TEHO International : Sustainability Report 2023

TEHO INTERNATIONAL INC LTD.

SUSTAINABILITY REPORT 2023

This Sustainability Report has been reviewed by the Company's Sponsor, SAC Capital Private Limited (the "Sponsor"). It 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 Audrey Mok (Tel: [phone]) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

Sustainability Report

			Table of Contents
1	BOARD STATEMENT	3
2	ABOUT THE REPORT	4
	2.1	Report Scope	4
	2.2	Report Methodology	4
	2.3	Report Structure	5
	2.4	Report Contact and Feedback	5
	2.5	Internal Review	5
3	CORPORATE PROFILE	6
	3.1	Vision and Mission	6
	3.2	Scale of business	6
	3.3	Governance	6
	3.4	Ethics and Compliance	7
4 INTEGRATING SUSTAINABILITY INTO OUR BUSINESS	8
	4.1	Sustainability Management Framework	8
	4.2	Key Stakeholders and Material Issues	8
	4.3	Alignment with International Initiatives	9
		4.3.1 Sustainable Development Goals (SDGs)	9
		4.3.2 United Nations Global Compact (UNGC)	11
	4.4	Awards and Achievements	12
5	STAKEHOLDER ENGAGEMENT	14
	5.1	Protecting Our Environment for the Future Generations	15
		5.1.1	Our Approach	15
		5.1.2 Reduction of Carbon Footprint	15
		5.1.3 Reduction of Water Consumption	16
		5.1.4 Reduction of Paper Consumption	17
		5.1.5 Taskforce for Climate-related Financial Disclosures	18
		5.1.6	Promoting Green Practices	19
	5.2	Caring for Our Employees	20
		5.2.1	Our Approach	20
		5.2.2	Employment Practices	20
		5.2.3	Workforce Diversity	23
		5.2.4	Employee Benefits	26
		5.2.5 Safety and Health in the Workplace	27
		5.2.6	Individual Rights	27
	5.3	Focusing on Our Customers' Needs	28
		5.3.1	Our Approach	28

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		5.3.2 Customer Feedback and Satisfaction	28
		5.3.3 Service Quality and Safety	28
		5.3.4 Data Safety and Privacy	29
	5.4	Partnering Our Suppliers	29
		5.4.1	Our Approach	29
		5.4.2	Supplier Selection	29
		5.4.3	Supplier Review	29
	5.5	Supporting Our Community	30
		5.5.1	Our Approach	30
		5.5.2 Our Community Initiatives Highlights	30
6 PERFORMANCE TABLE AND TARGETS	31
	6.1	Energy Usage and CO2 Emissions	31
	6.2	Paper Consumption	32
	6.3	Employment Profile	33
	6.4	Employees Engagement and Training	34
	6.5	Customer Feedback	35
	6.6	Supplier Screening for Sustainability Criteria	36
	6.7	Community Contribution	37
7 SGX 5 PRIMARY COMPONENTS INDEX	38
8	GRI CONTENT INDEX	39
9	GLOSSARY	......................................................................................................................................	43

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Sustainability Report

1 BOARD STATEMENT

It gives us great pleasure to present our sustainability report for the financial year ended 30 June 2023 ("FY2023"). In our sixth sustainability report, we will be highlighting the progress and achievements of our organisation for FY2023, with particular focus on our commitment to working alongside our valued stakeholders to build a sustainable business based on our resilience, adaptability and innovation. Material Environmental, Social and Governance ("ESG") factors are encapsulated in the Group's corporate strategy and business plan formulation.

The board of directors (the "Board") is entrusted with the ultimate responsibility of setting the Group's ESG goals and overall management of material ESG factors, supported by the Corporate Sustainability Committee, the Corporate Sustainability Champion and the Corporate Sustainability Work Group. Working through the Corporate Sustainability Committee, the management of the Company is tasked with identification and implementation of the Company's approach to the material ESG factors identified. Information on the governance structure is further provided in section 3.3 of this report. Information regarding the basis for report boundaries and the Group's materiality assessment is provided in section 4 of this report.

This sustainability report is structured to reflect the interests of our key stakeholders, namely, the (i) future generations, (ii) employees, (iii) customers, (iv) suppliers, and (v) communities. The identification of such key stakeholders is based on an analysis performed on our business and operation models as the basis for our stakeholder mapping and materiality assessment. For each stakeholder group, we have laid out our approaches that govern how material issues are identified as well as how the issues are prioritised and managed. We then present our initiatives relating to sustainability in the areas of environmental, social and economic issues relevant to our Group. Finally, we provide our key performance indicators, performance targets and outcomes of the material ESG factors.

