Sustainability Report 2023: Towards a Sustainable Future

01

TABLE OF CONTENTS

PAGE 02 ABOUT PSC CORPORATION LTD

03 Mission and Vision

PAGE 04 OVERVIEW OF SUSTAINABILITY REPORT FY2023

05 SUSTAINABILITY REPORTING FRAMEWORK

06 FEEDBACK

1. RESTATEMENT OF INFORMATION

1. ASSURANCE AND REVIEW

1. MEMBERSHIPS AND ASSOCIATIONS

1. OUR SUSTAINABILITY MILESTONES AND ACCREDITATIONS

PAGE 07 CLIMATE AND SUSTAINABILITY GOVERNANCE

1. MESSAGE FROM THE BOARD

1. SUSTAINABILITY IN OUR BOARD
   09 Prevention of Conflict of Interest in the Board
   09 Board Nomination
   10 Evaluation of Board's Performance
   10 Remuneration Policies

1. SUSTAINABILITY GOVERNANCE AND LEADERSHIP
2. POLICIES AND PRACTICES

15 CLIMATE-RELATED RISKS AND OPPORTUNITIES

15 Risk Management

15 Process of Identifying Risks

23 Managing Climate-related Risks

and Opportunities

1. STAKEHOLDER INCLUSIVENESS
2. MATERIALITY ASSESSMENT
   27 Our Materiality Assessment Process

PAGE 30 ETHICAL AND TRANSPARENT GOVERNANCE

1. ECONOMIC PERFORMANCE
2. PROCUREMENT PRACTICES

PAGE 33 ENVIRONMENTAL PROTECTION AND STEWARDSHIP

33 ENERGY EFFICIENCY AND DECARBONISATION

36 WASTE AND CIRCULARITY

PAGE 38 VALUING OUR PEOPLE

1. HUMAN CAPITAL AND DIVERSITY

1. OCCUPATIONAL HEALTH AND SAFETY
2. TRAINING AND EDUCATION

PAGE 47 RESPONSIBLE SUPPLY CHAIN

1. MARKETING AND LABELLING

1. PRODUCT HEALTH, SAFETY AND QUALITY

PAGE 49 GRI CONTENT INDEX

PAGE 60 TCFD CONTENT INDEX

TABLES

PAGE 15 Table 1 The Group's Climate-related Disclosure According to TCFD Recommendations

PAGE 23 Table 2 List of Climate-related Risks Possibly Affecting the Group

PAGE 26 Table 3 List of Stakeholders and Our Response to Their Interests

PAGE 29 Table 4 List of the Group's Material Topics for FY2023

PAGE 30 Table 5 The Group's Audited Economic Performance in FY2022 and FY2023

PAGE 32 Table 6 The Group's Ongoing Sustainable Procurement Practices

PAGE 42 Table 7 The Group's Employment FY2023 Target

PAGE 44 Table 8 The Group's Work-Related Injury in FY2023

FIGURES

PAGE 11 Figure 1 Sustainability Reporting Structure

PAGE 28 Figure 2 Materiality Matrix based on FY2022 and FY2023 Surveys Outcome

PAGE 32 Figure 3 The Group's percentage of procurement budget spent on local suppliers (first-tier) of raw materials in FY2023, by subsidiaries

PAGE 34 Figure 4 The Group's Non-renewable and Renewable Energy Consumption, and Scope 1 and 2 Emissions in FY2023

PAGE 35 Figure 5 The Group's Year-on-Year Energy Consumption

PAGE 35 Figure 6 The Group's Year-on-Year Emissions Performance

PAGE 37 Figure 7 The Group's Waste Breakdown for FY2023

PAGE 38 Figure 8 The Group Employee's Benefit

PAGE 39 Figure 9 The Group Employee Breakdown in FY2023 by Employee Category

PAGE 39 Figure 10 The Group Employee Breakdown in FY2023 by Permanent, Temporary, Full-Time and Part-Time Staff

