Pan United : Sustainability Report

SHAPING A

SUSTAINABLE

FUTURE

WITH CONCRETE

TECHNOLOGY

Pan-United Corporation Ltd

Sustainability Report 2023

CONTENTS

ABOUT THIS REPORT	1
ABOUT US	2
CHAIRMAN'S MESSAGE	3
BOARD STATEMENT	5
STAKEHOLDER ENGAGEMENT	8
KEY MILESTONES IN OUR SUSTAINABILITY JOURNEY	9
FY2023 HIGHLIGHTS	10
SUSTAINABILITY GOVERNANCE	11
ENVIRONMENTAL	12
WASTE MANAGEMENT [GRI 306]	13
WATER MANAGEMENT [GRI 303]	14
SUSTAINABLE PRODUCTS [GRI 301]	15
GHG EMISSIONS [GRI 305]	17
ENERGY MANAGEMENT [GRI 302]	19
BIODIVERSITY [GRI 304]	20
RESPONSES TO TCFD RECOMMENDATIONS	21
SOCIAL	25
OCCUPATIONAL HEALTH AND SAFETY (OHS)	26
EMPLOYEE ENGAGEMENT, DIVERSITY AND INCLUSION	29
COMMUNITY IMPACT	36
GOVERNANCE	38
SUSTAINABLE SUPPLY CHAIN MANAGEMENT	38
DATA SECURITY	39
EXTERNAL INITIATIVES AND MEMBERSHIPS OF ASSOCIATIONS	39
APPENDIX	40
GRI APPENDIX AND INDICATORS TABLE	40
SGX- ESC CORE METRICS INDEX	46

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

ABOUT

THIS REPORT

Reporting scope and period

This is the 7th annual Sustainability Report by Pan-United Corporation Ltd for the Financial Year 1 January 2023 to 31 December 2023 (FY2023), published on 8 April 2024. This year, our report covers the environmental, social and governance (ESG) strategies, initiatives, performance and targets of all our subsidiaries and operations across Singapore, Malaysia and Vietnam. This is an expanded scope from our FY2022 reporting which only covered Singapore operations. Please refer to the Annual Report 2023, pages 73 and 74 for the list of the entities and their country of incorporation.

For this year's sustainability report, we have progressed to measure at group-level rather than Singapore-focused data. We decided to embark on group-level sustainability reporting for better data transparency and more comprehensive disclosure with reference to the Global Reporting Initiative (GRI) Standards. Moving forward, group- level disclosures will be our new reporting norm. We will also consider seeking external assurance for future reports.

Reporting standards

We have prepared our sustainability report with reference to the GRI Standards and aligned our climate risk reporting with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and will continue to enhance our public disclosures to reflect our efforts in managing both negative and positive impacts of climate change.

The GRI topics and disclosures throughout this report have been determined through our materiality assessment process based on GRI 2021 Standards. The GRI Content Index accompanying this report provides a comprehensive list of disclosures, including their scope and alignment with international standards and frameworks.

Feedback

A soft copy of this report can be found on our website: www.panunited.com.sg. Should you have any questions or feedback regarding this sustainability report, please do not hesitate to contact us at [e-mail].

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PAN-UNITED CORPORATION LTD

ABOUT US

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

CHAIRMAN'S

MESSAGE

Pan-UnitedCorporation Ltd (Pan-United) is a global leader in low-carbon concrete technologies focused on concrete and sustainability. Being one of Asia's largest producers of low-carbon concrete backed by world-class R&D capabilities, we believe we can play a significant role in decarbonising the environment and are constantly adopting advanced digital technologies to achieve our sustainability agenda.

Pan-United was listed on the Mainboard of the Singapore Stock Exchange (SGX) on 22 December 1993. Headquartered in Singapore, we are Singapore's largest provider of ready-mix concrete, delivering engineered concrete products to be used across public and private sectors, ranging from infrastructural projects to institutional, as well as commercial, residential and industrial developments. We also have a growing footprint in Malaysia and Vietnam.

Our primary business activities include manufacturing and supply of ready-mix concrete and ground granulated blast furnace slag (GGBS); cement silo operations, cement trading and distribution; trading and supply of refined petroleum products; technology and digital-based services; investment holding and general trading. Our range of business activities such as GGBS manufacturing and logistics services has allowed us to vertically integrate our concrete and cement business across the value chain. Our main supply chain components are: our material suppliers, contractors, customers

and transporters.

