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TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018

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TAT SENG PACKAGING GROUP LTD

SUSTAINABILITY REPORT

2018

Our mission for sustainable development integration is to provide corrugated paper packaging solutions through the adoption of international best practices that positively impact stakeholders in our supply chain

OUR MISSION

ACRA UEN

197702806M

Company Name | GRI 102-1

Tat Seng Packaging Group Ltd

Reporting Period | GRI 102-50

FY2018

Date of most recent previous report | GRI 102-51

FY2017

Reporting cycle | GRI 102-52

Annually from 1st January to 31st December

Contact | GRI 102-53

Mattias Chia, [email protected]

Sim Kih, [email protected]

GRI application | GRI 102-54

This report contains Standards Disclosures from the

Global Reporting Initiative (GRI) Sustainability Reporting

Guidelines (2016).

External assurance policy | GRI 102-56

The disclosures in this report are not externally assured.

BOARD STATEMENT

Strategy and Analysis 02

GENERAL STANDARDS DISCLOSURES

Organization Profile 05

Ethics and Integrity 11

Governance 12

Stakeholder Engagement 13

Material Aspects and Boundaries 16

COMPANY SPECIFIC STANDARDS DISCLOSURES

Environmental Impact 18

Workplace Safety & Health 23

GRI Content Index 26

TABLE OF CONTENTS

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 01

DEAR SHAREHOLDERS,

The vision of Tat Seng Packaging Group Ltd and its subsidiaries (the “Group”) is to be the preferred corrugated

products supplier.

Paper is made from wood, a truly renewable and sustainable resource. Responsible wood, pulp and paper production

ensures healthy growing forests. Forest certification ensures wood comes from well-managed forests. The Forest

Stewardship Council (FSC) certification is one of the world’s most recognisable certifications for well-managed forests.

FSC certification allows consumers to identify, purchase and use wood, paper and other forest products produced

from well-managed forests and/or recycled materials.

We manage the procurement of our paper roll raw materials to meet customer requirements of FSC certification and

price competitiveness.

WORKPLACE SAFETY IS A MUST

Workplace safety is our top priority. Second is product quality. It is our responsibility to meet customers’ requirements

and think about how to exceed their expectations.

Being able to collect 100% of our scrap paper is an important part of workplace safety. Infrastructure for managing

paper waste is a feature that well-established manufacturing facilities of paper products should possess because of the

fire hazards associated with the extensive use of paper materials. All our factories are equipped with fully-automated

facilities for collecting and packing all scrap paper generated in the course of our production.

Collecting the scrap paper also allows us to measure paper wastage and identify the areas where productivity can be

improved.

102-14 STATEMENT FROM THE MOST SENIOR DECISION MAKER OF THE ORGANISATION

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201802

STRATEGY AND ANALYSIS

Board Statement

WASTE MANAGEMENT

In general, the waste sections generated by the Group follow recycling schemes where possible available. All waste

is handled locally in the countries in which the Group operates.

HIGHER SUSTAINABILITY STANDARDS

Going forward, our Sustainability Committee will work with the Group’s management to review and improve the

following goals:

• Greener use of energy

• More rigorous adoption of anti-corruption practices

• Maintain a safe and healthy workplace

• Waste management

• Greater adoption of FSC® Chain of Custody

• Strengthen stakeholder engagement

• Encourage employee training & development

GOVERNANCE ON ANTI-CORRUPTION

The Board takes a serious view on corruption as it impedes business growth, escalates costs and poses serious legal

and reputation risks. Each member of our senior management is required to make annual disclosures of conflict of

interest such as personal or family shareholdings in our competitor, supplier, or customer.

COMMITMENT

The Board is committed to integrating sustainable development into the Group’s strategic formulation. The Group has

taken steps to ensure our practices comply with environmental regulations and will continue to do so on a proactive

basis. Our committee shall promote, monitor, and report our ESG practices reports to our Managing Director/CEO,

Mr Loh See Moon, and our Executive Director, Madam Cheong Poh Hua.

We welcome conversations on how we may improve our ESG, via email to [email protected].

