< PreviousWorkforce Safety and Well-being At NIPSEA Group, the safety and well-being of our employees is our top priority. To ensure this, we enforce safe behaviours and provide good health and working conditions in compliance with local laws and regulations, as well as our own Quality, Environment, Safety, and Health (“QESH”) protocol. These policies serve as the foundation for health and safety standards within our organisation and apply to all interactions with suppliers, customers, and third parties. Our Senior Management chairs the occupational health and safety committees, which oversee the management of workplace safety. Preventing Work-Related Incidents Our occupational health and safety (“OHS”) system focuses on preventing safety and hygiene hazards that may arise from important manufacturing and operational activities. These include chemical use and storage, production of paints and allied products, waste disposal, and the use of forklift trucks in factories. To ensure compliance and continuous improvement of safety standards across our operations, we adhere to international safety management systems such as OHSAS 18001 and ISO 45001:2018. If an entity does not certify to these standards, they will follow NIPSEA Group's safety management systems instead. We strive to ensure that our health, safety, and environmental (“HSE”) efforts cover the following necessary areas: 1. Raising awareness on the importance of health and safety measures NIPSEA Group uses a variety of communication tools to raise employee awareness of health and safety measures, as well as the roles and responsibilities of top management, the HSE committee, heads of departments, and employees themselves. We also ensure that employees are well-informed about relevant HSE precautions through workshops and briefings on subject matters such as chemical and PPE safety, machine use, and life-saving and occupational first-aid techniques taught by internal or external professionals. A customised training calendar is developed annually for each site based on competency assessments specific to work scope activities, site hazards, and safety standards. At select sites, occupational health centres are equipped with ten trained first-aid providers and medical essentials where immediate assistance can be provided in the event of emergencies. 2. Objective and target setting on key HSE performance indicators (“KPIs”) Objectives and targets are planned and monitored on a regional database to ensure that we continuously work towards our KPIs. This database also contains industry best practices and recommended solutions to common difficulties encountered. 3. Regular reviewing of HSE performance Yearly Management Review meetings and monthly Occupational Health and Safety Board meetings are organised to review HSE performance and allocate responsibilities to oversee potential areas for improvement where necessary. 4. Resource planning for HSE implementation, maintenance, and improvement To ensure that HSE performance is either maintained or improved, we allocate budgets that cover special talents, human resources, and research and development. These budgets oversee business activities such as conducting safety inspections, permit-to-work systems, training programmes, safety checklists, response plans, and investigations. 305. Availing grievance mechanisms In alignment with the Union’s requirements, grievance channels are available to all employees in the form of email, face-to-face opportunities with the safety department, or reports of abnormal incidents or near-miss events to report irregularities or hazardous conditions. In relation to the reported issue, employees are permitted to stop work until precautionary steps are taken.. NIPSEA Group is committed to maintaining a safe and healthy workplace for all employees. The company's goal is to achieve zero cases of recordable work-related injuries, which is a testament to their dedication to the well-being of their staff. To achieve this, NIPSEA Group places great emphasis on adhering to the latest international OHS standards. We have implemented a comprehensive HSE management framework and Laboratory HSE Handbook to ensure that all employees are aware of precautions to take when handling hazardous chemicals. Additionally, NIPSEA Group strictly monitors the air quality in their factory compound to ensure that it meets local regulations. ALL EMPLOYEES INCLUDING CONTRACTORS CONTRACTORS ONLY Number of fatalities as a result of work-related injury Rate of fatalities as a result of work-related injury per 200,000 hours worked Number of high-consequence work-related injuries (excluding fatalities) Number of recordable work-related injuries Rate of recordable work-related injuries per 200,000 hours worked Rate of high-consequence work-related injuries (excluding fatalities) per 200,000 hours worked 00 50 0.00.0 0.020.00 0.410.30 10110 SUCCESSFULLY REDUCED THE NUMBER OF RECORDABLE WORK RELATED INJURIES FROM 118 TO 101 CREATING A SAFE, DIVERSE, AND SKILLED WORKFORCE 31To further safeguard their employees, NIPSEA Group requires the use of personal protective equipment (“PPE”) and provides relevant training on respiratory protection. This includes the use of breathing apparatus such as dust masks and gas masks. By taking these measures, NIPSEA Group strives to create a safe and healthy working environment for all employees, and to continuously improve their OHS management system. Improving Health and Wellness at the Workplace To improve the health and wellness of our employees, NIPSEA Group provides a range of programmes and services. Our Employee Total Wellness programmes, which include e-courses and workshops, cover various topics such as mental health and physical wellness. We also organise recreational clubs for employees to unwind and engage in activities together, from sports to arts, music, and CSR-related events. Medical services are available to our employees, including health counselling and an annual in-house health check-up for all staff. Employees can also seek treatment at a list of panel clinics, and select groups working with hazardous chemicals to receive regular health check-ups. In FY2020, we