SUSTAINABILITY REPORT 2017Transformation – The Journey Continues

TECKWAH INDUSTRIAL CORPORATION LIMITED

CHAIRMAN AND MANAGING DIRECTOR’S MESSAGE

SUSTAINABILITY HIGHLIGHTS 2017

ABOUT TECKWAH

ABOUT OUR REPORT

OUR SUSTAINABILITY APPROACH

ENVIRONMENT PERFORMANCE: RESOURCE CONSERVATION

SOCIAL PERFORMANCE:SAFETY AND QUALITY

ECONOMIC: GROWTH WITH PURPOSE

GRI STANDARDS CONTENT INDEX

3

5

7

11

13

17

22

28

31

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CHAIRMAN’S MESSAGE

Dear Stakeholders,

I am delighted to present our first Sustainability Report, which includes our sustainability performance and shares stories of how we are bringing positive change within our company and in the wider community. It is our sincere attempt to present Teckwah’s sustainability performance and management approach in a neutral and balanced manner.

As a leading service provider creating and delivering best-in-class supply chain solutions to global companies worldwide, we recognise that we must conduct our operations in a manner that considers the environmental and social impact to ensure the success and longevity of the business. Our training, workplace safety, environmental protection, educational and other outreach programmes are an integral part of the Group’s corporate social responsibility and sustainability efforts. Through these efforts, the Group aims to enhance its contribution to society, reduce any negative impact on the environment and work towards the growth and continued success of the company for the benefit of all stakeholders. We are committed to being transparent about our business, and this report is a reflection of that commitment.

At Teckwah we are committed to sustainable business practices and constantly aim to improve the impact of our businesses on society and the environment.

“

“

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Sustainable practices are incorporated into our value chain, from planning and manufacturing, to distribution and end-of-life recycling, ensuring our products are made responsibly and without trade-offs in performance, quality or value. We aim to educate our employees, customers and suppliers to be more sustainability-orientated through various internal educational initiatives and guidelines. At Teckwah we are committed to sustainable business practices and constantly aim to improve the impact of our businesses on society and the environment. The Group has identified the material Environmental, Social and Governance (ESG) factors based on current business strategy and stakeholder concerns. Our Sustainability Report includes the company’s performance on each material ESG factor and plans for improved reporting in future.

Teckwah’s Board of Directors has always been committed to sustainability and fully supports the adoption of the new SGX sustainability reporting guidelines. The Board oversees the company’s sustainability performance, practices and initiatives and its compliance with SGX guidelines on corporate governance and sustainability reporting. As a listed company, Teckwah is committed to the Code of Corporate Governance of Singapore. The Code provides the framework for controls, checks and accountabilities and requires the Board of Directors to consider sustainability issues in its business decisions.

It has determined Teckwah’s material Environmental, Social and Governance factors, and exercises oversight in the management and monitoring of these factors. The Board considers sustainability issues as part of its strategy formulation. The 2017 Sustainability Report reflects the Group’s ESG performance as well as the strategy and vision for the future.

The Journey Ahead

Teckwah’s “Future-Ready” strategy mirrors the Committee for the Future Economy’s (CFE) seven strategies closely. As we enter into a new growth phase with anticipated uncertainties, our steadfastness in weathering difficult conditions, our strength at adapting to changes readily, and our farsighted, global and open mind-set will help us navigate challenges and position a strong and resilient Teckwah for the future.

We will continue to use innovative technology in delivering sustainable urban logistics solutions. Resource optimisation and better route planning to reduce redundancies in distribution are examples of how we can minimise negative environmental impact while reducing costs. I hope this Report will provide more insight for our stakeholders on Teckwah’s sustainability efforts and strategy. We appreciate your interest and welcome your feedback on this report.

Thomas Chua Kee SengChairman and Managing Director

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SUSTAINABILITY HIGHLIGHTS 2017

We believe in fostering a motivated and engaged workforce

We are OHSAS 18001 compliant with a comprehensive health and safety management

in place

At Teckwah ISO 14001 certification, governs the various aspects of environmental management

and sets standards for identifying and controlling the environment impact of business

operations since 2000

We are in compliance with Workplace Safety and Health regulations and recommendations.

We have instituted a Hearing Conservation Programme which is now in its 15th year

At Teckwah, we meet the standards of the Forest Stewardship Council ™ Chain of Custody

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OUR ACCOLADESAND AWARDS

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ABOUTTECKWAH

Teckwah Industrial Corporation Limited “Teckwah” began from humble roots in 1968 Singapore as Teck Wah Seng Kee, a sole proprietor producing cardboard boxes, Teckwah has grown to become a global provider of integrated value chain management solutions. Driven by our vision of creating and delivering the best-in-class value chain solutions worldwide, Teckwah today is the preferred business partner of global brand owners. Enabling an end-to-end solution both locally and globally is the strategic edge that underpins the Group’s unique value proposition to its global customers.

Teamwork

Our Core Values

Initiative CommitmentContinuous

Improvement

Working together symbiotically and cooperatively as opposed to individually to achieve ultimate goals in the organisation.

External Customers:We act together as a team to assure our customers of a seamless service experience.

Internal Customers:We work towards Teckwah’s success & respond with a sense of urgency to the needs of our colleagues across all our network.

Proactively doing things when a problem, obstacle or opportunity is identified, not simply thinking that someone will take action.

External Customers:We take personal responsibility and go the extra mile to delight customers by:- Exceeding customers’ expectations.- Providing innovative & effective. (differentiated) solutions- Proactively engaging them.

Internal Customers:We are proactive and take personal responsibility in:- Sharing relevant information, resources and knowledge.- Satisfying internal customers.- Adopting preventive and corrective actions.

The passion to contribute and grow with the organisation.

External Customers:We serve with passion. We honour our servicecommitment with integrity and fairness.

Internal Customers:We work with passion, perseverance and sense of urgency.

