Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Suzhou factory channeled waste heat from air compressors to heat water, significantly decreasing natural gas consumption and emissions.
• Reduced hazardous and non-hazardous waste due to material planning and consumption control and reuse/recycling initiatives.

Social Achievements

• Zero work-related fatalities between 2017 and 2019.
• YHI Singapore sponsored The Singapore Island Country Club May Day Charity Golf 2019.
• YHI New Zealand organized blood donation drives and paid volunteering leave for community service.

Governance Achievements

• Zero incidents of anti-corruption, anti-competitive behavior, or anti-trust/monopoly practices between 2017 and 2019.
• Board oversees sustainability performance, practices, and initiatives.

Climate Goals & Targets

Environmental Challenges

• Unconducive political atmosphere impacting export and manufacturing-led economies.
• China-USA trade war and downturn in the electronics sector.
• Difficulties standardizing and consolidating waste disposal data from distribution subsidiaries due to varying methods and regulations.

Mitigation Strategies

• Strict adherence to a strategy of maintaining a strong balance sheet while seeking opportunities to expand revenue streams.
• Cost, inventory, and receivables management, along with marketing strategies to extend product depth, breadth, and reach, ensured business robustness and efficiency.

Supply Chain Management

Responsible Procurement

• Group Management Policy covering ethical conduct in purchasing and procurement; transparent dealings with suppliers; no bribery or corruption; supplier vetting for regulatory compliance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015, ISO/TS 16949:2009, Eco Warranty Certificate, bizSAFE, Work Safety Standardization Certificate, Clean Production Audit Certificate

Awards & Recognition

• YHI Malaysia received the Golden Eagle 2019 Award.
• Malacca factory received the Super Golden Bull 2018 Award.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced waste through reduced use of raw materials and recycling
• Implemented various energy efficiency and energy conservation policies

Social Achievements

• Close to 100% of the management of overseas subsidiaries are hired from local communities
• Promote work-life balance for employees and encourage them to organise a variety of activities

Governance Achievements

• Delivered a positive performance in FY2020 despite the challenging operating environment
• Implemented a Group Whistle-Blowing Policy

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted communities and industries, slowing economies and disrupting supply chains
• USA and China trade war affected the allocation of orders to different factories

Mitigation Strategies

• Implemented business continuity plans to mitigate the impact on businesses
• Focused on strengthening resilience in preparation for a drawn-out crisis
• Implemented a “3R” strategy of reducing stock-holding, accounts receivables and operating costs

Supply Chain Management

Responsible Procurement

• Group Management Policy covering ethical conduct in purchasing and procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015, ISO/TS 16949:2009

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced freshwater consumption by 8% due to decreased production levels.
• Reduced total wastewater discharge from Suzhou and Taiwan factories by 26% due to decreased production levels.
• Maintained zero incidents of non-compliance with local regulations pertaining to water discharge.
• Maintained zero incidents of non-compliance with applicable regulations on the handling of hazardous waste.

Social Achievements

• Achieved zero work-related fatalities.
• Increased annual average hours of training for each employee by at least 20% by 2025 (compared to 2018 baseline).

Governance Achievements

• Maintained zero incidents of anti-corruption, anti-competitive behaviour, anti-trust or monopoly practices.
• Integrated climate risks into existing board governance structures.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment leading to decline in sales and higher electricity intensity ratios in distribution subsidiaries.
• Aging machinery and product design impacting energy intensity ratios in factories.
• Fluctuation in demand for winter wheels due to global warming.
• Rising temperatures and heatwaves impacting productivity and absenteeism.
• Potential for increased costs due to carbon taxes or carbon credits.
• Stringent regulatory requirements and taxes on waste disposal.
• Potential for high-emitting assets to be banned or phased out.
• Market and reputational risks associated with being perceived as high-emitting.

Mitigation Strategies

• Implementing energy efficiency and conservation measures (e.g., rerouting waste heat, LED lighting, solar panels).
• Maximising recycling and reuse of wastewater.
• Diversifying revenue streams to minimise impact of fluctuating demand for winter wheels.
• Retrofitting air ventilation and cooling systems.
• Providing additional monetary incentives to workers during hot spells.
• Optimising production levels to minimise carbon tax.
• Working with principals and customers to transfer increased costs.
• Formulating an asset replacement plan for high-emitting assets.
• Aligning business practices with industry best practices and regulatory requirements.
• Presenting climate- and sustainability-related achievements transparently.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Management Policy outlining guidelines for fair and transparent dealings with principals and suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions to supply chains due to severe weather events.
• Fluctuation in demand for winter wheels due to unpredictable snowfall.
• Reduced productivity due to rising temperatures.

Transition Risks

• Imposition of carbon taxes or carbon credits.
• Stringent regulations on waste disposal.
• Phasing out of high-emitting assets.
• Market and reputational risks.

Opportunities

• Minimising operating costs through resource efficiency.
• Adopting renewable energy sources.
• Diversifying product offerings to include eco-friendly products.

Reporting Standards

Frameworks Used: GRI 2021 Standards, TCFD

Certifications: ISO 9001:2015, IATF 16949:2016, Clean Production Audit Certificate (Suzhou factory), BizSAFE certificate (Singapore), Work Safety Standardisation Certificate (China)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed