Intraco : Sustainability Report - For The Year Ended 31 December 2023

ANNUAL REPORT 2023 | INTRACO LIMITED

SUSTAINABILITY REPORT

Protecting the environment is an integral part of our vision and a

commitment that we convert into meaningful actions.

MESSAGE FROM THE EXECUTIVE CHAIRMAN

Presenting our 7th Sustainability Report (the "Report"), we affirm our unequivocal commitment on sustainable development. We are living through an intensifying climate crisis with devastating weather events, deteriorating natural habitats, depletion of resources, and growing pollution and waste. The crisis casts its shadow over every living creature on this planet.

Given our diversified businesses, our operations are being exposed to the climate risks in varying degrees. In response to these climate risks, we work along with our dedicated team to form solutions that can expedite the transition to net-zero. Our aim is to be part of a global community working together to solve sustainability issues. To this end, we have highlighted our contributions to the United Nations Sustainable Development Goals in this Report.

Environmental practices targeted at enhancing resource and energy efficiency are being incorporated into our day-to-day operations and decision-making process. As a people-oriented employer, we strive to provide training and development opportunities to our employees and to care for their overall well-being. We give a strong emphasis on corporate governance, which has placed us in good stead as we operate in multiple jurisdictions.

Innovation sits at the heart of our work. We invest in technological advancement to ensure that our products and services will always meet the high quality and safety standards. We have been diligent in harnessing technology and improving production efficiency.

On behalf of the Board, I would like to take this opportunity to express our gratitude to our employees, customers and business partners for their continuous support over the past years in the realm of sustainability. With our collective efforts, we foresee a brighter future for our future generations.

MAK LYE MUN

Executive Chairman

ABOUT THIS REPORT

Reporting Principles and Statement of Use

This Report contains information about Intraco Limited's ("Intraco") commitment, corporate governance, sustainability policies, performance and targets in managing the Environmental, Social and Governance ("ESG") factors for FY2023. Intraco has reported in accordance with the Global Reporting Initiatives ("GRI") Standards.

The GRI Standards are selected as it is a widely used and globally recognised sustainability reporting standard that has a broad selection of topics for reporting on economic, environmental and social impacts. The Board has reviewed and approved the reported information, including the material topics, metrics and targets.

We have applied the GRI Standards in ensuring the quality and proper presentation of the reported information. Reporting principles for sustainability reporting as stipulated in GRI 1: Foundation 2021 include accuracy, balance, clarity, comparability, completeness, sustainability context, timeliness and verifiability. For more information on GRI disclosures, please refer to the GRI Content Index.

This Report is compliant with Listing Rules 711A and 711B of the Singapore Exchange Securities Trading Limited ("SGX-ST"). The United Nations Sustainable Development Goals have also been incorporated into the Report, highlighting our contributions to sustainable development.

Reporting Scope

The scope of this Report considers key business activities and associated sustainability concerns related to the following entities which are based in Singapore:

• Intraco Trading Pte Ltd ("ITPL");
• Intrawave Pte Ltd ("Intrawave");
• K.A. Group Holdings Pte Ltd and its subsidiaries
  ("K.A. Group");
• Taurus Point Capital Pte. Ltd. ("Taurus"); and
• Provenance Treasures ("Provenance").

Assurance

Internal controls and verification mechanisms have been established by the management to ensure the accuracy and reliability of narratives and data. We have also considered the recommendations of an external ESG consultant for the selection of material topics as well as compliance with GRI Standards and SGX-ST Listing Rules. The Boards has therefore assessed that external assurance is not required for the Report. The Group will continue to assess the need to further enhance the credibility of our sustainability reports through internal review or external assurance.

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INTRACO LIMITED | ANNUAL REPORT 2023

SUSTAINABILITY REPORT

Availability and Feedback

Intraco welcomes any feedback on this Report and any aspects concerning its sustainability. Engaging with each of our stakeholders is essential to operating Intraco's business responsibly. Please send your comments and suggestions to [e-mail].

