Jardine Cycle & Carriage : Sustainability report 2022

Sustainability Report 2022

CONTENTS

JC&C AT A GLANCE

SUSTAINABILITY AT JC&C

APPENDIX

CONTENTS

JC&C AT A GLANCE
Board Statement	2
Group Overview	3
SUSTAINABILITY AT JC&C
Our Sustainability Governance	4
Our Sustainability Framework	5
Safeguard Shareholder Value	6
Stakeholder Engagement	6
Approach to ESG Materiality	7
-	Material ESG Topics	7
TCFD Disclosures	8
-	Governance	8
-	Risk Management	8
-	Strategy	9
-	Metrics and Targets	13
Encourage Climate Action	14
Environmental Performance	14
Decarbonisation	15
Biodiversity	15
Responsible Consumption	16
-	Energy	16
-	Water and Effluents	17
-	Waste	17

Advance People and Communities	18
Social Performance	18
Talent Management	19
Training and Education	20
Diversity and Equal Opportunity	20
Workplace Health and Safety	21
Human Rights	23
Driving Positive Change in	23
our Communities
-	Supporting Mental Health	24
	through MINDSET
-	Contributing to Education	26
	in Southeast Asia
Business Ethics, Integrity	27
and Transparency
Governance Performance	27
Code of Conduct	28
Anti-corruption and Bribery	28
Tax Governance	29
Cybersecurity and Data Privacy	30
Whistle-blowing	30
APPENDIX
2022 Performance Data	31
GRI Content Index	40
List of Policies	52
Independent Limited Assurance	55
Statement

ABOUT THIS REPORT

GRI 2-2,2-3,2-4,2-5

Jardine Cycle & Carriage Limited ("JC&C" or "the Group") is a Singapore-listed investment holding company with interests across Southeast Asia.

REPORTING SCOPE AND PERIOD1

This Sustainability Report ("SR2022") covers the material Environmental, Social and Governance ("ESG") disclosures of JC&C and our operationally controlled portfolio companies, namely the companies in Astra, Cycle & Carriage Singapore, Cycle & Carriage Bintang and Cycle & Carriage Myanmar for the financial period from 1st January to 31st December 2022 (the "Reporting Period"), unless otherwise stated.

SR2022 focuses on the primary role of JC&C as an investment holding company and its approach towards sustainability at the Group-level. Sustainability management is determined individually by the various subsidiaries and associates within the Group for their operations.

REPORTING STANDARDS AND GUIDELINES

SR2022 is prepared with reference to the Global Reporting Initiative Universal Standards 2021 ("GRI Standards") and incorporates the recommended disclosures from the Task Force on Climate-related Financial Disclosures ("TCFD"). This report also complies with the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Rules 711A and 711B and incorporates SGX-ST's enhanced disclosure requirements on climate-related information released in 2021.

Our sustainability reporting process is subjected to a periodic review by our internal auditors, in compliance with Rule 711(B)(3) of the SGX-ST Listing Manual. The last review was performed in November 2022 as part of the 2022 internal audit plan. JC&C engaged PricewaterhouseCoopers ("PwC") as its external assurance provider to independently assure a selection of its ESG metrics. The independent limited assurance statement can be found on pages 55 to 57.

If restatement of information were made, they will be indicated in the report. No hard copies of this report are printed as part of our efforts to promote resource conservation.

CONTACT

We welcome any feedback on this report and any aspect of our sustainability practices. Please direct your comments and suggestions to [e-mail].

1 JC&C employs over 240,000 employees. However, based on the scope and period of this report, JC&C and our operationally controlled portfolio companies employ 200,137 employees. References to 'Astra' throughout the report would refer to the consolidated data of the Astra group comprising 270 companies, including its joint ventures and associates unless otherwise stated.

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CONTENTS

JC&C AT A GLANCE

SUSTAINABILITY AT JC&C

APPENDIX

BOARD STATEMENT

GRI 2-22

Through our portfolio

of market-leading businesses in the region, we seek to grow faster than Southeast Asia, sustainably.

