< PreviousEmpowerment PACES IN SQ.FT SAHYOG – Fashion Beyond Boundaries Nippon Paint India Auto Refinish is proud to have collaborated with Tamana, our NGO partner for the past 4 years, on an initiative called "Fashion Beyond Boundaries". The objective of this initiative was to create an equitable society for all, by supporting and making a contribution to people with intellectual, developmental, multiple disabilities, and those on the autism spectrum. This unique fashion show aimed to highlight how people with disabilities are equal members of our community and deserve a chance to reach their full potential and participate effectively in all walks of life. We strongly believe that our journey is inclusive, where everyone is welcomed, and we want to send a message to society that we must respect differences and celebrate beauty in diversity. The fashion show garnered 46k views on YouTube and was not just an appeal to ensure full and effective participation and inclusion of the neurodiverse, but also a confident showcase of their abilities. To support this cause, 12 leading Indian fashion designers including Anju Modi, Rajesh Pratap Singh, Payal Jain, Namrata Joshipura, Asha Gautam, and others participated. Their collections were showcased not just by established models, but also by the differently abled students of Tamana. The event was a resounding success and demonstrated our commitment to building an equitable society where everyone is treated with respect and given equal opportunities. TOTAL PROJECT EXECUTION COST USD NO. OF HOURS COMMITTED NO. OF EMPLOYEES INVOLVED NO. OF LIVES IMPACTED DIFFERENTLY ABLED STUDENTS $3,125 140 4 40 60Empowerment DecoMaster Women Painters Due to the success of our DecoMaster training programme for male painters, Betek Boya launched one for women painters too. As a company, we are aware of our responsibilities to shape young women and support them to take on more active roles in the business. Through our DecoMaster programme, we aim to provide specialised training and enable women masters to have a stronger footing in the paint and construction industry. This year, we successfully trained and certified 28 women, as well as provided support to help them secure jobs in their neighbourhoods. TOTAL PROJECT EXECUTION COST USD NO. OF HOURS COMMITTED NO. OF EMPLOYEES INVOLVED NO. OF LIVES IMPACTED WOMEN TRAINED AND CERTIFIED $27,800 510 20 28 DEVELOPING SUSTAINABLE COMMUNITIES 61CHAPTER 6 DRIVING INNOVATION FOR A BETTER WORLD We are committed to driving innovation and expanding our R&D capabilities to improve lives and create a better future for all. As of 2022, we have 28 R&D technical centres across the world to serve our domestic and global customers. NIPSEA Group’s R&D Innovation Centre in Shanghai is our gateway to customer-inspired innovations. The Centre houses more than 150 experienced professionals across various fields and serves as a knowledge hub. We are 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 an R&D Centre in Singapore that focuses on colour technology innovation, primarily serving the Association of Southeast Asian Nations (ASEAN) market. To ensure that future technology and product development programmes align with our strategy, NIPSEA Group has developed the Green Design Review in the Project and Portfolio Management (“PPM”) tool. As of the end of 2022, almost 60% of the projects in the PPM system completed the Green Design Review, with 53% of those reviewed projects identified as sustainable products. Sustainably Advantaged Products Moving forward, NIPSEA Group has made the development of sustainable products a strategic goal. We aim to create sustainable products that meet customer needs, comply with social and environmental regulations, and ensure the long-term and sustainable development of the company. In pursuit of this objective, we comprehensively consider our business strategy and market needs, formulate sustainable development plans and policies, optimise resources and innovation, and continually improve product quality and service levels. We also plan to strengthen brand awareness and market communication, establish long-term customer relationships, and ensure the sustainable and long-term development of the company. Defining Sustainably Advantaged Products NIPSEA Group is proud to announce the formation of our group-level ESG-Innovation committee, a collaborative effort from our team members from various countries, regions, and businesses. We are also grateful for the support and guidance provided by subject matter experts at Project Safety & Regulatory Affairs (“PS&RA”), Project and Portfolio Management. One of the main objectives of the committee was to develop a definition for sustainably advantaged products. After extensive discussions and consultations, we have come up with the following definition: sustainably advantaged products refer to products that offer sustainability advantages over the mainstream products in the respective market segments. AS OF THE END OF 2022, ALMOST 60% OF PROJECTS COMPLETED THE GREEN DESIGN REVIEW, WITH 53% OF THOSE REVIEWED PROJECTS IDENTIFIED AS SUSTAINABLE PRODUCTS. GENERATED $557.81 MILLION IN REVENUE FROM SUSTAINABLY ADVANTAGED PRODUCTS IN 2022 63To further operationalise this definition, we have identified 16 categories of sustainably advantaged products. These categories cover a broad range of industries and product types, including eco-friendly coatings, renewable energy solutions, and sustainable packaging materials. We believe that by defining and prioritising sustainably advantaged products, NIPSEA Group can position ourselves as a leader in sustainable business practices. We are committed to continually improving our product offerings to meet the evolving needs of our customers and the world around us. In the process of developing the 16 categories for sustainably advantaged products, several chemists and technology leaders brainstormed and contributed ideas. The final definition was a collective effort of the entire organisation. When selecting Chemicals of Concern and developing a phase-out plan, we organised communications and training sessions with technical leaders from all countries, regions, and businesses. This definition serves as a framework for NIPSEA Group to