Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Established a 25,000-hectare Community Forest in Sudcam concession.
• Constructed a state-of-the-art factory and laboratory in Sudcam, Cameroon with advanced effluent treatment systems aiming for zero effluent discharge and rainwater collection systems.
• Increased biomass (palm kernel) consumption to 10% of total energy needs, up from 4% in 2017.
• Improved group-wide water recycling rates from 33% in 2017 to 43% in 2019.
• Achieved a silver rating from EcoVadis for the first time, placing in the top 79% percentile amongst industry peers.

Social Achievements

• Implemented various development and engagement programmes with local communities, investing an estimated US$656,000 globally.
• Launched a health campaign in Palembang factory promoting cleanliness and healthy living habits, resulting in an estimated 70% reduction in annual contracted maintenance and cleaning costs.
• Rolled out Rubberway to 12 administrative divisions across Thailand and Indonesia, reaching approximately 1,600 smallholder farmers.
• Launched HeveaTRACE, a supply-chain traceability tool, surveying 1,000 smallholder farmers in Jambi province, Indonesia.
• Launched HeveaGROW, an initiative focused on providing natural rubber smallholder farmers with best agronomical practices to improve yields.

Governance Achievements

• Maintained an unblemished record of zero confirmed cases of corruption in 2019.
• Established the Cameroon Sustainability Council (CSC), an independent body monitoring the implementation of the Group’s Sustainable Natural Rubber Supply Chain Policy (SNRSCP).

Climate Goals & Targets

Environmental Challenges

• Effluent quality issues experienced by Cameroonian and Ivory Coast operations.
• Low rubber prices affecting smallholder farmers' incomes.
• Lack of access to knowledge on best agricultural practices for farmers.
• Biodiversity conservation and protection risks.
• Deforestation alerts correlating with haze episodes.

Mitigation Strategies

• Commenced major desludging works in Ivory Coast and installing a new Activated Sludge System with wastewater recycling capability in Cameroon.
• HeveaGROW training modules to address issues of low yields and lack of knowledge on best agricultural practices.
• HeveaTRACE to provide targeted assistance to farmers based on their income profile.
• Collective selling model to enable farmers to secure higher prices for their rubber.
• Partnership with major tyre customer to pilot a fully traceable system for natural rubber production.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Sourcing Policy mirroring SNRSCP commitments.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change threats to communities

Transition Risks

• Stricter environmental water regulation

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, Singapore Exchange’s (SGX) Sustainability Reporting Guide

Certifications: HeveaPRO, ISO9001, ISO14001, ISO18001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 1, 2, 3, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17

Initiatives contribute to various SDGs through sustainable supply chain practices, community investment, employee well-being, and environmental protection.

Sustainable Products & Innovation

• Certified sustainable, quality rubber and latex produced to individual customer requirements.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Pricing Equity
• Traceable Supply Chain
• Workplace Health and Safety
• Fair Working Conditions
• Human Rights
• Eco-Efficiency
• Climate Change
• Landscape Stewardship
• Ethics and Compliance
• Community Investment and Empowerment

Environmental Achievements

• Awarded EcoVadis Gold Medal for Sustainability
• JFL attained Malaysian Sustainable Palm Oil (MSPO) certification
• Corrie MacColl Group secured a green loan from Deutsche Bank
• HeveaConnect secured a US$1.5 million investment from Singapore Exchange
• Sudcam kick-starts the operations of its state-of-the-art latex factory

Social Achievements

• Zero confirmed incidents of corruption involving our employees
• Implemented COVID-19 safety measures protecting employees and communities
• Launched a pioneering staff volunteering program in Malaysia
• Good Agricultural Practice Training for smallholder farmers

Governance Achievements

• Maintained a laudable record of zero confirmed incidents of corruption involving our employees
• Updated its Sustainable Natural Rubber Supply Chain Policy (SNRSCP) in January 2021
• Initiated an online consultation to gather feedback from its key stakeholders

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted demand and disrupted supply chains
• Low rubber prices below breakeven costs of plantations
• Effluent quality setbacks in Africa
• Forest fire incidents in Cameroon

Mitigation Strategies

• Issued US$200 million subordinated perpetual securities
• Obtained a three-year syndicated term loan of up to US$300 million
• Partnered with Deutsche Bank for a sustainability-linked loan
• Streamlined global operations to preserve competitiveness
• Calibrated plantation capex
• Increased efficiency of pre-treatment of effluent in Cameroon
• Desludging works in Ivory Coast completed
• Dedicated teams monitor fires and implement fire-fighting measures

