certain water-based paints. 22Waste Management Strategy NIPSEA Group is aware of the size of our production in the region and our heavy reliance on chemicals, which is why we give significant attention to waste disposal. As part of our long-term strategy for managing hazardous and non-hazardous waste efficiently, we prioritise action in four areas: Disposal Treatment, Product Labelling, Employee Awareness, and Checks & Awareness. In 2022, we generated 53,350.6 tonnes of waste material. 24.0% of the waste generated was directed for reuse, recycling and other recovery operations, while the rest was directed to disposal. Waste disposal operations included incineration, landfill deposit, waste sorting, fuel blending and municipal disposal. BETEK Nippon Paint Turkiye's Ongoing Water Mobilization Projects 1. RO Unit Waste Water Recycling: Our R&D, Production, and HSE team members have started trial studies for the reuse of an average of 5,000 m 3 of water per year. 2. Polymer Waste Water Recovery: Our R&D, Production, and HSE team members are conducting trial studies for the annual average of 2,000 m 3 of water and the recovery of approximately 150 tonnes of polymer. 3. Recycling of Water-Based Waste Water: Our R&D, Production, and HSE team members are conducting trial studies for the annual average of 20,000 m 3 of water and water-based paint recovery. 4. Recycling of Domestic Use Waste Water: A study has been initiated for the use of 15,000 m 3 of wastewater per year in garden irrigation, urinals, and toilet bowls. 5. Rainwater Recovery: Based on our precipitation regime and area calculations, we anticipate that we can retain approximately 30,000m 3 of water annually. We plan to invest in this initiative after preliminary studies and trials. 6. Reuse of Treatment Plant Discharge Water: We are also exploring the possibility of reusing approximately 26,500 m 3 of wastewater as washing water. We have established a Water Mobilisation Committee to oversee all these initiatives, and our team is actively monitoring progress. These initiatives are aimed at reducing our water footprint and promoting sustainable water management practices. OF WASTE GENERATED WAS DIRECTED FOR REUSE, RECYCLING, AND OTHER RECOVERY OPERATIONS 24.0% SAFEGUARDING THE ENVIRONMENT 23Breakdown of Waste Management Operations (%) Currently, Nippon Paint China accounts for a significant portion of the Group's total waste generated, measuring 52.4% of the overall waste generated. To manage this effectively, we have an information management system that enables us to conduct environmental performance assessments and forecast pollutant emission index to identify areas for improvement. The system also provides us with updated annual pollutant discharge statistics, coupled with an automated function to calculate environmental taxes in line with the latest guidelines and information released by the Chinese government. Waste Reduction Efforts by Nippon Paint China To further enhance our efforts in waste management, Nippon Paint China has implemented two key initiatives: A HIGH PRESSURE CLEANING SYSTEM THAT REDUCES WASTEWATER VOLUME TARGET SETTING FOR WASTE REDUCTION AND COMPREHENSIVE WORK PLAN By utilising this system, we can significantly reduce the amount of wastewater generated during our operations, thereby minimising our impact on the environment. 1. Implement non-hazardous waste data infrastructure for data collection and monitoring. This will allow us to better track our waste generation, identify areas where we can improve, and implement effective waste reduction measures. 2. Implemented a monthly close monitoring of waste data to track our progress towards achieving waste reduction targets. This will ensure that we stay on track and make necessary adjustments to our waste management strategies if needed. REUSEINCINERATIONRECYCLINGLANDFILLINGOTHER RECOVERY OPERATIONS 61.4%18.0%14.6%3.1%2.9% 24Other initiatives include waste heat recovery operations (targeting Regenerative Catalytic Oxidiser (“RCO”), air compressors, and thermal fume exhaust), equipment & machinery control management, and “green transportation”. They are all part of our ongoing efforts to reduce waste and operate in an environmentally responsible manner. We monitor our waste generation and disposal efficiency in all manufacturing plants and conduct yearly reviews to track progress. We aim to improve efficiency by maintaining and upgrading our technology. Specifically, we track three types of data: • Waste generated • Treatment process efficiency rates, and • Recyclable material regenerated. DISPOSAL TREATMENT 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. PRODUCT LABELLING We provide clear labelling on our end products that advise the proper disposal method after the product has left our premises. This is in addition to minimising waste generation throughout the product development cycle. EMPLOYEE AWARENESS We design programmes that promote a Reduce, Reuse and Recycle mindset at work to cultivate a circular mentality amongst our employees. CHECKS AND AWARENESS Under ISO:14001 and local waste disposal laws regulation, we conduct impact assessments to identify and track sources of waste generation to put in place procedures to manage them efficiently. Waste Reduction Efforts SAFEGUARDING THE ENVIRONMENT 25Waste Management by Nippon Paint India NIPSEA Group is committed to responsible hazardous waste management in all its manufacturing sites, including India. In India, hazardous waste is classified into six categories, and the site teams employ different methods for their disposal. • Plastic bags are classified and segregated before approved vendors collect them for recycling according to the approved procedure for secondary application. • Plastic containers and cans are cleaned, recycled by approved vendors as per the local compliance procedures. NPI-DECO site is using the recycled containers in line with government regulations as part of efforts to practise responsible plastic waste recycling. • Metal waste containers are decontaminated and sent to approved vendors for recycling of open-top drums or reconditioned drums for secondary use in the industry or for steel recovery. • Waste solvents or wash solvents are collected and sent to approved reprocess vendors to recover solvent. The recovered solvent is purchased and used at our sites, and vendors also sell this solvent for less demanding product applications. • Sludge waste from the ETP plant is recovered from the filter bed and sent for energy recovery at a cement plant. • Wooden pallets used for hazardous material storage are recovered and recycled post completing repair and reuse at site. Pallets which are not recoverable are sent to incineration units like cement kilns or refractory units for energy recovery via authorised vendors. Site teams in India ensure that all hazardous waste is managed efficiently and responsibly, utilising established industries for recycling and recovery, and adhering to government regulations for responsible waste management. We evaluate the effectiveness of our waste management programmes against targets that have been determined at the beginning of the financial year. Suggestions regarding improving our waste management processes will be implemented after a round of management meetings to review and develop action plans. 26SAFEGUARDING THE ENVIRONMENTCHAPTER 4 CREATING A SAFE, DIVERSE AND SKILLED WORKFORCENext >