Yongnam : Sustainability Report For FY2019

COMMITMENT • EXPERTISE • RESULTS

SUSTAINABILITY REPORT 2019

Contents
About Yongnam ............................................................................................................................................	2
About The Report ..........................................................................................................................................	3
Yongnam's Commitment to Sustainability ....................................................................................................	4
Sustainability Governance ........................................................................................................................	4
Statement from our Board.........................................................................................................................	5
Stakeholder Engagement..........................................................................................................................	6
Material Matters ........................................................................................................................................	7
Sustainability Policy ..................................................................................................................................	8
Maintaining our market leader position through quality and strong business values ...................................	9
Quality .......................................................................................................................................................	9
Key Projects ..............................................................................................................................................	9
Strong Business Values ..........................................................................................................................	10
Conducting our operations in a resource-efficient and environmentally caring manner.............................	11
Energy Consumption...............................................................................................................................	11
Waste and Resource Management ........................................................................................................	11
Creating a Gracious Workplace ..................................................................................................................	13
Our Workforce .........................................................................................................................................	13
Training & Development..........................................................................................................................	14
Integrated Quality, Environment, Workplace Health, Security and Safety Management System ..............	17
Health & Safety .......................................................................................................................................	17
GRI Content Index ......................................................................................................................................	21

1

About Yongnam

Yongnam Holdings Limited is listed on the Mainboard of the Singapore Exchange since 11 October 1999.

With more than 40 years of experience in steel fabrication, Yongnam excels in adding value to steel construction. Its multi-disciplinary engineering and construction expertise extends from structural steelwork and specialist civil engineering solutions to design and build, as well as mechanical engineering. The Group's two production facilities in Singapore and Nusajaya, Johor, Malaysia have a total annual production capacity of 84,000 tonnes of steel fabrication. We also have a wide network of subsidiaries and project offices in the region and have undertaken projects globally including China, Thailand, Hong Kong, India among others.

Yongnam utilises the latest fabrication technologies and design innovation to offer solutions to its clients on a fast-track basis. Yongnam's modular strutting system continues to give the Group a strong competitive edge in meeting increasingly stringent design and project requirements in infrastructure and construction projects. We have an in-house pool of experienced and qualified engineers, detailers, technicians, welders, riggers and fitters, allowing us to consistently add value to our clients' projects. Yongnam aims to be the partner of choice in providing solutions for the steel construction industry.

Yongnam is a member of the Structural Steel Society and Singapore Construction Association (SCAL). Yongnam is also an accredited fabricator of the highest S1 category from the Singapore Structural Steel Society and holds A1 and A2 Grades from the BCA for the categories of General Building and Civil Engineering respectively.

Structural Steelwork	Specialist Civil
	Engineering

Design & Build	Mechanical Engineering
Figure 1: Yongnam's Areas of Expertise

2

About The Report

Yongnam Holdings Limited ("Yongnam", the "Company" or the "Group") is pleased to present its Sustainability Report 2019 for the financial year ended 31 December 2019 ("FY2019"). This sustainability report is in compliance with the requirements of SGX-ST Listing Rules 711A and 711B, and in accordance to the Global Reporting Initiative ("GRI") Standards: Core option. The GRI Standards were selected for their universal application and standardised approach for businesses to report on critical sustainability issues. The report will be published on an annual cycle.

Our report covers the management approach and performance of material ESG factors of the Group in Singapore and operations of our subsidiary, Yongnam Engineering & Construction Pte Ltd, including local construction projects and our in-house production facilities1. For any given project, the main contractor ("our Client") is ultimately responsible for the Health, Safety and Environment (HSE) performance of the project while in others, Yongnam might be the main contractor. Nonetheless, where Yongnam is a subcontractor working at the project site, Yongnam is responsible for the employees under our charge on-site, as well as any subsequent sub-contractors whose work is controlled by Yongnam. Any incident or accident involving these workers will be reported back to the headquarters.

While we have not sought assurance for this report, we will strive towards doing so as our reporting matures overtime. For any queries and feedback related to this sustainability report, please contact: [e-mail].