Supply Chain Management

Responsible Procurement

• Sustainable Sourcing Policy
• HeveaPro standards
• Communication of policies and code of conduct with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Drought-like situations in Cameroon

Opportunities

• Carbon sequestration potential of rubber trees

Reporting Standards

Frameworks Used: GRI Standards: Core option, Singapore Exchange Sustainability Reporting Guide

Certifications: ISO 14001, ISO 45001, HeveaPro, MSPO (JFL)

Third-party Assurance: TÜV SÜD (HeveaPro)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Halcyon Agri's initiatives contribute to these goals through sustainable practices, responsible resource management, and community development programs.

Sustainable Products & Innovation

• Vytex® deproteinised latex

Awards & Recognition

• EcoVadis Gold Medal

Environmental Metrics

ESG Focus Areas

• Quality Excellence
• Pricing Equity
• Traceable Supply Chain
• Workplace Health and Safety
• Fair Working Conditions
• Human Rights
• Eco-Efficiency
• Climate Change
• Landscape Stewardship
• Ethics and Compliance
• Community Investment and Empowerment

Environmental Achievements

• Installed a bio-filter system in Thai factories to minimize malodor
• Successfully aligned its sustainability policies with the GPSNR Policy Framework
• Reduced chemical usage by over 35% per hectare year on year in JFL plantation
• Achieved AWS Gold certification for Hevecam plantation and registered JFL for AWS certification
• Installed solar panels in Kedah factory (Malaysia) and Sudcam factory (Cameroon) to reduce carbon footprint and electricity costs

Social Achievements

• Launched a waste recycling program with the community in Southern Thailand
• Implemented a social action plan for indigenous and local communities at Sudcam
• Sponsored a football tournament with local communities in Cote d’Ivoire
• Implemented the Cameroon Outgrower Programme to empower smallholder farmers
• Initiated a self-reliance program with the community in Palembang, Indonesia (Food Independent Village)

Governance Achievements

• Maintained a laudable record of zero confirmed incidents of corruption involving its employees
• Reported zero non-compliance to labor-related laws and regulations
• Ranked among top 7% of companies listed on the Singapore Exchange in the Singapore Governance and Transparency Index 2021

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruption due to COVID-19, causing port congestion, shipment delays, and shortages
• Manpower shortage due to smallholders leaving rubber farming and border restrictions
• COVID-19 effects disrupting production activities
• Supply scarcity-driven margin compression in Indonesia
• High freight costs rendering China-produced tyres less competitive

Mitigation Strategies

• Leveraging global integration capabilities and strategically located factories to provide value-added services and high-quality products
• Implementing effective supply chain management strategies and entrenched customer relationships
• Maximizing operating efficiency to enhance competitiveness
• Deploying global resources to ensure factories generate higher contribution margins
• Improving cost efficiencies amid a 10% increase in global production volumes

Supply Chain Management

Responsible Procurement

• Sustainable Sourcing Policy
• HeveaPro Industrial Standards
• Collaboration with Rainforest Alliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changes in regulations and market shifts

Opportunities

• Development of energy-efficient products and adoption of renewable energy technologies

Reporting Standards

Frameworks Used: GRI Standards, Singapore Exchange Sustainability Reporting Guide

Certifications: ISO 14001, ISO 9001, ISO 45001, AWS V2.0

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

Halcyon Agri's initiatives contribute to these goals through various programs and policies related to health and safety, water management, renewable energy, fair working conditions, sustainable supply chains, climate action, and biodiversity conservation.

Sustainable Products & Innovation

• HeveaPro sustainable rubber

Awards & Recognition

• EcoVadis Gold Medal (2020)
• Ranked as the most transparent rubber producing company in 2021 SPOTT assessment by the Zoological Society of London

Environmental Metrics

ESG Focus Areas

• Supply Chain Transparency
• Traceability
• Climate Change
• Operations Excellence
• Land Stewardship
• Inclusive Business

Environmental Achievements

• 44% year-on-year decrease in chemical pesticides consumption in Hevecam S.A from July 2020 to June 2021 to July 2021 to June 2022
• Secured FSC certification of Hevecam’s Niété concession (ongoing)