SUSTAINABILITY STRATEGY OVERVIEW

Focus and Strategy

We integrate ESG considerations into our business strategy and operations. Our strong emphasis on corporate governance provides guidance and a strong foundation to manage and monitor our economic, environmental and social impacts. Good governance increases transparency, accountability and corporate planning, and ensures that we always comply with relevant laws and regulations.

Innovation and product quality have always been a key focus of our business. This commitment remains a perpetual target as we expand into new revenue streams and capture sustainable opportunities in the market. A key driver behind this goal is our robust quality management system which helps ensure high quality standards and continual improvement. Our quality management system is ISO 9001:2015 Quality Management Systems certified.

We are aware of the environmental impacts of our operations. Our employees are encouraged to practise energy saving habits in our offices, and machinery are well maintained to prevent excessive energy consumption. We actively monitor energy and water consumption as well as waste generation and strive for improvements to our environmental sustainability metrics.

As the demand for sustainable products and services continue to surge, regulators and investors will place higher expectations on the Group. We will continue to review our sustainability governance strategy and refine our ESG policies and measures.

ESG Performance Highlights

Environmental	Zero incident of environmental non-
	compliance

People and	324 training hours, equivalent to
Wellness
approximately 3.2 hours of training per
	employee
	Zero workplace fatalities or injuries that
	caused disabilities
Innovation	Maintained ISO 9001:2015 Quality
and Quality	Management Systems certification and
Improvement
complied with relevant industry standards

Community	Supported the local community by
	participating in volunteer activities.

Product	100% supplier environmental and
Responsibility
social assessments for new major suppliers

Governance	Zero case of service recall and
	complaints

Zero material non-compliance with relevant laws and regulations

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ANNUAL REPORT 2023 | INTRACO LIMITED

SUSTAINABILITY REPORT

Contribution to the UN SDGs

The Group contributes to United Nations Sustainability Development Goals through our daily operations, strategy development and collaboration with our stakeholders. The following table highlights the Group's contributions to the attainment of these common goals.

UN SDGs	The Group's Contribution	Read more in the
following sections
	Provide training on sustainable development and skills	Focus 6: Human
	upgrading, vocational and technical training.	Capital

Ensure access to career advancement and fair remuneration	Focus 6: Human
regardless of gender.	Capital
Implement water resource management and conservation	Focus 4:
Environmental
practices and systems.
Responsibility
	Focus 2: Economic
Provide productive employment and jobs with equal pay for	Performance
equal work.	Focus 6: Human
	Capital
	Focus 3: Innovation
Develop information and communications technology and	and Quality
infrastructure in Singapore; maintain high product quality	Improvement
and relevant certifications.	Focus 5: Product
	Responsibility
Reduce waste generation through recycling and reuse;	Focus 4:
integrate sustainability reporting into the Group's annual	Environmental
reporting cycle.	Responsibility
Comply fully with all social, economic and environmental	Focus 1:
laws and regulations; promote strong corporate governance	Governance and
practices.	Ethics

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SUSTAINABILITY REPORT

STAKEHOLDER ENGAGEMENT AND MATERIALITY ASSESSMENT

Intraco's vision and the success of its business is closely aligned with the interests and needs of its key stakeholders. In FY2023, stakeholder engagement was performed to understand their expectations and capture feedback for our sustainability initiatives.

The Group has identified five key stakeholder groups based on their relevance to Intraco's business. They include customers, employees, shareholders, suppliers and government/regulators.

The Group engages with these stakeholders through various informal and formal channels of communication to learn and understand about their concerns. The following table presents Intraco's stakeholder engagement methods, areas of concerns, and how the Group has responded to the identified concerns.