A desire to surpass a standard of excellence, which include one’s own past performance, outperforming others setting challenging goals on even what anyone has ever done.

External Customers:We dare to take on new challenges and constantly seek breakthrough ideas and improvement initiatives.

Internal Customers:We constantly challenge current practices so as to systematically seek improvement or breakthrough. We constantly seek a holistic approach to self-improvement. We actively pursue an entrepreneurial way of doing things.

• Cross-Functional Teams

• Staff Suggestion Scheme

• InnoVest

• Staff Committees

• Total Learning Plan

• 7-day Work Week

• Team-Based Reward System

• Task & Behavioural-Based Performance Appraisal System

Defi

nitio

nBe

havi

our

Prac

tice

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Business Segments

The Group is organised into the following business segments: (i) Print, which includes printing and packaging, digital database management, packaging design and provision of value chain services; (ii) Non-print, which includes third party logistics, return, refurbishment and remarketing services for computer equipment; (iii) Services which includes property management and others.

While Print-Related Business remains our core business, Non-Print Related Business and Services are gaining increasing importance as a growth contributor to the Group. Our full suite of printing, packaging, logistics, supply chain management and digital solutions ensure that customer’s receive the best integrated solutions in the market. Our expertise from the printing stage to delivery and customer after care support means that we can customise, localise or globalise our offerings to suit our customers’ needs regardless of the industry they are in. We have built strong relationships with global brands in sectors such as biomedical, electronics, technology, F&B and consumer lifestyle.

Our Solutions

Print & Pack Digital Solutions Logistics

Printing & PackagingTurnkey Kitting & Co-packingGlobal Fulfillment

Creative & Structure DesignCross Media Marketing

Service Parts LogisticsReverse Logistics

The Industries We Serve

The Group is perfectly positioned to deliver globally across Asia Pacific, North America and Europe. Operating from multiple locations exposes the Group to risks related to laws and regulations of governments and regulatory bodies in these countries. Such risks may potentially increase the costs of operations, reduce foreign investment attractiveness and ultimately change the competitive landscape altogether. The different industries we serve are as follows:

Infocomm Consumer Biomedical Industrial Finance/Education

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Internally, the Group has invested in training and sharing sessions for employees to be up-to-date with the latest regulatory changes and the potential impact these changes and any non-compliance of regulatory requirements may have on the businesses. Various policies have also been put in place to ensure that employees are equipped with the relevant knowledge to perform their roles.

To minimise and avoid both anticipated and unanticipated risks to its local and regional operations, Management has initiated and established operating systems and measures to govern its practices, while protecting its people and assets.

Our select Membership of Associations and External Initiatives

• Singapore Business Federation• Singapore Logistics Association• Transported Asset Protection Association (TAPA)• Singapore National Employers Federation• Supplier Ethical Data Exchange (SEDEX) • Responsible Business Alliance (formerly the Electronic Industry Citizenship Coalition)• Xishan Printing Association Board of Governors• Wuxi, Xinwu District Human Resources Service Association

• Association of International Metallizers, Coaters and Laminators (AIMACL)• Technical Association of the Pulp and Paper Industry• Federation Of Malaysian Manufacturers • Malaysian Employers Federation• Tripartite Alliance for Fair & Progressive Employment Practices• Print Media Association • Singapore Chamber of Commerce and Industry in China

Geographic Presence

The Group has an established network across the Asia Pacific region, North America and Europe to serve our customers globally. The Group has a total of 44 Teckwah sites and 58 Alliance sites spanning across market segments and geographic locations where products and services are offered. Singapore serves as the business and operational headquarters for the Group. Teckwah’s global network is charted in the map below:

Teckwah Sites Alliance SitesCountry

Asia PacificNorth AmericaEurope

4400

44

505 3

58Total

Teckwah Sites

Alliance Sites

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Our Supply Chain

With a global vision to be the Preferred Business Partner of Global Companies, creating and delivering the Best-in-Class Value Chain Solutions worldwide, our supply chain solutions and infrastructures are built on policies and processes that consider the needs of people and ever-expanding technological advancements, whilst reducing our social and environmental impact. Our extended supply chain includes our new service offering, namely Digital Solutions, which was introduced in 2013.

E-Commerce Management

Customer Response Centre

Product Design (Structural /

Graphic Design)

Demand Plan & Source

Content Management

Procurement

Materials Management

Print Solution (Offset/Digital)

Serialisation

Turnkey Manufacturing

Re-dressing & Co-packing

B2B & B2C Order Management

Last Mile Delivery

3PL/4PL Management

Consumer Care Centre Management

Return Management

Repair & Refurbishment

Remarketing

Service Parts Logistics

Recycling & Waste Management

Make

Return Deliver

The Group recognises the importance of establishing resilient relationships with business partners and local authorities to keep abreast of prevailing changes in statutory and regulatory requirements in the countries we operate in.

Teckwah’s operating environment is developed and managed based on locally and internationally recognised standards in quality management and practices. This includes Secure Trade Partnership (STP) Plus Certification, Good Distribution Practice for Medical Devices Singapore (GDPMDS) Certification and Forest Stewardship Council™ Chain of Custody (FSC™ CoC) Certification. In the year 2017, we received 19.5% FSC raw material amounting to 572.25 MT for TVC Indent and 0.35% FSC raw material amounting to 16.3 MT for TPS. The associated FSC paper mills are Clearwater Paper Corporation, Shandong Chenming Paper Holdings Ltd and UPM (China) Co Ltd.

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This report presents the annual sustainability performance of Teckwah Industrial Corporation Limited for the period 1 January 2017 to 31 December 2017. The Report is organised and presented in accordance with the GRI Standards: Core option published in 2016, established by the Global Reporting Initiative (GRI). In this report, we build upon ‘Transformation – The Journey Continues’, our theme for the 2017 annual report.

