Climate Change Data

Environmental Metrics

ESG Focus Areas

• Accountable to Society
• Appreciating Our People
• Adapting to Challenges
• Commitment to Customers & Community

Environmental Achievements

• Replaced 9 vehicles with new Euro VI Emission Standard trucks
• Installed solar panels in Singapore office, offsetting 606,410 kg CO2 equivalent annually

Social Achievements

• More than 5,000 volunteer hours at food distribution events
• Over $20,000 raised through community service initiatives
• Offered opportunities for employees to develop digital technology skills
• Maintained job opportunities during COVID-19
• Donated to various charities, including NKF, Care Corner, and ComfortDelGro taxi drivers

Governance Achievements

• No incidents of non-compliance with socio-economic laws and regulations in 2020
• Established a Whistle Blowing Policy
• Adherence to Board Diversity Policy

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Geopolitical tensions (China-US, Japan-South Korea, Brexit)
• Supply chain disruptions
• Increased carbon emissions due to increased deliveries during COVID-19

Mitigation Strategies

• Implemented COVID-19 safety measures (work from home, social distancing, etc.)
• Strengthened supply chain by diversifying sourcing and increasing buffer stock
• Embraced technology (e-commerce, online platforms, etc.)
• Developed realistic financial targets and monitored KPIs
• Implemented additional cybersecurity measures for remote workers

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of paper (FSC certified)
• Screening of suppliers for food safety requirements (HACCP, BRC, ISO9000)
• On-site visits to review factory safety and cleanliness

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Environmental Metrics

ESG Focus Areas

• Good Governance
• Accountability to Society
• Safeguarding People
• Environmental Concerns

Environmental Achievements

• Increased share of renewable energy from 0% in 2017 to 15% in 2021.
• Set reduction targets for energy consumption, water consumption and waste generated.
• Tipex purchases pulp paper from FSC certified sources.

Social Achievements

• Ongoing CSR efforts including upcycling project, support to vulnerable households, and support for migrant workers.
• Intensified employee welfare through maintaining a safe and healthy work environment and ESG awareness.
• Zero incidents of non-compliance concerning health and safety.

Governance Achievements

• Zero cases reported through the Whistleblowing mechanism.
• No incident of non-compliance with socio-economic laws and regulations.
• Board consists of six directors with diverse expertise and experience.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic
• Geopolitical tensions (China-US, Japan-South Korea, Ukraine-Russia, Brexit)
• Faulty water meter resulting in inaccurate water consumption figures.

Mitigation Strategies

• Implemented Covid-19 measures
• Exercising vigilance on financial and non-financial exposure, leveraging automation and digital solutions.
• Proactively resolved faulty water meter issue and will continue to monitor usage data.

Supply Chain Management

Responsible Procurement

• Supplier Evaluation Form
• Screening new suppliers for food safety requirements (HACCP, BRC, ISO9000)
• On-site visits to review safety and hygiene standards
• Prioritising suppliers who use locally sourced workforce, products, or services
• Purchasing paper from well-managed forests or recycled material

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Human Capital
• Environmental Protection
• Economic Performance
• Procurement Practices

Environmental Achievements

• Installation of solar panels at Fortune Food Manufacturing Pte Ltd and TIPS Industry (M) Sdn Bhd to reduce reliance on fossil fuels.
• Implementation of new heat exchangers in Fortune Food Manufacturing Pte Ltd, leading to improved water conservation and lower water treatment costs.
• Transition to mono-material polyethylene packaging for Royal Umbrella rice, improving recyclability.

Social Achievements

• Maintained a gender-balanced workforce.
• Reduced work-related injuries from 16 in 2022 to 13 in 2023.
• Provided various employee benefits including insurance, leave entitlements, and career development opportunities.

Governance Achievements

• Established a sustainability reporting structure.
• Integrated climate-related risks and opportunities into the annual Group risk assessment.
• Maintained a clean record with no incidents of non-compliance related to corruption, fraud, extortion, or money laundering.

Climate Goals & Targets

Environmental Challenges

• Supply chain risks related to raw material costs, food production and energy, manpower and labor, distribution, and compliance with sustainability requirements.
• Requests to improve packaging sustainability.
• Rising costs and evolving consumer preferences for sustainable products.
• Increased carbon pricing and more frequent/severe floods.
• Increased operating costs associated with enhanced emission reporting obligations.
• Potential increase in operating costs due to poor waste management.

Mitigation Strategies

• Actively working with diverse suppliers to build long-term partnerships.
• Exploring sustainable packaging materials, investing in renewable energy, and improving resource efficiency of manufacturing processes.
• Exploring alternative means of product delivery (e.g., electric vehicles) and reducing plastic use.
• Exploring recycling of soya bean pulp (okara).
• Installation of solar panels and new heat exchangers.
• Improving waste monitoring system.

Supply Chain Management

Responsible Procurement

• Prioritizes suppliers meeting food safety standards (HACCP, BRC, ISO9000).
• Collaborates with suppliers to ensure traceability and good agricultural practices.
• Supports local egg producers with ethical and responsible farming practices.
• Emphasizes reduced carbon footprint and improved food traceability through local sourcing.
• Focuses on sourcing paper from well-managed forests and recycled materials.
• Prioritizes suppliers with certifications like FSC.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events (cyclones, floods) affecting production.

Transition Risks

• Increased costs of raw materials.
• Changing customer behaviour.
• Increased pricing of GHG emissions.

Opportunities

• Diversify supply sources.
• Drive product innovation (healthier, sustainable options).
• Explore online channels and modern trade channels.
• Reduce emissions by streamlining processes.
• Increase proportion of renewable energy consumption.
• Introduce alternate means of delivery (Electric Vehicles).
• Reduce plastic use and incorporate more sustainable packaging.

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD

Certifications: FSC-CoC, ISO 9001:2015, ISO 14001:2015, HACCP, ISO 22000, FSSC 22000, Version 5.1

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 12
• Goal 13

Initiatives align with UN SDGs Goals 7, 9, 12, and 13, and support Singapore Green Plan 2030 and national climate targets.

Sustainable Products & Innovation

• Royal Umbrella rice with mono-material polyethylene packaging.
• Healthier Choice products.