It is our belief that building a sustainable business is vital to our continued success and that we must be fully accountable for the impacts on our environment, customers, people, community as well as our financial performance.

The delivery of sustainable results is a critical aspect of our ability to remain strong and financially stable. Acknowledging this helps focus our commitment to the principles laid out in our Corporate Sustainability Policy. Our commitment to the principles laid out includes, but not limited to, demonstrating good governance by incorporating sustainability principles into activities and decision- making processes across businesses and operations, reviewing and continually strive to improve our sustainability performance, as well as reporting the performance and status of our sustainability activities on an annual basis. Our responsibility to society is to ensure that sustainable practices are incorporated into every link of our value chain. We must meet the needs not only of our customers, employees and the community we operate in, but also those of our environment and our future generations.

This report provides details on how we have met our responsibilities with our key stakeholders in FY2023.

On behalf of TEHO's Board of Directors,

Lim See Hoe

Executive Chairman and Chief Executive Officer

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Sustainability Report

2 ABOUT THE REPORT

This sustainability report articulates our commitment to sustainability and transparency. This is our sixth sustainability report. The report is designed to provide a transparent and balanced view of TEHO International Inc Ltd. ("TEHO" or the "Company" and together with its subsidiaries, the "Group"), to reflect the interests of our key stakeholders, and to address those interests pragmatically. This report aims to include comprehensive and accessible information on the Company's strategy towards sustainability, key issues as well as data according to recognised standards.

2.1 Report Scope

The report covers the performance of our consolidated entities for FY2023. The content of this report focuses on the sustainability performance, activities and initiatives that are under our direct control, namely our Singapore offices and operations as well as our local supply chain. This report excludes joint ventures, which are not directly under our control, and any overseas activities directly associated with us. In this respect, this report covers our marine and offshore segment in our material operational boundaries in Singapore. All material aspects disclosed in this report are relevant to activities in Singapore only. Nevertheless, our corporate governance and sustainability approaches are drawn from the policies and practices set at the Group level.

Material issues and topics described in this report have been selected according to their level of significance within the Company boundaries, the sustainability context and the expectations of stakeholders. These are reported in a consistent manner for comparability of our performance indicators over time.

This sustainability report focuses on the Group's sustainability strategies and practices whilst highlighting the economic, environmental, social and governance aspects of our activities and developments. The report aims to provide an overview of our approach, priorities and targets, as well as a performance review for our key sustainability areas.

2.2 Report Methodology

This report has been prepared in compliance with the requirements of Rules 711A and 711B of the Listing Manual Section B: Rules of Catalist of the Singapore Exchange Securities Trading Limited (the "SGX-ST") (the "Catalist Rules") as well as with reference to the Global Reporting Initiative ("GRI")Standards 2021 for the reporting period. We have chosen the GRI Standards reporting guidelines for its robust guidance which offers an international reference for the disclosure of governance approach and of the environmental, social and economic performance and impacts of organisations. This report has also taken into consideration the primary components of the report content as set out by the SGX- ST's "Comply or Explain" requirements for sustainability reporting including the sustainability recommendations of the Taskforce for Climate-related Financial Disclosures ("TCFD"). The data in this report covers our ESG performance from the period 1 July 2022 to 30 June 2023. Our data are reported in good faith and to the best of our knowledge. We will continue to improve our data collection processes.

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Sustainability Report

2.3 Report Structure

This Sustainability Report is structured to reflect the interests of our key stakeholders. We have identified five (5) key stakeholder groups, namely, the future generations, employees, customers, suppliers and communities. For each stakeholder group, we lay out our management approaches that govern how material issues are identified as well as how the issues are prioritised and managed. Further, we then present our initiatives relating to sustainability in the areas of environmental, social and economic issues relevant to our aspects and boundaries. Finally, we provide the information of our key performance indicators, performance targets and outcomes.

The information regarding the basis for report boundaries and our materiality assessment is provided in section 4.

Altogether, this report provides the basis for our responses and disclosures with reference to the GRI- Standards 2021 requirements. Relevant sections in the report are referenced in the GRI Content Index provided in section 8.

2.4 Report Contact and Feedback

We welcome and value your feedback on the content of this report and encourage you to contact us through the following channels:

• In writing to:
  TEHO International Inc Ltd.
  1 Commonwealth Lane #09-23 One Commonwealth Singapore 149544
  Attention to:
  Corporate Sustainability Committee
• Via our contact page athttps://teho.com.sg/contact/

This report is provided in PDF format only and is available for download on the following page of our website: https://investor.teho.com.sg/sr.html

2.5 Internal Review

In line with the requirement of sustainability reporting disclosures by SGX, TEHO has undergone an internal review process covering specific procedures and controls of our sustainability reporting process. While we have not sought external assurance for this report, we have relied on internal data monitoring and verification to ensure accuracy.