DR ALLAN YAP

Executive Chairman

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 03

STRATEGY AND ANALYSIS

Board Statement

GOALS

Greener use of energy.

More rigorous adoption of anti-corruption practices.

Safe and healthy workplace.

Waste Management

Greater adoption of FSC® Chain of Custody.

Strengthen stakeholder engagement.

Encourage employee training & development.

Dr Allan Yap

Executive Chairman

“Management of environmental impact

has become very important to the paper

packaging industry.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201804

STRATEGY AND ANALYSIS

Board Statement

102-2 ACTIVITIES, BRANDS, PRODUCTS, AND SERVICESThe Group manufactures corrugated paper boards, corrugated paper cartons, die-cut boxes, assembly cartons and heavy duty corrugated paper products.

102-3 LOCATION OF HEADQUARTERS28 Senoko Drive, Singapore 758214

102-4 LOCATION OF ORGANIZATIONWe have manufacturing facilities in Singapore and China (Suzhou, Nantong, Hefei and Tianjin).

102-5 OWNERSHIP AND LEGAL FORMIncorporated in Singapore and publicly listed on the Main Board of Singapore Exchange since 2001.

Tianjin Dansun Packaging Co., Ltd.

Nantong Hengcheng Paper Industry Co., Ltd.

Nantong Tat Seng Packaging Co., Ltd.

Hefei Dansun Packaging Co., Ltd.

Tat Seng Packaging (Suzhou) Co., Ltd.

Tat Seng Packaging Group Ltd

United Packaging Industries Pte. Ltd.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 05General Standards Disclosures

ORGANIZATION PROFILE

102-6 MARKETS SERVEDOur customers are mainly located in Singapore and China (Suzhou, Nantong, Hefei and Tianjin). They are mainly multi-national corporations and local manufacturers in food & beverage industry, electronics & electrical industry, pharmaceutical & chemical industry, printers & converters as well as other export related industries.

0017017017017017017FY2FY2

Printing, Publishers & Converters 42 %

Medical, Pharmaceutical & Chemical 25 %

Electronics & Electrical 18 %

Others 7 %

Food & Beverage 6 %

Plastic & Metal Stamping 2 %

Sales Analysis by Customer Segment

FY2018

*CAGR: compounded annual growth rate

2018 2017 2016 2015 2014

Shareholders Equity (S$m)+9.9% CAGR*

129117 105 99 88

2018 2017 2016 2015 2014

Turnover (S$m)+10.4% CAGR*

333303

229 231 225

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201806 General Standards Disclosures

ORGANIZATION PROFILE

Hanwell Holdings Limited holds 63.95% in the Group. The Group’s CEO, Mr Loh See Moon, holds 15%.

Refer to page 140 of the Group’s FY2018 annual report for the list of top 21 shareholders as at 13 March 2019.

Total no. of employees 1,289

No. of operating entities 7

Revenue S$333m

Total assets S$303m

Total liabilities S$164m

Total equity S$139m

102-7 ORGANIZATION SCALE

102-7 BENEFICIAL OWNERSHIP

S$2.9 million S$27.6 million

S$45.0 million S$288.0 million

Capital Expenditure

Revenue

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 07General Standards Disclosures

ORGANIZATION PROFILE

102-8 WORKFORCE

102-8a Total no. of employment contract, by gender

Gender CompositionGroup Total 808 481

63%

37%

102-8b Total no. of employees by employment contract

GroupGroup Total 370 919

Permanent29%

Contract71%

Permanent Contract

102-8c Total no. of employees by employment category, by gender

Male Female

Board of Directors 71% 29%

Management 62% 38%

Non-management 63% 37%

Employee by Age <20yrs ≥21-30yrs ≥31-40yrs ≥41-50yrs ≥51-60yrs >60yrs

Group 1% 27% 27% 27% 14% 4%

Employee by Length of Service <5yrs ≥5-10yrs ≥11-20yrs ≥21-30yrs ≥31-40yrs

Group 55% 28% 12% 4% 1%

102-8d. No significant work is performed by non-employees.

102-8e. There is no significant seasonality in our workforce numbers.

102-8f. This workforce data is compiled from the employee records of each operating entity of the Group.