Data presented in the report has either been sourced centrally from our enterprise resource planning system or directly from the operations included within the report boundary. The data measurement techniques and underlying assumptions / calculations have been duly provided in the relevant sections of the report. We have defined our Sustainability Targets for 2020 and aim to continuously monitor our performance in the coming years.

ABOUTOUR REPORT

Sustainability Targets for 2020

Environment

Paper purchased from sustainable sources >50%

Reduction in electricity consumption2%

Reduction in solid and liquid toxic

industrial waste

5%

Social

Accident severity rate<12

Accident frequency rate<0.8 Maintaining employee satisfaction rate

> 68%

Governance

Review our community investment

strategy to maximise social impact

Enhance operational innovation

and excellence

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This Report covers material issues for the ten operating entities that are most significant to Teckwah’s economic and social footprint. These ten entities operate in four countries and are listed below:

Singapore Malaysia Indonesia China

Teckwah Industrial Corporation Ltd

Teckwah Value Chain Pte Ltd

Teckwah Logistics Pte Ltd

JNE Logistics Singapore Pte Ltd

Teckwah PharmaPack Solutions Sdn Bhd

Teckwah Paper products Sdn Bhd

Tompac Industrial Sdn Bhd

PT Teckwah Paper Products Indonesia

Wuxi Teckwah Printing & Packaging Co., Ltd

Teckwah Trading (Shanghai) Co., Ltd

Shanghai Jointac International Logistics

Co., Ltd

The GRI Standards Content Index at the end of this report confirms that all disclosures required as per ‘Core’ criteria of the GRI Standards are accurately included in the report as required by GRI disclosures 102-54 and 102-55. The data and statements presented in this report has not been externally assured. For any further clarifications or suggestions related to this report or Teckwah’s sustainability initiatives, please reach out to us at info@teckwah.com.sg.

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OUR SUSTAINABILITY APPROACH

Sustainability Governance

As a public listed company, Teckwah is guided by and complies with the regulations set out by Singapore Exchange. Our governance system for transparency and accountability is explained in our annual financial reports. For more details on our Governance Structure please refer to our annual report. Teckwah has a Code of Business Ethics in place, which staff are required to observe to maintain a high standard of integrity and business conduct.

Board of Directors

Top & Senior Management

SustainabilityTeam

Print

Non-Print

Finance

Human Resources

Safety

Strategic Development,

Risk and Compliance

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Stakeholder Engagement

Stakeholder engagement is at the core of our sustainability strategy. We engage with a range of stakeholders who are defined as groups of people or entities that are directly or indirectly influenced by our business operations and outcomes or that can significantly influence our businesses. Feedback from our key stakeholder groups forms a crucial part of our strategic and business planning, and is viewed as a valuable insight for the Group to continuously improve our sustainability performance. Stakeholder feedback also helps us identify, prioritise and address the most significant ESG issues.

To prepare this report, we engaged key internal stakeholders to seek their views and input for reporting. Through internal discussion and review with external consultants, key stakeholder groups are identified across the entire value chain. Engagements with key stakeholder groups are planned annually.

Engagements with Key Stakeholder Groups in 2017 on key topics and concerns

We are committed to expand our engagement methods and use the subsequent output in our future disclosures. Teckwah’s management is determined to continuously improve upon sustainability performance by further strengthening its stakeholder engagement framework.

We seek stakeholder feedback using both formal and informal channels. Please find below our stakeholder engagement framework which covers our key stakeholders, their key concerns and frequency of engagement.

» Employee surveys are conducted at least

once in three years subject to requirements.

» Monthly management meetings are held to

discuss day to day operational issues.

» MBO meetings are held quarterly to

discuss summary of operation issues.

» Hosted an annual town hall meeting to

communicate the Company’s strategy and

policy changes.

» Quarterly newsletters are circulated to

keep employees abreast of the Company’s

new developments.

Employees Customers

» Annual Customer Surveys and

engagement activities are

administered to measure customer

satisfaction and collect feedback.

» Quality Business Review with key

customers are carried out to discuss on

product enhancements to align and

customise with specific their requirements.

» Teckwah holds customer-days with

customers to discuss Teckwah service

and product solutions.

Suppliers & Contractors

» Safety briefings are regularly conducted

for staff and contractors working on site.

» Annual review of suppliers is conducted to

evaluate suppliers’ performance and raise

feedback or concerns.

Regular review meetings based on

self-evaluation checklist are held with

local suppliers.

Government

» Teckwah works closely with organisations

such as SIMTEch to explore relevant

technologies to improve

operational excellence.

Communities & Environment

» CSR programs are carried out on need

basis in order to contribute towards

environmental and social causes.

Shareholders

» Shareholders are kept abreast of the

Company’s key developments through

the corporate website, quarterly financial

announcements & the year-end

Annual Report.

» Annual General Meetings are conducted

to engage our shareholders in two-

way communications on

Company’s performance.

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Materiality Assessment

Materiality is a critical input into our corporate sustainability strategy because it ensures we provide our stakeholders with the sustainability information most relevant to them and our business. In 2017, we completed materiality assessments for four regions: Singapore, Malaysia, China and Indonesia. There regions include ten operating entities and are considered significant locations of operations as they are the greatest contributors towards Teckwah’s economic and social footprint.

The process included interviews with internal stakeholders such as employees and management, and internal workshops to identify the most important sustainability issues. We also took into account the important Enterprise Risk Management (ERM) issues and risks when determining our material sustainability issues. In 2017, Teckwah adopted a four-step process to define the material topics in our operations:

Identification

» Sustainability team shortlists sustainability

issues and topics from an issues universe and

GRI Standards respectively.

Prioritisation

» Material issues are grouped under the

shortlisted GRI Material topics.

» Through discussion and analysis, the topics

are ranked in based on the significance of

their economic, environmental, social and

governance impact.

