TEHO International : Sustainability Report 2022

TEHO INTERNATIONAL INC LTD.

SUSTAINABILITY REPORT 2022

This Sustainability Report has been reviewed by the Company's Sponsor, SAC Capital Private Limited (the "Sponsor"). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "SGX-ST") and the SGX-ST assumes no responsibility for the contents of this Sustainability Report, including the correctness of any of the statements or opinions made or reports contained in this Sustainability Report.

The contact person for the Sponsor is Mr David Yeong (Tel: [phone]) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

Sustainability Report

			Table of Contents
1	BOARD STATEMENT ........................................................................................................................	3
2	ABOUT THE REPORT ........................................................................................................................	4
	2.1	Report Scope...........................................................................................................................	4
	2.2	Report Methodology...............................................................................................................	4
	2.3	Report Structure .....................................................................................................................	4
	2.4	Report Contact and Feedback.................................................................................................	5
3	CORPORATE PROFILE ......................................................................................................................	6
	3.1	Vision and Mission ..................................................................................................................	6
	3.2	Governance.............................................................................................................................	6
	3.3	Ethics and Compliance ............................................................................................................	7
4 INTEGRATING SUSTAINABILITY INTO OUR BUSINESS .....................................................................	8
	4.1	Sustainability Management Framework.................................................................................	8
	4.2	Key Stakeholders and Material Issues ....................................................................................	8
	4.3	Alignment with International Initiatives .................................................................................	9
		4.3.1 Sustainable Development Goals (SDGs)........................................................................	9
		4.3.2 United Nations Global Compact (UNGC).....................................................................	11
	4.4	Awards and Achievements....................................................................................................	12
5	STAKEHOLDER ENGAGEMENT.......................................................................................................	14
	5.1	Protecting Our Environment for the Future Generations.....................................................	15
		5.1.1	Our Approach ..............................................................................................................	15
		5.1.2 Reduction of Carbon Footprint ...................................................................................	15
		5.1.3 Reduction of Paper Consumption ...............................................................................	16
		5.1.4	Promoting Green Practices .........................................................................................	17
	5.2	Caring for Our Employees .....................................................................................................	18
		5.2.1	Our Approach ..............................................................................................................	18
		5.2.2	Employment Practices.................................................................................................	18
		5.2.3	Workforce Diversity ....................................................................................................	20
		5.2.4	Employee Benefits.......................................................................................................	24
		5.2.5 Safety and Health in the Workplace............................................................................	25
		5.2.6	Individual Rights ..........................................................................................................	25
	5.3	Focusing on Our Customers' Needs......................................................................................	26
		5.3.1	Our Approach ..............................................................................................................	26
		5.3.2 Customer Feedback and Satisfaction ..........................................................................	26
		5.3.3 Service Quality and Safety...........................................................................................	26
		5.3.4 Data Safety and Privacy...............................................................................................	26
	5.4	Partnering Our Suppliers.......................................................................................................	27

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Sustainability Report

		5.4.1	Our Approach ..............................................................................................................	27
		5.4.2	Supplier Selection........................................................................................................	27
		5.4.3	Supplier Review...........................................................................................................	27
	5.5	Supporting Our Community..................................................................................................	28
		5.5.1	Our Approach ..............................................................................................................	28
		5.5.2 Our Community Initiatives Highlights .........................................................................	28
6 PERFORMANCE TABLE AND TARGETS...........................................................................................	29
	6.1	Energy Usage and CO2 Emissions..........................................................................................	29
	6.2	Paper Consumption ..............................................................................................................	30
	6.3	Employment Profile ..............................................................................................................	31
	6.4	Employees Engagement and Training...................................................................................	32
	6.5	Customer Feedback ..............................................................................................................	33
	6.6	Supplier Screening for Sustainability Criteria .......................................................................	34
	6.7	Community Contribution ......................................................................................................	35
7	GRI CONTENT INDEX .....................................................................................................................	36
8	GLOSSARY	......................................................................................................................................	39

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Sustainability Report

1 BOARD STATEMENT

It gives us great pleasure to present our sustainability report for the financial year ended 30 June 2022 ("FY2022"). In our fifth sustainability report, we will be highlighting the progress and achievements of our organisation for FY2022, with particular focus on our commitment to working alongside our valued stakeholders to build a sustainable business based on our resilience, adaptability and innovation. Material Environmental, Social and Governance ("ESG") factors are encapsulated in the Group's corporate strategy and business plan formulation. The management of the Company is tasked with identification and implementation of the Company's approach to the material ESG factors identified. Whilst, the Board is entrusted with the ultimate responsibility of the Group's overall monitoring and management of the material ESG factors, the Board is also supported by the Corporate Sustainability Committee, Corporate Sustainability Champion and the Corporate Sustainability Work Group. Information on the governance structure is further provided in section 3.2 of this report. Information regarding the basis for report boundaries and the Group's materiality assessment is provided in section 4 of this report.