Key

Stakeholders

Engagement

Methods

Areas of Concern

Our

Response

Section

Reference

Customers	•	Frontline	•	Customer health	•	Respond	Focus 5:
		interaction by		and safety		promptly to	Product
		sales managers	•	Pricing and		customer	Responsibility
	•	Email queries		quality of		feedback
	•	Contact form on		products and	•	Maintain
		company website		services		certifications and
	•	Customer				ensure quality of
		feedback				products
Employees	•	Open dialogue	•	Training and	•	Provide fair	Focus 6:
		among teams		education		remuneration	Human Capital
	•	Training and	•	Personal		and benefits
		development		development	•	Provide
		programmes	•	Safe and		meaningful
	•	Employee social		conducive work		feedback to
		events		environment		employee
	•	Employee	•	Fair		through well-
		feedback		compensation		structured
		mechanism		and benefits		and open
						performance
						appraisals
					•	Provide regular
						training
					•	Send staff to
						relevant courses
Shareholders	•	Annual General	•	Economic	•	Provide	Focus 1:
		Meeting		performance		informative	Governance and
	•	Annual Report	•	Shareholders'		corporate	Ethics
	•	SGX-ST Corporate		returns		communication	Focus 2:
		Announcements				and reports
					Economic
	•	Company website
					Performance
	•	Press releases
					Focus 3:
							Innovation and
							Quality Improvement
							Focus 4:
							Environmental
							Responsibility

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SUSTAINABILITY REPORT

Key

Stakeholders

Engagement

Methods

Areas of Concern

Our

Response

Section

Reference

Suppliers	•	Face-to-face	•	Product quality	• Engage and	Focus 5:
		meetings		requirements	evaluate	Product
	•	Supplier	•	Certificate	suppliers	Responsibility
		assessment		of Analysis	regularly
				requirements	and provide
					meaningful
					feedback

Government/ Regulators

• Meetings and consultations
• Regular reports

• Compliance with SGX-ST Listing Rules
• Fair market practices
• Regulatory and legal compliance
• Government requirements and guidelines on COVID-19

• Ensure full compliance with all applicable local laws and regulations including COVID-19 safety regulations

Focus 1:

Governance and

Ethics

Focus 4:

Environmental

Responsibility

Stakeholders' concerns identified as well as business priorities are incorporated into Intraco's materiality assessment which consists of a systematic process to identify, prioritise, review and validate the ESG factors. In FY2023, Intraco conducted a materiality assessment survey to identify its material topics, which were reviewed and updated with the recommendations of an external consultant and validated by the Board to ensure that these factors remain relevant to the Group.

• Ensure full	PRIORITISATION
compliance with		PRIORITISATION
•	Review whether
all applicable
	the previously
local laws and	• Prioritisation	• Validate the
identified
regulations	of the material
material topics	list of material
including	topics based on
are still relevant	topics to be
COVID-19 safety	stakeholders'
	disclosed in the
regulations	concerns and
	Report with the
	significance to	REVIEW
	Board
IDENTIFICATION	the business

The following table illustrates the identified GRI material topics after the conclusion of the materiality assessment process, and where the impacts occur for each material topic.

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SUSTAINABILITY REPORT

Focus Areas

Material Topics

Where the impact

occurs

Focus 1:	•	GRI 205: Anti-corruption 2016	•	Group wide
Governance and Ethics	•	GRI 207: Tax 2019
	• GRI 408: Child Labour 2016
	• GRI 409: Forced or Compulsory Labour 2016
	• GRI 418: Customer Privacy 2016
Focus 2:	•	GRI 201: Economic Performance 2016	•	Group wide
Economic Performance
Focus 3:	•	GRI 203: Indirect Economic Impacts 2016	•	K.A. Group
Innovation and Quality
Improvement
Focus 4:	•	GRI 302: Energy 2016	•	Group wide
Environmental	•	GRI 303: Water and Effluents 2018
Responsibility	•	GRI 305: Emissions 2016
	•	GRI 306: Waste 2020
	• Responding Actions to Climate Change
Focus 5:	•	GRI 308: Supplier Environmental Assessment 2016	•	Group wide
Product Responsibility	•	GRI 414: Supplier Social Assessment 2016
	• GRI 416: Customer Health and Safety 2016
Focus 6:	•	GRI 401: Employment 2016	•	Group wide
Human Capital	•	GRI 403: Occupational Health and Safety 2018

• GRI 404: Training and Education 2016

• GRI 405: Diversity and Equal Opportunity 2016

• GRI 413: Local Communities 2016

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SUSTAINABILITY REPORT

FOCUS 1: GOVERNANCE AND ETHICS

Strong corporate governance practices are integral in enhancing the Group's adaptability to policy changes and trends in the industry as well as helping the Group align its operations and business activities with the interests of all key stakeholders.