» The Sustainability team re-examines the

material topics in relation to the feedback

obtained to prepare for reporting.Review

Validation» The list of ranked material topics is circulated

to Top & Senior Management for feedback.

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We identify material topics for reporting based on the significance of our ESG and economic impacts and the degree of influence they have on stakeholder assessments and decisions. To illustrate the degree of importance to internal and external stakeholders, the material aspects have been plotted on a materiality matrix presented below.

Impo

rtanc

e to

Sta

keho

lder

s

Importance to Business

Data Privacy

Material Consumption

Ethics and Anti-corruption

Material Management

Training & Development

Fair Labour and Human Rights

Our Key Material Topics » Supply Chain Management

» Waste Management

» Health & Safety

» Product Quality & Safety

» Economic Performance

We will continue to examine our material issues on an annual basis to capture fresh stakeholder perspectives and new sustainability related industry trends. This will also allow us to further strengthen our internal sustainability management framework, processes and procedures.

Material Matrix

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ENVIRONMENTAL PERFORMANCE:RESOURCE CONSERVATION

As an organisation that is committed to sustained growth and value creation, we adopt responsible practices towards our people, our supply chain, the business community and the environment. These are encapsulated in the various policies that govern our business practices, safety and health of our staff and stewardship of the environment.

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We believe in long term sustainability and adhere to principles of environmental sustainability through practical and relevant programs and initiatives.

We are conscious that some of our operations have impact on the environment and thus from the year 2000 onwards, we have attained ISO 14001 EMS certification, which governs the various aspects of environmental management and set standards for identifying and controlling the environmental impact of business operations. In compliance with stringent standards, we have a strict waste management process which minimises the impact of waste material generated by our operations.

Additionally, as an affirmation of our practice of engaging in environmentally safe manufacturing practices, several of our companies dealing in pulp and paper products have met the standards of the Forest Stewardship Council™ Chain of Custody. The Forest Stewardship Council™ is an international, non-governmental organisation dedicated to promoting responsible management of the world’s forests through various schemes, among which is a wood-labelling scheme that enables customers to identify wood and wood-based products from well-managed forests.

Sustainability Project at Wuxi’s Facility

Teckwah’s commitment to environmental protection and conservation extends to our subsidiaries overseas. Our facility in Wuxi led the way in this respect when it installed gas treatment equipment to treat harmful gas and recycle heat to usable energy. Our sustainability initiative included the installation of Lower Explosive Limit (LEL) technology with automatic exhaust recirculation systems on all our presses. With this in place, not only are energy savings up to 40% achievable; but the Volatile Organic Compounds (VOC) concentration in our exhausts can increase, paving the way for a more efficient and cost effective VOC treatment using regenerative thermal oxidisers (RTOs). Additionally, heat generated in the RTO can be recovered and channelled back into production. As such, the installed VOC treatment plant is a duplex system with RTO plus heat recovery. This system increases VOC concentration using a wheel absorber. With

high VOC concentration, it requires less natural gas to burn the VOC. Burning of the VOC generates heat. In a steam generator this heat can be recovered and channelled back to our steam boiler. Depending on the inlet concentration, up to 900 kW of power can be recovered, helping to reduce our carbon footprint.

(a) Supply Chain Management

Teckwah has a highly distributed and diverse supply chain, with providers ranging from global multinationals to local small businesses. We will reflect on the current practices or initiatives implemented at Teckwah to minimise the environmental impacts of the supply chain and maximise supply chain efficiencies.

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Teckwah purchases its base chemicals in accordance with strict quality requirements from certified suppliers offering the best value for money. In the case of key raw materials with limited availability or large purchase volumes, Teckwah mandates at least two suppliers whenever possible. For unique, highly innovative technologies, the Group seeks to provide approved sources of raw materials via machine manufacture or aims to source them in close collaborative partnerships with innovative suppliers. In respect of all the materials used, compliance with the relevant statutory registration requirements e.g. Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) or Toxic Substances Control Act (TSCA) is monitored and ensured by a network of global and local specialists as well as external consultants. Teckwah’s purchasing specialists and technical experts work closely with suppliers’ technical units to fully understand raw material flows and optimise costs, quality, availability, and sustainability. Potential suppliers are closely screened by Teckwah. Before working with the company, they are required to sign the Supplier Code of Conduct, which covers principles of sustainability. Suppliers are regularly evaluated by Teckwah. The corresponding findings are incorporated into the risk assessment, along with the suppliers’ self-appraisals and data available in the public domain. If a relevant risk is identified, Teckwah will conduct an audit of the supply company in question to ensure the functionality of the latter’s internal risk management system. Potential risks are systematically identified and addressed, particularly in the case of local suppliers.

Raw materials are systematically evaluated within Teckwah to assess possible risks relating to quality and availability, and to determine relevant measures such as maintaining safety stocks or securing long-term supply contracts.

During our assessment of potential suppliers, we survey the market and analyse supplier risks, including those related to economic, environmental, and social issues, if deemed necessary. As a service provider, the Teckwah supply chain is primarily dependent on goods and services that are highly regulated or commodity based, such as transportation, brokerage, and energy. As a result, Teckwah considers supply chain as carrying a low risk of violating labour and human rights, or being highly environmentally damaging. We do not currently disclose information related to screening or impact assessments because we consider such information confidential. Nonetheless, in 2017, we were not aware of any significant environmental, social, or labour concerns related to our suppliers.

We require suppliers with access to sensitive Teckwah data to execute a security agreement to ensure compliance with Teckwah’s privacy and security standards. Once an agreement is signed with suppliers, they are asked to adhere to Teckwah’s safety code of conduct. Procurement professionals are located in our corporate, regional, and local offices to help suppliers understand and meet our requirements.