PAGE 40 Figure 11 The Group's New Hire by Gender and Age Group in FY2023

PAGE 40 Figure 12 The Group's Turnover by Gender and Age Group in FY2023

PAGE 41 Figure 13 The Group's Total Employee by Length of Service in FY2023

PAGE 41 Figure 14 Parental Leave Breakdown by Gender

PAGE 42 Figure 15 The Group's Year-on-Year Performance on Gender Balance

PAGE 45 Figure 16 The Group's Average Training Hour by Employee Category and Gender

PAGE 45 Figure 17 The Group's Percentage of Employees with Appraisal and Career Development Review by Employee Category and Gender

PAGE 46 Figure 18 The Group's Year-on-Year Performance on Average Training Hour per Employee by Gender

PAGE 48 Figure 19 The Group's Approach for Food Health and Safety

02

ABOUT PSC CORPORATION LTD

[GRI 2-1,2-6]

PSC Corporation Ltd., established in 1974, is a leading Fast-Moving Consumer Goods ("FMCG") provider for essential food staples. We operate in Singapore and Malaysia, distributing and marketing wide range of household brands and products including Royal Umbrella rice, Golden Peony rice, Okome rice, Taj rice, OriGrains rice, Harmuni rice, sugar and oil, Golden Circle oil, Soyalite oil, Beautex paper products, TP706 dishwashing liquid, Singpo detergent powder, Promax detergent powder as well as Fortune tofu, noodle, udon and dessert.

With our headquarter in Singapore, we have manufacturing facilities and offices in Singapore and Malaysia to effectively support our extensive customer base across Asia, the Middle East, Europe and the United States. Our diverse consumer essential business is covered by eight subsidiaries. For manufacturing of soybean-based products, noodles and Asian desserts, we have Fortune Food Manufacturing Pte Ltd ("FFM SG"), Fortune Food Manufacturing Sdn Bhd ("FFM MY") and Fresh Fruit Juice Manufacturing (M) Sdn Bhd ("Fresh Fruit Juice"). For operational efficiency, Fresh Fruit Juice was merged with FFM MY effective 1st November 2023. Manufacturing of paper products is covered by Tips Industry (M) Sdn Bhd ("TIPS"). For distribution of leading consumer staples such as rice, oil, tofu and other agency brands, we have Topseller Pte Ltd ("Topseller"). Our distribution of paper products and agency brands is through Tipex Pte Ltd ("TIPEX"). Starting from August 2023, TIPEX appointed Topseller to manage its trade marketing, sales and distribution in Singapore for better efficiency and reduce carbon footprint. Meanwhile, SOCMA Trading (M) Sdn Bhd ("SOCMA") distributes and markets a wide range of products including confectionery, snacks, beverages, groceries, paper and toiletries for well-known brands such as Mentos, Chupa Chups, TaoKaeNoi, Tai Sun, Meiji, Mazola, Gold Roast, Café21, and Harmuni. Its distribution network extends to more than 27,000 retail points in Peninsular Malaysia, East Malaysia and Brunei. Lastly, we take pride in supporting Singapore local foodservice outlets through wholesale distribution of food products under C.K.H. Food Trading Pte Ltd ("CKH").

With nearly five decades of experience, PSC Corporation Ltd. has cultivated a robust reputation as a dependable provider of quality products at the best value to our customers. We focus on building strong relationships with our partners and growing new markets. Internally, we believe in building a culture that is open, creative and innovative.

PSC Corporation Ltd. was listed on the mainboard of the Singapore Exchange since 25th October 1990. We aim to drive sustainable growth through continuous innovation in our product portfolio and strategic investment.

03

MISSION AND VISION

PSC is finalising our Sustainability Mission Statement to complement our longstanding vision and mission.