Sustainability Governance Structure and Statement of the Board

The Board has the oversight and ultimate responsibility on the Group's sustainability reporting. It oversees the sustainability efforts of the Group and monitor the material ESG factors with the support of the Sustainability Committee ("SC"). It stipulates the Group's sustainability strategies and goals, and periodically assesses its targets, progresses, as well as the corresponding policies that support their achievement.

The SC is responsible for reviewing and making recommendations to the Board on sustainability matters including policies, practices, targets and performance. It identifies various business risks, implements strategies and sustainability frameworks, tracks the performance of the material ESG factors, and reviews the sustainability reports. The SC consists of the Chief Operating Officer, Group Financial Controller and representatives of other business unit, and is chaired by the Group Senior Human Resource Manager.

The SC is supported by the Sustainability Task Force ("STF") which consists of executives of the Group who work with personnel of the relevant business units. The STF is responsible for the implementation of sustainability initiatives within their business units.

Board of Directors

Sustainability Committee

K.A.
Intrawave	ITPL	Taurus Provenance
Group

Sustainability Taskforce

Corporate Compliance

The laws and regulations that are applicable to the Group include the Code of Corporate Governance 2018, regulations by the Monetary Authority of Singapore, Listing Rules of the SGX-ST, the Accounting and Corporate Regulatory Authority ("ACRA") and the Securities and Futures Act, amongst others.

Review of new regulations and updates to existing regulations are regularly conducted by our employees, our secretarial firm and our auditors. Updates are disseminated to relevant staff and processes are in place to monitor the activities and associated performance on a regular basis.

Additionally, updates on relevant legal, accounting and regulatory developments are typically provided to the Board by email, or by way of briefings and presentations. The Company Secretary also circulates articles, reports and press releases issued by the SGX-ST and the ACRA which are relevant to the Board.

Risk Management

The Group Risk Committee has adopted a precautionary approach in strategic decision making by implementing a comprehensive risk management framework. We have integrated the process for identifying, assessing and managing material ESG related risks into our organization's overall risk management framework.

Please refer to the Corporate Governance Report section in the Annual Report for more information on the Group's risk management practices.

Anti-corruption

Disclosures 205-1,205-2,205-3

The Group takes a strong stand against corrupt practices and strategies, and this value has been communicated to all of our employees, major suppliers and business partners. Our employees are educated on our anti- corruption stance upon induction and reinforced when necessary. Any forms of corruption within the Group will not be tolerated, and will be escalated to the Chairman of the Board.

During FY2023, all of the ITPL, Intrawave, Taurus and Provenance's operations were assessed for risks related to corruption. No significant risks related to corruption were identified through the risk assessment. There was zero confirmed incident of corruption for the Group in FY2023 (FY2022: Nil).

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All Board members, employees and major business partners have received training and have been communicated to on the Group's anti-corruption policies and procedures.

Our whistleblowing policy also ensures that stakeholders can report any corrupt practices or violations to the Group's Chief Operating Officer and Chairman of the Audit Committee. The complaint will be independently investigated and addressed. Any staff of the Group and other persons making such reports will be treated fairly and, to the extent possible, protected from reprisal. Anonymous complaints may be considered, taking into account factors such as the seriousness of the issues raised, the credibility and the likelihood of confirming the allegation from attributable sources. No critical concerns were communicated to the Chief Operating Officer and Chairman of the Audit Committee during FY2023.

Ethical Labour Practices

Disclosures 408-1,409-1

The Group is committed to following the highest standards of business ethics. We are fully aware of our responsibilities as an enterprise, always upholding and maintaining the principle of fair employment in the workplace, and have always abided by the laws, regulations and rules of the place of operation. We have formulated the Employee Handbook, focusing on the rights that employees can exercise, and covering general principles of fair employment. The Employee Handbook states the Group's expectations and requirements for fair employment, protecting the human rights of employees. These expectations and requirements are in line with the "United Nations Guiding Principles on Business and Human Rights". The Group also complies with relevant principles in the International Bill of Human Rights and the International Labour Organisation's "Declaration on Fundamental Principles and Rights at Work" to formulate this policy.

