Choo Chiang : Sustainability Report 2021

Contents

Introduction.............................................................................................1

ABOUT THIS REPORT ......................................................................................... 1

ABOUT US ..................................................................................................... 1

CONTACT US .................................................................................................. 1

Board Statement.......................................................................................2

ECONOMIC...........................................................................................2

ENVIRONMENT.......................................................................................2

SOCIAL...............................................................................................2

GOVERNANCE........................................................................................3

Sustainability Management Structure ............................................................... 4

RESPONSIBILITIES OF SUSTAINABILITY MANAGEMENT STRUCTURE ................................ 4

Sustainability Reporting ............................................................................... 5

OUR SUSTAINABILITY APPROACH ................................................................... 5

SCOPE OF REPORT .................................................................................. 5

EXTERNAL CHARTER AND PRINCIPLES .............................................................. 5

Stakeholders' Engagement ............................................................................ 6

CHOO CHIANG'S STAKEHOLDER GROUPS .......................................................... 6

STAKEHOLDERS' SUSTAINABILITY CONCERNS AND VALUE CREATION .............................. 7

Materiality Assessment ............................................................................... 8

MATERIAL ASPECTS IDENTIFIED ..................................................................... 8

Material Factors ........................................................................................ 9

• - Economic and Environmental ...................................................................... 9

  ECONOMIC PERFORMANCE .......................................................................... 9

  SUPPLIER ENVIRONMENTAL ASSIGNMENT ........................................................... 9

• - Social ................................................................................................. 10

  OCCUPATIONAL HEALTH AND SAFETY ............................................................. 10

  TRAINING AND EDUCATION ........................................................................ 12

• - Governance .......................................................................................... 14

CORPORATE GOVERNANCE AND POLICIES ......................................................... 14

GRI CONTENT INDEX ..................................................................................... 15

Introduction

ABOUT THIS REPORT

The Sustainability Report of Choo Chiang Holdings Ltd. ("Choo Chiang" or the "Company" and together with its subsidiaries, the "Group") for the financial year ended 31 December 2021 ("FY2021") (the "Report") is prepared in accordance with Global Reporting Initiative ("GRI") Standards: Core option that contains the key materiality issues identified through materiality assessment and will be produced annually. As part of our commitment towards sustainable business practices.

The Report provides information regarding the Group's performance in various key areas which include Economic and Environmental progress, Social growth and Governance. The Report also covers the vast range of Economic and Environmental, Social and Governance activities between 1 January 2021 and 31 December 2021 which have contributed to the success of the Group. The various goals and the strategies and initiatives undertaken by the Group to achieve the said goals have been addressed to in this Report.

For this sustainability report, the Board have deliberated and decided not to seek external independent assurance for this reporting period and will consider doing so in the future as our sustainability reporting efforts matures.

ABOUT US

Choo Chiang is one of the leading retailers and distributors of electrical products and accessories in Singapore with a retail presence of more than 20 years. We offer an extensive range of electrical products and accessoriesfor residential and industrial use at our 10 strategically located retail branches in Singapore. We have grown to know what our customers need, and we fulfill that need with products and solutions seamlessly. Our retail outlets are supported by a team of service-oriented sales employees and a fleet of delivery vehicles. We empower builders and contractors with a better way of working through our products, technical know-how and sincere service. Our mission and vision are to empower a better way of working for builders, contractors, interior designers and homeowners through our products, services and technologies. In addition to this Distribution Business, the Group holds 12 investment properties which are rented out for rental income. The Group was listed on Catalist of the Singapore Exchange Securities Trading Limited (the "SGX-ST") on 29 July 2015 (stock code 42E) and is headquartered in Singapore. More details on the Group can be found in our Annual Report for FY2021.

CONTACT US

Choo Chiang continuously seeks for annual improvement over our sustainability practices and report. We want to share our sustainability journey and desire to hear from our stakeholders. The Company welcomes stakeholders to submit any feedback or suggestions toinfo@choochiang.com.

Board Statement

Choo Chiang is pleased to publish its Sustainability Report for the financial year ended 31 December 2021. The Report is prepared in accordance with the GRI Standards: Core Option, which demonstrates our commitment towards operational sustainability and corporate responsibility. We have chosen to adopt the GRI Sustainability Reporting Standards as it is the most widely accepted global framework for voluntary corporate reporting of environmental and social performance. In articulating our approach, we have applied the GRI principles of accuracy, balance, clarity, comparability, reliability and timeliness. Corresponding GRI disclosures can be found at the GRI Standards Content Index Section of this Report.

The Management of Choo Chiang has established a Sustainability Council and a Sustainability Working Group, which works under the guidance of the Board to ensure that sustainability measures are implemented across the business. The Sustainability Council will measure and review progress towards our sustainability goals and engage accountable stakeholders to ensure targets are met.

FY2021 was a resilient year for Choo Chiang despite the economic impact and uncertainty arising from the long-drawn Covid-19 situation in Singapore. With high vaccination rates and green shoots of economic recovery, coupled with a resilient business model, we are optimistic that the crisis has made the Group stronger and will help us to thrive and tap on new opportunities in the months and years ahead.

As we continue to navigate the challenges of the Covid-19 pandemic in FY2021, the Board has, in its review of the Group's operations, believes that Occupational Health and Safety of our employees continues to be the key factor in ensuring the continued growth and sustainability of our operations. We continue to take steps to communicate with our staff and connect them with resources that support their health and well-being. We continue to actively address evolving issues and provide guidance to our staff consistent with local government regulations. Social distancing measures at the workplace, staggered work hours, mandatory mask wearing, team segregation of work and telecommuting are some of the measures we have put in place to keep our employees safe.

No staff was retrenched arising from the impact of Covid-19. We did not practice pay-cut or no-pay leave, regardless of various work modes. Our staff provided feedback that they viewed employment with Choo Chiang as a steady rice bowl in very uncertain times.

ECONOMIC

By incorporating sustainability measures and corporate social responsibility values in our business strategies, this has allowed us to enhance our stakeholders' value and higher positive returns. Amid the challenging environment, we have multiplied our growth and we are committed on an ongoing basis to improve the Group's sustainability. Looking forward, we believe this would lead the Group towards positive growth.

ENVIRONMENT

Reducing the impacts that we have on the environment has been an important part of how we run our business for many years. We have proven that this approach brings lasting, mutual benefits to our business and in the world that we live in. During the year, we have worked with waste contractors on our long-term no-waste ambition. Besides reducing the impact on the natural environment through efficient waste management, and recycling disposable items such as copper and paper, we have also raised employee awareness on critical issues in sustainable development through relevant initiatives.

SOCIAL

In order to ensure the long-term success of the business, the Management recognises the importance of attracting, retaining and developing a high-quality workforce. Hence, we have invested in employee trainings to promote professional and personal development for employees as well as rewarding those who uphold our values within the organisation.

GOVERNANCE

Having a high standard of corporate governance is at the heart of our business in achieving the Group's sustainability goals. Building a system with no compromise in quality and applying best practices business-wide is essential to our successful long-term performance. We strive to maintain integrity, transparency, accountability and discipline in all our practices and have put in place a robust governance framework to ensure we meet our objectives.

Looking ahead, we hope to further improve our sustainability tracking through a target-based approach with clear and measurable metrics. In this Report, you will be provided with a balanced view of our position and performance with regards to some key issues and added-value measurements.

We hope you find the Report interesting and informative as we continue our sustainability journey.

Yours sincerely,

Thomas Lim

Executive Chairman and CEO

On behalf of Choo Chiang's Board of Directors

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