VISION

To be a multi-faceted consumer essentials company with strategic investments in the region

MISSION

Building strong partnerships, growing new markets

Fostering an open and creative culture, attracting and nurturing talents

Providing innovative products, portfolio building, meeting stakeholders' needs

Achieving operational excellence

Building strong financial capabilities

04

OVERVIEW OF SUSTAINABILITY REPORT FY2023

[GRI 2-2,2-3a,2-3b,2-3c,2-6d,2-14]

This marks our seventh annual sustainability report covering financial year 2023 (FY2023) from 1 January 2023 to 31 December 2023. This report details our sustainability policies, management approaches and initiatives in PSC, Topseller, FFM SG, TIPEX, SOCMA, CKH, FFM MY, TIPS and Fresh Fruit Juice (collectively mentioned as "PSC" or "the Group" hereafter). Tat Seng Packaging Group Ltd, in which we have strategic investment, is an SGX-listed company and is covering its sustainability performance separately under its annual sustainability report. Fresh Fruit Juice was merged with FFM MY effective on 1st November 2023.

PSC Corporation Ltd

100%	100%		100%		64%	100%
Topseller		Fortune Food				Tat Seng Packaging		SOCMA
	Manufacturing		Tipex Pte Ltd			Trading (M)
Pte Ltd				Group Ltd*
	Pte Ltd					Sdn Bhd
(SG office)		(SG Factory)	(SG office)	(Singapore and		(rented Subang Jaya
Marketing and sale of		Manufacturing and	Brand development	China Factories)		warehouse)
agency lines and		export of soya bean	and provision of tissue	Manufacturing and		Marketing and sales of
proprietary brands		based products	paper products	sale of corrugated		household consumer
						paper packaging		products
						products
		Fortune Food		Tips Industry (M)
		Manufacturing
			Sdn Bhd
		Sdn Bhd
		(Johor Tebrau Factory)	(Johor Bukit Batu
		Manufacturing of	Factory)
		noodle	Manufacturer and
				OEM supplier of paper
				products
		Fresh Fruit Juice
		Manufacturing
		(M) Sdn Bhd
		(rented JB Factory)
		Manufacturing of
		grass jelly products

80%

C.K.H. Food

Trading Pte Ltd

Wholesale and

distribution of food

products

• Tat Seng Packaging Group Ltd's sustainability performance is separately covered under its annual sustainability report.

05

Since our sustainability report encompasses multiple entities, we adopt a similar approach to materiality selection across all entities. This ensures that we prioritize and report on the most relevant and impactful topics for our stakeholders. In this regard, we rely on the Global Reporting Initiative ("GRI") Universal Standards 2021 as a reference point to align our performance reporting.

The Group maintains our operational size, structure, business activities, value chain, and sector of operation compared to FY2022. No minority interests or relevant mergers, acquisitions, or disposals of entities occurred during the reporting period falling within the scope of this report.

The insights into policy, practices, and performance metrics revealed in this report result from a thorough analysis of formal documents and operational statistics directly sourced from the Group's official records. This report is published on 30th April 2024 upon approval from the Group's Board, and no printed copies were produced.

SUSTAINABILITY REPORTING FRAMEWORK [GRI 2-4]

The sustainability report is prepared in accordance with the GRI Universal Standards 2021. The GRI framework was chosen due to its wide adoption globally, such that there would be higher comparability with the Group's peers in the industry. The disclosure presented within this report adhere diligently to GRI Reporting Principles, meticulously defining the benchmarks of report quality, accuracy, balance, clarity, comparability, completeness, sustainability context, timeliness, and verifiability. Our GRI content index can be found on pages 49-58 of this report. Our climate-related disclosures adopted the guidelines from Task Force on Climate-related Financial Disclosures ("TCFD").

As a publicly listed company in the food product industry, this report complies with the sustainability and climate reporting requirement by SGX including SGX Listing Rules 711A, 711B and Practice Note 7.6: Sustainability Reporting Guide issued by the SGX. The development of this report incorporated the six primary components stated in SGX Listing Rule 711B on the "Comply or explain" basis, including -

• Material ESG factor
• Climate-relatedDisclosures
• Policies, Practices and Performance
• Targets
• Sustainability Reporting Framework
• Board Statement

While we disclose a comprehensive range of sustainability initiatives in our report, we recognise that focusing on key areas allows us to allocate resources effectively and drive meaningful impact. As such, we did not set target for 'Food Safety', 'Marketing and Labeling' and 'Supply Chain Management' in our Sustainability Report for FY2022. By setting targets for priority ESG topics, we aim to maximise our sustainability efforts and contribute to positive change in areas that matter most.