established the NIPSEA Safety and Sustainability Council (“NSSC”) to conduct safety audits and ensure that safety standards are upheld across all Group factories. Quarterly NSSC meetings are held with HSE managers to discuss safety targets, work plans, and share updates on best practices. Recently, we launched the NIPSEA Online Incident Reporting System in September 2021. This system enables employees to report incidents instantly using the webpage or App version, which is automatically shared with NSSC members. We can also analyse the reported incidents to identify trends and take preventative measures to improve safety in the future. Taking Proactive Corrective Action In the event of a potential safety hazard being highlighted, the OHS team will commence investigations into the reported incident. We ensure that employees involved in the reporting of the incident will not be penalised. If necessary, findings will be shared with the Safety Committee during monthly management meetings, and precautionary action will be taken to deter recurrences. The Safety Committee comprises both management and employee representatives to enable collaborative discussions. These incidents would also be shared at bi-annual town-halls and would be included in HSE training materials as case studies. In our activities, we manage workplace hazards by effectively tracking and monitoring performance, operational control, and compliance to standards through diverse processes. These include: 32MONITORING ACTIVITIES CONDUCTING RISK ASSESSMENTS ENCOURAGING EMPLOYEE PARTICIPATION CONDUCTING EXTERNAL AND INTERNAL AUDITS This includes hazard assessments, evaluations, line and professional self-assessments, peer reviews, third-party validation testing, and internal audits. Additionally, the assessment of control postures and subsequent reports generated help inform us of key measurements, process owners, control points, validation testing, and action plans for any corrective actions required. Persons leading safety-related activities are trained by certified training institutions to assess workplace risks using a 5x5 risk scoring matrix or a Fine-Kinney method. In response to these assessments, action plans are developed to tackle considerable risks for compliance obligations while leveraging opportunities for continual improvement. At NIPSEA Group, we advocate a consultative approach in encouraging employees to openly voice safety concerns or propose ideas to enhance existing HSE policies or programs. Their feedback is mostly garnered through channels such as an annual employee survey, safety suggestion boxes, open discussions on social media platforms, or notice boards. We carry out a NIPSEA Group corporate-guided safety diagnosis and engage third-party companies to conduct surveillance audits to ascertain that our OHS standards are regularly re-certified. Diversity and Inclusion NIPSEA Group takes pride in fostering a diverse and inclusive workforce that embraces people of different genders, generations, nationalities, and expertise. We recognise the importance of having a diverse team in producing better business outcomes for its customers and the communities it operates in. As part of its commitment to Diversity & Inclusion (“D&I”), we have formed a dedicated committee that champions initiatives around 'People and Community'. This committee plays a vital role in ensuring that the company's D&I policies and programmes align with its overall commitment and approach to D&I. CREATING A SAFE, DIVERSE, AND SKILLED WORKFORCE 33D&I Global Pillars NIPSEA Group's 'Diversity and Inclusion' policy outlines our aspiration for D&I, which is anchored in two global pillars. These pillars enable us to integrate D&I into its core people processes, where relevant and possible. The first global pillar is 'Celebrating Diversity'. Through this pillar, we recognise and celebrate the diversity that exists within its workforce. We value the unique perspectives, backgrounds, and experiences of its employees and believe that this diversity helps to drive innovation and creativity. The second global pillar is 'Building & Enabling Local Communities'. Through this pillar, we support and work closely with our charity partners to implement community outreach initiatives that serve the needs of families, students, teachers, elderly people and people with disabilities. NIPSEA Group is committed to making a positive impact on the communities it operates in by supporting education, healthcare, and environmental sustainability initiatives. Our commitment to Diversity & Inclusion is reflected in our policies and programmes. We recognise that embracing diversity and creating an inclusive work environment is not only the right thing to do but also essential for achieving the business goals. By Celebrating Diversity, and Building and Enabling Local Communities, NIPSEA Group is creating a workplace culture that values and respects all individuals, regardless of their differences. Achieving Gender Balance NIPSEA Group is working towards the goal of achieving 35% female representation in both management and emerging leader categories. To achieve this goal, we have created a supportive work environment that aims to attract, retain, and develop female talents across the organisation. These initiatives include mentorship programmes, coaching, and leadership development opportunities. . In addition, gender balance metrics will be incorporated into the standard HR reporting across the Group. These metrics will be aligned with the company's diversity and inclusion goals and will be regularly reviewed and updated by Country HR as necessary. This will enable us to track our progress towards achieving gender balance and identify areas that require improvement. We believe that having a diverse workforce, including gender diversity, leads to better decision-making, increased innovation, and improved business performance. GOAL OF ACHIEVING FEMALE REPRESENTATION IN BOTH MANAGEMENT AND EMERGING LEADER CATEGORIES 35% 34CLOCKED A TOTAL OF FOR ALL EMPLOYEES, WITH AN AVERAGE OF 59.7HOURS PER EMPLOYEE 1,626,370 TRAINING HOURS Each country is responsible for the development and execution of employee learning plans. 