Male Female

Male Female

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201808 General Standards Disclosures

ORGANIZATION PROFILE

102-9 SUPPLY CHAIN

Paper roll is the main raw material in our production. The major types of paper roll we use for the production of our

products are kraftliner, kraft top liner, medium and white-top liner.

In Singapore, we mainly procure paper roll from paper suppliers who represent their principals located in Thailand,

Malaysia, Australia, Indonesia and Taiwan. Our paper suppliers in China mainly come from the paper mills in China.

102-10 SIGNIFICANT CHANGES

No significant changes to our supply chain took place in FY2018.

102-11 PRECAUTIONARY PRINCIPLE

The Group’s policy is to continually ensure that all our supplies are purchased from sustainable sources. We suspend

procurement from suppliers which are reported to have engaged in errant practices until there is reasonable assurance

that the offending practice has been rectified.

102-12 EXTERNAL INITIATIVES

ISO 9001 Quality Management System

ISO 14001 Environment Management System

Forest Stewardship Council

• The Group’s adoption of ISO 9001 Quality Management System strengthens the confidence of its stakeholders,

especially with employees, customers, and other business associates. Adoption of these industry-wide standards

reduces our risk of liability, keeps us ahead of legislation and regulatory developments, and reduces the

environmental burden of our business activities.

• We conduct first article inspection, in-process inspection, and last article inspection checks at our production line

for every batch of order.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 09General Standards Disclosures

ORGANIZATION PROFILE

102-13 MEMBERSHIP OF ASSOCIATIONS

International Safe Transit Association

(ISTA)

Tat Seng Packaging (Suzhou) Co., Ltd. is an industry member of ISTA. ISTA

is a non-profit organization focused on the specific concerns of transport

packaging. ISTA is the leading industry developer of testing protocols and

design standards that define how packages should perform to ensure

protection of their contents during the ever changing risks of the global

distribution environment.

Corrugated Box Manufacturer

Association (CBMA)

CBMA organizes corrugated box business related events, and business visits

to other countries.

Singapore Business Federation (SBF) SBF organizes training courses, business visits to other country, business

survey, productivity related seminar.

S ingapore-Chinese Bus iness

Association (SCBA)

SCBA organizes expos, site visits, economic symposiums, business

investment and planning dialogues, as well as cultural activities.

Singapore Chinese Chamber of

Commerce & Industry (SCCCI)

SCCCI organizes talk for business development panels, Singapore SMEs

business outlook, and certification courses in Mandarin.

Singapore Manufacturing Federation

(SMF)

SMF organizes business forums and seminars, workshops on the Employment

Act, business and market information updates, and provides management,

soft skills, and finance-related courses.

Singapore Productivity Association

(SPA)

SPA organizes productivity seminars and business networking conferences.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201810 General Standards Disclosures

ORGANIZATION PROFILE

102-16 VALUES AND CODE OF ETHICS

DRIVEN BY INTERNATIONAL STANDARDS

The Group manufacturing operations are driven by international standards such as ISO 9001 Quality Management

System and ISO 14001 Environment Management System.

WORKFORCE TRAINING

The management supports staff requests for the upgrading of relevant professional skills.

FORESTRY SUSTAINABILITY COUNCIL CHAIN OF CUSTODY

The management ensures that it is not involved in the following practices:

(a) Direct or indirect involvement in illegal logging or trading in illegal wood or forest products.

(b) Violation of traditional and human rights in forestry operations.

(c) Destruction of high conservation values in forestry operations.

(d) Significant conversion of forests to plantations or non-forest use.

(e) Introduction of genetically modified organisms in forestry operations.

(f) Violation of International Labor Organization (ILO) Core Conventions as defined in the ILO Declaration on

Fundamental Principles and Rights at Work, 1998.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 11General Standards Disclosures

ETHICS AND INTEGRITY

102-18 GOVERNANCE STRUCTURE

SUSTAINABLE DEVELOPMENT COMMITTEE

In 2017, the Group formed a committee to promote, monitor, and report on sustainability business practices. The

committee reports to the Group’s Board of Directors represented by our Managing Director/CEO, Mr Loh See Moon,

and our Executive Director, Madam Cheong Poh Hua. Full profiles of our directors are available on pages 8 to 12 of

our Annual Report 2018.