We adopt a circular economy model, prioritising the circular use of all our materials across product, process innovation and waste management. We believe circularity is central to our long-term sustainability agenda, and will continue to mature our digital capabilities underlying this model to achieve greener operations.

Dear Shareholders,

Welcome to the 7th edition of our annual Sustainability Report. The present report (SR2023) sets out our sustainability progress and key efforts as of FY2023, as we journey towards our three-pronged sustainability goals. The shared value creation between our management, key stakeholders and business partners have enabled us to make it thus far on our sustainability journey.

2023 saw many changes in the sustainability space, from the landmark global summit between world leaders at COP28 to the introduction of new regulatory mandates, such as the ACRA-SGX public consultation launch on mandatory ISSB-aligned climate reporting for listed companies within the local context in Singapore. While the global economy continues to improve, recovery remains slow and uneven. Alongside ongoing geopolitical tensions, high inflation, rising interest rates and strain on supply chains, the climatic extremes of 2023 - from record high temperatures to more frequent extreme weather events - add complexity and increase business and operational risks to our operations.

However, I am confident that Pan-United is well-equipped, not only to address our stakeholder needs but also to maximise growth in our key markets whilst actively implementing our sustainability initiatives. Over the past 12 months, we have taken steps to be more transparent

in sustainability reporting, aligning our sustainability performance, metrics, and targets with GRI 2021 Standards. Looking ahead, we see Pan-United playing an integral role in the greater low-carbon agenda as we work towards achieving carbon neutrality by 2050.

We continue to invest in low-carbon concrete innovation. For example, using 360,000 m3 of CO2 mineralised concrete over a 2.5-year period to construct Tuas Port. This low-carbon concrete technology allows Tuas Port to become a man-made carbon sink that prevents emissions of over 113.8 million kg of CO2 from entering the atmosphere, the equivalent of planting 1.9 million tree seedlings or removing 24,500 cars from the road.

We had the privilege to share and exchange knowledge with our industry and regulatory partners. Such dialogues are pivotal to establish stakeholder unity across the value chain, foster a stronger sustainable built environment community and nurture cross-sector collaborations. We actively participated in industry seminars and forums to share our insights.

Making Headway in

Sustainability Initiatives

As an industry leader in low-carbon concrete technologies,

Pan-United is committed to advocating decarbonisation by declaring our purpose to "Decarbonise the World with Concrete". We have aligned our sustainability targets to offer only low-carbon concrete by 2030*, offer carbon-neutral concrete by 2040, and be a carbon- neutral company by 2050.

• A 50% reduction in CO2 compared to 2005 levels.

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PAN-UNITED CORPORATION LTD

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

BOARD

STATEMENT

CHAIRMAN'S

MESSAGE

Among our industry-leading initiatives is the introduction of on-demand EPDs (Environmental Product Declarations) which certify the carbon footprint of our concrete types used in a building project. The first EPDs were awarded to CapitaLand for using our low-carbon concrete for a new building, Geneo, at 7 Science Park Drive.

In February 2024, we announced our partnership with Shell-backed Cleantech Solar to install 900 solar panels on the rooftops of our premises at Kaki Bukit, Singapore, and our slag grinding plant in Johor, Malaysia. This makes Pan-United a frontrunner in Singapore's concrete industry for reducing carbon emissions using solar energy.

Linking up with Cleantech is part of a three-year memorandum of understanding signed in 2022 with Shell to explore decarbonisation solutions for construction and urban solutions. We are looking at more opportunities in areas such as electric mobility solutions, circular use of materials and other digitalisation- enabled solutions.

Technology - A Strong Driver for Sustainability

We have made much headway with AiR Digital since developing it step-by-step inhouse from 2014 to optimise the use of our plants, trucks, workforce, and raw materials. This next-generation proprietary

software system enables Pan-United to make real-timedata-driven decisions to streamline day-to-day operations and allocate resources more efficiently. AiR Digital has created beneficial tailwinds for our sustainability cause, including saving energy and water as well as manpower costs. AiR Digital also enhances productivity by releasing employees to upskill for higher-value work.

We believe AiR Digital is a game changer for industry transformation through deep technology adoption. Our team

is marketing the system to overseas peers to encourage greater sustainability management, and to create a new asset- light revenue stream for Pan-United at the same time.