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Sustainability Report

3 CORPORATE PROFILE

3.1 Vision and Mission

Our vision is to be a leading and trusted key supplier for the marine, offshore and oil & gas industries.

Our mission is to build a company that is recognised internationally as a dependable key supplier and servicing different customers in various major ports of the world.

3.2 Scale of business

Since our establishment, the Group has grown from a small, domestic rigging and mooring company to an international marine & offshore solutions provider, and a real estate developer and service provider.

In 1986, TEHO Ropes & Supplies Ltd was established. As a rigging and mooring company, our focus on customer service and continuous product and staff development generated significant growth and financial stability, and led to our listing on the Singapore Exchange in 2009 as TEHO International Inc Ltd. Since then, reflecting a commitment to deliver greater value for our stakeholders, we acquired what are now known as TEHO Engineering Pte. Ltd. and TEHO Water & Envirotec Pte. Ltd., to supply innovative products for the marine and offshore industry. At the same time, we expanded our global reach of the Group's established rope and mooring business to Europe, the Americas, China, Korea and the Middle East, through wholly owned subsidiaries and local partnerships.

In 2014, the Group diversified its business segments into the real estate business. With this, we now operate in the areas of property development and consultancy primarily in Singapore.

The Group has employees across the regions where we operate. Most of our workforce is located in Singapore, consisting of 87 employees in FY2023, 99% of which are permanent employees. For more information about employee composition, please refer to "Caring for Our Employees" in section 5.2 of this report.

3.3 Governance

The Board oversees all corporate governance and operational matters relating to our business. For corporate sustainability, the Board is supported by the Corporate Sustainability Committee ("CSC") which includes designated senior executives and is chaired by our Executive Chairman and Group Chief Executive Officer ("CEO"). CSC provides leadership and approval over corporate sustainability matters such as Corporate Social Responsibility ("CSR")plan, community investment and environmental initiatives. Supported by the CSC, our Corporate Sustainability Champion (the "Champion") is our Subject Matter Expert ("SME") in the area of corporate sustainability. It proactively raises awareness through education and training across the organisation. Further, through the Corporate Sustainability Work Group ("CSWG"), which comprises specialists involved in the day-to-day activities of the CSC, our Champion identifies the Group's ESGfactors, before engaging stakeholders, businesses and functions to execute the Group's sustainability plan. Businesses and functions provide back-to-back assurance over the quality of information used for sustainability reporting.

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Sustainability Report

3.4 Ethics and Compliance

Being a listed company on the SGX-ST, we are committed to maintain a high standard of corporate governance, to ensure greater transparency and to protect the interests of the Company's shareholders. Our corporate governance framework covers ethics and compliance through a Code of Conduct as well as action guidelines which are to be adhered by officers and employees across the organisation. TEHO has in place a whistle-blowing policy, which establishes the procedures for reporting in good faith any improper conduct while protecting the whistle-blower from reprisals. In addition, the Employee Code of Conduct, found in the Employee Handbook, sets out expectations of employees in relation to issues such as fraud or bribery. Our employees are required to adhere to the Employee Code of Conduct and maintain high levels of integrity. Internal Auditors monitor for risk of corruption and report any findings to the Audit and Risk Committee, without the presence of management as a means of monitoring TEHO's policies and performance internally. There is zero incident of corruption reported in the past three years.

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Sustainability Report

4 INTEGRATING SUSTAINABILITY INTO OUR BUSINESS

We believe CSRis a key driver towards long-term sustainability. Such responsibility is pragmatically integrated into our business practices as one of the core values in our corporate culture. Embedding such responsibility into our management and operational processes across the value chain allows us to establish credibility among our stakeholders. Through our actions today, we play a part in influencing the environment for our future generations. By integrating the notion of sustainability in our business, we ensure that our business strategies and operations are in line with a long-term vision towards a conducive and sustainable future.

Despite escalating global trade tensions in a slowing economy, we remain steadfast in growing our core business in a sustainable manner. We expect greater challenges in the coming years and will strive to remain committed to seeking high-value and high-performance product offerings to sustain our competitive edge.

4.1 Sustainability Management Framework

In July 2017, we took the initiative to establish our sustainability reporting framework. For FY2023, we performed an analysis on our business and operation models as the basis for our stakeholder mapping and materiality assessment. Through our analysis, we identified five (5) key stakeholder groups within our sustainability context and their respective material issues are to be shown in this report.