Supplier Management and Raw Material Procurement

The raw materials that Teckwah processes into superior-grade products are the Group’s biggest cost factor. Therefore, they are high on the risk assessment agenda. Almost 100% of the materials used in production – e.g. polyols, epoxy resins, acrylic dispersions, and polycarboxylates – are based on fossil fuels or their derivatives. Purchase prices consequently vary according to the supply and demand of each raw material and fluctuations in the price of oil. To reduce its dependency on crude oil / paper, Teckwah increasingly relies on renewable raw materials such as sugar derivatives, bioethanol derivatives, and natural oils. Moreover, recycled raw materials are used wherever possible, and many production plants implement their own or externally operated recycling loop systems. Mineral substances such as calcium carbonate, sand, and cement make up the remaining raw materials.

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As a service company, collaboration and supplier engagement are vital components of our approach to supplier management. We work with many governmental and nongovernmental organisations, as well as with suppliers to develop and integrate sustainability best practices in our supply chain.

One of our supplier’s engagement and collaboration practice is the early involvement of material suppliers to source for environmentally-friendly material as per our customer requirement, especially in the case of pharmaceutical customers. Teckwah and key suppliers participate in such initiatives to create more sustainable supply chains, and we strongly encourage engagement among our transportation contractors.

(b) Effluents and Waste

At Teckwah, we aim to reduce waste generation to the extent possible in all our processes. We understand that minimising waste not only leads to cost savings and reduces regulatory and compliance risks, but also leads to long term business continuity. Environmental certifications such as ISO 14001 are also part of some buyers’ requirements. Overall, we believe environmentally conscious business growth will lead to a competitive advantage in long term.

On a regular basis, we conduct environmental testing, inspections and audits to further strengthen our policies and procedures and identify any gaps or deficiencies. At Teckwah, internal targets and KPIs are in place as part of Quality, Environmental, Safety and Health Policy (QuESH) Management System. Monitoring to ensure adherence to regulatory and compliance environmental requirements is critical at Teckwah.

The key types of waste generated in our print operations are paper, stretch wrap, ink, chemical waste, plastic, waste glue, wooden pallets. Paper is used for office and labelling purposes. The key types of waste generated in our non-print operations are paper, ink, chemical waste, plastic, wooden pallet.

In 2017, paper and stretch wrap consumption decreased, largely due to a reduction in printing, labelling and wrapping requests from customers as well as the streamlining of operational processes to reduce paper usage. We will reflect and demonstrate Teckwah’s commitment towards reducing waste and impact of waste material through different initiatives. Our philosophy behind resource optimisation and conservation is to create “more from less”.

94.79%

2.63%1.05%

1.05% 0.48%

Hazardous Waste

(tonnes)

Recovery, including energy recovery

Incineration (mass burn)

Reuse

Recycling

Composting

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In Teckwah Value Chain Pte Ltd Singapore, around 1900 metric tonnes of hazardous waste was sent for recovery (including energy recovery). Across all regions, around 22 metric tonnes, 10 metric tonnes and 22 metric tonnes of hazardous waste was disposed for reuse, recycling and composting respectively. Around, 2,107 metric tonnes and 5,490 metric tonnes of total hazardous and total non-hazardous waste was generated during 20171. Out of a total 5,490 metric tonnes of non-hazardous, around 5,400 metric tonnes went to landfill. Around 25 metric tonnes was sent for reuse and recycling.

At Teckwah, we currently source nearly 20% of our raw material (paper) from paper mills that have been certified by the Forest Stewardship Council™ (FSC™), but we aim to increase this figure to 50%. By adopting these standards, Teckwah hopes to operationalise environmental protection within our processes. Within our workplace, recycling bins are prominently located to encourage proper disposal of waste for recycling. During our 40th Anniversary Celebration, Teckwah worked with the National Parks Board and planted 40 trees in West Coast Park. This is another initiative undertaken by Teckwah to encourage staff to protect the environment.

Teckwah is committed to ensuring that waste is properly disposed of according to local regulations. In Singapore, the waste is weighed by our authorised waste collectors before being sent to incineration plants for energy recovery. Waste disposal in China, Malaysia and Indonesia are likewise conducted by authorised, external waste collectors and sent to landfills in accordance with local regulations. However, owing to a lack of accurate data for these entities, overseas waste disposal figures were excluded from this Report.

1 Most of the waste disposal information is provided by the waste disposal contractors.

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SOCIAL PERFORMANCE:SAFETY & QUALITY

To ensure our staff have the necessary skills and knowledge to reach their fullest potential professionally, technical, industrial and on-the-job training opportunities are provided. As part of ongoing dialogue between staff and management, a mass communication session was organised on 30 May 2017 during which the Chairman gave an overview of the company’s performance, reiterated the Group’s growth strategies and the importance of deepening, broadening and re-learning skill sets to remain relevant. To provide for an effective avenue to solicit staff feedback, insights and suggestions, “Teckwah Connect”, an internal communications platform was launched in 2017.

The following figure shows are our human capital in numbers:

Permanent Contract

Temporary Contract

Full Time Part Time

1017

13

542

13

1030

0

555

0

Male Female

Total Number of Employees

Permanent Contract

Temporary Contract

Singapore

430

3

Indonesia

334

7

Malaysia

339

5

China

456

11

Total Number of Employees by Contract Type By Gender

Total Number of Employees by Contract Type By Region

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(a) Occupational Health and Safety

The Group also put in place a holistic orientation programme covering Teckwah’s history, culture, management practices and business philosophy that all new staff go through to help them assimilate quickly into the environment and understand how individual roles align with the Company’s goals. Specifically, the Environmental, Safety and Health (ESH) Committee aims to ensure the well-being of employees in terms of safety, health and security by promoting environmental, occupational safety and health awareness and providing information and guidance in the establishment of the ESH management systems. The ESH Committee performs the mandatory monthly workplace safety inspections (offices, shop floors, and warehouses) and the monthly fire safety inspections. The ESH Committee have been incorporated into the functional roles of the business units and they will be working with the department heads to minimise the exposure to occupational health and safety risks and ensure our staff are working in a safe environment.