The sustainability report is ultimately endorsed by the Board of Directors.

WHISTLE-BLOWING POLICY

In our commitment to uphold good corporate governance practices, we established a whistle-blowing policy in

December 2006. This policy outlines the objectives, scope, procedures and the channel to report in confidence, any

suspected unethical or illegal acts.

Concerns about the Group’s practices can be addressed to:

Chairman of the Audit Committee

c/o. Co Secretary of Tat Seng Packaging Group Ltd

RHT Corporate Advisory Pte. Ltd.

Six Battery Road #10-01

Singapore 049909

Executive Chairman and Board of Directors

Vision and Oversight

RemunerationCommittee

NominatingCommittee

AuditCommittee

Risk ManagementCommittee

CEO and SustainableDevelopment Committee

Strategy and Leadership

SingaporeOperations

TianjinOperations

SuzhouOperations

HefeiOperations

NantongOperations

SingaporeGeneral Manager

TianjinGeneral Manager

SuzhouGeneral Manager

HefeiGeneral Manager

NantongGeneral Manager

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201812 General Standards Disclosures

GOVERNANCE

102-40 STAKEHOLDER GROUPS

102-42 BASIS OF IDENTIFICATION AND SELECTION OF STAKEHOLDERS TO ENGAGE

We study international best practices to determine areas of sustainable development that may be relevant to the Group

over the long term. We have the following goals in our stakeholder engagement activities:

• Understand stakeholder priorities and values in sustainable development.

• Align our goals and values with that of the stakeholder group.

• Improve on environmental, social and governance matters that our activities have impact on.

Employees

Shareholders

CustomersIndustryBodies

SuppliersContractorsConsultants

Regulators

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 13General Standards Disclosures

STAKEHOLDER ENGAGEMENT

102-43 APPROACH TO STAKEHOLDER ENGAGEMENT

Stakeholders groups Reason for engagement Mode of EngagementStakeholder Concerns/Sustainability Issues

Shareholders & Investors(shareholders, investors, potential investors and the providers of capital)

Ensure they understand the Group’s vision and strategy; they see the Group as a strong investment

• Annual General Meeting• Company websites

• Shareholder returns• Overall performance

across all key metrics and long-term business sustainability

• Integrity and governance• Environmental and social

impacts• Regulatory issues

Customers and prospects To supply safe and reliable products

• Trade shows• Customer relationships• Regular meetings

• Sustainable sourcing (FSC certification)

• Product quality• Cost efficiencies

Suppliers Identify opportunities to further increase circularity and add value in both directions in the supply chain

• Supplier relationships• Regular meetings

• Sustainable supply chain (FSC® certification)

Governments and regulatory bodies

To demonstrate how the Group is a responsible citizen which can bring value to communities and the wider economy

• Participation in sessions organised by the authorities

• Support responsible business environment

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201814 General Standards Disclosures

STAKEHOLDER ENGAGEMENT

102-44 KEY TOPICS & CONCERNS

1. Adoption of sustainability management.

2. Environment protection.

3. Be responsible to the society.

4. Be responsible to broader community.

5. Set social responsibility as a key strategic objective.

6. Government support and Government related certification.

7. Reputation in packaging industry.

8. Industry position and influence.

9. Market share

10. Reputation with customers and trust of customers

11. Risk Management

12. Set long-term profitability goals

13. Scale of operations

14. Improve strength of packaging boxes, expand capacity, link employee compensation to company profitability

15. Improve production capability.

16. Improvement of productivity, stable employee’s turnover

17. Human Capital

18. Continuous improvement of employee welfare and compensation structure

19. Continuous improvement of occupational healthy and workplace safety

20. Seek for new business

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 15General Standards Disclosures

STAKEHOLDER ENGAGEMENT

102-45 ENTITIES INCLUDED IN CONSOLIDATED FINANCIAL STATEMENTS102-46 DEFINING REPORT CONTENT AND TOPIC BOUNDARIES

REPORTING APPROACH AND FRAMEWORK

We refer to the Global Reporting Initiative (2016) as a framework for disclosure inclusion. As the Group’s raw materials significantly comprise of paper, our management has identified that paper waste management and supplier assessment for environmental impact are key material aspects for the Group’s sustainable development.