1 Production for Singapore as a percentage of total production was 70% in FY2019.

3

Yongnam's Commitment to Sustainability

Sustainability Governance

The Board is ultimately responsible for the Company's sustainability by ensuring sustainability is part of its strategic formulation and that management of key ESG matters is integrated in business operations. As delegated by the Board, the sustainability team made up of representatives of the following business units is responsible for driving sustainability strategies across the company. This team monitors different aspects of sustainability practices and reports the performance to the Board annually.

Board of Directors

Sustainability

Team

Safety

Human Resource

Production

Figure 2: Yongnam's Sustainability Team

4

Statement from our Board

Dear Stakeholders,

We are pleased to present our third year sustainability report, in accordance with the Singapore Exchange Securities Trading Limited's ("SGX-ST") introduction of sustainability reporting for all listed companies. We recognise the increasing importance that our stakeholders are attaching to Environmental, Social and Governance ("ESG") issues and the significant impact that our company can have on the environment and society, operating within the construction industry. This report aims to communicate Yongnam's strong commitment to corporate sustainability.

Together with Management, the Board of Directors ("Board") has identified material ESG issues as part of our formal materiality assessment and will continue to consider sustainability issues in our overall strategy formulation. This includes identification, management and monitoring of sustainability-related risks and opportunities relevant to our business strategy.

We believe that a responsible business is the only way to do business. We would like to thank our stakeholders for their support thus far and look forward to working together with all of you on this journey.

5

Stakeholder Engagement

Active stakeholder engagement is a key component of our sustainability management approach as it ensures that we will work on what truly matters. The process also helps to build good rapport with all of our stakeholders which is fundamental for our long term growth. Our key stakeholders and engagement activities are tabulated below.

Stakeholder

Key Concerns

Yongnam's Approach

Engagement

Frequency

Group

Method

•

Growth

•

Regular and proactive

•

AGM

•

Yearly

Shareholders

strategy

communication

•

Annual reports

•

Economic

•

SGX

Performance

announcements

•

Risk

Management

•

Compliance

•

Provide feedback

•

Direct dialogues

•

As and

Government

with laws and

proactively when

•

Policy briefings,

when

regulations

necessary

feedback

required

•

Participate in consultation

sessions

sessions throughout the

year

•

High quality of

•

Review measures

•

On-going

•

On-going

Customers

services

regularly

dialogues

•

Health and

•

Implement appropriate

(Existing and

Safety

QA/QC procedures

potential)

•

Hold regular engagement

events

•

Career

•

Review measures

•

Regular staff

•

On-going

Development

regularly

meetings

•

Yearly for

Employees

•

Employee

•

Create and enhance

•

Open annual

annual

welfare and

communication platforms

performance

performanc

well-being

•

Offer learning &

appraisal system

e appraisal

development

linked

programmes

performance with

remuneration

•

Labour

•

Monitor compliance to

•

Review meetings

•

On-going

Suppliers

shortage

ensure they have

•

Safety briefings

•

Health and

capability and proven

and workshops

Safety

ability to meet

•

Timely

requirements

Payment

Industry

•

Quality,

•

Engage closely and

•

Industry forums

•

On-going

environment,

regularly to align good

and events

Associations

health and

practices and contribute

safety

to unified voice for

construction industry

•

Detailed checks

Figure 3: Stakeholder Engagement

6

Material Matters

We conducted our first materiality determination process under the guidance of independent sustainability consultants, involving key internal stakeholders. A four-step process is described in the figure below. Five material factors were identified as material to the Group, with two additional matters considered by the Board as relevant to demonstrate the full impacts of our business on the supply chain. All matters were validated by the Board in August 2018.

Figure 4: Yongnam's Materiality Determination Process

Figure 5: Yongnam's Materiality Matrix

Figure 6: Yongnam's Material (No.1 to 5) and Additional Material Matters

No.	Key Issue	Corresponding GRI
	(not ranked	Framework
	in order of	Disclosure
	priority)
1	Anti-		GRI 205-3
	Corruption
	and	Anti-
	Bribery
2	Business		GRI 205-3
	Ethics
3	Training	and	GRI 404-1
	Development
4	Occupational	GRI 403-9 (GRI
	Health	and	Standards 2018)
	Safety
5	Energy		GRI 302-1
	Consumption
Additional Matters
1	Material		GRI 301-1
	Management
2	Waste		GRI 306-2,
	Management	GRI 306-3

7

Sustainability Policy

Our Quality, Environment, Workplace Health and Safety (QEHS) Policy demonstrates Yongnam's holistic approach to sustainability which covers good corporate stewardship, commitment to high quality of services and products, employee welfare and well-being and strong health and safety performance, all while caring for the environment.

