SUSTAINABILITY
“WE BELIEVE THE CAREFUL CHOICE AND COMMITTED FOCUS ON OUR LONG-TERM SUSTAINABILITY OBJECTIVES GO HAND IN HAND WITH BUSINESS SUCCESS.”
GROUP CHIEF EXECUTIVE OFFICER
WEE SIEW KIM
“WE BELIEVE THE CAREFUL CHOICE AND COMMITTED FOCUS ON OUR LONG-TERM SUSTAINABILITY OBJECTIVES GO HAND IN HAND WITH BUSINESS SUCCESS.”
GROUP CHIEF EXECUTIVE OFFICER
WEE SIEW KIM
Long-term commitment to sustainability
NIPSEA Group’s sustainability agenda is anchored in the philosophy of “Mutual Prosperity,” which prioritises not only the sustained commercial viability of our business but also the company’s commitments to the planet and our people. To this end, we have integrated ESG considerations into every aspect of our operations, thereby ensuring that both our business and the environment can thrive together. By leveraging the diverse competencies of our companies, we can make a meaningful impact in areas that are material to us in terms of ESG, and position ourselves for long-term sustainable growth.
Our sustainability commitments are led by NIPSEA Group’s Chief Executive Officer (“GCEO”), while initiatives
managed at the corporate group level are overseen by the Sustainability Steering Committee. This committee is composed of the heads of departments from our five core business functions: Marketing & CSR, Business
Excellence, Human Resources, Finance, and Research & Development (“R&D”).
These departmental leaders serve as advisors and provide valuable insights on ESG strategies that ultimately shape the organisation’s efforts across five Sustainability Pillars: (1) Environment, (2) People, (3) Community, (4) Innovation, and (5) Customers.
NIPSEA GROUP’S SUSTAINABILITY PILLARS
ENVIRONMENT
Safeguarding
the Environment
Energy and
Emissions Reduction
Strategy
Water Conservation Strategy
Waste Management Strategy
PEOPLE
Creating a Safe,
Diverse, and
Skilled WorkForce
Workforce Safety
and Well-being
Diversity and
Inclusion
Training and
Development
COMMUNITY
Developing Sustainable Communities
Community Impact
INNOVATION
Driving Innovation
for a Better World
Sustainably
Advantaged
Products
CUSTOMERS
Delivering Safe
and High Quality
Products
Product Safety
Design
2022 KEY HIGHLIGHTS
Sustainability Goals
In 2021, NIPSEA Group set medium-term sustainability targets across 7 “High-Priority” material topics, which we have identified as areas where we can create the most impact. To determine these targets, we conducted a peer benchmarking assessment against seven comparable industry peers, evaluating our current performance within the paint industry and enabling us to establish strategic targets. Using the SMART (“Specific”, “Measurable”, “Achievable”, “Relevance”, and “Time-bound”) Framework, we analysed the quality of targets set by our selected peers across the 7 “High-Priority” topics, leading us to develop and finalise 10 targets that are aligned with the relevant United Nations Sustainable Development Goals (“UN SDGs”). These targets have been approved by the Board and will guide our sustainability efforts in the coming years.
UNSDGs | Material Topics | Sub-categories | Targets | Progress |
| Energy and Emissions Reduction Strategy | Energy Intensity (GRI 302-3) | Reduce energy intensity by 8% by 2025 against a 2021 baseline, with a yearly reduction target of 2%. | In progress – interim target not met; 25.2% increase from 2021 due to significant decrease in total production output. |
Emissions Intensity (GRI 305-4) | Reduce GHG emissions intensity (Scope 1 and 2) by 15% by 2025 against a 2021 baseline, with a yearly reduction target of 4%). | In progress – interim target not met; 18.3% increase from 2021 due to significant decrease in total production output. | ||
 | Water Conservation Strategy | Water Intensity (non-GRI metric) | Reduce water intensity by 8% by 2025 against a 2021 baseline, with a yearly reduction target of 2%. | In progress – interim target not met; 10.2% increase from 2021 due to significant decrease in total production output. |
 | Workforce Safety and Well-being | Number of Fatalities and Work-Related Injuries (GRI 403-9) Occupational Health and Safety Management System (GRI 403-1) | Achieve zero cases of recordable work-related injuries. Ensure that the OHS management system adheres to the latest versions of international OHS standards (i.e., ISO 45001:2018 and OHSAS 18001). | In progress – target not met; 101 recordable work-related injuries, reduced from 118 cases in 2021. Achieved – ISO 45001:2018 and OHSAS 18001. |
 | Training and Development | Average Hours of Training Per Year Per Employee (GRI 404-1) | Increase average employee training hours by 20% by 2025 against a 2021 baseline, with a yearly improvement target of 5%. | Achieved – 59.7 hours per employee, a 298% increase against the 2021 baseline. |
| Community Impact | Infrastructure investments and services supported (GRI 203-1) Dollar value of investments into community initiatives (non-GRI metric) | Make a meaningful impact on the lives of at least 10 million individuals across the three main pillars – Education, Empowerment and Engagement – under the strategic CSR Framework from 2019 to 2025. Invest at least US$5 million in CSR initiatives each year to make a meaningful impact across the 3 main pillars – Education, Empowerment and Engagement – under the strategic CSR framework. | Achieved – >15 million lives impacted from 2019 to 2025. In progress – target not met; invested US$4.2 million in CSR initiatives in 2022. |
 | Sustainably Advantaged Products | Infrastructure investments and services supported (GRI 203-1) | Develop a definition for “sustainably advantaged products” to classify products and services, and establish a baseline for revenue generated from “sustainably advantaged products” in 2022. | Achieved – a baseline of USD 557.81 million in terms of revenue derived from sustainably advantaged products. |
 | Product Safety Design | Assessment of the Health and Safety Impacts of Products and Services (GRI 416-1) | Assess the health and safety impacts of at least 80% of significant products and service categories by 2025. | Achieved – 99.5% of significant products and service categories assessed. |
Upholding customer trust and confidence
Ensuring responsible business practices has been of paramount importance to the customers we serve.
In this aspect, NIPSEA Group remains committed to adopting safe and ethical business practices throughout our operations and supply chain to assure customers of our product quality and ultimately maintain their satisfaction and trust in us.