Workplace safety and occupational health is also a priority as occupational hazards generally exist in a manufacturing environment. The Group’s policy is to have clear communication about workplace safety to eliminate hazardous incidents that may arise.

TOPIC BOUNDARIES

Disclosures in this report revolve around both our Singapore and China manufacturing facilities. Metrics applicable to GRI core disclosures are reported only if they are a good representation of the impact of our value chains. (Please refer to page 95 of our Annual Report 2018 for a list of our subsidiaries.)

The chart below represents internal stakeholders’ sentiment on the importance of sustainability issues material to the Group relative to internal stakeholders.

STAKEHOLDER MATERIALITY ANALYSIS

Our Group-wide policies state clearly that all our business functions must comply with the legal obligations and laws in every jurisdiction in which we operate. The Group emphasizes on specific obligations in respect of anti-corruption, anti-trust, anti-money laundering, combating financial crimes, counter financing of terrorism, sanctions and fraud.

The chart above shows the priorities of the Group stakeholders based on a survey conducted in December 2018 with the heads of our various departments in our china subsidiaries. The priorities of internal stakeholders were assessed based on HOD opinion.

Less

Imp

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nt

Imp

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nte

rna

l S

tak

eh

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>>

>>

>>

Ver

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Importance to Tat Seng Packaging >>>>>>Less Important Very Important

1

2, 3

45

6

78, 9

Anti-Corruption

Product Labeling

Supplier Environmental Assessment

Emissions

Economic Contribution

Workplace Safety

Wastepaper Management

Energy Efficiency

Wastewater & Effluent Management

1

2

3

5

6

7

8

9

4

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201816 General Standards Disclosures

MATERIAL ASPECTS AND BOUNDARIES

We use forklifts to handle and transport large loads of packed corrugated boards easily and quickly.

102-47 LIST OF MATERIAL TOPICS

Economic

Anti-corruption

Environmental

• Materials

• Biodiversity

• Effluents and Waste

• Supplier Environmental Assessment

Social

Labor Practices and Decent Work

• Occupational Safety and Health

Product Responsibility

• Product and Service Labeling

• Marketing Communications

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 17General Standards Disclosures

MATERIAL ASPECTS AND BOUNDARIES

301-1 MATERIALS

Our raw materials for production mainly comprise of paper harvested from wood. Wood is a renewable resource. Paper

can be recycled several times. These raw materials are sourced from external suppliers.

301-1 WHY IT IS IMPORTANT TO MANAGE WASTEPAPER

Our manufacturing process requires a large amount of paper rolls. In FY2018, our factories in China and Singapore

consumed about 260,000 tons of paper rolls. During production, paper rolls are trimmed to produce boards and carton

boxes. One of the main causes of paper waste is the trimming of paper.

Paper waste management is very important to the Group and we strive to reduce and dispose of paper waste

responsibly.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201818

ENVIRONMENTAL IMPACT

Company Specific Standards Disclosures

Paper waste is compacted into bales at our factory premise.

302-4 REDUCTION OF ENERGY CONSUMPTION

Burning coal has the worst health impact of any source of air pollution in China and caused numerous premature

deaths over the years. Coal is responsible for 40 percent of the deadly fine particulate matter known as PM 2.5 in

China’s atmosphere, which is detrimental to humans. Moreover, China’s coal consumption equals all the other countries

combined, and coal burning is the biggest source of air pollution and greenhouse gas emissions. The Organization

for Economic Cooperation and Development warned that “urban air pollution” is set to become the top environmental

cause of mortality worldwide by 2050.

Shifting weather patterns, changes in air quality and spread of vector-borne diseases pose significant risks for people’s

health and well-being. Given its far-reaching implications and associated public health costs, combating climate change

could also be the greatest opportunity to improve human health.

Hence, the Group continuously works to reduce its energy consumption and seeks to source for green sources of fuel.