The Group has a zero tolerance towards child labour and forced labour. Our employment practices are guided by local laws and regulations. The principle of employment equality is embedded in our recruitment practices. We employ regardless of nationality, race, religion, gender, age and disability, and encourage diversity and equal opportunities, and strictly prohibits discrimination, child labour and forced labour. We strive to create a safe, healthy workplace where everyone is treated with respect.

The Group strictly prohibits the employment of persons under the local legal employment age. Besides, the Group never employs any form of forced labour, including prison terms, indentured labour, slave labour, and any human trafficking. We do not tolerate any form of corporal punishment, threats of violence, or any form of physical,

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mental, sexual, or verbal abuse as a means of discipline or monitoring in the workplace.

For the type of operations and geographic areas where we operate, we do not consider our operations or suppliers have a significant risk of child labour, forced labour, or young workers being exposed to work hazards. Our whistleblowing policy aforementioned also ensures that stakeholders can report any human rights violation and that the complaint will be independently investigated and addressed.

Customer Privacy and Data Protection

Disclosure 418-1

The Group is committed to protecting our customers' privacy and data. We have implemented a Data Protection Policy which governs the collection, handling and protection of our customers' personal information in a responsible manner, in accordance with the latest amendment of the Singapore Personal Data Protection Act.We have appointed Data Protection Officers to oversee and ensure full compliance with the Act in executing their duties. There were no reported data breaches in FY2023 (FY2022: Nil).

Tax Compliance

Disclosures 207-1,207-2,207-3

The Group's strategy and approach to tax is to fully comply with relevant tax laws and regulations in all jurisdictions we operate in, which indirectly supports the local governments and authorities in their economic, environmental and social development objectives. The Group has zero tolerance for any intentional breach of tax laws and regulations.

The Group identifies tax related risks as part of its enterprise risk management framework which is reported regularly to the Audit Committee. Implementation of tax compliance related policies and procedures are delegated to the respective business units' finance and are monitored by the Group Financial Controller.

Relevant staff attended tax related training to keep themselves updated on key changes. The Group also engages qualified professional tax advisors in all jurisdictions to ensure compliance at the transaction levels as well as fulfilling required tax filings.

The Audit Committee may also from time to time engage the Group's internal auditor to monitor compliance with the tax governance and control framework. Any instances of non-compliance are reported to the Audit Committee and resolved promptly.

Economic Value

Distributed

and Retained (S$'000)

ANNUAL REPORT 2023 | INTRACO LIMITED

SUSTAINABILITY REPORT

Governance and Ethics Targets

FY2023 Performances

Targets for FY2023	Status
Topic area: Anti-corruption
• Zero incident of non-compliance
with SGX-ST listing rules or Code	Met
of Corporate Governance

• Zero reported corruption/whistle- blowing report

Topic area: Tax
• Zero significant tax related non-	Met
compliance
Topic areas: Child Labour; Forced or
Compulsory Labour			Met
• No breach of employment laws
Topic area: Customer Privacy		Met
• Zero data privacy breaches
		FY2024 Targets
Material Topics			Targets
		• Zero incident of non-
			compliance with SGX-ST listing
Material Topics			rules or Code of Corporate
		Governance
		•	Zero reported corruption/
			whistle-blowing report
Tax		• Zero significant tax related
		noncompliance
Child Labour		• Zero incident of non-
		compliance
Forced or		• Zero incident of non-
Compulsory
		compliance
Labour
Customer Privacy		• Zero incident of non-
		compliance

FOCUS 2: ECONOMIC PERFORMANCE

Disclosure 201-1

The Group strives to create long-term value for our stakeholders by delivering strong financial performance and prioritising sustainable growth. Sustained economic performance underpins the Group's ability to continue delivering sustainable dividends to investors, provide rewards to employees and gain confidence from stakeholders.