promote sustainable practices and innovation in our product offerings. We believe that by prioritising the development of sustainably advantaged products, we can make a meaningful impact on the environment and the communities we serve. The definition is based on a variety of criteria, including: • Eco-Friendly Ingredients: Companies that use environmentally friendly ingredients and materials are more likely to create sustainable products. • Energy-Efficient Manufacturing Processes: Companies that use energy-efficient manufacturing processes and equipment are more likely to create sustainable products. • Waste Minimization: Companies that minimise waste and recycle materials are more likely to create sustainable products. • Customers’ Feedback: Companies that listen to customers’ feedback and use customer satisfaction as a guide for product development are more likely to create sustainable products. In addition, NIPSEA Group uses sustainability metrics such as environmental impact, social impact, and resource efficiency to determine the sustainability of the product offerings. The impacts of sustainable products for NIPSEA are considered as follows: POSITIVE IMPACTNEGATIVE IMPACT 1.Service differentiation: A company that provides sustainable products to downstream Key Opinion Leaders (“KOLs”) can support their sustainability and carbon-related targets. 2. Market leadership: A company that has sustainable products that are recognised by the market and customers can gain market leadership and drive sales growth. 3. Corporate responsibility: Companies that create sustainable products are more likely to be held to a higher standard of corporate responsibility, which can increase brand recognition and corporate reputation. 1. Environmental impact: Creating sustainable products requires companies to use more resources and energy than traditional products, which may have a negative impact on the environment. 2. Legal liability: Some companies may be responsible for product releases or have legal disputes related to their product quality or manufacturing processes, which may have a negative impact on the company’s reputation. 3. Costly production: Creating sustainable products requires companies to use more resources and energy than traditional products, which may increase production costs and reduce their profit margin. 64As a paint and coatings company, NIPSEA Group also recognises that other challenges sustainably advantaged products face include difficulty in certification, marketing, and vulnerability to innovation by competitors or market changes. Therefore, NIPSEA Group is committed to taking effective measures to create sustainable products that are both environmentally friendly and market competitive. To prove the sustainability of our products, we prioritise compliance with relevant laws and regulations while implementing marketing strategies to increase the recognition of sustainable products in the market. We also prioritise innovation to create competitive advantages and ensure the sustainability of our products in the long run. By carefully considering these challenges and taking proactive steps, we are committed to creating sustainable products that meet the needs of present and future generations. PRODUCTS PRODUCTION (NIPSEA GROUP) S u s t a i n a b l e m a n u f a c t u r i n g p w a s t e , V O C s , e n e r g a b l e r a w m a t e r i a l s : b i o - b a s e d r e c y c l e d . a n d e c o - c e r t i fi c at io n : e c o - l a b e l s . 3 r d p a r t y g r e e n a n d P R O D U C T S I N A P P L I CA T I O N ( C U S T O M E R S ) : Reduction of chemical emissions. • Waterborne • Powder • High solid Reduction of hazardous substances. • Reduction of heavy metals • Reduction of hazardous chemicals Reduction of energy consumption. • Low temperature curing • UV curing, EB curing • High productivity Reduction of material used and waste generated. • Use less materials • Generate less waste Products in Service (end markets): • Longer service life and durability. • Used in clean technology. • Contribution to good health and well-being. DRIVING INNOVATION FOR A BETTER WORLD 65Bio-based Alternative The key to achieving both aesthetics and low carbon emissions is through the alternative use of "bio-based" materials. The use of oil as a medium for most paints has been in practice for over 2000 years, with tung oil being used as a film-forming agent by China to blend various colours and form coatings. However, the traditional natural collection of raw lacquer has become inadequate in the industrial era. The addition of curing agents has become an inevitable choice for the development of the automotive industry. This technology is based on the use of petroleum as a raw material, leading to pollution from the waste paint films which cannot be degraded easily. To upgrade our technology, we must first address the biggest "pain points". In recent years, NIPSEA Group has focused on the "Renaissance" bio-based technology. As a representative of its global technology integration, NIPSEA Group has selected some bio-based curing agents developed by Covestro in Germany as the foundation to develop a new generation of automotive coating solutions. NIPSEA Group has innovatively used bio-based curing agents that contain nearly 70% of bio-based raw materials instead of petroleum-based curing agents. The bio-based curing agents can be converted into final products through biological or chemical transformation, effectively reducing carbon emissions during the production process. With its profound technological accumulation, NIPSEA Group quickly applied bio-based technology to the research and development of varnishes and ultimately formed the final product through deep integration of large formulations and industrial manufacturing. This is the real innovation behind the environmental protection of NIPSEA Group's bio-based coating solution: achieving environmental protection goals without compromising performance. In laboratory tests, NIPSEA Group uses bio-based varnishes that remain stable in hardness, appearance, ageing tests, and chemical resistance tests, and even exhibit better performance in some tests. 66DRIVING INNOVATION FOR A BETTER WORLD 67CHAPTER 7 DELIVERING SAFE AND HIGH QUALITY PRODUCTSNext >