06

OVERVIEW OF SUSTAINABILITY REPORT FY2023

FEEDBACK [GRI 2-3d]

We welcome feedback from our stakeholders for further improvement in our sustainability performance and reporting. For enquiries regarding the Group's sustainability initiatives or the content of this report, please contact us at

Sustainability Reporting Officer Address: 348 Jalan Boon Lay S(619529)

Email address: [e-mail] Tel [phone]

Fax [phone]

RESTATEMENT OF INFORMATION [GRI 2-4]

There is no restatement of information made from previous reporting period.

ASSURANCE AND REVIEW [GRI 2-5]

In line with the SGX Practice Note 7.6 Sustainability Reporting Guide, we conducted an internal review of our sustainability reporting processes for FY2023. This review, integrated within our existing sustainability governance framework, strengthens controls and risk management practices, ensuring transparent, verifiable, accurate, and balanced reporting. While we have not yet sought external assurance for this report, we are actively considering it for the near future.

MEMBERSHIPS AND ASSOCIATIONS [GRI 2-28]

• Singapore Institute of Directors
• Singapore Business Federation
• Singapore Retailers Association
• Singapore National Employers Federation
• Singapore Manufacturing Federation
• Singapore Food Manufacturers' Association

OUR SUSTAINABILITY MILESTONES AND ACCREDITATIONS

• FSC-CoC(Forest Stewardship Council - Chain of Custody)
• ISO9001:2015 (Quality Management System)
• ISO14001:2015 (Environmental Management System)
• HACCP Certified 2020
• ISO 22000 Food Safety Certified
• FSSC 22000, Version 5.1 (Food Safety System Certification)

07

CLIMATE AND SUSTAINABILITY GOVERNANCE

MESSAGE FROM THE BOARD [GRI 2-9b, 2-12, 2-14, 2-22]

Dear Stakeholders,

2023 presented a unique set of challenges for the FMCG industry. From India's new export restriction on rice and global domestic food price inflation to Singapore government's introduction of Nutri-Grade beverage labelling and the growing influence of social media on consumers' purchase decisions, the landscape is now more complex than ever. PSC stands by Singapore's '30 by 30' target. Upholding our vital role as a licensed importer under the Rice Stockpile Scheme, we diversify our rice supply sources to ensure stable and sufficient supply of rice in Singapore. As we explore more economical and eco-friendly alternatives to sustain consumers through food price inflation, our branding and business development teams diligently venture into developing our own e-commerce platform and boost our outreach through engagement of social media influencers. Navigating the unchartered waters, we are proud to say that PSC remains resilient and steadfast in providing innovative products and building portfolio to meet stakeholders' needs.

PSC's Board is tackling supply chain risks head-on. The multi-tier risks revolve around cost increase in raw material for consumer staples, food production and energy, manpower and labour, distribution, and compliance to evolving sustainability requirements. Besides, we also received requests to improve the sustainability of our packaging. PSC views these challenges as opportunities for growth

and differentiation. We actively work with diverse suppliers and strive to build long-term partnerships to keep us resilient against supply chain disruption. In the face of rising costs, we are continuously seeking innovative solutions to optimize resource utilization and operational efficiency. Our strategy, so far, includes exploring sustainable packaging materials, investing in renewable energy and improving the resource efficiency of our manufacturing processes.

Adapting to evolving consumer preferences for sustainable products and increasingly stringent sustainability reporting requirements comes with significant financial and operational challenges. However, we believe in the importance and purpose of integrating sustainability into our operations and products. We are committed to meeting the growing consumer demand for sustainable products and packaging. We also proactively stay abreast of evolving sustainability reporting requirements through engagement of external consultant and regularly checking updates from SGX. We acknowledge that transparent and comprehensive reporting will contribute to a more sustainable future for all.