Contributing to The Community

We are honoured to receive the Partner Award from the National Heritage Board. Contributions from Pan-United include the provision of self-compacting concrete to the National Museum of Singapore, as the material that formed the base

of the AMX-13 SM1 tank display at the lawn of the museum. We also created an art installation comprising of 12 giant 3D-printedlow-carbon concrete letters for the Singapore Night Festival in 2022 and 2023.

We believe that nurturing young talent in our local community can help build a resilient future-ready workforce.

Pan-United proudly co-sponsored the Nanyang Technological University (NTU) Bridge Design Competition 2023, organised by the NTU Civil and Environmental Engineering Club. This event drew more than 130 teams from around the world.

With Gratitude

I would like to express my utmost gratitude to my fellow Pan-United Board members for their commitment and guidance as we navigate the uncertain macro and operational environment.

I would also like to thank our valued customers, partners, and shareholders for their continued vote of confidence in Pan-United, and for joining us on this journey. Finally, my sincere appreciation goes to all Pan-United employees for their convictions and contributions to Pan-United.

I believe that our sustainability journey has made strides and will require continued support from our employees. As the saying goes, if you want to go fast, go alone; if you want to go far, go together. Together, we can achieve greater things, and I look forward to what the future brings.

Yours sincerely,

Tay Siew Choon

Chairman

Sustainability is inherently embedded in our operations. Our purpose - "Decarbonising the World with Concrete" - clearly speaks of our commitment to building a greener future with low-carbon concrete solutions. The Board of Directors of Pan-United believes in establishing a sustainable future for our business and creating long-term value for our stakeholders.

The Board takes a holistic approach, oversees the Group's relevant sustainability agenda, and provides strategic direction to the Group's sustainability development. Our three-pronged sustainability goals - to offer only low-carbon concrete by 2030, offer carbon-neutral concrete by 2040, and to be a carbon-neutral company by 2050 - form the basis of our sustainability vision. As an industry leader in Singapore, Pan-United has an undisputable upstream role to play in reducing embodied carbon emissions which comprise a significant half of the Whole-Life Carbon (WLC) perspective, the other half being operational carbon emissions. Pan-United continuously innovates concrete solutions and expands its suite of technology offerings to widen its green offerings to the built environment community. Among its industry-leading initiatives is the introduction of on-demand EPDs (Environmental Product Declarations) which certify the carbon footprint of our concrete types used in a building project.

The Board is responsible for determining, overseeing the management and monitoring of the material ESG factors for Pan-United, in which 13 material issues are determined and adopted under the three ESG dimensions. The material topics were determined by the Board, the Senior Management, and key stakeholder groups in a prioritisation workshop in 2023. In addition, the Board oversees the implementation of Pan-United's sustainability strategies and continues to drive Group sustainability in our business and community.

After the materiality refresh this year, the Board has also structured the efforts around circular economy and regeneration within the system - where we reduce, reuse and recycle wherever possible. Pan-United has also matured the carbon capture and utilisation (CCU) technology processes to further reduce embodied carbon while achieving stronger concrete at the same time.

This report provides transparency on our business in the context of sustainability impact, performance, targets and other insights. We welcome and value all feedback or suggestions from stakeholders to help us further augment our sustainability practices and reporting. Please forward any comments on our sustainability report and programmes to [e-mail].

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PAN-UNITED CORPORATION LTD

BOARD

STATEMENT

Our Sustainability Approach: "We continue to review and rework our sustainability strategy to align with the ever-evolving industry landscape, believing in the potential of our concrete to decarbonise the world."

As one of Asia's largest producers of low-carbon concrete, we take a transparent sustainability reporting approach. This year, we conducted a refreshed impact materiality assessment, in line with the latest GRI 2021 Standards. With the help of independent external consultants, we re-identified and prioritised material topics most relevant to Pan-United. The scope of this exercise included our operations across Singapore, Malaysia and Vietnam.

This exercise allows us to keep up with the ever-changing sustainability regulations and identify the positive and negative impacts that our business operations may have on society and the environment. The impacts identified are country-specific, considering Pan-United's operating footprint and regional nuances. The significance of positive impacts is assessed based on their scale, scope and likelihood. On the other hand, negative impacts are additionally assessed using their irremediable character. The significance of negative and positive impacts is then consolidated into overall impact scores, which are ranked and prioritised. A materiality threshold is then determined relative to the range of impact scores, culminating in a final condensed list of material topics.