Figure 7: Yongnam's Sustainability Approach

8

Maintaining our market leader position through quality and strong business values

Quality

Yongnam is ISO 9001, ISO14001 and ISO45001 certified, a certified manufacturer of CE-marked structural steelwork components to EN 1090 and EN ISO 3834 for the highest execution class EXC4 for the EU market in addition to achieving a bizSAFE Star level award and BCA Green and Gracious Builder award. Our Quality Management system takes a planned approach towards continuous improvement of our products, processes and services. Yongnam prides itself as a leading steel specialist contractor with an unparalleled track record of iconic projects. It remains our core business value to always deliver projects on-time and with quality. Moving forward, a major growth driver for our business is to be a one-stop solutions provider of conceptual design, construction, project management and final delivery.

Key Projects

• Brunei, Royal Pavilion Hangars
• Malaysia, Kuala Lumpur International Airport
• Singapore, Changi International Airport
• Thailand, Suvarnabhumi International Airport
• India, Indira Gandhi International Airport
• India, Chhatrapati Shivaji International Airport
• Singapore, Kallang-Paya Lebar Expressway
• Singapore, Marina Coastal Expressway
• Singapore, MRT Thomson-East Coast Line
• Singapore, MRT Downtown Line
• Singapore, MRT Circle Line
• Singapore, MRT Northeast Line
• Singapore, MRT East-west Line
• Singapore, MRT North-south Line
• Singapore, MRT North-south Line Extension
• Hong Kong, Mass Transit Rail
• Hong Kong, Express Rail Link
• Middle-east,Dubai Metro
• Marina One
• Marina Bay Sands Integrated Resort
• Suntec City Exhibition & Convention Centre
• Singapore Post Centre
• Capital Tower
• Singapore MRT Expo Station
• National Library Board
• Fusionopolis
• Sports Hub
• Gardens by the Bay
• Changi Jewel
• Multiuser Light Industrial Dev @ Jln Kilang
• Singapore, Senoko Power Station
• Singapore, Seraya Power Station (Stage II development)
• Singapore, Mandai Quarry Plant
• Singapore, Senoko Incineration Plant
• Singapore, Tuas Incineration Plant
• Singapore, Wind Tunnel
• Malaysia, Kenyir Power Station (Hydroelectric power plant)
• Malaysia, Paka/Pasir Gudang YTL Power Station
• Malaysia, Panglima Power Station
• Malaysia, Tanjung Bin Power Plant
• Malaysia, Naphtha Cracker Plant - Cracking Furnace
  Figure 8: Yongnam's Key Projects

9

Strong Business Values

The Board of Directors of Yongnam is committed to maintaining high standards of corporate governance, business integrity and professionalism within the Company and its subsidiaries to protect the interests of all its stakeholders and to promote investors' confidence and support. Policies and practices such as our Whistle- Blowing Policy and Code of Conduct on Safety are communicated to all employees. This is the mechanism through which concerns about plausible improprieties may be raised. A dedicated secured e-mail address allows whistle blowers to contact the Chairman of the Audit Committee (AC) directly. The Policy also offers reassurance that the employees will be protected from reprisals or victimisation for whistle blowing in good faith. The Policy is reviewed annually by the Board of Directors.

Guidelines are available on gifts received by employees and gifts given to or received from business partners. As a control mechanism, our CEO makes the final decision on sales and purchases made. The Group addresses concerns raised and arranges for investigation and/or follow-up of appropriate action. The AC reports to the Board any issues received at the ensuing Board meeting. Where appropriate or required, a report shall be made to the relevant government authorities.

For the financial year ended December 2019, there has been no confirmed incidents of corruption. There has been no confirmed incidents in which employees were dismissed or disciplined for corruption and when contracts with business partners were terminated or not renewed due to violations related to corruption.

