Far East : Sustainability Report

SUSTAINABILITY REPORT 2022

Table of Contents

• Board Statement
• About this Report
• Corporate Profile
• Sustainability at Far East Group Limited
• Environment
• People
• Marketplace
• Our Memberships, External Initiatives and Charters
• GRI Content Index

This sustainability report has been reviewed by the Company's sponsor, SAC Capital Private Limited (the "Sponsor"). This sustainability report 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 Ms Lee Khai Yinn (Telephone number: [phone]) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

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Far East Group Limited Sustainability Report 2022

Board Statement

Far East Group Limited ("Far East Group", and together with its subsidiaries, the "Group") is pleased to publish our sustainability report (the "Report") for the financial year ended 31 December 2022. Sustainability considerations are key to our long-term business strategy and we appreciate the opportunity to present our achievements and ambitions.

The board of directors (the "Board") is responsible for the oversight of the sustainability agenda and strategy and has been involved in the determination of the material factors.

While it is not mandatory for Far East Group to provide climate-related disclosures in our industry, the Group intends to establish a roadmap for alignment with the Task Force on Climate-related Financial Disclosure ("TCFD") framework. Relevant TCFD climate disclosures are still in progress, and will be considered in future reporting periods. The management will establish processes and procedures for identification and assessment of climate-related risks and opportunities to include relevant physical and transitional risks, as well as opportunities. Impact of such climate-related risks and opportunities would also be measured and enhanced.

The Group is committed to strengthening its resilience toward a more sustainable future. Embedding sustainability into each business segment would enhance and expedite our overall objective for the Group to significantly lower our overall carbon emissions. The year 2022 is the first year the Group embarks on our journey towards meeting the Greenhouse Gas Emissions ("GHG") targets and it will be the baseline year for future references. Scope 2 would be more immediately addressed based on available source data on energy consumption while Scope 1 would be explored and addressed in the following year. Scope 3 would be a challenge as it is generally not within the Group's control or more difficult to compute, but we commit to work with our partners to develop a better understanding and aim to work with them to reduce the carbon emissions in this area together.

The management has formed a sustainability council that works under the guidance of the Board to ensure that sustainability practices are executed across the different business units. With the assistance of the sustainability council, the Board has determined the Environmental, Social and Governance ("ESG") factors that are material for the continuity of the Group's business.

Our material factors are categorised into three key segments:

• Environment
• People
• Marketplace

Environment

The refrigeration and air-conditioning industry can play a significant role in reducing its impact on the environment. The phasing out of harmful gases and development of energy-efficient products are two areas that can yield mutual benefit to both our business and society at large, and the Group has been working towards achieving these objectives.

People

We recognise that our people are key drivers for our success. We place great emphasis on nurturing them by enhancing their training and development and taking care of their health and safety.

Marketplace

It is our responsibility to exceed expectations of our stakeholders in the market. We strive to do so by delivering high-quality and safe products, maintaining financial stability, promoting ethical behaviour and tackling the risk of cybersecurity through robust policies and measures.

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Far East Group Limited Sustainability Report 2022

We would like to thank our staff for their hard work in contributing to this Report and a successful year for the Group.

Board of Directors

25 April 2023

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Far East Group Limited Sustainability Report 2022

About this Report

Scope and Boundary

This Report covers our sustainability practices and performance for the financial year ended 31 December 2022 ("FY2022"). This Report covers all significant subsidiaries in the Group across the markets which the Group operates in, namely Singapore, Malaysia, Vietnam, Indonesia, Hong Kong and China unless otherwise stated. A list of entities excluded from this Report and reasons for their exclusion are disclosed below. Entities where the Group does not have operational control are also excluded. All figures are represented in Singapore dollars. There were no significant changes to the Group's segments, value chain and other business relationships during the reporting period compared with the previous year.

* Definition of immateriality for entities excluded refers to entities having both revenue and net asset value less than SGD 1 million.

This Report has been prepared in compliance with Rules 711(A) and 711(B) of the Listing Manual B: Rule of Catalist of the SGX-ST, and with reference to the Global Reporting Initiative ("GRI") Universal Standards 2021, which is a globally recognised sustainability reporting framework, and its reporting principles are relevant to the Group's business.

The Report identifies the ESG factors which are material to the Group. The policies, practices, performance and targets follow on from our report last year, reporting on our material factors covering primarily the Group's operations.

External assurance and feedback

We have not obtained external assurance for this Report. We engaged PricewaterhouseCoopers Risk Services Pte. Ltd. ("PwC") to conduct an internal review on the Group's sustainability reporting framework and processes. We relied on our internal verification processes to validate the accuracy of our reporting. Nevertheless, we plan to seek external assurance in future. We are fully committed to listening to our stakeholders and we value your feedback. Should you have any questions about this Report, please feel free to reach us at [e-mail].

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Far East Group Limited Sustainability Report 2022