At JC&C, we firmly believe that improving our ESG performance is vital to the long-term success of our operations in Southeast Asia and the development of communities in the region. This is why we have embedded sustainability as a core pillar of our corporate strategy, and one that shapes our business and investment decisions, capital allocation and operations.

Southeast Asia is an exciting market with vast economic growth potential. Through our portfolio of market-leading businesses in the region, we seek to grow faster than Southeast Asia, sustainably.

It is important to us that our growth contributes to the region's progress, to the advancement of its people and to the creation of opportunities that benefit our stakeholders.

We are pleased that our efforts have borne fruit during the year.

In 2022, we made further headway in transitioning our portfolio for the future. This included adopting the Jardine Matheson Group ("Jardines") policies and commitments on ESG topics, as well as publishing our inaugural climate change report based on the recommendations from TCFD. Having conducted detailed studies to understand our portfolio's climate risks and opportunities, we included in the report an analysis of our exposure to the coal industry, as well as our plans to increase our investments in renewable energy and to facilitate a timely transition to electric vehicles for our automotive businesses. We have since integrated the findings into our risk management system, business decisions and investment strategies.

Recognising the long-term risk that coal poses to our portfolio, we announced plans to manage our exposure by not investing in new coal mines or coal-fired power plants. We also aim to grow our non-coal related revenue from 76% in 2022 to 90% by 2030.

We continued measuring our Scope 1 and 2 emissions in 2022 and developed reduction targets. Moving forward, we

will continually review our progress in this transition journey and develop decarbonisation pathways for key sectors in which we have invested.

Beyond environmental concerns, JC&C has always placed a high priority on corporate governance. In 2022, we were placed in the top 11% of the S&P Global Corporate Sustainability Assessment under the Industrial Conglomerate category. We were also honoured to have been shortlisted for the Best Managed Board at the Singapore Corporate Awards ("SCA") 2022. The SCA is the leading award programme for Singapore-listed companies and the category of Best Managed Board is its highest honour.

Social inclusion is also a key focus area of the Group. We support three United Nations Sustainable Development Goals ("UN SDGs") that we identified as priorities: Good Health and Well-being ("SDG 3"), Quality Education ("SDG 4") and Decent Work and Economic Growth ("SDG 8"). We refined our social inclusion strategy during the year and will focus on investing in local communities and individual professional growth for our employees. In addition, we continued to champion awareness of the importance of mental health, a cause we have supported over the past decade. In 2022, we were delighted that Jardines' mental health charity, MINDSET, was awarded the "Charity Transparency Award" and the "Charity Governance Award" by the Charity Council and Ministry of Culture, Community and Youth.

We are grateful for the support from our portfolio companies, employees, shareholders and other stakeholders in our sustainability journey. We look forward to continuing purposeful collaborations with them to deliver strong, sustainable growth for the region and a positive impact on our communities.

Ben Birks

Executive Board Director and Group Managing Director Representative for the Board of Directors

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CONTENTS

JC&C AT A GLANCE

SUSTAINABILITY AT JC&C

APPENDIX

GROUP OVERVIEW

GRI 2-1,2-6

JC&C is the investment holding company of Jardines

in Southeast Asia. Listed on the Singapore Exchange and 76%-owned by Jardines, JC&C is a constituent of the Straits Times Index and MSCI Singapore Index.

By investing in the region's market leaders, JC&C aims to create evermore opportunities for our stakeholders in Southeast Asia. Together with its subsidiaries and associates, JC&C provides over 240,000 jobs across Southeast Asia.

• Astra, a prominent Indonesian group participating in

automotive, financial services, heavy equipment, mining,

construction & energy, agribusiness, infrastructure &

logistics, information technology and property.

For further information on specific sustainability performance and practices, please refer to the respective annual sustainability reports, annual reports and/or corporate websites. Note that the following businesses publish their own sustainability reports:

• PT Astra International Tbk - view reporthere
• PT Astra Otoparts Tbk - view reporthere
• PT United Tractors Tbk - view reporthere
• PT Astra Agro Lestari Tbk - view reporthere

• PT Astragraphia Tbk - view reporthere
• Tunas Ridean - view reporthere
• REE - view reporthere
• SCCC - view reporthere
• Vinamilk - view reporthere

The list of principal entities within the Group can be found in our consolidated Financial Statements 2022.