4.2 Key Stakeholders and Material Issues

We perform regular reviews of our assessment and feedback process in relation to ESGtopics. Key to this is our regular Enterprise Risk Managementexercise which entails the identification, assessment and documentation of key stakeholders, material risks and corresponding internal controls. Such material risks include fraud and corruption, environmental, health and safety, and human capital risks which are ESG-relevant. We are continuously improving the adequacy and effectiveness of our risk and control self assessment process in response to the changing business and operational environment.

Through regular stakeholder engagement, we identify and review material issues that are most relevant and significant to us and our stakeholders. For external stakeholders, priority is given to issues that are important to society and applicable to us. Then, we prioritise our sustainability efforts and report issues that are most material to our business and stakeholders. Considering that specific stakeholders and material issues are specific in countries and locations, we are reporting the stakeholder engagement and material issues for our Singapore operations in this report.

Stakeholders		Material Issues	Significance
Future Generation	❖	Environmental education of our	Our sustainability agenda for the environment
		employees and customers	and future generation is embedded into the day-
	❖ Reduction of carbon emissions	to-day business activities among our staff. We
	❖	Energy consumption	continue to strive to improve from a holistic
	❖	Water consumption	perspective through the Company culture and
	❖	Compliance with best practices and	practices. Within the big picture of sustainability,
		standards on Green initiative, such as,	we take steps to focus on key goals such as curbing
		Eco-Office Label by the Singapore	global warming, conserving and recycling
		Environmental Council	resources. Such areas are crucial to a
			sustainability economic ecosystem for our
			customers which are keys to our business
			sustainability.
Employees	❖	Employee well-being through workplace	An ethical and professional working environment
		health & safety and work life balance	is crucial in cultivating a corporate culture which
			motivates and empowers our employees to meet

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Stakeholders		Material Issues			Significance
		❖ Regular training of employees on critical	their full potential both professionally and
			skillsets to sustain competitiveness		personally.
		❖ Competitive	compensation	scheme to
			retain talents
		❖	Non-discrimination,	diversity	and
			equality
		❖ Senior management engagement with
			employees
Customers		❖	Safety of our customers in our services	The quality and safety of our services and
			delivery					products to our customers are the core focus of
		❖ Customer data privacy protection		our commitments. Through our quality and safety
		❖	Customer satisfaction and customer-	commitments to our customer, we will, in turn, be
			centric approach				contributing to their own successful sustainable
								development.
Suppliers	and	❖	Environmental, labour and human rights	To effectively and meaningfully implement our
partners			impact in the supply chain			sustainability agenda, it is important that our
								suppliers and partners share our values in their
								business practices in the areas such as the
								environment, human rights, labour practices and
								corporate ethics. Such alignment of values is a
								crucial part of building mutually beneficial
								relations with suppliers and channel partners to
								enhance both their own competitiveness and that
								of ours.
Community		❖	Impact on communities and local	In our vision in moving our business to high-value-
			economies,	and future	generation	added business areas, abilities to identify and
			education					attract people with knowledge and talent are
		❖ Economic	value	generated	and	crucial to sustainability of our businesses. Within
			distributed to local community		a broad range of our community engagements,
								we focus on the education of today's youth and
								providing financial and practical support to
								targeted local and communities, through
								donation, sponsorship, fundraising and voluntary
								activities.
Common to	All	❖	Compliance with prevailing laws and	Legal compliance and ethical practices are the
Stakeholder			regulations					core foundation of our business. Our such culture
Groups		❖	Good corporate governance & ethics,	is established and sustained through strong
			transparency	and	non-financial	corporate governance, transparent reporting and
			reporting					open communications with all our stakeholder
		❖ Ethical business practices such as anti-	groups.
			corruption

• Grievance mechanisms

4.3 Alignment with International Initiatives

4.3.1 Sustainable Development Goals (SDGs)

Established in 1945 under the Charter of the United Nations (the "UN"), the General Assembly occupies a central position as the chief deliberative, policymaking and representative organ of the UN. Comprising all 193 Members of the UN, it provides a unique forum for multilateral discussion of the full spectrum of international issues covered by the Charter. It also plays a significant role in the process of standard-setting and the codification of international law.

On 25 September 2015, the UN General Assembly adopted the 17 Sustainable Development Goals ("SDGs")to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda. Each goal has specific targets to be achieved by the year 2030. Although the SDGs are primarily aimed at governments, they represent an important opportunity for businesses to

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