Hi-P International Pte. Ltd.

Climate Impact & Sustainability Data (2018, 2019, 2020)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:22,858 tonnes CO2e reduction from FY 2017

ESG Focus Areas

Environmental
Social
Governance

Environmental Achievements

8.5% reduction in electricity consumption
11.8% reduction in greenhouse gas emissions

Social Achievements

39% increase in average employee training hours
Zero fire accidents
Zero cases of occupational disease

Governance Achievements

100% communication of anti-corruption policies to employees and suppliers

Climate Goals & Targets

Environmental Challenges

Price competition
Rising labor costs
Lower manufacturing yields for certain new products in the initial ramp-up phase

Mitigation Strategies

Increased automation & computerisation
Consolidation of operations
Expansion into new markets
Implementation of energy management system and initiatives

Supply Chain Management

Responsible Procurement

Check before every procurement if the potential supplier provides an Environmental, Health and Safety (“EHS”) report or ISO 14001 Environmental Management System certification
Conduct random audits on suppliers who have potentially higher environmental impact
Shortlist vendors and select the one that fits our criteria best in terms of price and quality.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards – ‘Core’ reporting requirements

Awards & Recognition

2018 Sustainability Award from KEURIG

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:177,000 tonnes CO2e (increased by 6.8% from FY2018)

ESG Focus Areas

Governance
Economic Performance
Social (Training & Education, Occupational Health & Safety, Contribution to Local Community, Fair Employment & Labour Practices)
Environmental (Energy Consumption, Greenhouse Gas Emissions)

Environmental Achievements

5% reduction on GHG emission trading amount in Shanghai Emissions Trading System in FY2019 compared to FY2018
1.06 million kWh electricity savings in FY2019

Social Achievements

Zero fatalities and high-consequence injuries
Zero cases of occupational disease
Established Hi-P College in FY2019 to share examples of good culture among our employees
Total of S$ 443,945 donated in cash to local communities

Governance Achievements

Zero substantiated cases of corruption
100% of governance body members communicated on anti-corruption policies and received training
100% of new suppliers communicated on anti-corruption policies

Climate Goals & Targets

Short-term Goals:

To achieve total electricity savings by 7.9% with FY2019 electricity consumption as base year

Environmental Challenges

Trade war tensions and challenging market conditions
Price pressure, higher employee share award expenses and annual salary increments
Increase in natural gas usage due to installation of RTO at Suzhou site
Expansion of operations leading to increased energy consumption

Mitigation Strategies

Implemented Total Exposure Limit framework to manage risk appetite
Retrofitting of steam boilers to enhance efficiency and lower NOx emissions
Implementing more detailed energy management procedures and setting up a standard energy database
Introducing an online E-office system to standardize workflow on EnMS proposals

Supply Chain Management

Responsible Procurement

Suppliers are to sign agreement with Hi-P on anti-corruption clauses
Conduct random audits on suppliers who have potentially higher environmental impact

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards – Core reporting requirements

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 13485:2016, IATF 16949:2016, ISO 45001:2018

Awards & Recognition

Responsible Business Alliance’s Silver Level (Xiamen and Singapore Operations)
Best Quality Award from Compal (Shanghai Operation)
Best Supplier Award from Wistron (Shanghai Operation)
2019 Advanced Energy Saving and Emission Reduction Enterprise (Suzhou Wuzhong District)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

Governance
Economic Performance
Social (Training & Education, Occupational Health & Safety, Community Investment)
Environmental (Energy Consumption, Greenhouse Gas Emissions)

Environmental Achievements

8.5% reduction in energy intensity in FY2020 compared to FY2019
Rolled out Greenhouse Gas Emission Management Procedure to Hi-P Nantong

Social Achievements

Pilot launch of e-learning platform in March 2020
Zero cases of work-related fatalities, high-consequence work-related injuries, or ill health
Donated $144,102 in cash to local communities
Average training hours per employee increased to 120.4 hours

Governance Achievements

100% governance body members communicated and trained on anti-corruption policies
100% communication of anti-corruption policies to new suppliers

Climate Goals & Targets

Environmental Challenges

COVID-19 pandemic causing widespread global impacts and upsetting the global economy, adversely impacting China operations in 1Q 2020 due to lockdown.
COVID-19 pandemic continued to affect both demand and supply, causing disruptions and uncertainty across the supply chain (e.g., lockdowns and border closures in Europe).

Mitigation Strategies

Implemented business continuity plans across the Group to ensure continuing operations.
Activated Statutory Infectious Disease Procedure, implemented measures such as increased disinfection, temperature screening stations, and sufficient personal protective equipment.
Maintained key lines of communication and worked closely with stakeholders to minimize disruptions.
Maintained a healthy net cash position and banking facilities to cushion unforeseen circumstances.

Supply Chain Management

Responsible Procurement

Assessment of suppliers on key criteria such as quality, environmental standards and price
Suppliers sign agreement with Hi-P on anti-corruption clauses
Due diligence before signing agreement with suppliers