VALZ HLDG : VHL - Sustainability Report FP 31 Dec 2023 (18.06 MB)

VALLIANZ HOLDINGS LIMITED

Vallianz Holdings Limited Sustainability Report (April 2023

to December 2023)

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

The contact person for the Sponsor is Mr. Khong Choun Mun, Registered Professional, RHT Capital Pte. Ltd., 36 Robinson Road, #10-06 City House, Singapore 068877, [e-mail]

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Introduction

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Sustainability Report (April 2023 to December 2023)

INTRODUCTION

INTRODUCTION

Message from the CEO

Dear Stakeholders,

I am pleased to present Vallianz Holdings Limited's Sustainability Report ("Report") for the financial period covering from 1 April 2023 to 31 December 2023 ("FP2023"). In this report, we set out Vallianz Holdings Limited's ("Vallianz") continued commitment to carrying out a responsible and sustainable business. Management of the key risks and opportunities of Economic, Environment, Social, and Governance ("EESG") aspects is crucial in steering Vallianz towards a sustainable future.

Since 2023, we encourage our customers to implement SMART digitalization to their newbuild vessels program. This allows collection, management and processing of operational data and facilitates data-driven decision making. With the fast-changing environmental regulatory environment to meet the targets set by International Maritime Organization ("IMO"), asset performance optimization, coupled with advanced data monitoring and analysis, will be crucial to effectively reduce carbon requirements in the coming years.

We are progressively implementing across our fleet a fuel management system which provides real-time data on fuel consumption to help improve fuel efficiency, track and reduce emissions and increase cost savings for clients and operations. We are looking to implement at least one or more feasible energy-saving solutions for our existing fleet and encourage our customers to implement the same to their newbuild vessels. Such solutions including all-electric tug, Energy Storage System ("ESS") solutions and alternative fuel solutions.

In addition, as part of our due diligence in ensuring that our supply chain stakeholders are also aligned to the Sustainable Development Goals and IMO's strategy, Vallianz's

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Sustainability Report (April 2023 to December 2023)

suppliers will be required to confirm their compliance with the ethical standards as outlined in our Supplier Code of Conduct, as well as submit a comprehensive Supplier Questionnaire, which includes global targets and goals for sustainability.

In our efforts for holistic vessel lifecycle management, we have partnered with a maritime consulting company for the implementation of Inventory of Hazardous Materials ("IHM") for our newbuilding program in our shipyard. For more effective and streamlining data collection and analysis, we have also partnered with the same maritime consulting company for the implementation of online EESG targets reporting.

This year, we have formalized our sustainability values and strategies, which will help to provide guidance, direction and alignment in our sustainability efforts. We have also revised and refined our goals and targets and will work on a 3-year sustainability roadmap to drive our EESG vision and mission throughout our business strategy and practices.

The core of our business and ESG strategy is encapsulated in our business motto "Engineered for Transformation". Embedded in our business motto lies our core values and guiding principles of:

Inspiring Trust. We believe in fostering, robust, collaborative partnerships built on a foundation of trust. By placing client's requirements, including those for sustainability, at the heart of everything we do, we earn trust and respect in forging superior lasting relationships.

Systematic Vigour. When we are systematic, we bring discipline, thoroughness,

consistencies and frameworks to processes and operations. This allows client requirements and expectations, including those for sustainability, to be upheld to uncompromising standards of execution time after time.

Adaptive Solutions. In a world of constant flux and evolution, we understand the importance of adaptability. Our solutions are designed to meet evolving requirements, including those for sustainability.

Our business motto "Engineered for Transformation" helps to anchor us even as we seek to advance our business excellence. We remain grounded in our fundamental core values, recognizing that our actions have effects that extend beyond our immediate sphere of influence for our clients and communities.

Economically, we are focused on creating enduring value for our shareholders, clients, and communities. Through prudent financial management and strategic investments, we aim to foster long-term economic resilience.

Environmentally, we understand the impact our industry can have on marine ecosystems. We have taken proactive steps to minimize our ecological footprint by looking to implement energy-efficient technologies.

