Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer experience
• Sustainable business performance
• Proactive anti-corruption practices
• Energy conservation, waste optimisation and carbon footprint reduction
• Water conservation and wastewater treatment
• Commitment to help farmers in building sustainable cocoa source
• Safe working environment
• Diversity and equality in the workplace
• Robust corporate governance framework

Environmental Achievements

• 98% of energy consumed by Biomass Boiler is generated from discarded cocoa shells
• Reduced reliance on diesel fuel by approximately 3.7 million litres
• Generated USD134k of income from selling cocoa shells to local poultry farmers
• 100% of wastewater generated was treated before release

Social Achievements

• Supported the setup of 5 cocoa support centers in Indonesia to train farmers
• Participated in a lead farmer program in Indonesia
• Initiated similar initiatives in West Africa and Latin America
• Zero workplace fatality
• 10 incidents of non-fatal workplace injuries resulting in 160 man-days lost

Governance Achievements

• Singapore Governance and Transparency Index (“SGTI”) score of 75
• Zero incident of serious offence

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused manufacturing operations to operate at reduced capacity
• Disruptions at ports and with delivery services due to lockdowns
• Slowdown in global consumption and demand for cocoa ingredients
• USD400 per tonne Living Income Differential implemented in Ghana and Cote d’Ivoire caused volatility in cocoa bean price

Mitigation Strategies

• Activated emergency response plan and rearranged work and production schedules
• Maintained close relationships with suppliers to ensure steady cocoa bean supply
• Communicated closely with customers to understand their needs
• Closely monitoring industry developments and taking prudent measures

Supply Chain Management

Responsible Procurement

• Sustainable cocoa sourcing initiatives
• UTZ certification

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Sustainability Agenda, 2030 Agenda for Sustainable Development

Certifications: HACCP, FSSC 22000, HALAL, Kosher, UTZ Chain of Custody Standard/Rainforest Alliance

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 16

Awards & Recognition

• Certification of Excellence, Industry Excellence Award
• Malaysian Commodities Industry Award
• Best Cocoa Grinder Award

Environmental Metrics

ESG Focus Areas

• Economic value generated
• Customer satisfaction
• Sustainable manufacturing
• Water stewardship
• Energy consumption
• Traceability and sustainable supply chain practices
• Waste management and optimisation
• Climate change and GHG emissions
• Deforestation and biodiversity
• Safe work and well-being
• Talent development
• Food safety, product quality and nutrition
• Workplace diversity and equality
• Community development
• Human rights and labour standards
• Ethics and integrity
• Cyber security and data protection

Environmental Achievements

• Percentage of wastewater treated to remove pollutants before releasing into waterways: 100%
• Hazardous waste generated (mt) per mt of cocoa bean processed: 0.002
• 93% of steam consumed by our factory in Malaysia is generated from discarded cocoa shells
• Solar power generated contributed to approximately 3% of the electricity consumed by our factory in Malaysia

Social Achievements

• Number of recordable work-related injuries: 5
• Average training hours per employee: 32
• Number of product returns due to food safety issues raised by customers: 1
• Community programmes reached out to about 20,000 farmers
• More than 70,000 cocoa seedlings provided to farmers in Nigeria, Indonesia and Ecuador
• Income-generating activities for women from farming communities

Governance Achievements

• Number of incidents of serious offence (“Corruption”): 0
• Number of cybersecurity breaches resulting in losses of business data: 0
• Overall Singapore Governance and Transparency Index (“SGTI”) score: 63

Climate Goals & Targets

Environmental Challenges

• Rising inflation, high interest rates and geopolitical tensions
• Supply of cocoa beans may be adversely affected by external events such as climate change, natural disasters, political and economic events
• Prevalence of low income amongst smallholder farmers in developing countries leads to increased deforestation and reduced biodiversity
• Human rights risks such as child labour and gender inequality are higher with the prevalence of poverty amongst cocoa farmers

Mitigation Strategies

• Sustainability programmes in Ivory Coast, Nigeria, Indonesia and Ecuador
• Member of Cocoa Forest Initiative (“CFI”), striving for a deforestation-free supply chain and supporting farmers in agroforestry projects
• Carbon accounting processes and ongoing innovations to tap into renewable energy resources
• Child Labour Monitoring and Remediation Systems (“CLMRS”), child safeguarding policy, supplier code of conduct
• Empowering women through financial inclusion and training programmes
• Deforestation free policy, supplier’s code of conduct, partnership with Cocoa & Forest Initiative