Materiality assessment process

Review of impacts

We performed a comprehensive review of all our business activities and identified ESG issues pertinent to the concrete and cement industry through the process of desktop research and peer benchmarking. From this, we derived a list of positive and negative impacts on the environment, people and economy, attributable to our business activities.

Shortlisting of impacts

We then shortlisted the actual and potential impacts that our operations or products and services create across the value chain.

Assessment of impacts

We assessed the significance of impacts by considering their scale, scope, irremediable character and likelihood, taking into account the relevancy of country specific characteristics of each impact.

Prioritisation of impacts

Using the above assessment, we prioritised each impact and grouped them with associated material topics. These topics were then streamlined and tailored to our specific operating context, referencing industry practice.

Validation with stakeholders

Our shortlisted material topics were then brought to Senior Management for initial consultation and validation, and were finally reviewed and approved at the Board level.

Our final list of material topics are as follows:

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

Environmental

• Waste Management
• Water Management
• Sustainable Products
• GHG Emissions
• Energy Management
• Biodiversity

Social

• Occupational Health and Safety

• Employee Engagement, Diversity,

and Inclusion

• Community Impact
• Product Quality and Safety

Governance

• Corporate Governance
• Sustainable Supply Chain Management
• Data Security

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PAN-UNITED CORPORATION LTD

STAKEHOLDER

ENGAGEMENT

We understand the importance of stakeholder engagement as they play a crucial role in our sustainability journey. To this end, we have continuously improved our engagement process over the past year to incorporate an active stance on the issue of sustainability.

As a key player in the built environment, we constantly engage various ministries and agencies on environmental issues, including the Ministry of National Development and its agencies (Building and Construction Authority, Urban Redevelpoment Authority, Housing Development Board); Land Transport Authority; Ministry of Sustainability and the Environment and its agencies (National Environment Agency, Public Utilities Board); A*STAR; National Heritage Board and EnterpriseSG.

Stakeholders	Areas of Interest	Our Commitment	Engagement Channels	Frequency of
				Engagement
Customers	• Product quality and safety	• To keep up with changing	• Customer feedback	• Ongoing
	• Customer satisfaction	customer demands and	• Meetings
		ensure the highest levels of
		customer service
Investors/	• Group financial performance	• To provide semi-annual	• Annual General Meeting	• Annual
Shareholders	• Group sustainability	announcements and	• Extraordinary General	• Ad-hoc
	performance	investor-related information	Meetings
		• Updates through our Annual	• Corporate Website	• Ongoing
		Report, Sustainability	• Social media
		Report, notices and letters	• Email chains
		to shareholders
		• General meetings
Employees	• Employee welfare and	• Employee health screenings	• Staff meetings and	• Ongoing
	satisfaction	and wellness talks	discussion
	• Workplace health and safety	• Employee training and	• Training programmes
	• Training and career	development	• Internal emails
	development	• Flexible working	• Employee intranet
		arrangements
Regulators/	• Regulatory compliance	• Collaboration and	• Regular meetings	• Ongoing
Government	(including sustainability-	knowledge sharing on
	related requirements and	environmental issues
	labour standards compliance)
	• SGX-listing requirements
Suppliers/	• Product quality and	• Regular engagement to	• Meetings	• Ongoing
Sub-contractors	delivery schedules	exchange feedback and	• Emails
	• Health and safety	concerns

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

KEY MILESTONES IN

OUR SUSTAINABILITY

JOURNEY

We declared our three sustainability goals in 2021, which are to:

• Only offer low-carbon concrete by 2030;
• Offer carbon-neutral concrete by 2040; and
• Be a carbon-neutral company by 2050.

Pan-United has a notable history in sustainability:

• We strive to be a leader in the built environment industry, by way of developing specialised concrete solutions and technologies to address the requirements of our customers, whom we regard as our partners. We have developed more than 300 types of specialised high-performing concrete, and half are low-carbon and green-certified.
• We are the first company to achieve the Singapore Green Building Council's (SGBC) "Leader" certification in February 2017.

