Sustainability Highlights Environment/Health/Safety • Tapping on solar as a source of renewable energy, the solar panels installed in our plants in Singapore and Malaysia have resulted in energy savings as well as promote cleaner and greener environment. Following a fire incident in July 2023, the solar panels in one of our warehouses in Singapore was destroyed. We have since started reinstalling the solar panels. • We have extended our Roundtable for Sustainable Palm Oil (RSPO) membership to all our entities in order to promote the use of sustainable oil palm and its derivative products. • Under Singapore’s Green Nation Pledge program, we pledged to adopt environmental-friendly best practices to make our country a greener place. It marks our commitment in joining our nation to build a better and greener future. • We have adopted the Global Product Strategy (GPS) from International Council of Chemical Associations on the evaluation of Chemical Risk Assessment since 2018 and established a Product Safety Summary as well as Product Safe Handling Guide on high-risk products. • In our effort to benchmark our sustainability program against international standards, we are progressively adopting the Taskforce for Climate-related Financial Reporting (“TCFD”) framework as well as International Sustainability Standards Board (ISSB) reporting standards and have included the disclosures in this report. • We have expanded our Scope 3 emissions analysis to include business travel, upstream transportation and distribution, waste generated in our operation as well as employee commuting • In compliance with SGX Listing Rules, an internal auditor has been appointed to conduct a review of our Sustainability reporting process once every 2 years. • As part of our effort to make our workplace a more supportive and conducive space for our employees, we have launched our Mental Health & Well-being program. We are committed to breaking the stigma surrounding mental health and ensuring our team has access to the care and support they deserve. Sustainability-linked Financing & Green Financing Partnering us in our Sustainability journey are United Overseas Bank, Overseas Chinese Banking Corporation and Hong Kong & Shanghai Banking Corporation who have provided us with Sustainability-linked financing. These sustainability-linked financing are key steps in our sustainability journey and a clear demonstration of our commitment to be a responsible member of the community, together with our customers, suppliers, bankers as well as our other stakeholders. Looking ahead, we will be increasing our focus in the following areas: • conduct safety risk assessment to enhance the safety level of our operation • commence the Annual Communication of Progress (ACOP) reporting which is a report submitted by RSPO Members to gauge their progress towards 100% RSPO Certified Sustainable Palm Oil. • continue to uphold good governance standards • work together with major stakeholders in the chemical industry in adopting higher standards of Sustainability practices, • maintain a business continuity management program that is robust enough to face any future disruptions. We remain focused on our core principles: doing what is right, ethically and responsibly, to create enduring value for our business, our employees, and the communities we serve. Together, we shall strive to make a lasting, positive difference in people’s lives and build a sustainable world for the present and future generations. Managing Director Sidney Chew Choon Tee On behalf of Megachem’s Board of Directors MEGACHEM LIMITED ANNUAL REPORT 2025 75 SUSTAINABILITY REPORT
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