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 represented a 300% increase from FY2021 in terms of the average training hours per employee. The increase in training hours compared to FY2021 may be attributed to the easing of COVID-19 measures in the respective countries. Digitalisation of training has also helped to increase the engagement of remote employees, with employees in sales able to access product knowledge immediately using the Learning Management System on mobile devices. Employees are also required to complete tests or quizzes after a course to ensure that they fully understand the content. Furthermore, instructors can track the retention of knowledge of learners by utilising the ‘Test’ feature in the Learning Management System. Training and Development NIPSEA Group recognises the importance of training and development in the overall growth and success of the organisation. To ensure the holistic development of our employees, our learning and development plans are designed at country level to meet the specific needs of local workforce. Through the annual Training Needs Analysis exercise, we are able to create a more effective learning experience that focus on upskilling their capabilities and competencies required at different job levels. Employee Training To further enhance the learning capabilities of its employees, NIPSEA Group has progressively introduced a Learning Management System in FY2021/2022. This system interface supports multiple languages, which enables countries to customise their learning needs accordingly. This provision of diverse training and educational programmes ranges from technical to leadership upskilling, equipping employees with the necessary skills in today’s ever-evolving business landscape. These programmes cover topics including but not limited to NIPSEA Leadership Competencies (AGILE), functional trainings, health safety & environment, information technology, and physical & mental wellness. Our localised learning approach and the introduction of the Learning Management System have helped to provide a comprehensive and customised training experience for its employees. By continuing to focus on employee training and development, NIPSEA Group can ensure the long-term success of the organisation while also providing opportunities for employee growth and development. CREATING A SAFE, DIVERSE, AND SKILLED WORKFORCE 35CHAPTER 5 DEVELOPING SUSTAINABLE COMMUNITIES Singapore WildCat Mural Exposure SingaporeCommunity Impact NIPSEA Group is committed to driving positive and sustainable changes in the communities we operate in. To maximise our efforts, we focus our corporate social responsibility (“CSR”) initiatives to tackle socioeconomic challenges across three key pillars – Education, Engagement and Empowerment. These pillars are consolidated under one umbrella – Colouring Lives – guided by three key approaches: Education Providing access to education for children and youths through establishing a collaborative learning platform and art & colour educational programmes. Empowerment Equipping members of the community with skills and knowledge through vocational empowerment, training and certification programmes, as well as the facilitation of job opportunities. Health & Well-being Enhancing the well-being of the communities we operate in and ensuring that livelihood needs are met, especially during emergency circumstances. Protection & Preservation Refurbishing communal spaces to improve living conditions and preserve the local cultural heritage sites. 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 #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. 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. DEVELOPING SUSTAINABLE COMMUNITIES 37Community Impact At A Glance | 2022 CSR INITIATIVES CONDUCTED 108 INVESTED IN CSR INITIATIVES >US$4.2 MILLION LIVES IMPACTED >10 MILLION EMPLOYEES INVOLVED 32,735 HOURS COMMITTED 109,793 LITRES OF PAINT CONTRIBUTED 182,395 38EDUCATION We are proud to support this initiative and contribute to promoting education among underprivileged students who may not have had the opportunity to pursue their academic aspirations otherwise. Besides raising awareness about our brand among students and parents, this scholarship programme also provides a platform for Nippon Paint Vietnam to collaborate with other partners of the Vu A Dinh Fund and explore potential business opportunities in the future. This partnership allows us to demonstrate the positive impact of public-private partnerships and how they can contribute to creating a more equitable and prosperous society. Vu A Dinh Scholarship As one of the primary co-sponsors of the Vu A Dinh Scholarship Fund's Scholarship Award in 2022-23, Nippon Paint Vietnam's contribution provides financial assistance to students studying in primary, secondary, high school, and universities from ethnic minority groups, as well as children of soldiers and provincial border guards in Vietnam and students who were affected by the COVID-19 epidemic. Students will receive scholarships ranging from VND1,000,000 - VND1,500,000 per student, which will help them pursue their academic aspirations and create a brighter future for themselves and their communities. Scholarships for Employees’ Children This initiative involves offering scholarships to the children of NIPSEA Group employees (i.e., Nippon Paint Malaysia and Thailand), with a focus on those who have demonstrated good academic performance. By alleviating some of the financial stress faced by our employees and their families, we believe that this is likely to lead to increased engagement and productivity among employees, ultimately benefiting both the company and its workforce. PER STUDENT SCHOLARSHIPS RANGING FROM VND 1,000,000 1,500,000 OVER $40,000 OF SCHOLARSHIPS FROM NIPPON PAINT MALAYSIA, SUPPORTING 10 recipients, one of whom successfully completed Diploma and continued to pursue further studies for a Degree OVER $5,400 OF SCHOLARSHIPS FROM NIPPON PAINT THAILAND, SUPPORTING 15 primary school students 13 secondary school students 10 college/university students Educational Scholarships DEVELOPING SUSTAINABLE COMMUNITIES 39Next >