2001	2008	2009
Use of green	Supply to 1st Carbon	Achieved Singapore
cement (GGBS)	Neutral project in	Green Label
	South-East Asia

2017	2012	2010
Achieved SGBC	Accredited as Waste	1st concrete waste
"Leader" certification	Management and Recycling	recycling plant
	Association of Singapore
	(WMRAS) RCA Supplier
2017	2018	2019
Singapore Environment	1st in Asia to adopt	SGBC-BCA
Council - Singapore	CO2 mineralisation	Sustainability
Environmental	technology	Leadership award
Achievement Award
2050	2040	2030
Become carbon-neutral	Offer carbon-neutral	Offer only
company	concrete	low-carbon concrete

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PAN-UNITED CORPORATION LTD

FY2023

HIGHLIGHTS

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

SUSTAINABILITY

GOVERNANCE

Signed agreements to install 900 solar panels across operations in Singapore and Malaysia, by partnering with Shellbacked Cleantech Solar.

This initiative makes Pan-United a frontrunner in Singapore's concrete industry in reducing carbon emissions using solar energy.

Reduced cement transport emissions by importing 52,000 tonnes of cement carried in the largest bulk carrier ever to berth at Jurong Port.

Signed an MOU with industry leaders

(Chevron, Surbana Jurong, Keppel, Osaka Gas, Air Liquide and Pavilion Energy) to explore low-carbonopportunities in line with Singapore's net-zero2050 goal.

Received the Partner Award at the annual

Patron of Heritage Awards organised by the National Heritage Board for contributing concrete and expertise to installations and displays at the National Museum of Singapore and Singapore Night Festival 2023.

Set to supply over

360,000m3 of carbon dioxide (CO2) mineralised concrete over a 2.5-year period

for Tuas Port.

Once completed in early 2024, Tuas Port will become a man-made carbon sink that prevents over 113.8 million kg of CO2 from entering the atmosphere, showcasing our commitment to champion sustainability in Singapore and globally.

Participated in and presented at various prominent large-scale sustainability-relatedevents including: SIBL Sustainability Seminar 2023, BuildSG LEAD Summit, Canada-Vietnam 50th Anniversary Clean Energy Partnership Conference.

Pan-United believes that ethical and fair leadership and governance are essential in ensuring robust and sustainable operations. In certain regions where we operate, such as Singapore, we are subject to specific governance disclosure and related regulations established by the Ministry of Manpower (MOM), the National Environment Agency (NEA) and the Singapore Exchange (SGX).

At Pan-United, we are committed to upholding the highest standards of integrity, ethics, and transparency in all aspects of our business operations. We recognize that corruption poses significant risks not only to our Group but also to the communities and environments in which we operate.

As part of our dedication to sustainability and responsible business practices, we established a comprehensive employee Code of Conduct, which sets out guiding principles for employees to carry out their duties to the highest standards of business integrity. The Code of Conduct also encompasses our anti-corruption policy that outlines our zero-tolerance approach towards bribery, extortion and other forms of corrupt practices. Regular trainings are provided to ensure that all of our employees understand their responsibilities under our Code of Conduct. In FY2023, 100% of our employees completed their Code of Conduct training.

In addition, to protect our employees and operations against misconduct, unethical practice and corruption, we have put in place a whistle blowing policy. This provides a channel for employees and other persons to raise their concerns directly to the Audit Committee (AC) Chairman on possible improprieties or misconducts.

In November 2023, Pan-United pledged its commitment to the Corporate Governance Statement of Support during the Securities Investors Association (Singapore) Corporate Governance Week. This signifies our support of robust corporate governance practices to ensure responsible business conduct and standards. We also continue to pursue business opportunities that align with our green agenda while advocating the use of low-carbon building materials and technologies to decarbonise the built environment.

The Board has the ultimate responsibility for the overall governance of the Group, including sustainability governance. The Board is responsible for approving and overseeing our sustainability ambition, embedding it into business decision-making, and monitoring our sustainability performance against targets, with the support of the AC. Further responsibilities include but are not limited to, overall strategy, reviewing material topics, ESG risk, performance review and sustainability reporting. Please refer to our Annual Report 2023, pages 24 and 25, for more information on the board composition and independence.

The Senior Management has the responsibility to update and advise the Board on the Group's sustainability initiatives and its progress, and matters pertaining to climate-related risks and opportunities. They are also responsible for identifying macroeconomic drivers and sectoral trends, including reviewing actual or potential climate-related issues that are material and critical to the Group.