This sustainability report is structured to reflect the interests of our key stakeholders and we have identified five (5) key stakeholder groups, namely, the (i) future generations, (ii) employees, (iii) customers, (iv) suppliers, and (v) communities. The identification of such key stakeholders is based on an analysis performed on our business and operation models as the basis for our stakeholder mapping and materiality assessment. For each stakeholder group, we have laid out our approaches that govern how our material issues are identified as well as how the issues are prioritized and managed. Further, we will present our initiatives relating to sustainability in the areas of environmental, social and economic issues relevant to our aspects and boundaries. Finally, in this report, we will provide our key performance indicators, performance targets and outcomes of the material ESG factors.

It is our belief that building a sustainable business is vital to our continued success and that we must be fully accountable for the impacts on our environment, customers, people, community as well as our financial performance.

The delivery of sustainable results is a critical aspect of our ability to remain strong and financially stable. Acknowledging this, will help focus our commitment to the principles laid out in our Corporate Sustainability Policy. Our responsibility to society is to ensure that sustainable practices are incorporated into every link of our value chain. We must meet the needs not only of our customers, employees and the community we operate in, but also those of our environment and our future generations.

This report provides details on how we have met our responsibilities with our key stakeholders in FY2022.

On behalf of TEHO's Board of Directors,

Lim See Hoe

Executive Chairman and Chief Executive Officer

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Sustainability Report

2 ABOUT THE REPORT

This sustainability report articulates our commitment to sustainability and transparency. This is our fifth sustainability report. The report is designed to provide a transparent and balanced view of TEHO International Inc Ltd. (the "Company" and together with its subsidiaries, the "Group"), to reflect the interests of our key stakeholders, and to address those interests pragmatically. This report aims to include comprehensive and accessible information on the Company's strategy towards sustainability, key issues as well as data according to recognized standards.

2.1 Report Scope

The report covers the performance of our consolidated entities for FY2022. The content of this report will focus on the sustainability performance, activities and initiatives that are under our direct control, namely our Singapore offices and operations as well as our local supply chain. This report excludes joint ventures which are not directly under our control and any overseas activities directly associated with us. Material issues and topics described in this report have been selected according to their level of significance within the Company boundaries, the sustainability context and the expectations of stakeholders which are reflective of our core business in a consistent manner for comparability of our performance indicators across time. In this respect, this report covers our Marine & Offshore Segment in our material operational boundaries in Singapore. All material aspects disclosed in this report are relevant to activities in Singapore only. The scope of this report covers operations and initiatives within Singapore, where the Group is based. Nevertheless, our corporate governance and sustainability approaches are drawn from the policies and practices set at Group level.

This sustainability report focuses on the Group's sustainability strategies and practices whilst highlighting the economic, environmental, social and governance aspects of our activities and developments. The report aims to provide an overview of our approach, priorities and targets, as well as a performance review for our key sustainability areas.

2.2 Report Methodology

This report has been prepared in compliance with the requirements of Rules 711A and 711B of the Listing Manual Section B: Rules of Catalist of the Singapore Exchange Securities Trading Limited (the "SGX-ST") (the "Catalist Rules") as well as in accordance with the Global Reporting Initiative ("GRI")Standards: Core option. We have chosen the GRI Standards reporting guidelines for its robust guidance which offers an international reference for the disclosure of governance approach and of the environmental, social and economic performance and impacts of organisations. This report has also taken into consideration the primary components of the report content as set out by the SGX-ST "Comply or Explain" requirements for sustainability reporting. Our data are reported in good faith and to the best of our knowledge. We will continue to improve our data collection processes.

We did not seek external assurance for this report.

2.3 Report Structure

This Sustainability Report is structured to reflect the interests of our key stakeholders. We have identified five (5) key stakeholder groups, namely, the future generations, employees, customers, suppliers and communities. For each stakeholder group, we lay out our management approaches that govern how material issues are identified as well as how the issues are prioritized and managed. Further, we will present our initiatives relating to sustainability in the areas of environmental, social and economic issues relevant to our aspects and boundaries. Finally, we will provide the information of our key performance indicators, performance targets and outcomes.

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