Teckwah customers worldwide depend on us to meet important deadlines every day. Meeting our service responsibilities to customers requires a deep-seated commitment to the health, safety, and well-being of our people. We have invested millions of dollars and hours every year in wellness coaching and health and safety training. In this section, we will convey our compliance with the Workplace Safety and Health Regulations and executing best practices/ initiatives.

A commitment to employee health, safety and wellbeing permeates our culture and forms the design of our products, processes, and supply chain. We take a whole-person management approach, offering a wide variety of guides, training, processes, programmes, and benefits to promote employee health, safety, and wellness. These include companywide initiatives, as well as plans and programmes specific to the countries in which we operate.

The Group’s commitment to our employees, customers and the community at large is established in the Quality, Environmental, Safety and Health Policy (QuESH) Management System (also known as “QuESHMS”). QuESHMS seeks to effectively identify, assess and treat all QuESH related risks associated with our business activities, products and services in a responsible manner. Operational objectives are set in consideration of prevention of pollution, injury and ill-health. Employees undergo training and re-training on their roles and responsibilities under QuESHMS. All building premises are closely monitored and guarded by in-house security systems with access to all areas generally restricted and limited to authorised personnel.

Our QuESH affirms our commitment to business excellence and continual improvement. In adhering to the principles of QuESH, it is of primary importance that we ensure regulatory compliance, customer satisfaction, as well as the protection of our employees against injury and ill-health and the safeguarding of the environment.

We are in strict compliance with the Workplace Safety and Health (“WSH”) Regulations and recommendations, having instituted a Hearing Conservation Programme that is now in its 14th year. This programme minimises the exposure of our employees to noise-induced deafness by a comprehensive set of practices including scheduled noise monitoring and use of appropriate hearing protection devices to counter audio hazards. We are also OHSAS 18001 compliant with a comprehensive occupational health and safety management system in place.

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Singapore

Malaysia

Indonesia

China

0.64

0.03

2.080.05

0

0

0.14 0.88Male

Female

Injury Rate by Region

The chart below depicts the Injury Rate by gender for all our permanent employees at significant2 locations of operations. Different types of injuries include hand injury and leg injury3. The injury rate is calculated as frequency of injuries relative to the total time worked by all workers during the reporting period. In 2017, on average across all countries and gender, the injury rate was only 0.48 for permanent employees. Minor (first-aid level) injuries are excluded in the Injury Rate calculations.

2 Our significant locations of operations include ten operating entities located across Singapore, Indonesia, China and

Malaysia, as these are significant to Teckwah’s economic and social footprint. 3 No Occupational diseases were reported during 2017. There has been no work related fatalities during 2017.4 The standard base rate of calculation is based on a rate of 200,000 labour hours. This number equates to 100 employees,

who work 40 hours per week, and who work 50 weeks per year. Using this standardised base rate, we calculated rate(s)

and percentage per 100 employees.5 While calculating lost days, ‘days’ means scheduled work days.

At Teckwah, there has been no injury to any temporary employee during the reporting period.

Singapore

Malaysia

Indonesia

China

20.00

3.1

5.1

13.8

22.9

15.5

0

Lost Day Rate by Region

Male

Female

The lost day rate is calculated by multiplying the total number of lost work days for the year by 200,0004, then dividing that number by the total number of employee labour hours. In 2017, on average across all countries and both genders, for every 100 employees, 10 days were lost from work due to work related injuries or illnesses.5

Singapore

Malaysia

Indonesia

China

2.00% 2.19%

2.26% 0.96%

0.56% 0.76%

0.84% 0.34%

Male

Female

Absentee Rate by Region

25

Absentee means absent from work because of incapacity of any kind, not necessarily as a result of work-related injury or disease, but excludes permitted leave absences such as holidays, study, maternity or paternity leave, and compassionate leave. The absentee rate is calculated as actual absentee days lost, expressed as a percentage of total days scheduled to be worked by employees for the entire year6. In 2017, on average across all countries and both genders, the absentee rate was only 1.24%.

Employee Engagement

We conducted an Organisation Capability Survey in November 2016 with results showing an increased average rate of 8.21% across all six survey dimensions, particularly in Common Destiny, which shows a high degree of consensus between the Management and Staff. We are heartened to see the encouraging results and will further improve the working environment for our staff. For a start, from 1st July 2017, Staff Club, 3S and 5S Committees have merged into one and has been renamed “Staff Wellbeing Committee”. This new committee will drive and organise company events and enhance staff engagement focusing on 3 categories - Care and Share, Productivity and Innovation, and Fun and Health.

The 5S Committee has also organised an annual walkthrough on 20 March 2017 to ensure that the concept of 5S –which comprises of these 5 key components: Sort (seiri), Set in Order (seiton), Shine (seiso), Standardise (seiketsu) and Sustain (shisuke) – is habitually practiced, and to commend the efforts of our staff in maintaining a tidy, clean and safe working environment within the organisation.

Employee Development and Training

Our training programmes are designed to provide opportunities for our staff to upgrade and enhance their professional effectiveness, thereby improving their career prospects within the organisation.

Training, coaching, and recognition are critical components to continuously encourage a culture of safety. Safety professionals at Teckwah teach a comprehensive range of workshops, certifying frontline managers and supervisors who, in turn, instruct employees in the specifics of each course. We customise training to meet market-specific standards and enhance training techniques with current multimedia technology. After training, management recognises those employees with exceptional safety records and encourages staff to strive for the same high standards.

Our annual Training Needs Analysis (“TNA”) was completed in February 2017, identifying the skill gaps and training requirements for staff. The resulting Total Learning Plan 2017 injected new and wide-ranging training courses over and above the existing core training programmes. We offered courses such as Essentials of the Personal Data Protection Act, Environmental Training, Body Language and Self-confidence, Environmental Risk Assessment and SWOT analysis, to name a few. The courses aim to equip our staff with skills relevant for their jobs as well as those which will help them progress in their career.