•	Truong Hai Group Corporation ("THACO"), a fast-growing
	Vietnamese group operating in automotive, real estate
	and agribusiness.
•	Direct Motor Interests ("DMI") making up an extensive
	dealership network through the Cycle & Carriage
	businesses in Singapore, Malaysia and Myanmar, and
	Tunas Ridean in Indonesia.
•	Other Strategic Interests comprising Refrigeration
	Electrical Engineering Corporation ("REE") in Vietnam with
	interests in power and utilities, including renewable
	energy, property development and office leasing, and
	mechanical & electrical engineering; Siam City Cement
	("SCCC") operating in Thailand, Vietnam, Sri Lanka,
	Cambodia and Bangladesh; and Vinamilk, the leading
	dairy producer in Vietnam.

Our subsidiaries and associates actively manage the sustainability practices relevant to their respective businesses and communities in which they operate.

Jardine Cycle & Carriage

Astra		THACO		Direct Motor Interests		Other
50.1%-owned		26.6%-owned				Strategic Interests
Automotive		Automotive		Cycle & Carriage Singapore		REE
		100%-owned		33.6%-owned
Financial Services		Real Estate		Cycle & Carriage Bintang		SCCC
Heavy Equipment, Mining,		Agribusiness		96.9%-owned		25.5%-owned
Construction & Energy
				Cycle & Carriage Myanmar		Vinamilk
Agribusiness				60%-owned		10.6%-owned
Infrastructure & Logistics				Tunas Ridean
				49.9%-owned
Information Technology
Property

Information as at 17th March 2023

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CONTENTS

JC&C AT A GLANCE

SUSTAINABILITY AT JC&C

APPENDIX

OUR SUSTAINABILITY GOVERNANCE

GRI 2-12,2-13,2-14

At JC&C, we integrate sustainability at the highest governance level. Our Board of Directors (the "Board") provides strategic guidance on ESG matters and is responsible for overseeing the Group's sustainability reporting. ESG is a standing item on the agenda of every Board meeting. The Board reviews and approves the material ESG topics on an annual basis, ensuring that these factors are considered in the determination of the Group's overall direction and portfolio strategy as well as monitored and managed by management. Specifically for new investments and significant capital expenditure decisions, the Board assesses the ESG due diligence conducted by management, which includes an analysis of various ESG issues. Supporting the Board is the board-level Audit & Risk Committee that is

AUDIT & RISK COMMITTEE			BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

GROUP MANAGING DIRECTOR / CHIEF SUSTAINABILITY OFFICER

SUSTAINABILITY COMMITTEE

responsible for overseeing the management of all risks faced by the Group, including ESG risks.

The JC&C leadership team, the Executive Committee ("Excom"), is responsible for shaping the Group's sustainability strategy by steering the ESG agenda and incorporating relevant elements into annual budget discussions, long-term portfolio strategy and capital allocation plans. Given this, ESG considerations are factored into management's performance incentives.

RISK MANAGEMENT

COMMITTEE

ESG & Sustainable Development

Group Finance

Risk & Compliance

Legal

Communications

Human Resources

Sustainability Working Group

The majority of the discussions and decisions take place at the management-level Sustainability Committee meetings, which comprises Excom members as well as the heads of departments from ESG & Sustainable Development, Group Finance, Risk & Compliance, Legal, Communications and Human Resources ("HR"). The committee convenes quarterly

Board-level	Management-level	Working-level	PORTFOLIO COMPANIES

and is responsible for planning Group-wide initiatives in addition to setting goals and targets. These action plans are then executed by the Sustainability Working Group, which is composed of a wider range of employees from different levels. The working group convenes monthly to implement strategy, monitor trends and discuss issues.

There is a standalone ESG & Sustainable Development department, reporting directly to the Group Managing Director. This team coordinates the sustainability efforts across the Group by working closely with the different departments within JC&C as well as the sustainability teams within each portfolio company. In addition, they

provide advice on sustainability matters and are responsible for collating ESG data for reporting purposes.

For a complete description of Corporate Governance at JC&C, please refer to our Annual Report 2022.

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