10

Conducting our operations in a resource-efficient and environmentally caring manner

Yongnam recognises the importance and value of protecting the environment and we take pride in carrying out our operations in a resource-efficient and environmentally-friendly way. Our key environmental initiatives include reduction in energy consumption, improvement of material use efficiency and a robust waste management system.

Energy Consumption

Yongnam relies on diesel for transporting heavy equipment. We monitor the usage of diesel in our fleet of 21 transport vehicles through receipt records of diesel refueling. In addition, there are 4 cameras installed in each truck to ensure that the trucks are not left idling, preventing the wastage of fuel. Electricity usage for our corporate building and steel production site are also closely monitored. Yongnam will be embarking on energy-saving LED lighting projects and PV solar panels when our lease is due for extension.

	Energy Consumption (Diesel)		Energy Consumption (Electricity)
		and Intensity				and Intensity		Electricityintensity (kWh/ m2)
	25.0	0.7		0.8	consumption(in '000 kWh)	5,000			160.0
	20.0			0.7			152.6
		0.6	4,500			145.0
GJ (in '000)						4,646
15.0			0.6
				4,000			130.0
10.0		15.4	0.5
5.0	19.5		0.4	3,500		116.1	115.0
			m2GigaJoules/			3,536
					Electricity
	0.0			0.3	3,000			100.0
		2018	2019			2018	2019
		Total fuel energy consumption (GJ in '000 or TJ)		Electricity consumption (in '000 kWh)
		Fuel energy intensity (GJ/m2)				Electricity intensity (kWh/m2)

Note: Fuel and electricity consumption at individual project sites are not included as information is not available. Intensity is calculated based on consumption data from Yongnam Engineering & Construction Pte Ltd's corporate building and steel production site.

Figure 9: Yongnam's Electricity and Fuel Energy Consumption and Intensity

We are committed to reduce our energy consumption and corresponding intensity. However, this could vary considerably from year to year due to changing project specifications and needs. These figures are monitored and reported to Management yearly. We will continue to track our diesel and electricity consumption and reduce to a minimum as far as possible.

Waste and Resource Management

We recognise that proper waste and resource management is crucial for us to protect the environment and for the health and safety of our community. In addition, the wastage has a negative impact on economic performance as it increases cost and makes us less competitive compared to our peers.

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Our key material used for production process is steel. Yongnam does not generate any hazardous waste or wastewater from our production and there were no significant spills at our facilities and projects for the financial year ended December 2019. Yongnam has put in place a robust material waste and resource management system with stringent checks and monitoring as depicted below.

Waste and Resource				Management Practices
Management system
Close Monitoring	Steel wastage	depends	on project requirements which is outside of
	Yongnam's control. However, all material use is monitored carefully to
	ensure wastage is minimised every step of the way on a project basis. The
	steel waste level is closely monitored to be around 7-10% in any given
	project.
	Any other waste (e.g. blasting dust) generated from the activities is collected
	and disposed of by a specialist contractor.
Stringent Tracking	Wastage is one of the many quality objectives monitored under ISO 9001.
	We have a monthly reporting system to track the material usage, which is
	consolidated in an annual report for management review.
Recycle materials	Where waste steel is generated from the project, 100% of this is sold to
	scrap collectors for recycling. Some of the waste steel is also reused as
	various engineering controls for our operation.
	Leftover	plate &	pipe	Leftover	steel plates	Steel beams reused to
	material	used	to	and sheets	used	to	provide stable supports
	segregate	machines	shield	heat	or	light	during fabrication work.
	from workers.		source.
Proper storage and	We also have a proper chemical	and	diesel	storage facility to collect
disposal	residues and	leakages	during fuel transfer, in line with Singapore Civil
	Defence Force (SCDF) regulations.
Figure 10: Waste and Resource Management Process

In 2019, we purchased 47% less steel than the year before. This was due to lesser project requirements which differs year on year. Hence, we are unable to set targets to reduce our absolute steel consumption. Instead, we will always strive to keep our steel waste level to 7-10% for all projects, and continue recycling 100% of the waste that is generated. Our consumption values for 2018 and 2019 (current reporting year) are tabled below.