Our sustainability core team is a cross-disciplinary taskforce that reports to our senior management team. The sustainability core team comprises different working groups, which are responsible for the development and deployment of Pan-United's sustainability initiatives. These include, but are not limited to: Renewable Energy, Concrete Innovation, Sustainable Materials, Workplace Safety & Health, Vendor & Supply Chain Management.

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PAN-UNITED CORPORATION LTD

ENVIRONMENTAL

At Pan-United, we strive to minimise our environmental impact by decarbonising cities with greener, lower-carbon concrete and providing an industry-leading source of green concrete innovation for the built environment across various sectors. Circularity is central to this agenda.

Our efforts have been largely structured around upcycling waste, water and becoming regenerative within the system. We believe it is vital to invest in research and development (R&D) to provide, advocate and promote the use of low-carbon concrete for a resilient and sustainable value chain.

As we continue in our sustainability journey, we aim to continue partnering and collaborating with companies in the low-carbon concrete space and to explore the feasibility of alternative energy options to power our local operations.

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

WASTE MANAGEMENT

[GRI 306]

Why this issue is material

The "Take-Make-Waste" model is at the core of climate change. This is why we are committed to making the shift to a circular economy, and optimising resource consumption. As a common industry practice, left-over concrete is not used and returned by customers, and these represent a sizeable portion of our waste generation. Given the landfill space constraints, it is important to put in our best efforts to reduce and recycle waste generated in our operations, so as to minimise the stress imposed on our natural environment.

Management Approach [GRI 3-3]

Our waste components comprise of left-over concrete, normally known as hardcore concrete, and general waste. To minimise its impact on the environment, our concrete waste is upcycled and converted into useable recycled concrete aggregates (RCA).

We have also continued to disseminate electronic delivery orders and electronic invoices to our customers, remaining paperless in most of our customer communications. Internally, we have also provided recycling bins to encourage green habits among our employees. Our employees continue to adapt well to waste management initiatives and consciously seek to reduce the amount of waste disposed.

Performance

This year, our non-hazardous waste generated from operations was 2.7% of total input materials. We have no hazardous waste generated from operations across the entire group. Highlighting our focus on circularity, around 66% of our waste generated was recycled and diverted from disposal. Forging ahead, we will continue to work towards reducing our non-hazardous waste generation to 2.5% of total input materials used and promote circularity in our products.

Group	FY2023
Total waste generated from operations	2.7%
(as a % of total input materials)
Hazardous	-
Non-Hazardous	2.7%
Total waste diverted from disposal and recycled in operations	1.8%
(as a % of total input materials)
Onsite	1.8%
Offsite	-

FY2024 Targets

Reduce non-hazardous waste generation to 2.5% of the total input materials

No generation of hazardous waste

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PAN-UNITED CORPORATION LTD

WATER MANAGEMENT

[GRI 303]

Why this issue is material

Water is integral to concrete production processes. We recognise our reliance on this scarce resource in our daily operations. We acknowledge that unsustainable water use can result in water stress, especially in water-scarce locations like Singapore. There is also the risk of contamination of water supplies associated with the withdrawal of water and wastewater services. We are committed to improving our processes to ensure responsible water usage and management in the long-term and mitigate harm to relevant communities.

Management Approach [GRI 3-3]

At Pan-United, we utilise NeWater in our operations as well as rainwater harvesting in order to reduce our freshwater withdrawal and minimise the risk of water stress. NeWater is treated as wastewater produced by PUB, the national water agency of Singapore, which has been further purified using advanced membrane technologies and ultraviolet disinfection. Rainwater harvesting is practiced in mini-treatment plants located within our concrete batching plants. The rainwater collected is used for activities such as washing our trucks and wetting the grounds of our plants to control dust particles in the air.

We have continued to recycle as much water as possible across our operations, lowering our dependency on water withdrawal and third-party providers. Total water consumption for FY2023 was 1,324 cubic meters, of which 16.7% came from recycled water and the remainder from third-party providers. We are aiming to explore new avenues for water recycling, and increase the usage of recycled water in FY2024 to 17.5% of total water consumption. None of our water withdrawn or consumed this year has been taken from water-stressed areas. We did not discharge any wastewater.

Group	FY2023
Proportion of recycled water consumed (as a % of total water consumption)	16.7%
Water intensity (ML/million SGD sales)	1.7

Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

SUSTAINABLE PRODUCTS

[GRI 301]

Why this issue is material

Accelerating the green transformation of the economy and society becomes increasingly urgent in order to achieve the required level of decarbonisation and limit the global temperature increase to below 1.5°C.