Since 2017, the Group’s Singapore plant began using natural gas as an alternative source of fuel. Natural gas is

preferred to fuel due to several reasons.

Firstly, natural gas is the cleanest fossil fuel and a highly efficient form of energy. Secondly, the chemical composition

of natural gas lends itself to fewer impurities and generally results in less pollution. In addition, with the use of natural

gas, promotes the use of other clean energy sources.

301 HOW WE MANAGE WASTEPAPER

Improvements in our production processes reduce paper wastage and represent improved operational efficiency.

Our operation team regularly reviews the practices at our production facilities and equipment in order to optimize our

production results, maximize the effectiveness of our paper roll consumption, and ultimately improve our management

of operation waste.

Our extensive capital investment in recycling infrastructure reduces the consumption of forestry resources. Our paper

shreds are automatically collected using conveyor belts under grooves on our factory floor. The waste paper is then

compacted into bales for disposal via a licensed wastepaper collection agent.

The external recycling company may then send the compacted bales of recovered paper shreds back to paper mills

for production of pulp used in recycled paper.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 19Company Specific Standards Disclosures

ENVIRONMENTAL IMPACT

Even though natural gas is a fossil fuel, the global warming emissions from its combustion are much lower than those

from coal or oil. Having opted to switch to natural gas, the Group will continue to work closely with the restrictions

imposed in Singapore and China.

Our Suzhou, Hefei and Tianjin plants in China are currently using steam which produces significantly lesser harmful

substances to the environment as compared to normal fossil fuel. For the Nantong plants, one of them has switched

to natural gas while the other is currently using eco-friendly fuel.

303-2 WATER & EFFLUENTS

In Singapore, the discharge of effluents into its public sewers is regulated by its national water agency, Public Utilities

Board (PUB). PUB regularly conducts spot checks on effluent discharge. In China, this is regulated by the respective

municipal agencies.

The quality of effluent discharge was determined by PUB and a violation of this would result in a fine imposed by the

government.

For both Singapore and China plants, the samples of waste water discharged form respective manufacturing facilities

were sent to qualified lab test centre periodically in the country for analysis of concentration of toxic substances.

During 2018, the relevant test results showed that the concentration of regulated substances from the samples were

compliant within the allowable limits stipulated by the relevant authorities in Singapore and China.

306-1 WATER DISCHARGE BY QUALITY AND DESTINATION

Access to clean water is essential for improving human health and well-being. Businesses also rely on high quality water

as a key input in manufacturing operations. Growing populations, economic activity and consumption, combined with

weak water governance in many regions around the world, are leading to increased competition for water and pose

threats to water quality. Climate change is expected to exacerbate this problem, with increasing frequency of droughts

and floods contributing to water scarcity. As demand for water continues to increase in tandem with population and

economic growth, we will need to plan and implement water infrastructure well ahead to secure an adequate and

affordable supply of water for the future generations.

The Group uses water for various production process of corrugated products, resulting in the release of wastewater

effluents.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201820

ENVIRONMENTAL IMPACT

Company Specific Standards Disclosures

Our water quality goal is to discharge of waste water in a more efficient manner. Because-year- to-year variability and

acute system and weather-related events can significantly affect our water discharges, we will continue to closely

monitor the test results to ensure we discharge waste water in an appropriate manner. To this end, we are committed

to use water responsibly and to meeting our Company’s water demand without limiting the availability or quality of

water resources to others.

PUB standards for wastewater management have become more stringent because of Singapore’s increasing reliance

on NEWater as a one of our 4 national taps. The NEWater process recycles our treated used water into ultra-clean,

high-grade reclaimed water, cushioning our water supply against dry weather and moving Singapore towards water

sustainability. Today, there are five NEWater plants supplying up to 40% of Singapore’s current water needs. By 2060,

NEWater is expected to meet up to 55% of Singapore’s future water demand.

To conform to the stringent PUB requirements, we decided to upgrade our wastewater treatment process. In January

2018, we installed and commissioned advanced equipment to enhance the wastewater management capability at our

Singapore plant. We have also formed a wastewater management team that conducts regular inspections to assess

the risk exposure on the discharge of industrial wastewater.