6 As per GRI Standards.

26

Teckwah’s Experiential Learning 2017 was developed around the theme of “Future Ready”. The teambuilding activities and debrief sessions were designed to convey the importance of operationalising our core values and taking responsibility to upgrade skills for the future economy.

Since the launch of Teckwah’s Staff Wellbeing programme last July, a series of health-driven initiatives was introduced to promote workplace health and to encourage a more active lifestyle such as the 30-day Teckwah Step Challenge which saw most of the participants achieving a daily average close to 10,000 steps.

(b) Product and Service Quality and Safety

As in previous years, we are looking to scale up our “Global Access, Local Supply” strategy to further increase our international presence and will invest in new hardware and software to ensure the best-in-class products, services and solutions for our customers. Despite having already invested a substantial amount to-date, we will be upgrading our print equipment in tandem with the industry’s push towards digitalisation. For our Non-print business, ongoing software upgrades and greater automation will ensure that our service capabilities are at the forefront of the industry to maximise supply chain efficiencies of our customers.

Training course on refurbishment process was held at our Singapore headquarters in May this year. Our local team first provided a detailed briefing on the technical requirements, work processes and system administration duties, followed by hands-on training of some of the basic routine functions the regional teams would be doing in their local subsidiaries after the training in Singapore, such as testing and dismantling. Thereafter, a step-by-step demonstration on the procedure of a typical refurbishment process was conducted. Such training helps ensure consistent product quality and service to our customers.

Our consumers rely on our brands for safe, high quality products that they can trust. We use international standards to ensure the quality and safety of our products. In this section, we will reflect on the periodic assessment of the health and safety impacts of product / services. At Teckwah, we seek to effectively identify, assess and treat all quality & safety related risks associated with our business activities, products and services in a responsible manner (QuESHMS).

Teckwah sets defined standards for risk provisions that are binding for its production and logistics operations. These standards form part of the Group-wide “Teckwah Corporate Management System” and determine, for example, processes and guidelines in the areas of purchasing, quality, environment, health, and safety. Together with the statutory regulations, the standards are also documented in the management systems of local Teckwah companies. Additionally, Teckwah production companies are certified to ISO 14001:2015 (Environmental Management) and ISO 9001:2015 (Quality management systems), and many also to OHSAS 18001 (Occupational Health and Safety Assessment).

27

Audits and inspections are important activities as they provide the management with regular, independent assessments of compliance with regulatory and official requirements as well as with Teckwah’s internal risk management guidelines and principles. The audits and inspections ensure the effectiveness of processes and related controls. Quality, environment, safety and risk factors, technology, legal matters, IT security, suppliers, and products are all subject to audit.

We identify our key suppliers based on the value of monetary transactions. For key suppliers, we perform checks on quality, quantity and on time delivery. For our other suppliers and mostly overseas suppliers we have self-evaluation checklist in place. Teckwah also regularly audits production and logistics at local companies. This includes recording any risks that may result in production downtime, personal injury, property damage, or liability claims. The probability and significance of these risks are assessed, and measures to minimise the risk potential enhance safety are subsequently identified and implemented.

Over recent years, Teckwah has succeeded in reducing the number of accidents significantly and is constantly working on further improvements. The company is focusing more closely on accident prevention and has also operated a global, web-based emergency notification and crisis management service solution.

For products and services, Teckwah implements a structured Product Development Process that factors in potential risks. The Group monitors ecological and safety aspects during the development, production, and product handling stages. For this purpose, it has introduced the specific checking of new developments against a sustainability profile. Teckwah also focuses on market opportunities and risks, product sustainability performance, and the protection of intellectual property.

Over a period of many years, Teckwah has refined its global protocol and procedures to minimise the risks of liability and product complaints in advisory and sales activities. Thanks to a host of additional measures, including the regular training of employees, clearly formulated standards, detailed causal analyses, and stricter controls, expenditure for product-related claims is steadily being reduced. To avoid the risk of customers using Teckwah’s products incorrectly, Teckwah provides clear instructions, application training, and support to customers, as well as extensive documentation and quality control. There have been no incidents of non-compliance with regulations and/or voluntary codes concerning the health and safety impacts of products and services within the reporting period.

28

Economic performance is defined as our most material aspect because, like most companies, our economic success ensures our long-term viability and enables the execution of our sustainability strategies.

ECONOMIC: GROWTH WITH PURPOSE

(a) Economic Performance

We underscore the importance of economic performance by using it as one of two foundational reference points by which we define all other material issues. Economic performance is defined as our most material aspect because, like most companies, our economic success ensures our long-term viability and enables the execution of our sustainability strategies. In this section, we will cover the direct economic value generated and distributed, defined benefit plan obligations and other retirement plans and financial assistance received from government.

Our primary role in society is to enable commerce by connecting individuals and organisations across countries and territories. Customers utilise our broad logistics capabilities, global presence, industry-leading technologies, and solutions expertise to build competitive advantages in their respective markets.

We have a long history of producing strong financial results, maintaining a solid balance sheet and high credit rating, distributing dividends, cultivating brand and customer loyalty, and positioning our business to capitalise on growth trends. Today, these trends include increased expertise in the integrated carrier space, logistics outsourcing, expansion of global trade, emerging market growth, and e-commerce growth in the retail sector.

Climate change presents both opportunities and risks to the economic performance of our business. From an opportunity perspective, we aim to reduce the emissions intensity of global supply chains by delivering goods more efficiently. This capability will grow and become even more important as emerging markets develop and the flow of goods and services expands.

29

Our main climate change related economic risk is regulatory risk: the possibility that countries or regions of the world will increase regulation of GHG emissions to include significant new taxes, fees or other costs for transportation and logistics companies. It is impossible to quantify this risk today because different countries, regions, and states follow different paths with regard to climate change mitigation and associated regulation. Our main strategies for managing this risk include continuous improvement of our fuel and emissions efficiency and ensuring policymakers and the public are aware of our contributions to making commerce more carbon-efficient for millions of companies.

