SATS : Sustainability Report 2020-21

Renewed Vigour

SATS LTD.

Sustainability Report 2020-21

•

•

•

•

•

•

•

•

•

Renewed

PCEO & Board

Our Sustainability

Feed & Connect

Develop Smart

Reduce Food &

Nurture Skills

GRI

Annexes

Vigour

Statement

Framework

Communities

Infrastructure

Packaging Waste

for the Future

Disclosures

Renewed Vigour

COVID-19 has presented challenges, but it has also given SATS the opportunity to accelerate its transformation. Faced with the circumstances, the company has adapted and redesigned its systems and processes to become more sustainable for its stakeholders, financially and operationally. It may take some years for there to be any post-pandemic normalcy, but SATS has germinated the seeds to achieve sustained productivity gains and resilience. As these initiatives take root, they will reinvigorate the business of SATS.

Contents

•

Renewed Vigour

•

PCEO & Board Statement

PCEO Statement	2
Board Statement	4

•

Our Sustainability Framework

SATS New Sustainability Framework	5
Sustainability Governance Structure	6
Progress and Achievements on Sustainability	7

•
Feed & Connect
Communities	8
Living Our Purpose	9
Living Our Purpose Thila	10
Living Our Purpose Syed	11
Living Our Purpose Food Solutions Team	12

•

Develop Smart

Infrastructure 13

In Conversation with Spencer Low	14

•
Reduce Food &
Packaging Waste	18
In Conversation with Kerry Mok	19
Case Study: Collaboration with Singapore Airlines	22

•
Nurture Skills
for the Future	24
In Conversation with Lilian Tan	25
Case Study: SATS Academy	28
Case Study: Assumption Pathway School
in Vocational Training	30

•
GRI Disclosures	31

•

Annexes45

SATS Sustainability Report 2020-21Renewed Vigour 1.

•	•	•	•	•	•	•	•	•
Renewed	PCEO & Board	Our Sustainability	Feed & Connect	Develop Smart	Reduce Food &	Nurture Skills	GRI	Annexes
Vigour	Statement	Framework	Communities	Infrastructure	Packaging Waste	for the Future	Disclosures

Our purpose and mission are linked to the long-term interests of our customers, our communities and

our people because we believe that this will, in turn, ensure the long-term success of SATS.

Read PCEO Statement

SATS Sustainability Report 2020-21Renewed Vigour 2.

•

•

•

•

•

•

•

•

•

Renewed

PCEO & Board

Our Sustainability

Feed & Connect

Develop Smart

Reduce Food &

Nurture Skills

GRI

Annexes

Vigour

Statement

Framework

Communities

Infrastructure

Packaging Waste

for the Future

Disclosures

PCEO

Statement

Dear Shareholders,

Sustainability sits at the heart of our business strategy. Our purpose and mission are linked to the long- term interests of our customers, our communities and our people because we believe that this will, in turn, ensure the long-term success of SATS. Our sustainability framework focuses on three key themes - developing smart infrastructure, reducing food and packaging waste, and nurturing skills for the future.

Developing Smart

Infrastructure

Our digital transformation is a multi-year journey, involving cultural change, the buildout of technological capabilities and process changes in parallel. For example, SATS' eAcceptance facility, which we implemented some years ago to achieve a paperless hub, enabled freight forwarders in Singapore

to lodge cargo using digitalised processes during the lockdown when movements were restricted. Our pharma handling facilities in Bangalore, Beijing and Singapore facilitated the storage and transport of vaccines safely and swiftly.

We are actively leveraging our capabilities and investments in automation and digitalisation to help

in community relief efforts across our network. For example, the automated rice line in SATS Inflight Catering Centre 2 in Singapore gave SATS the capacity to feed workers in essential services, while our digital integrated supply chain kept the supply chain in motion when sources of supply were disrupted by the pandemic. The airport pass retrieval lockers controlled by face-recognition technology installed by SATS' associate Beijing Aviation Ground Services have enabled airport operations to continue uninterrupted during the pandemic in China.