Climate change presents significant risks to our business and will be more crucial to the sustainability of our business in the future. Increased carbon pricing would drive cost-push inflation, causing gradual increase in energy cost that cascade down to surging operating cost. On the other hand, increasingly frequent and severe floods also put us at risk of logistics disruption, supply chain interruption and unplanned closure.

08

CLIMATE AND SUSTAINABILITY GOVERNANCE

It is precisely in navigating these climate-related risks that sustainable solutions become crucial. We as the Board validated the material topics and climate-related risks for this year, and we are integrating climate-related risks and opportunities into our core decision-making and business strategy. A highlight of our commitment is the installation of new solar panels at Fortune Food Manufacturing Pte Ltd and TIPS Industry (M) Sdn Bhd. These systems will significantly reduce our reliance on fossil fuels and contribute to our long- term sustainability goals. Additionally, we have implemented new heat exchangers in Fortune Food Manufacturing Pte Ltd, leading to improvement in water conservation and lower water treatment costs.

In conclusion, we believe that a sustainable future is achievable, and we are confident that by combining our commitment with innovative solutions and collaborative efforts, we can contribute to a thriving planet and a prosperous future for generations to come.

Sincerely,

PSC's Board of Directors

09

SUSTAINABILITY IN OUR BOARD [GRI 2-9, 2-11, 2-17]

At PSC, the Board has the overall responsibility in setting the Group's sustainability direction and targets and has the oversight of the Group's sustainability strategy and performance. The Board comprises one Executive Chairman, four Non-Executive and Independent Directors, and two Non-Executive and Non-Independent Directors, enabling the Board with a majority of Non-Executive and Independent Directors, to manage shareholders' concerns and make decisions in the best interest of the company.

Supporting the Board are the Audit and Risk Committee ("ARC"), Nominating Committee ("NC"), and Remuneration Committee ("RC") (collectively the "Board Committees")1. These Board Committees aid in overseeing sustainability decisions and enhancing overall sustainability governance, with roles and responsibilities of respective committee outlined below.

The Board members' respective tenures, other significant positions and competencies are disclosed in our Annual Report FY2023 on pages 5-8 and 35-37. The Board continuously enhances its knowledge through regular training on pertinent laws, regulations, accounting standards, risk management practices, sustainability concerns and industry developments.

All the Directors have undergone a one-time training on sustainability reporting and completed the sustainability training courses conducted by providers that represent different constituencies in the capital markets in the FY2023. In this regard, the NC consistently reviews training and professional development programs for the Board, ensuring that all board members possess the necessary knowledge to make well-informed decisions concerning climate and sustainability matters.

Prevention of Conflict of Interest in the Board [GRI 2-15]

The Board put in place a code of conduct and ethics to set the tone for the group in respect of ethics, values and desired organizational culture. The Board has clear policies and procedures for dealing with conflicts of interest. Where any Director faces a conflict of interest, he/she will recuse himself/herself from discussions and decisions involving the issues of conflict and refrains from influencing other Board members. Conflict of interest in directors seeking re-election is disclosed to all stakeholders through the Group's Annual Report.

Board Nomination [GRI 2-10]

The Chairman of the NC, with the NC's input, recommends appointing new Board members by considering the Group's needs in terms of geographical spread and business diversity, strategic direction and progress, current board composition and independence. After interviewing the candidates, NC will make recommendation to the Board for appointment. The most suitable candidate must stand for re-election at the next Annual General Meeting of shareholders. Retiring directors can be re-elected by shareholders, but the NC will evaluate their performance before recommending them for re-election.

The NC is committed to fostering a diverse and inclusive board at PSC, recognising that diverse perspectives and backgrounds enrich decision-making processes will contribute to the company's overall success. By ensuring a board composition that reflects a variety of experiences, expertise, and viewpoints, the NC not only promotes fairness and equality but also enhances innovation, risk management, and strategic planning capabilities. This commitment to diversity and inclusion is integral to driving performance improvements and creating sustainable long-term value for stakeholders.

1 The NC comprises two Non-Executive and Independent Directors and one Non-Executive and Non-Independent Director. The RC comprises three Non-Executive and Independent Directors and one Non-Executive and Non-Independent Director.