306-2 WASTE BY TYPE AND DISPOSAL METHODS

Waste management is both a local issue for the communities in which we live and operate, and a global issue when

it comes to ocean plastics pollution. Having operations globally, we have an important role to play in reducing our

operational waste and contributing to the circular economy approach. Our responsible waste management strategy

is key in this regard.

The Group is aiming towards zero discharge of waste water to public sewers. We will recycle some of the production

waste water for our production requirement and evaporate the excess waste water through our evaporator. Any

remaining residue in its solid state shall be disposed through the licensed waste collection contractor.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 21Company Specific Standards Disclosures

ENVIRONMENTAL IMPACT

308 WHY SUSTAINABLE PAPER PROCUREMENT IS IMPORTANT

RESPONSIBILITY

Most of our raw material is paper roll, and that is produced from wood. Deforestation, the clearance of forests for

conversion of land to a non-forest use, accounts for almost the same carbon emissions as the entire world’s transport

sector and is a major driver of biodiversity loss.

Many of our customers now require our paper packaging solutions to be certified by the Forest Stewardship Council

(FSC®).

308 HOW WE MANAGE SUSTAINABLE PAPER PROCUREMENT

POLICY

We procure paper roll mainly from FSC® certified suppliers. The certification system allows us to identify, purchase and

use wood, paper and other forest products produced from well-managed forests and/or recycled materials. Adoption

of the FSC® Chain of Custody means that the paper we use as raw material is unlikely to have been harvested illegally in violation of traditional or civil rights, or in a way that threatens high conservation value areas.

Paperrolls handled by forklift at our warehouse.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201822

ENVIRONMENTAL IMPACT

Company Specific Standards Disclosures

Benefits of a safe workplace

Happier and healthieremployees

More productiveworkforce

Lower healthcare costs

403 WHY WORKPLACE SAFETY AND HEALTH IS IMPORTANT

Workplace safety and health is important to the Group as occupational hazards generally exist in a manufacturing

environment like ours that requires manual operation of machinery and forklifts.

When workers are overly fatigued or in poor health, there is higher risk of a vicious cycle of poor workplace safety and

health conditions caused by negligence.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 23Company Specific Standards Disclosures

WORKPLACE SAFETY & HEALTH

403 HOW WE MANAGE WORKPLACE SAFETY AND HEALTH

RESPONSIBILITY

We recognize the need to accept responsibility for the safety and health of all employees.

In Singapore, we have a Workplace Safety & Health committee that include various department supervisors who monitor,

manage, and implement workplace safety practices.

The committee meets regularly to develop, plan, organize, manage and improve on our workplace safety programs.

The meeting is chaired by the committee chairman who is also our Production Manager. The committee secretary is

a registered Workplace Safety & Health officer.

POLICY

• Control risks at workplace.

• Maintain a safe work environment.

• Make sure that safety is maintained in the handling of all equipment used.

• Provide easily accessible resources for dealing with emergencies and for keeping the workplace safe.

COMMITMENT

Total Workplace Safety and Health (“Total WSH”) is an integrated approach to managing safety, health and well-being in

the workplace. This approach views a safe and healthy workplace as one that has workers and managers collaborating

in a continual improvement process to protect and promote the health, safety, and well-being of all workers and the

sustainability of the workplace.

Each employee is expected to observe all rules and regulations governing safety practices, use the safety equipment

provided and practice safety at all times.

PROTECTIVE RESOURCES

• We provide the proper work tools and personal protection equipment such as safety shoes, respirators, and eyes

google to employees where necessary.

• We provide employees with ear plugs/ear muffs to mask noise pollution arising from our machines. To avoid

noise-induced deafness, employees are required to wear ear plugs/ear muffs during working hours at all times.

• We engage a healthcare services provider to provide a hearing test service at our factory premises annually. The

hearing test determines the hearing ability of all our employees who are exposed to excessive noise. All of our

employees in Singapore that are exposed to long term noise hazards arising from operation of corrugator machines

go through this test that we fully sponsor.

• China plant has been equipped with sound proof facilities at the corrugated line to reduce noise pollution.