Reducing Food and

Packaging Waste

SATS has been working with our customers and suppliers to find ways to reduce food and packaging waste. Our subsidiary in the UK, Monty's Bakehouse, is a market leader in developing products with sustainable packaging, having developed a range of biodegradable packaging for handheld snacks. They are now raising the bar further by developing substrates that can be broken down to provide a closed-loop solution

to reduce packaging waste. In partnership with Singapore Airlines, we have developed environmentally friendly food packaging made from natural materials that biodigesters at SATS can break down to reduce waste by as much as 60%.

SATS is taking steps to help reduce global food waste by working with our customers and suppliers to use more plant-based proteins. Plant- based proteins enable specific cuts of proteins, e.g. beef tenderloin,

to be produced in large quantities without creating an equal amount of waste in other cuts of proteins.

Using plant-based proteins will also reduce carbon emissions.

Nurturing Skills for the Future

Investing in our people has strengthened our collective resilience and agility. Over the past year, SATS undertook the most extensive redeployment and reskilling of people in its history. SATS Academy trained 11,154 aviation workers under the SkillsFutureSG Enhanced Training Support Package (ETSP), and 4,000 SATS employees were reskilled, multiskilled and redeployed under Workforce Singapore's Place and Train

and Professional Conversion Programmes. Our employees across all age groups switched to using a digital platform for e-learning when restrictions were placed on in-person interactions. LinkedIn Learning commended SATS for achieving higher user completion rates against global benchmarks.

Commitment to

Climate Action

Operating in an environment where extreme weather can have a direct impact on our business, SATS is firmly committed to addressing issues related to climate change. We followed the Taskforce on Climate- related Financial Disclosures' process to develop climate scenarios to better understand the company's exposure to the risks and opportunities of climate change, and incorporated mitigating actions to build climate resilience into our business. This year, SATS has also included carbon intensity reduction as part of management performance targets which are linked to remuneration.

Overall, it has been a challenging year, but the pandemic has given us a renewed sense of the importance of our purpose to feed and connect communities. We will pursue our mission with renewed vigour to create a greater impact and build

a resilient, progressive company for all stakeholders.

Alex Hungate

President & Chief Executive Officer

1 June 2021

SATS Sustainability Report 2020-21Renewed Vigour 3.

•	•
Renewed	PCEO & Board
Vigour	Statement

Board

Statement

The Board believes that the business strategy of SATS must be sustainable in order to safeguard the long-term success of the company and its shareholders. As it oversees the development of the company's purpose, vision and mission, it makes certain that sustainability goals are integrated into all programmes and business imperatives.

While the Board sets the risk appetite for SATS to pursue its purpose to feed and connect communities, management provides stewardship on sustainability implementation and ensures that business strategy aligns with the company's sustainability goals. To provide a dedicated focus on sustainability, the Chief Sustainability Officer has formed a Sustainability council comprising representatives from relevant parts of the SATS group.

SATS maps material topics to the United Nations' Sustainable Development Goals and reports sustainability performance in line with the SGX Sustainability Reporting Guide, with reference to the core option of the Global Reporting Initiative (GRI) framework. Recognising the inter relationship between its business activities and climate change, SATS is providing greater disclosure in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). The TCFD framework will provide additional guidance on how SATS manages climate risks and opportunities through the lenses of governance, strategy, risk management as well as metrics and targets. The achievement of our sustainability goals and those of our stakeholders will help build a resilient and progressive company that we can all be proud of.

Euleen Goh

Chairman

1 June 2021

•	•	•	•	•	•	•
Our Sustainability	Feed & Connect	Develop Smart	Reduce Food &	Nurture Skills	GRI	Annexes
Framework	Communities	Infrastructure	Packaging Waste	for the Future	Disclosures

Board of Directors					click here to view all profiles

Euleen Goh		Alex Hungate	Achal Agarwal		Vinita Bali
Chairman		Executive Director	Non-Executive and Independent Director		Non-Executive and Independent Director
Non-Executive and Independent Director		President and Chief Executive Officer

Chia Kim Huat	Michael Kok		Jenny Lee	Deborah Ong
Non-Executive and Independent Director	Non-Executive and Independent Director		Non-Executive and Independent Director	Non-Executive and Independent Director

Jessica Tan	Tan Soo Nan	Yap Chee Meng	Yap Kim Wah
Non-Executive and Independent Director	Non-Executive and Independent Director	Non-Executive and Independent Director	Non-Executive and Independent Director

SATS Sustainability Report 2020-21Renewed Vigour 4.