In FY2023, The Group generated direct economic value, or revenues, of SGD158.579 million, and retained economic value of S$8.434 million, details of which are presented below:

Economic Value

Generated

(S$'000)

	Revenue:		Costs of		Finance Costs:
	S$158,579		Inventories:		S$551
			S$144,344		Taxes: S$0
			Staff Expenses:
				Economic
			S$5,250
				Value Retained:
Note:				S$8,434

Nil taxes paid due to tax credits received by the Group. There were no donations and dividends paid during the year.

The financial performance of the Group is reviewed by the Audit Committee and the Board on a regular basis. For more information on economic performance, please refer to the Operations and Financial Review, and Financial Statements of the Annual Report.

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SUSTAINABILITY REPORT

Economic Performance Target

ECONOMIC PERFORMANCE

FY2023 Target(s)

Material Topic(s)		Target(s) for FY2023
Economic	•	Zero incidents of
	economic non-
Performance
	compliance

FOCUS 3: INNOVATION AND QUALITY IMPROVEMENT

Disclosure 203-2

K.A. Group

As testament to the quality and safety of its products, K.A. Group has received accreditations from various organisations.

• Singapore Green Labelling Scheme administered by the Singapore Environment Council;
• Registered contractor with the Building and Construction Authority ("BCA") and complies with BCA Contractors Registration System ("CRS") requirement for Fire Prevention and Protection Systems; and
• Member of the Singapore Contractors Association
  Limited and have fulfilled the requirements to be admitted to the Registry of Singapore List of Trade Subcontractors ("SLOTS").

As a commitment to continuing product quality enhancement, K.A. Group has constantly maintained its quality management system, the ISO 9001: 2015 Quality Management Systems certification, for the provision of passive fire protection application services for building and steel structures. The system undergoes regular review and ensures quality standards are continually improved.

ITPL, Intrawave, Taurus and Provenance

INNOVATION AND QUALITY IMPROVEMENT

FY2023 Performances

Targets for FY2023

Status

• Maintain K.A. Group's ISO 9001

Quality Management Systems	Met
certification
		FY2024 Targets
Material Topics		Targets
Indirect		• Maintain K.A. Group's ISO 9001
Economic		Quality Management Systems
Impacts		certification

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FOCUS 4: ENVIRONMENTAL

RESPONSIBILITY

As an environmentally conscious and responsible business, we recognise that we have a part to play in combating climate change. Intraco ensures that any adverse environmental impacts are well managed and resource efficiency is explored as an area that can enhance operational efficiency.

Energy Management

Disclosures 302-1,302-3,302-4

The Group's main environmental impact stems from fuel consumption for vehicles and production, as well as electricity consumption for lighting, air-conditioning and operating machinery such as air compressors and burners. As a testament to the continual improvement of our environmental practices, K.A. Group is ISO 14001:2015 Environmental Management System certified.

The Group recognises that good environmental practices will result in operational efficiencies. Improved energy efficiency will translate into lower operational costs and a reduced impact on the environment.We have also engaged a greener power supply vendor to manage our carbon footprint. Energy consumption is continuously tracked to identify potential areas for energy efficiency improvement.

The Group continues to increase employees' awareness on energy reduction, and implement the following energy conservation practices:

• Switching off all lights and electronic equipment when not in use, including after office hours and during weekends;
• Enabling energy-saving features on all electronic equipment where available;
• Reminding employees to set their computers to sleep mode after 10 minutes of inactivity;
• Ensuring that external doors and windows are properly closed to prevent cool air from escaping;
• Encouraging telephone calls and video conferences to replace unnecessary travels;
• Maximising the use of natural lighting wherever possible;
• Maintaining temperature of the air-conditioning at 24 degrees Celsius; and
• Maintaining equipment regularly to ensure optimal performance and energy efficiency.

Whenever possible, energy efficient facilities such as air- conditioners that are certified under the Mandatory Energy Labelling Scheme ("MELS") or equivalent COP ("Certificate of Performance"), and are installed with occupancy sensors and Light Emitting Diode ("LED") lighting.