Pan-United aims to develop more sustainable products to help our customers in their low-carbon transition. We are driven to innovate to reap positive benefits for our customers and the broader community, and where our customers can use our products to achieve savings from avoiding emissions.

Management Approach [GRI 3-3]

We set targets in FY2023 to increase the proportion of recycled and reused materials in our products. These include ground granulated blast furnace slag (GGBS), recycled concrete aggregates and washed copper slag.

Pan-United continues to participate in the Waste Management Recycling Association of Singapore (WMRAS) accreditation scheme, which examines our recycled concrete aggregates and crushers. In our commitment to being transparent with stakeholders, the scheme includes an annual audit to keep our operations accountable.

We also collaborate with CarbonCure to incorporate their technological solutions into our products and operations. This includes the carbon capture and utilisation (CCU) technology that allows Pan-United to inject captured CO2 into our concrete during the mixing process, where the CO2 will be mineralised and permanently embedded in the concrete. This creates stronger concrete while capturing CO2, mitigating harm to the environment.

Pan-United Concrete Director of Operations & Sustainability, Chan Wai Mun, received the Singapore Green Building Product Certification (4 Ticks) for our low-carbon concrete.

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PAN-UNITED CORPORATION LTD

SUSTAINABLE PRODUCTS

[GRI 301]

Another recent collaboration was in January 2024 (left) when Pan- United signed an MOU with other industry leaders to explore low-carbon opportunities in aligning with Singapore's goal of achieving net-zero emissions by 2050. Our partners include Chevron Singapore, Surbana Jurong, Keppel, Osaka Gas Singapore, Air Liquide Singapore and Pavilion Energy. We will exchange ideas, share technical insights and collaborate in R&D work.

Also in January 2024 (below), CapitaLand became Singapore's first real estate developer to have a new building project - Geneo at 7 Science Park Drive - certified with Environmental Product Declarations (EPDs) for using Pan-United'slow-carbon concrete for superstructure works. An EPD ensures maximum transparency of the environmental impact of building materials used, by certifying the measure of their carbon footprint.

Performance

In FY2023, the proportion of recycled materials used in our concrete was at 9.1%.. However, to further enable our customers to decarbonise and reduce our products' impact on the built environment, we will work towards increasing the proportion of recycled materials used in our concrete to 10% for next year.

Group	FY2023
Proportion of recycled materials used in our concrete	9.1%

FY2024 Target

To increase the proportion of recycled materials used in our concrete to 10%

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Shaping a Sustainable Future with Concrete Technology | Sustainability Report 2023

GHG EMISSIONS

[GRI 305]

Why this issue is material

Concrete is the most used man-made material on earth. With its manufacture and applications come a series of environmental impacts. At least 8% of global emissions caused by humans is derived from the cement industry alone. Pan-United recognises the urgent need for sustainable practices in the concrete and building solutions industry to mitigate the impact of climate change. As a leading concrete manufacturer, we are committed to implementing comprehensive strategies throughout our operations to reduce the environmental impact of CO2 emissions.

Management Approach [GRI 3-3]

We have pledged to develop sustainable concrete products and we are aiming to offer only low-carbon concrete by 2030, and offer carbon- neutral concrete by 2040. We invest significantly in our research and development (R&D) in specialised low-carbon products, and we strive to form partnerships with reputable industry bodies and peers to advocate and promote the use of low-carbon concrete.

We are also exploring methods to power our operations via alternative energy resources, such as solar panels and electric gensets.

Performance

Raising Industry Awareness of Decarbonisation and Digitalisation

As a strong advocate of decarbonisation, Pan-United is actively involved in promoting industry awareness of the significance of whole- life carbon and how embodied carbon plays a key role in reducing carbon emissions.

We also firmly believe that as an industry leader, we are best positioned to advocate the benefits of digitalisation to ensure a sustainable built environment. Many of these initiatives work in tandem to help us and the industry to lower emissions and become more sustainable.

When it comes to advocacy and thought leadership, Pan- United has taken steps to engage with our peers through events and conferences.

In May 2023, Pan-United CEO May Ng (left) was a panellist at the BuildSG LEAD Summit organised by the Building and Construction Authority. Focusing on "Transforming the Built Environment Value Chain", she shared her insights on the importance of decarbonisation and digitalisation in the built environment.

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