Sustainability Report 2022: Building a Sustainable Future

CONTENTS

Board Statement

PG 02

Corporate Profile

PG 03

• Key Businesses PG 06

Our approach to Sustainability

PG 11

• Reporting Standards and Boundaries PG 12
• Reporting Period and Scope PG 12

Accountability to Stakeholders

PG 13

• Highlights in FY2022 PG 15
• Materiality Topics PG 16

Economic Contribution to Society PG 18

Governance

PG 20

• Compliance with laws and regulations PG 21
• Risk Management PG 22
• Food safety PG 22

• Food Security PG 23
• Supply Chain Management PG 23
• Supplier Environmental Assessment PG 23
• Supply Chain Traceability PG 24
• Marketing and Labelling PG 25

Social

PG 26

• Local Communities PG 26
• Employment Practices PG 27
• Training and Education PG 29

Environmental

PG 30

• Energy and Carbon Footprint PG 30
• Materials PG 33
• Packaging Life Cycle Management PG 33

GRI Content Index

PG 34

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BOARD STATEMENT

We would like to express our deep appreciation to our stakeholders for their unwavering support during a time of great challenge in the FMCG industry's ever-evolving business landscape. We are proud to announce the Group's acquisition of C.K.H. Food Trading Pte Ltd, which marks a significant milestone in our Group's development as we continue to navigate the challenges ahead.

Along the extension of our group, supply chain management has become increasingly complex and vulnerable to environmental, social, and governance (ESG) risks, which has been further exacerbated by the COVID-19 pandemic, as well as the incremental demands on accountability and transparency in ESG performance. To address these challenges, we are committed to building a more traceable and transparent supply chain and embedding sustainability and ethical practices in our operations.

Climate change has posed more risks to resilient growth, while, in Singapore, there has been a surge in Uniform Singapore Energy Price (USEP) and upwards-trended regulated Electricity tariffs. Our commitment to sustainable development in the region is reflected in our effort to measure and report our carbon footprint, including Scope 1 and Scope 2 emissions of Greenhouse Gas; we also plan to expand to Scope 3 emissions in the following year. Since 2017, we have increased the share of renewable energy to 10.9% in 2022. In 2023, new solar panels will be installed on more rooftops of our facilities in Singapore and Malaysia. Through various green initiatives, we aim to contribute to the implementation of the Singapore Green Plan 2030.

Upholding good governance in line with our desire to have a more open, transparent, and collaborative workplace, we are dedicated to building a culture of holistic wellness and upskilling our staff to be future-ready, and equip them with relevant skills and positive mental attitude to navigate through these tough times. We have prioritized employee welfare by maintaining a safe and healthy environment for our staff to work in, and fostering a sense of sustainability amongst staff at all levels. Inclusivity is a priority for us, and we have ensured diverse expertise and experience in our board composition.

We extend our sincere gratitude to our stakeholders for their continued support and trust in our group. We recognize that achieving our sustainability goals requires collaboration with our suppliers, customers, investors, and communities, and we are committed to building a more sustainable future. We remain dedicated to innovation, resolution, and unwavering commitment to achieving our sustainability goals.

Dr Goi Seng Hui

Executive Chairman

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CORPORATE PROFILE

ABOUT PSC

PSC Corporation Ltd ("PSC" or the "Group") is a leading Fast-Moving Consumer Goods (FMCG) provider for essential food staples. With significant presence in Singapore and Malaysia, it has offices and manufacturing facilities in both countries to distribute and market a wide range of safe, quality consumer products.

Established in 1974, PSC is a homegrown consumer essentials provider. Some of the familiar consumer household brands that we own and distribute include Royal Umbrella rice, Golden Peony rice, Golden Circle, Soyalite, and Harmuni oil, Fortune tofu, and Beautex paper products. With customers' interest at the heart of everything we do, we strive to continuously innovate and improve our product offerings and services. With the belief in contributing positively to our community and stakeholders, PSC continues to focus on driving strategic investments and partnerships, innovative product development to grow new markets and serve more customers in the region. The acquisition of C.K.H. Food Trading Pte Ltd marks another step in the expansion of the Group's distribution channels and brings various synergies into PSC's business.

We believe in providing only the best quality products at the best value to our customers. We pride ourselves in placing their needs and interests at the heart of our business. To build a successful and holistic business, we must be clear in our mission and core values. 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 has been publicly listed on the Main Board of the Singapore Exchange since 25 October 1990. We aim to grow from strength to strength through achieving operational excellence and building strong financial capabilities.

Our Vision

To be a multi-faceted consumer essentials company with

strategic investments in the region

Our Mission

Building strong	Fostering an	Providing	Achieving	Building strong
	partnerships,	open and	innovative	operational	financial
	growing new	creative culture,	products, portfolio	excellence	capabilities
	markets	attracting and	building, meeting
		nurturing talents	stakeholders'
			needs

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CORPORATE PROFILE

ORGANISATIONAL PROFILE

PSC Corporation Ltd

100%

Topseller Pte Ltd

(SG office)

Marketing and sale of

agency lines and

proprietary brands

100%

Fortune Food

Manufacturing Pte Ltd

(SG Factory)

Manufacturing of soya bean products

74%

Tipex Pte Ltd

(SG office)

Supply of provisions and

household products

64%

Tat Seng Packaging

Group Ltd

(Singapore and China

Factories)

Manufacturing and sale of corrugated paper packaging products

100%

SOCMA Trading (M)

Sdn Bhd

(rented Subang Jaya warehouse)

Marketing and sales of household consumer products

80%

C.K.H. Food Trading Pte Ltd & 123 Mart*

Wholesale and

distribution of food

products

Fortune Food

Manufacturing Sdn Bhd

(Johor Tebrau Factory)

Manufacturing of

noodle

Tips Industry (M)

Sdn Bhd

(Johor Bukit Batu factory) Packaging and sale of paper products

Fresh Fruit Juice

Manufacturing (M)

Sdn Bhd

(rented JB factory) Manufacturing of grass jelly products

*123 Mart ceased operations in October 2022.

ORGANISATIONAL SCALE

Total Staff

Strength

851

Total

Equity

$398

million

Revenue

$553

million

Total

Borrowings

$79

million

Total

Cash & Cash

Equivalents

$194

million

As of 31 December 2022

HQ LOCATION

Our main office is located at 348 Jalan Boon Lay Singapore 619529

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