Climate Change Data

Environmental Metrics

ESG Focus Areas

• customer satisfaction
• labour practices
• safe work practices
• social responsibility
• environmental stewardship
• business performance
• governance practices

Social Achievements

• donated S$8,000 to the Singapore Children’s Society

Governance Achievements

• appointed Mr. Sazali on 30 January 2019 to comply with the Code and the Listing Rules with respect to the composition of its Audit Committee

Climate Goals & Targets

Environmental Challenges

• declining financial performance of HZLH due to increased natural gas costs from China's major suppliers and fixed selling prices set by local price bureaus
• impairment of share disposal proceeds due by Xiaogan He Shun Investment Management Centre LLP and amount due from a key management staff
• impairment of distribution and licensing rights (S$23,458,000)
• high risks of technological obsolescence and supply chain vulnerability in the semiconductor industry for ESA due to global trade practices and sanctions
• uncertainty brought about by the trade war between the PRC and the USA impacting the global semiconductor industry

Mitigation Strategies

• connection of Guangshui receiving station to the upstream pipeline in May 2019 for HZLH
• seeking legal advice on recoverability options for impaired receivables
• ESA employed a sales engineer based in Shanghai to further grow the China market
• efforts on improving the performance of existing manufacturing and gas distribution businesses
• efforts to diversify its business through the proposed acquisition

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SGX-ST listing rules 711 (A) and 711 (B)

Environmental Metrics

ESG Focus Areas

• environmental
• social
• governance

Climate Goals & Targets

Environmental Challenges

• US-China trade war
• COVID-19 global pandemic
• weaker global demand
• restricted trading conditions
• litigation in Washington

Mitigation Strategies

• seeking new business organically or via acquisition
• working with the Singapore Exchange on resolving legacy issues
• defending itself in the Healy and Renovatio matters
• partial sale of Falling Water Plat/PPD

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SGX-ST listing rules 711 (A) and 711 (B)

Environmental Metrics

ESG Focus Areas

• environmental
• social
• governance

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on operations
• Gas shortages in China (HZLH)
• Legal proceedings in Washington (legacy issues)

Mitigation Strategies

• Partial sale of Falling Water Project (Capri)
• Assessing alternative financing options for HZLH
• Successfully defending against some legal claims
• Focusing on improving sales to mainland China (ESA)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Environmental Metrics

ESG Focus Areas

• Customer Satisfaction
• Sustainable Business Performance
• Environmental Stewardship (water conservation, energy conservation, emissions reduction, waste management)
• Safe Working Environment
• Talent Management
• Equality and Diversity in the Workplace
• Community Engagement
• Robust Corporate Governance

Environmental Achievements

• No change in GHG emission intensity for FY2023

Social Achievements

• Lower employee turnover in FY2023
• Decrease in financial loss for FY2023

Governance Achievements

• Adopted a comprehensive diversity policy (August 30, 2022)

Climate Goals & Targets

Environmental Challenges

• Increased water consumption due to customer requirements
• Ongoing legal proceedings impacting management time and resources
• Consecutive years of losses (likely resulting in SGX watchlist placement)

Mitigation Strategies

• Cost containment measures (offshoring, office space amalgamation)
• Vigorous defense in Sawyer Falls litigation
• Seeking new business opportunities (organic growth or acquisition)

Supply Chain Management

Climate-Related Risks & Opportunities