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201824 Company Specific Standards Disclosures

WORKPLACE SAFETY & HEALTH

IMPLEMENTING TOTAL WSH PROCESS

1 2 3 4 5 6

Top Management Commitment

Set up TeamIdentify Issues and Concerns

Priorities and Strategies

Implement Intervention

Monitor and Review

Allocate resources (e.g time/manpower)

Workplace Safety and Health Committee members from various functions (HR, line supervisor, manager), meet at least once a month

Identify safety and health risk assessment

• Rank the issues and concerns based on impact & urgency

• Devise targeted intervention

Set realistic targets and timelines

• Evaluate performance of intervention programme

• Identify area for improvement

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 25Company Specific Standards Disclosures

WORKPLACE SAFETY & HEALTH

102-55 GRI CONTENT INDEX

GENERAL STANDARDS DISCLOSURES

Page

STRATEGY AND ANALYSIS

GRI 102-14 Statement from the most senior decision-maker of the organization 2

ORGANIZATIONAL PROFILE

GRI 102-1 Organization name Front Cover

GRI 102-2 Activities, brands, products and services 5

GRI 102-3 Location of headquarters 5

GRI 102-4 Location of organization 5

GRI 102-5 Ownership and legal form 5

GRI 102-6 Markets served 6

GRI 102-7 Organization scale / Beneficial ownership 7

GRI 102-8 Workforce 8

GRI 102-9 Supply chain 9

GRI 102-10 Significant changes 9

GRI 102-11 Precautionary principle 9

GRI 102-12 External initiatives 9

GRI 102-13 Membership of associations 10

ETHICS AND INTEGRITY

GRI 102-16 Values and the code of ethics 11

GOVERNANCE

GRI 102-18 Governance structure 12

STAKEHOLDER ENGAGEMENT

GRI 102-40 Stakeholder groups 13

GRI 102-42 Basis of identification and selection of stakeholders to engage 13

GRI 102-43 Approach to stakeholder engagement 14

GRI 102-44 Key topics & concerns 15

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 201826

GRI CONTENT INDEX

Company Specific Standards Disclosures

GENERAL STANDARDS DISCLOSURES

GRI 102-45 Entities included in the consolidated financial statements Annual Report 2018, page 95

Sustainability Report 2018, page 16

GRI 102-46 Defining report content and topic boundaries 16

GRI 102-47 List of material topics 17

GRI 102-50 Reporting period Inside back cover

GRI 102-51 Date of most recent previous report Inside back cover

GRI 102-52 Reporting cycle Inside back cover

GRI 102-53 Contact Inside back cover

GRI 102-54 GRI application Inside back cover

GRI 102-55 GRI content index 26

GRI 102-56 External assurance policy Inside back cover

COMPANY SPECIFIC STANDARDS DISCLOSURES

Standards Disclosure Topic Page

301-1 Materials Recycling wastepaper 18-19

302-4 Energy Reduction of energy consumption 19

303-2 Water & Effluents Water & Effluents 20

306-1 Effluents & Waste Water discharge by quality &

destination

20

306-2 Environmental Compliance Waste by type and disposal methods 21

308 Supplier Environmental Assessment Environmental impact in the supply

chain

22

403 Occupational Health and Safety Workplace Safety and Health 23-24

TAT SENG PACKAGING GROUP LTD SUSTAINABILITY REPORT 2018 27

GRI CONTENT INDEX

Company Specific Standards Disclosures

Our mission for sustainable development integration is to provide corrugated paper packaging solutions through the adoption of international best practices that positively impact stakeholders in our supply chain

OUR MISSION

ACRA UEN

197702806M

Company Name | GRI 102-1

Tat Seng Packaging Group Ltd

Reporting Period | GRI 102-50

FY2018

Date of most recent previous report | GRI 102-51

FY2017

Reporting cycle | GRI 102-52

Annually from 1st January to 31st December

Contact | GRI 102-53

Mattias Chia, [email protected]

Sim Kih, [email protected]

GRI application | GRI 102-54

This report contains Standards Disclosures from the

Global Reporting Initiative (GRI) Sustainability Reporting

Guidelines (2016).

External assurance policy | GRI 102-56

The disclosures in this report are not externally assured.