Social Achievements

• Secured 10% female representation on Halcyon Agri’s Board
• Expanded coverage of the Cameroon Outgrower Programme
• Implemented all measures within the Social Action Plan, in partnership with local NGOs, for the communities surrounding the Hevecam and Sudcam concessions

Governance Achievements

• Formalised a governance structure to integrate and manage ESG topics in our business
• All directors attended mandatory sustainability training in 2022

Climate Goals & Targets

Environmental Challenges

• Increasing calls to account for actions and impacts affecting the environment and society
• Challenging task of tracing natural rubber up to the upstream point of origin
• Climate change recognised as humanity’s biggest challenge

Mitigation Strategies

• Intensified customer engagement, participated in industry fora and continued building on our reporting systems
• Introduced a new traceability feature on the Agridence Rubber platform
• Outlined ambition to commit to Science Based Targets initiative and set net zero targets by 2025

Supply Chain Management

Responsible Procurement

• Sustainable Sourcing Policy (SSP)

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Stronger typhoons
• Changing rainfall patterns
• Severe drought
• Spread of disease

Transition Risks

• Regulatory pressure
• Depressed rubber price
• Aging smallholder farmer population

Opportunities

• R&D on sustainable rubber
• Alternative energy sources

Reporting Standards

Frameworks Used: SGX-ST Listing Rules 711A and 711B, TCFD recommendations, GRI Sustainability Reporting Standards, UN Global Compact, GPSNR Policy Framework

Certifications: HeveaPro, ISO 9001, ISO 14001, ISO 45001, FSC

UN Sustainable Development Goals

• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 8

Initiatives are aligned with these SDGs through various programs and commitments.

Environmental Metrics

ESG Focus Areas

• Climate Resilience
• Responsible Sourcing
• Quality Excellence
• Workplace Health and Safety
• Resource Efficiency
• Pollution Prevention
• Land Stewardship
• Fair Working Conditions
• Inclusive Business
• Respect for Stakeholder Rights
• Supply Chain Traceability

Environmental Achievements

• Improved water use intensity by reducing freshwater requirements (target: 5% reduction versus 2021 baseline by 2025)
• Improved energy intensity by reducing electricity consumption (target: 2% reduction versus 2021 baseline by 2025)
• Repurposing crumb rubber waste for vineyard planting in Indonesia
• No industrial deforestation inside Corrie MacColl’s Hevecam, Sudcam and JFL estates (2022-2023)

Social Achievements

• Launched Quality & ESG Council to establish and maintain standards for processing and plantations business
• Implemented various social initiatives in Cameroon through collaboration with NGOs APIFED and APED
• Achieved 83.58% customer satisfaction level

Governance Achievements

• All directors (except newly appointed) attended mandatory sustainability training
• Completed a group-wide GHG baseline assessment for setting science-based targets by 2025
• Implemented a robust grievance resolution procedure with 15 closed cases and 2 ongoing

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on rubber yield and quality
• Increasing environmental regulations and carbon policies
• Supply chain transparency and traceability
• Deforestation risks
• Stakeholder scrutiny on ESG performance

Mitigation Strategies

• Implementation of sustainable agriculture practices
• Investments in renewable energy and energy efficiency technologies
• Development of traceability reporting system
• Third-party satellite monitoring for deforestation
• Engagement with customers, suppliers, and NGOs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Natural Rubber Supply Chain Policy (SNRSCP)
• Sustainable Sourcing Policy (SSP)

Climate-Related Risks & Opportunities

Physical Risks

• Changes in climate patterns
• Increased incidence and severity of extreme weather events

Transition Risks

• Increasing environmental/carbon policies and legislation
• Carbon taxes and emission pricing mechanisms
• Exposure to litigation

Opportunities

• Improved business resiliency and adaptability
• Reduced manufacturing costs and CO2 emissions
• Additional revenue through carbon pricing instruments

Reporting Standards

Frameworks Used: SGX-ST Listing Rules 711A and 711B, TCFD recommendations, GRI Standards, UN Global Compact, GPSNR Policy Framework

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, FSC

Third-party Assurance: Internal review by Group appointed auditor; third-party verification on selected environmental performance indicators

UN Sustainable Development Goals

• 1
• 6
• 7
• 8
• 9
• 12
• 13
• 15

Initiatives aligned with SDGs related to poverty, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, responsible consumption and production, climate action, and life on land.

Sustainable Products & Innovation

• FSC-certified latex-grade dry rubber

Awards & Recognition

• Most transparent natural rubber company in 2021 (SPOTT)