To demonstrate our resolve for this cause, we have decided to align with IMO's Strategy for GHG Emission Reductions by setting reduction targets of 20% by 2030, 70% by 2040 and achieving Net Zero emissions by 2050. We are also working on plans to report our Scope 3 emissions in accordance with the regulatory timelines.

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Social responsibility is a cornerstone of our corporate philosophy. We are dedicated to ensuring the well-being of our employees and the communities in which we live in. Our efforts extend beyond compliance, fostering diversity, equity, and inclusion, and contributing to the social fabric through various initiatives.

Governance forms the bedrock of our sustainability journey. We are committed to maintaining high standards of corporate governance and place importance on corporate governance processes and systems to ensure greater transparency and accountability.

As we embark on our sustainability journey, we invite our stakeholders to join us in creating a positive impact. Together, we can navigate the challenges, seize opportunities, and chart a course towards a more sustainable and resilient future.

Thank you for your continued trust and support.

Ling Yong Wah

Executive Director and Chief Executive Officer

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Board Statement

Dear Stakeholders,

As members of the Board of Directors, we recognize the importance of Economic, Environmental, Social, and Governance (EESG) factors in today's business landscape. We believe that by considering EESG factors, we can create a sustainable and responsible business that benefits all stakeholders. We are committed to implementing EESG practices throughout our organization. We also strive to promote social responsibility by treating all employees and stakeholders fairly, promoting diversity and inclusion, and supporting local communities.

Our commitment to good governance practices includes ensuring that the Group's corporate governance processes and systems promote transparency and accountability. We believe that by maintaining high governance standards, we can build trust with our stakeholders and ensure the long-term success of our organization.

We understand that EESG factors are important to our shareholders. In our review, we have considered the feedback from our stakeholders, together with the Sustainability Committee, determined the EESG factors material to the business and have empowered the Sustainability Committee to ensure that the EESG factors are monitored and properly managed on an ongoing basis. We will continue to monitor our EESG performance and make adjustments as necessary.

Thank you for your continued support and trust in the Group.

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Sustainability Report (April 2023 to December 2023)

INTRODUCTION

ABOUT THIS

REPORT

About Us

Vallianz Holdings Limited ("Vallianz" or the "Company" and together with our subsidiaries, the "Group") is a well-established provider of offshore support vessels ("OSVs") and integrated offshore marine solutions to serve the ever-changing needs of the global energy industry.

For close to 30 years, the Group has answered the needs of the global energy industry through well-implemented integrated offshore marine solutions with a progressive yet pragmatic vision and a team of highly motivated industry experts working in close collaboration with its customers.

We are a publicly listed enterprise registered in Singapore with an international footprint, spanning across markets in the Middle East and Asia Pacific. To provide adaptive solutions in an environment of rapidly evolving needs, Vallianz has a fleet of 14 OSVs which comprise anchor handling tugs with supply capabilities, submersible launch barges and flat top cargo barges.

The Group also owns a shipyard in Batam, Indonesia, which serves as a marine base for vessel docking, repairs and maintenance works. Our shipyard possesses strong in-house fabrication and engineering capabilities such as shipbuilding and fabrication works, which are dedicated to supporting our subsidiaries, partners and customers. This further enhances our value proposition by broadening the spectrum of our marine services and takes us closer to our core focus on delivering operational and service excellence.

From our headquarters in Singapore, Vallianz has developed local presence in key geographical markets to provide fast, effective support and adaptive solutions to our customers to better capture business opportunities in the global energy industry. Today, the Group's market presence extends into the Middle East and Asia Pacific. We have established offices in Singapore and Indonesia.

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The Group offers a range of integrated offshore marine solutions that is categorized to below 5 main pillars:

Specialised Offshore Support

Vallianz currently owns and operates 14 OSVs, which are available for charter to fulfill the growing demand of the global offshore energy market. The Group's vessels are deployed for offshore projects in the Middle East and Asia Pacific. To enhance our market competitiveness, we are focused on forging trusting partnerships with our clients, instilling systematic vigor to deliver executional excellence, and creating adaptive solutions to respond to our clients' evolving needs. The Group is continually assessing plans to expand our range of vessels and modernize our fleet.

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