Supply Chain Management

Supplier Audits: Regular questionnaire audits or site audits

Responsible Procurement

• Supplier code of conduct
• Deforestation free policy
• Rainforest Alliance certificate
• Fairtrade International certificate
• Fairtrade USA certificate

Climate-Related Risks & Opportunities

Physical Risks

• Climate change, natural disasters

Opportunities

• Review and assess its value chain to identify new sustainability programmes to maintain sustainable cocoa supply chain

Reporting Standards

Frameworks Used: GRI Standards

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

Details provided in section 9 of the Sustainability Report

Awards & Recognition

• Certification of Excellence, Industry Excellence Award for the consumer product sector 2007/2008
• Malaysian Commodities Industry Award 2011 for Best Processing Plant
• Best Cocoa Grinder Award 2012

Environmental Metrics

ESG Focus Areas

• Food Safety, Product Quality and Nutrition
• Customer Satisfaction
• Sustainable Manufacturing
• Water Stewardship
• Energy Consumption, Climate Change and GHG Emissions
• Traceability and Sustainable Supply Chain Practices
• Waste Management and Optimisation
• Deforestation and Biodiversity
• Safe Work and Well-Being
• Talent Development
• Human Rights, Workplace Diversity and Labour Standards
• Community Development
• Ethics and Integrity
• Cyber Security and Data Protection
• Business Development and Expansion

Environmental Achievements

• Water consumption intensity reduced from 2.12 m3/MT of cocoa bean processed to 2.03 m3/MT
• 100% of wastewater treated to remove pollutants before release
• 91% of steam consumed in Malaysia factory produced by biomass boiler (converting cocoa shells to renewable energy)
• Solar PV generated 1,145,256 kWh, contributing to approximately 3% of electricity consumed in Malaysia factory
• Reduced GHG emissions intensity from 0.37 tonnes CO2e/MT to 0.35 tonnes CO2e/MT

Social Achievements

• Zero workplace fatalities or high-consequence work-related injuries
• One recordable work-related injury (five in 2022)
• Seven recordable work-related ill health cases (zero in 2022)
• Average training hours per employee: 14 (31 in 2022)
• Employee turnover rate: 8% (14% in 2022)
• Zero reported incidents of unlawful discrimination against employees
• Zero reported incidents of non-compliance with labour standards
• More than 110,000 cocoa seedlings provided to farmers in Nigeria and Indonesia (70,000 in 2022)
• Over 140,000 multi-purpose tree seedlings distributed to farming communities (80,000 in 2022)

Governance Achievements

• Zero Corruption Incidents reported
• Zero cyber security breaches resulting in losses of business data
• 100% of directors attended sustainability training courses

Climate Goals & Targets

Environmental Challenges

• Unprecedented sharp volatility in cocoa bean prices (increased from USD2,400/MT to USD4,800/MT)
• Decrease in gross exports of cocoa beans from West Africa due to adverse weather and disease
• Increased finance costs due to higher cocoa bean prices, higher interest rates, and additional financing costs for Ivory Coast factory construction

Mitigation Strategies

• Cautious cashflow management and conservative capital expenditure
• Hedging activities (although resulted in mark-to-market losses)
• Investments in solar panels, machinery efficiency enhancements, and renewable energy adoption
• Diversified sourcing of cocoa beans from multiple locations

Supply Chain Management

Supplier Audits: Questionnaire audits and site audits minimally every three years; 75% of suppliers signed the supplier code of conduct.

Responsible Procurement

• Supplier code of conduct focusing on social and environmental practices
• Deforestation-free policy
• Incorporation of sustainability criteria into supplier assessment scorecard

Climate-Related Risks & Opportunities

Physical Risks

• Increased occurrence of natural disasters and severe weather conditions

Transition Risks

• Expansion of carbon pricing mechanism
• Shift in customer preference towards sustainable products
• Increased sustainability concerns and negative stakeholder feedback

Opportunities

• Development of energy-efficient products and processes
• Expansion of collaboration and partnerships to innovate low-carbon goods and services

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Internal review; working towards external assurance

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Certification of Excellence, Industry Excellence Award (2007/2008)
• Malaysian Commodities Industry Award (2011)
• Best Cocoa Grinder Award (2012)