Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Fair employment practices
• Health and safety
• Energy and carbon footprint
• Waste and effluents management

Environmental Achievements

• Successfully migrated from OHSAS 18001 to ISO 45001:2018 and integrated ISO 14001:2015 environmental management system.
• Secured one SHARP award in 2019 for the Leviathan Production Platform project.

Social Achievements

• Signatory of the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP).
• Implemented fair employment practices, including flexible work arrangements and a grievance mechanism.
• Organized lunch talks and appreciation lunches for staff.
• Participated in TOUCH Giving Festival Charity Run and MWAF Charity Golf/Fundraising.

Governance Achievements

• Maintained high standards of corporate governance, including a clear division of responsibilities between the Board and Management.
• Established a Sustainability Steering Committee and a Sustainability Working Committee.
• Implemented a formal and transparent procedure for developing policies on director and executive remuneration.
• Established procedures to ensure that all interested persons are reported in a timely manner to the AC.

Climate Goals & Targets

Environmental Challenges

• Difficult year with lower project progress, resulting in a net loss.
• Under-recovery of direct overheads due to under-utilization of production facilities.
• Provision for slow-moving inventories due to low order book.
• Intense competition and depressed margins.
• Slow pickup in new orders.
• Uncertainty due to the COVID-19 pandemic and oil price volatility.

Mitigation Strategies

• Managed costs to align with business volume and resources.
• Secured fabrication contracts of about $18 million in early 2020.
• Disposal of non-core assets to improve liquidity and optimize asset utilization.
• Proactive cost management.
• Working on joint ventures with Chinese yards to serve customers in China.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001:2018, ISO 14001:2015

Awards & Recognition

• SHARP Award
• Singapore Environmental Achievement Award

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Fair employment practices
• Health and safety
• Energy and carbon footprint
• Waste and effluents management

Environmental Achievements

• Reduced diesel consumption through regular maintenance of vehicles and machines and using electric forklift and compressor instead of diesel ones.
• Utilized 2,212.1 MWh clean energy from solar panels.
• Replacement of all working area lights with 200W LED Flood Light instead of 400W metal halide lights with a saving of 50% energy consumption per light.

Social Achievements

• Increased Group workforce by 3.3% from 756 in FY2020 to 781 in FY2021.
• Achieved 4,945.75 training hours in FY2021.
• Enhanced staff benefits, including overtime allowance, transport reimbursement, and meal allowance.
• Implemented Flexible Work Arrangement Policy.
• Participated in Together We RISE Fundraising Campaign, contributing to a hot meal program for seniors.

Governance Achievements

• No cases received through whistle-blowing channels, no reported cases of bribery and corruption, and no incidences of non-compliance resulting in significant fines or sanctions in 2021.
• Compulsory code of conduct training for all employees.
• Became a member of Carbon Pricing Leadership Coalition (CPLC) and LowCarbonSG.

Climate Goals & Targets

Environmental Challenges

• Increase in non-hazardous waste disposal due to bulk disposal of wooden crates and pallets in 2021.
• Increase in electricity and diesel consumption due to increased business activities.

Mitigation Strategies

• Implemented energy-saving measures such as timer control systems, patrolling to switch off idling machines and lights, installing lighting motion sensors, and using energy-saving equipment.
• Regular servicing of machinery to remove carbon deposits and maintain fuel efficiency.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001:2018, ISO 14001:2015

Awards & Recognition

• Eco Manufacturing (Champion) and Eco Assessment Resource from Singapore Environment Council (SEC)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Occupational Health & Safety
• Employment
• Corporate Governance
• Waste

Environmental Achievements

• Reduced energy consumption by 61% by replacing workshop lights with energy-efficient LED lights
• Increased green energy (solar power) consumption by 30% in 2022 (compared to 25% in 2021)
• Demolition of blasting and painting chambers using diesel air compressors and outsourcing to external chambers using electrical air compressors
• Reduction in material waste and scrap through CNC software optimization

