SUSTAINABILITY

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FY25 Sustainability Report: Key Highlights

Message from Our Group CEO

Dear Valued Stakeholders,
Sustainability is a discipline of asking better questions. Seven years of reporting has taught us that. The answers get sharper each time we look closer at our impact, our processes, our standards. FY 2025 asked more of us than most years before it. We met that with rigour. We measured our impact comprehensively. We reported it meticulously. And we set sharper targets for what comes next.

Good governance underpins everything we do. I chair our Sustainability Steering Committee, which sets direction and holds us accountable at the highest level. Our Group Management Meeting reviews progress twice a year. Our Country Leadership teams turn strategy into action on the ground, across every market we serve. This structure keeps us focused on five sustainability pillars and eleven material topics.

We remain firmly committed to Net Zero by 2050. We invested in renewable energy, energy efficiency, and other decarbonisation initiatives across our operations. Our Singapore and Thailand facilities delivered substantial energy savings this year. It’s proof that sustainability and efficiency move forward together. We also began our initial Scope 3 reporting, a first step, built on close engagement with our supply chain partners.

And none of this matters without our people going home safe. Our Safety First culture, guided by Dare to Care, Care to Know, Know to Prevent, remains central to how we operate every day.

Innovation is where sustainability meets what we make. Product health and safety continue to guide our development process, supported by our Green Design Review. Customer expectations are evolving fast. So are we. We treat innovation not as a separate function, but as a direct response to what the world is asking of us.

Our impact extends well beyond our own operations. Building ESG awareness across our supply chain remains a priority. We work hand-in-hand with our suppliers on decarbonisation, because lasting progress depends on the strength of these partnerships.

Our people remain at the heart of our progress. We continued to invest in diversity and inclusion, with a focus on female representation and talent development. Through performance management, mentorship, and our LEAD programme, we build capabilities our people need to grow. Beyond our walls, our CSR efforts stayed focused on direct impact, empowering the communities we serve.

Progress rarely moves in a straight line. FY2025 reminded us of that more than once. But I’m confident that our habit of asking the harder question is what will carry us forward. Thanks to our teams, our partners, and our communities across all 28 locations for the work reflected in this report.

Wee Siew Kim
Group CEO

Dear Valued Stakeholders,
Sustainability is a discipline of asking better questions. Seven years of reporting has taught us that. The answers get sharper each time we look closer at our impact, our processes, our standards. FY 2025 asked more of us than most years before it. We met that with rigour. We measured our impact comprehensively. We reported it meticulously. And we set sharper targets for what comes next.

Good governance underpins everything we do. I chair our Sustainability Steering Committee, which sets direction and holds us accountable at the highest level. Our Group Management Meeting reviews progress twice a year. Our Country Leadership teams turn strategy into action on the ground, across every market we serve. This structure keeps us focused on five sustainability pillars and eleven material topics.

We remain firmly committed to Net Zero by 2050. We invested in renewable energy, energy efficiency, and other decarbonisation initiatives across our operations. Our Singapore and Thailand facilities delivered substantial energy savings this year. It’s proof that sustainability and efficiency move forward together. We also began our initial Scope 3 reporting, a first step, built on close engagement with our supply chain partners.

And none of this matters without our people going home safe. Our Safety First culture, guided by Dare to Care, Care to Know, Know to Prevent, remains central to how we operate every day.

Innovation is where sustainability meets what we make. Product health and safety continue to guide our development process, supported by our Green Design Review. Customer expectations are evolving fast. So are we. We treat innovation not as a separate function, but as a direct response to what the world is asking of us.

Our impact extends well beyond our own operations. Building ESG awareness across our supply chain remains a priority. We work hand-in-hand with our suppliers on decarbonisation, because lasting progress depends on the strength of these partnerships.

Our people remain at the heart of our progress. We continued to invest in diversity and inclusion, with a focus on female representation and talent development. Through performance management, mentorship, and our LEAD programme, we build capabilities our people need to grow. Beyond our walls, our CSR efforts stayed focused on direct impact, empowering the communities we serve.

Progress rarely moves in a straight line. FY2025 reminded us of that more than once. But I’m confident that our habit of asking the harder question is what will carry us forward. Thanks to our teams, our partners, and our communities across all 28 locations for the work reflected in this report.

Wee Siew Kim
Group CEO

ESG Governance
2025 KEY HIGHLIGHTS
MANAGEMENT PHILOSOPHY

NIPSEA Group’s strategy for advancing our sustainability agenda is anchored in our philosophy of “Mutual Prosperity”. This philosophy emphasises that long-term business success is intrinsically linked to the well-being of the communities we serve and the ecosystems on which we rely.

By embedding Environmental, Social, and Governance (“ESG”) considerations into our operations and decision-making processes, we aim to create shared value for our stakeholders while ensuring the long-term sustainability of both our company and the environment.

Our approach goes beyond regulatory compliance as we actively address key material sustainability topics by leveraging our expertise, innovation, and partnerships to promote substantial progress in five focus areas.