Steel Consumption	Unit	2018	2019
Steel purchased	Ton	27,107	14,437
i.	Steel fabricated	Ton	23,274	11,549
ii.	Steel waste	Ton	1,809	1,988
Steel waste as a percentage of steel used	%	7.21	14.682
(fabricated + waste)

2 Steel waste exceeded our target levels in 2019 due to the nature of materials fabricated are of complex in nature, resulted in higher than expected wastage.

12

Creating a Gracious Workplace

Our Workforce

Yongnam believes that human capital is crucial to the growth of the company. The majority of our workforce consists of direct labour who work on projects where we are contracted as well as at our production facilities involving engineering and fabrication work. Where necessary, subcontractors are engaged on a project basis to support the work required for which Yongnam does not have the in-house capabilities for (e.g. hot dip galvanising).

In 2019, our workforce consisted of 900 employees, of which 820 are males and 80 are females. Due to the nature of our service involving more labour intensive activities, our workforce is more male-dominated. Among the 820 males, 811 are full-time staff, while the remaining 9 are our crane operators working on a part-time basis.

The charts below provide more information on the employee demographics of Yongnam.

Breakdown by Employment Contracts		Breakdown by Employment Type
	(Permanent & Temporary)		(Full-Time & Part-Time)
1000	820						1000	811
800							800
600							600
400							400
200	80				200	80	9	0
				0	0
0							0
	Permanent Staff	Temporary Staff		Full-Time Staff	Part-Time Staff
			Male		Female					Male		Female

Figure 12: Employee demographics, broken down by employment contracts, employment type and gender

13

	Breakdown by Employee Category,			Breakdown by Employee Category,
	Gender and Age Group (Males)			Gender and Age Group (Females)
					35
						31
400	345				30
350
300					25
250					20
							17
200
150					15		13
100	68	82	87 78		10	9
	34 36
	30	27
50	0 17	3				6
	6	0	7
0					5		2		2
						0			0
					0
						Executive	Non-Executive	Middle
									Management
	< 30 yrs	> 50 yrs	30 - 50 yrs			< 30 yrs	> 50 yrs	30 - 50 yrs

Figure 13: Employment Numbers

Training & Development

Having the right people for the right job is necessary in ensuring the safety and compliance of our scope of work, as well as boosting the overall efficiency and quality of work delivered to clients. We take pride in our own human capital and seek to ensure that our employees and workers comply with regulations and have the right mindset and skills to carry out their job. Under our Training & Development Policy, respective department heads identify the training needs of the staff under their charges which is submitted to HR to establish a yearly "Total Company Training Plan". This consists of on-the-job training as well as external training that could be compulsory training in compliance to legal requirements. Yongnam bears the cost of training and all examination fees as required by the course.

Employees may also seek approval from management to attend special or ad hoc training courses as desired. Such training can be covered by our Training Sponsorship Scheme for all confirmed employees to support their personal development.

Training courses are matched to the needs of the staff and organisation. For example, while the production department receives construction related courses3, the project management and Specialist Civil Engineering departments receives both construction and safety related courses 4, and the equipment & logistics team attends mostly crane related courses5. Other training programmes include finance and HR related, quality control as well as building or technical related courses. (On specific safety training received, refer to the

1. Examples include metal scaffold erection, heavy forklift, Core Trade, Signal & Rigger course etc.
2. Examples include chemical safety awareness course, work at height etc
3. Examples include forklift operator course, hydraulic excavator operation etc.

14

section below on Health and Safety.) After the training, an employee training effectiveness form is generated for each employee that is tracked by HR to improve training outcomes.

Our target for the next few years is to continue to enhance functional skills training of all our staff as and when identified and required. In the long-term, we aim to continue monitoring training effectiveness, improve employee's overall skillset and knowledge upgrading.

Figure 14: Total Training Hours by Employment Category and Gender

To promote the health of our employees, sub-contractors and our Clients, we provide occupational health services to improve their working environment. Health is an integral part of our safety briefing, award and promotion.