Corporate Social Responsibility Educational Outreach Teckwah continued its partnership with educational institutions through internships, organised visits and on-the-job training as a means of nurturing talent for our industry. We awarded scholarship grants to deserving and talented students of Temasek and Ngee Ann Polytechnics. Community Programmes

Our commitment to national initiatives continued with our eighth year of sponsorship of the National Day Parade (“NDP”) 2017. We also contributed to the Tzu Chi Foundation and its four missions of Charity, Medicine, Education and Humanistic Culture, introducing the “Bamboo Bank” donation last year to enable our staff to contribute in any small way to these causes.

30

In 2017 Teckwah navigated its way through a subdued global economy, rising interest rates, as well as political and market uncertainties. While many other corporations have announced weaker earnings in these challenging economic conditions with Singapore GDP’s growth at only 3.6%, we have delivered a creditable financial performance in 2017. Please refer to Financial Statements in our Annual Report 2017 for more details on direct economic value generated and distributed in 2017 at group level.

Direct Economic Value Generated and Distributed in SGD

Sales Revenue

Operating Costs (e.g. materials, product component, facilities purchased)

Employee wages and benefits: Provision for employee benefits

Payments to providers of capital: Annual dividend

Payments to government: Taxation

Community investments (e.g. donations and investment of funds)

Direct economic value generated - Economic value distributed

Net profits in SGD

Singapore Malaysia Indonesia China Total

110,031,305

48,761,580

26,729,905

4,671,005

1,810,104

29,303

41,734,634

19,095,741

Direct Economic Value Generated

3,593,365

7,559,259

1,643,458

-

34,256

-

720,781

(706,141)

13,338,565

13,621,122

2,841,127

-

423,143

-

5,684,555

1,219,265

48,880,592

34,015,939

11,394,414

497,350

1,593,905

-

22,027,011

4,989,551

175,843,827

103,847,901

42,608,904

5,168,355

3,861,408

29,303

70,166,981

24,598,416

Economic Value Distributed

Economic Value Retained

31

GRI STANDARDS CONTENT INDEX

GRI Content Index

GRI Standard Disclosure Page Number

General Disclosures

GRI 102: General disclosures 2016

Organisational Profile

102-1

102-2

102-3

102-4

102-5

102-6

102-7

102-8

102-9

102-10

102-11

102-12

102-13

Strategy102-14

Ethics and Integrity102-16

Governance102-18Stakeholder Engagement102-40

102-41

102-42

102-43

102-44

Reporting Practice102-45

102-46102-47102-48102-49102-50102-51102-52102-53

102-54

Name of the organisation

Activities, brands, products, and services

Location of headquarters

Location of operations

Ownership and legal form

Markets served

Scale of the organisation

Information on employees and other workers

Supply chain

Significant changes to the organisation and its supply chain

Precautionary Principle or approach

External initiatives

Membership of associations

Statement from senior decision-maker

Values, principles, standards, and norms of behaviour

Governance structure

List of stakeholder groupsCollective bargaining agreementsIdentifying and selecting stakeholdersApproach to stakeholder engagement

Key topics and concerns raised

Entities included in the consolidated financial statementsDefining report content and topic BoundariesList of material topicsRestatements of informationChanges in reportingReporting period

Date of most recent reportReporting cycle

Contact point for questions regarding the reportClaims of reporting in accordance with the GRI Standards

1

7-10

9

9

14

8

22

22

10

7-10

13-15

8-9

9

3-4

7

13

13-16

N.A

13-16

13-16

13-16

Please Refer to Annual Report for

Financial Data14-16

16N.A as this is our

first report

11N.A as this is our

first report11

12

11

32

Material Topics

102-55102-56

103-1 103-2

103-3308-1

103-1

103-2

103-3306-2

103-1

103-2

103-3403-2

103-1 103-2

103-3

416-2

103-1

103-2

103-3

201-1

Supply chain management

Waste Management

Explanation of the material topic and its boundaryThe management approach and its componentsEvaluation of the management approachNew suppliers that were screened using environmental criteria

Explanation of the material topic and its boundaryThe management approach and its componentsEvaluation of the management approachWaste by type and disposal method

Explanation of the material topic and its boundaryThe management approach and its componentsEvaluation of the management approachTypes of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

Explanation of the material topic and its boundaryThe management approach and its componentsEvaluation of the management approachIncidents of non-compliance concerning the health and safety impacts of products and services

Explanation of the material topic and its boundary

The management approach and its components

Evaluation of the management approach

Direct economic value generated and distributed

Occupational Health and Safety

Product Quality and Safety

Economic Performance

GRI 103: Management Approach 2016

GRI 308: Supplier Environmental Assessment 2016

GRI 103: Management Approach 2016

GRI 306: Effluents and waste 2016

GRI 103: Management Approach 2016

GRI 403: Occupational Health & Safety 2016

GRI 103: Management Approach 2016

GRI 416: Customer Health and Safety 2016

GRI 103: Management Approach 2016

GRI 201: Economic Performance 2016

GRI content indexExternal assurance

31-32

12

12, 15-20

17-20

17-20

17-20

12, 15, 20-21

20-21

20-2120-21

12, 15, 22-25

22-25

22-25

22-25

12, 15, 26-27

26-27

26-27

26-27

12, 15, 28-30

28-30

28-30

28-30 Please refer to Annual Report

for further Details

TECKWAH INDUSTRIAL CORPORATION LTD(Company Registration Number: 197201105E)

51 Tai Seng Avenue #05-01Pixel Red Singapore 533941

T : 65 6872 8181F : 65 6872 8199W : www.teckwah.com.sgE : info@teckwah.com.sg