Materiality Assessment & Sustainability Framework

Material Topics and Strategic Alignment

The Group has identified 11 material ESG topics, which cover our five sustainability pillars. These topics were selected through extensive consultation with key stakeholders, reflecting both their evolving expectations and our business priorities. These topics are aligned with GRI and SASB to ensure transparency and comparability.

Pillars
Material Topics
Relevance to our Sustainability Strategy
Governance icon
Governance
Corporate GovernanceSound corporate governance ensures ethical business conduct, transparency, and accountability, strengthening trust with stakeholders and promoting long-term business sustainability.
Risk ManagementThe complex operational landscape of our industry, encompassing a broad spectrum of environmental, health and safety, supply chain, and reputational risks, necessitates a proactive and robust risk management strategy.
Corporate Governance
Sound corporate governance ensures ethical business conduct, transparency, and accountability, strengthening trust with stakeholders and promoting long-term business sustainability.
Risk Management
The complex operational landscape of our industry, encompassing a broad spectrum of environmental, health and safety, supply chain, and reputational risks, necessitates a proactive and robust risk management strategy.
Environment and Safety icon
Environment & Safety
Climate ChangeNIPSEA Group recognises our responsibility in addressing climate change and is committed to achieving net zero by 2050. Reducing our carbon footprint and emissions through innovative solutions and sustainable practices is key to reaching this target.
Resources & the EnvironmentWater use and operational waste are inherent to our processes, so implementing strong water conservation and circularity measures is essential to protect the environment while maintaining operational efficiency.
Workforce Safety & Well-beingEmployee well-being is closely linked to workplace safety. This is particularly important in the chemical industry where hazardous substances and processes present inherent risks. For this reason, we prioritise the safety and well-being of our people.
Climate Change
NIPSEA Group recognises our responsibility in addressing climate change and is committed to achieving net zero by 2050. Reducing our carbon footprint and emissions through innovative solutions and sustainable practices is key to reaching this target.
Resources & the Environment
Water use and operational waste are inherent to our processes, so implementing strong water conservation and circularity measures is essential to protect the environment while maintaining operational efficiency.
Workforce Safety & Well-being
Employee well-being is closely linked to workplace safety. This is particularly important in the chemical industry where hazardous substances and processes present inherent risks. For this reason, we prioritise the safety and well-being of our people.
Innovation and Product Stewardship icon
Innovation &
Product
Stewardship
Sustainably Advantaged ProductsBy embracing innovation, we reduce negative environmental impact, meet or surpass stringent environmental standards, promote cost savings, meet growing consumer preferences for more eco-friendly products, and enhance our brand reputation.
Product Safety DesignRobust product safety design reduces exposure to hazardous substances, improves application safety, and enhances protective performance. This helps minimise health and accident risks while strengthening trust in our brand.
Sustainably Advantaged Products
By embracing innovation, we reduce negative environmental impact, meet or surpass stringent environmental standards, promote cost savings, meet growing consumer preferences for more eco-friendly products, and enhance our brand reputation.
Product Safety Design
Robust product safety design reduces exposure to hazardous substances, improves application safety, and enhances protective performance. This helps minimise health and accident risks while strengthening trust in our brand.
People and Community icon
People &
Community
Diversity & InclusionWe believe that a diverse workforce drives innovation, deepens our understanding of diverse customer needs, and cultivates a more inclusive workplace, all of which contribute to NIPSEA Group's success.
Empowering People & CommunitiesBy investing in a skilled workforce, we continue to grow our talent and leadership pipeline to address the challenges and opportunities presented by sustainability. We also recognise the importance of supporting our communities through collaboration and impactful contributions.
Diversity & Inclusion
We believe that a diverse workforce drives innovation, deepens our understanding of diverse customer needs, and cultivates a more inclusive workplace, all of which contribute to NIPSEA Group's success.
Empowering People & Communities
By investing in a skilled workforce, we continue to grow our talent and leadership pipeline to address the challenges and opportunities presented by sustainability. We also recognise the importance of supporting our communities through collaboration and impactful contributions.
Sustainable Procurement icon
Sustainable
Procurement
Supplier Selection & AssessmentThe quality and reliability of our suppliers are crucial to our success by ensuring quality assurance, regulatory compliance, cost efficiency, innovation, and competitiveness. Hence, it is important to mitigate any ESG-related risks in our supply chain through robust supplier selection and assessment criteria.
Supply Chain ResilienceResilient supply chains can better withstand disruptions caused by events such as natural disasters, geopolitical tensions or supplier failures. By building resilience within our supply chain, we ensure business continuity and uphold high service standards.
Supplier Selection & Assessment
The quality and reliability of our suppliers are crucial to our success by ensuring quality assurance, regulatory compliance, cost efficiency, innovation, and competitiveness. Hence, it is important to mitigate any ESG-related risks in our supply chain through robust supplier selection and assessment criteria.
Supply Chain Resilience
Resilient supply chains can better withstand disruptions caused by events such as natural disasters, geopolitical tensions or supplier failures. By building resilience within our supply chain, we ensure business continuity and uphold high service standards.
Stakeholder Engagement
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