Sustainability

OVERVIEW
ORGANIZATION HEALTH
TECHNICAL CAPABILITY
ENVIRONMENT
PEOPLE AND COMMUNITY
CUSTOMER
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OVERVIEW

Shaping The Future Together, Inspired By You

NIPSEA Group believes in the philosophy of “Mutual Prosperity” to lead our sustainability agenda.

We believe that the measure pf success in a sustainble economy is We believe that the measure of success in a sustainable economy is characterized by business viability that goes hand-in-hand with protecting the planet and elevating the livelihoods of communities in places we conduct business in. As such, we embed ESG considerations into our business operations to capture continued growth for both NIPSEA Group and the environment in which we are present.

Our sustainability strategy is centered around the five overarching pillars of Customer, People & Community, Environment, Organizational Health, and Technical Capability.

ORGANIZATION HEALTH

Ensuring Continued Economic Visibility

2020 marked another year of continued success for NIPSEA Group in generating sustainable business value despite the COVID-19 pandemic.

Advances in product and services innovation led to increased demands in our growing category of sealants, adhesives and fillers (SAF), while maintaining our strength in the architectural, automotive, industrial, marine and protective coatings segments.

We continued to make new strides on the environment and social sustainability front. Respectively, we focused on research and development to formulate innovative environment-friendly paint products and realigned assets and resources to serve the immediate needs of the community during the COVID-19 pandemic.

Below, we share our FY2020 achievements as we continue to navigate sustainability-related issues and opportunities in today’s business environment.

TECHNICAL CAPABILITY

Customer-first Innovation For A Better Life

NIPSEA Group believes in the philosophy of “Mutual Prosperity” to lead our sustainability agenda.

We believe that the measure of success in a sustainable economy is characterized by business viability that goes hand in hand with protecting the planet and elevating the livelihoods of communities in places we conduct business in.

As such, we embed ESG considerations into our business operations to capture continued growth for both NIPSEA Group and the environment in which we are present.

Our sustainability strategy is centered around the five overarching pillars of Customer, People & Community, Environment, Organizational Health, and Technical Capability.

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ENVIRONMENT

Advancing The Planet-Positive Agenda

Climate change is one of the greatest challenges of our time and NIPSEA Group recognizes our role in the management of our environmental resources.

NIPSEA Group’s environmental approach strives to embed eco-efficiency within our operations while maintaining overall productivity.

To do so, we work closely with our people to improve processes and conceive solutions that help us meet our planet-positive commitment. This also involves engaging with suppliers across our supply chain to influence positive change.

Materials

We are looking into improving our recycling practices to increase circularity within our production processes and thus minimise overall usage of materials.

At present, we are in the midst of developing recyclable pallets embedded with digital technology to provide analysable data and thus drive action to improve pallet design, as compared to the current non-recyclable wood versions.

As of FY2020, while our production processes utilise a significant proportion of non-renewable raw materials, we have increased the use of renewable raw materials by 13.2%.
Energy & Emission

In FY2020, our Scope 1 and 2 GHG emissions totalled 181,246,560 kgCO2, an increase of 12.7% as compared to the FY2019 measurement, while our emissions intensity measured 40.7 kgCO2/tonne, a decrease of 2.86% as compared to the FY2019 measurement. The rise in total GHG emissions is due to a 19.6% increase in production volume as compared to the previous year.
Water

We are looking into development research through industry partnerships on bettering wastewater recycling systems with the goal of achieving zero discharge to the environment. This includes looking into the reuse of treated wastewater, enhancing wastewater treatment activities, and even into sanitisation levels of the wastewater that leave our plants.
NIPSEA Group adopts the 3Rs – Reduce, Reuse and Recycle – in the management of our water-related activities.
Waste

We implement lifecycle land assessments in key factories, coupled with regular periodic checks to ensure that waste material from our factories does not contribute to land pollution in surrounding areas.

As of FY2020, we generated 22,209 tonnes of waste material, out of which 24.6% was directed from disposal for reuse, recycling or energy recovery purposes and 75.4% was directed to disposal. Waste disposal methods employed include incineration, deposit at the landfill or other methods such as waste sorting, fuel blending and disposal by the municipality.
Supplier Engagment

We consider factors such as environmental protection and sustainable development in the process of supplier management. In China, we ensure that our factories adhere to local “green factory” accreditation guidelines on production and logistic matters.

Our Procurement department conducts an annual supplier evaluation exercise, including an environmental assessment, to ensure that they meet our required Standard Operating Procedures (SOPs) in managing environmental matters. In the event that suppliers are unable to pass evaluations, we provide solutions and guidance to elevate the supplier’s processes. In FY2020, we subjected 502 out of 760 new suppliers to environmental screening criteria.

PEOPLE AND COMMUNITY

Our employees are key to our long-term growth and success. We strive to empower and support our people in their professional and personal development through the provision of diverse advancement pathways, and building an environment where people stay fulfilled and supported by an inclusive culture.
We focus on three core dimensions aimed at empowering employees at all levels to succeed during their career with us. This ensures that we are powered by a dynamic and skilled workforce to be well positioned to take advantage of emerging opportunities and tackle challenges brought about by an ever-evolving business landscape.
- Fair Employment Practices
  
  We pride ourselves in embracing a diverse workforce comprising different genders, generations, nationalities, and expertise across regions to produce better business outcomes for customers and communities, while cultivating a sense of belonging and inclusion within the workforce.
  In FY2020, the Group’s new hire rate measured 21.6%, an increase of 753 people as compared to the year before and the proportion of senior management at NIPSEA Group hired from local communities measured at 86.0%.
- Workforce Safety and Well-being
  
  Employee safety is NIPSEA Group’s number one priority and we place great emphasis on the physical and mental well-being of our people. We achieve this through the enforcement of safe behaviours and the provision of good health and working conditions under local laws and regulations, as well as the Group’s Quality, Environment, Safety and Health (QESH) protocol. These policies set the company-wide tone that governs actions within the Group, including the interactions we have with our suppliers, customers or any other related third party. Occupational health and safety committees oversee the management of workplace safety, chaired directly by Senior Management.
- Training and Education
  
  NIPSEA Group adopts a Group-level learning framework that necessitates the holistic development of our employees with the relevant skills and competencies required at different job levels.
  We provide an array of training and educational programmes in different functional areas, ranging from technical to leadership upskilling. Training programmes are tailored at the country level depending on the findings of a yearly training needs analysis. In FY2020, we administered a total of 341,448 training hours for our employees.
Building and enabling better communities
NIPSEA Group is committed to drive positive and sustainable change in communities, with a greater emphasis on the markets we operate in. We look to effect tangible social impact by mobilising our assets and resources to best serve the community’s interests and ensure their development for the future.
We understand that our business can only thrive as well as the communities we live in. As such, we adopt a strategic community impact framework to guide our community investments and engagements to effect long-term socio-economic benefits for communities. The framework is centred around three pillars: Education, Empowerment, and Engagement, leveraging our coatings expertise and technology, as well as the collective resources of our Group-wide partners and employees to drive change.
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CUSTOMER

Upholding customer trust and confidence

NIPSEA Group’s culture of integrity ensures that our product offerings deliver superior customer satisfaction and experience, while minimising any unintended negative impacts as a result of its consumption.

We focus on two aspects that have been identified to be material to our customers – Health and Safety, and Data Privacy, across the customer value chain to build trust when engaging with them.

This has allowed us to maintain our reputation as a leading paint solutions provider for almost 60 years.