Social Achievements

• Implemented various employee engagement initiatives such as Ayudha Pooja celebrations, CEO engagement sessions, and dormitory visits
• Adopted additional Tripartite Standard of Work-life Harmony
• Provided occupational health services including mandatory medical check-ups and an in-house medical centre

Governance Achievements

• Established a robust Enterprise Risk Management Framework
• Implemented a Whistle Blowing Policy
• Adhered to the revised Code of Corporate Governance issued by the Monetary Authority of Singapore

Climate Goals & Targets

Environmental Challenges

• Regulatory transition risks (mandates on existing products, reporting obligations, increased raw material costs)
• Physical risks (extreme weather events, rising mean temperatures and sea levels)
• High employee turnover rate

Mitigation Strategies

• Engaging in cost-plus pricing contracts to mitigate raw material cost fluctuations
• Following regulator guidelines for worker protection in rising temperatures (heat acclimatisation, water breaks, shaded areas)
• Implementing strategies to reduce GHG emissions and revamp yard designs in vulnerable coastal regions
• Investing in employee training, career development, and engagement to retain talent

Supply Chain Management

Responsible Procurement

• Safety statistic and insurance coverage are part of the vendor pre-qualification assessment criteria

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Mandates on existing products and services
• Increased cost of raw materials
• Costs to transition to lower emissions technology
• Increased pricing of GHG emissions

Opportunities

• Venturing into LNG modules and renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 45001:2018, ISO 14001:2015, bizSAFE Star

Third-party Assurance: Internal Audit Function

Awards & Recognition

• LowCarbonSg logo

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Energy Consumption
• Waste Management
• Corporate Governance
• Employment
• Economic Performance

Environmental Achievements

• 561 Tonnes Wood waste diverted from disposal
• 5,927 GJ Generated from renewable solar energy

Social Achievements

• Zero fatality
• Zero Major Injuries
• 8,146 Total Training Hours (HSE, Technical, Soft Skills)
• Launched employee well-being program

Governance Achievements

• 100% Compliance with code on conduct policies
• Established anti-corruption training for all employees

Climate Goals & Targets

Environmental Challenges

• Mandates on and regulation of existing products and services
• Increased cost of raw materials
• Costs to transition to lower emissions technology
• Enhanced emission-reporting obligations
• Increased pricing of GHG emissions
• Rising mean temperature
• Rising sea levels
• Increased severity of extreme weather events such as cyclones and floods

Mitigation Strategies

• Continue to improve on vetting our value chain and prepare ourselves in building the reputation looked by other customers in the business.
• We will work on renewing the contracts and will be able to baseline the impacts upon new contract renewals
• Continue to work closely with the departments to understand the opportunities and impacts on business
• We shall continue to follow the SGX regulations year-on-year as advised
• We shall continue to work on reducing our GHG emissions by shifting towards renewable energy
• We will start conducting the qualitative scenario analysis to start with and gradually move towards quantifying the impacts

Supply Chain Management

Responsible Procurement

• Fair selection process
• Efficient processing of payments
• Constant engagement with vendors and subcontractors
• Anti-corruption special compliance terms & conditions circulated to vendors

Climate-Related Risks & Opportunities

Physical Risks

• Rising mean temperature
• Rising sea levels
• Increased severity of extreme weather events such as cyclones and floods

Transition Risks

• Mandates on and regulation of existing products and services
• Costs to transition to lower emissions technology
• Enhanced emission-reporting obligations
• Increased pricing of GHG emissions

Opportunities

• Development of energy-efficient products
• Working with clients supply prefabricated piping system packages for their hydrogen or ammonia projects in Singapore and overseas

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: ISO 45001:2018, ISO 14001:2015

Third-party Assurance: Internal Audit Function

Sustainable Products & Innovation

• carbon capture and storage, hydrogen, and ammonia solutions