15

Activities		How Yongnam ensures quality of services and facilitates their access
Factors in the work		• Strategically located, clean common washrooms
environment which might		• Filtered water safe for drinking easily accessible
affect workers' health		• Canteen provided for workmen
		• Drains inspected routinely to prevent mosquito breeding and
		odour
		• Housing in dormitories with convenient leisure facilities
		• Transport provided to and from dormitories to work site in air-
		conditioned buses
		• Trees and flora planted around factory provide shade for workers
		to rest and serve to enhance mental health of workers
		•
Advice on occupational		• New employees for fabrication and site participate in a safety
health, safety and hygiene		induction programme
		• Guided by field foremen and fellow countrymen to allow them to
		be familiarised with their surroundings
		• Senior staff are always present on the field to encourage the
		workers and distribute gifts during festive occasions
Facilitating access to health		• Provided to workers at all times during working hours
services		• Workers can visit Yongnam's designated clinics if they are feeling
		unwell
		• Company vehicles are available to transport workers who are
		unwell
		• Workers are encouraged to participate in activities held by
		MOM/WSH Council/SingHealth
Voluntary health promotion		• Yongnam invites specialists to hold talks on issues related to the
services		heart and emergency heart attack treatment
		• Top management distributes apples to workers to promote healthy
		eating habits
		• Workers on site are encouraged to inform their supervisor if they
		are feeling unwell and need not perform high risk work until
		recovery

Figure 15: Occupational Health Services at Yongnam

Feedback boxes are provided to encourage anonymous feedback on top of normal field interaction, supervisor meetings, trainings and sharing sessions. To improve awareness, Yongnam engages external service providers or consultants to give talks and encourage interaction.

16

Integrated Quality, Environment, Workplace Health, Security and Safety Management System

Figure 16: Yongnam's Safety Vision and Awards

Health & Safety

Yongnam regards the health and safety of our employees as our top priority due to the nature of our work and is wholeheartedly committed to ensure it is never compromised. Safeguarding workers from harm is Yongnam's responsibility because it affects the workers, their families, the project timeline, loss of business opportunities, and eventually, loss of reputation. Smooth operations of the factory can only be achieved by the people running it. The occupational health and service efforts are assisted by Yongnam's WSH Officer and Manager in accordance to the WSH Act and other subsidiary Acts such as Scaffold Regulation, Risk Assessment Regulation, Construction Regulation, Risk Assessment Regulation, Construction Regulation, First-aid Regulation etc.

We have adopted a firm safety message that is well ingrained in all our employees and workers that everyone works together in a team towards the ultimate goal of having zero accidents.

Figure 17: Yongnam's Safety Message

Underscoring this importance is our health and safety management system required under Singapore regulations that is regularly audited both internally and externally. This system is based on recognised risk management guidelines6 from the Ministry of Manpower (MOM). It consists of the following elements:

6 Code of Practice on WSH Risk Management ("RMCP")

17

1. Right culture,	2. Robust risk
management
right value
system

3. Participation	4. Training and
by workers	communication

Figure 18: Yongnam's Health and Safety Management System

1. Right Culture, Right Value

The top management of Yongnam sets the leadership attitude and mentality to impress upon the managers and line supervisors to treat safety at work as the most important aspect. The company promotes a culture of safety first and cultivates in workers a mindset that safety is a prerequisite for the job. We believe that a positive work environment with caring supervisors and colleagues achieves the best performance. Yongnam is supported by a group of experienced seniors who have been in the construction industry since the 70s.

We provide the necessary trainings, ensure proper communication and timely reminders on WSH Act requirements and conduct internal safety inspection and audits. Mental well-being of our workers is also accounted for as negative emotions can lead to misjudgment and erratic behaviour. Therefore, the management sets out rules and regulations, a code of practice, carries out actual demonstration and drills, organises quizzes, distributes handouts, and rolls out mentoring programmes to help workers take control of their temper, health and personal well-being, so that workers prioritise safety above all else.

We encourage workers to report any work-related hazards or situations directly to the foreman, supervisor, manager or safety practitioner, or through meeting or feedback boxes. This is emphasised during their monthly safety promotion. Additionally, they are allowed to refuse taking on dangerous work that they are tasked to complete.

Workers are provided a grievance mechanism through contacting HR, WSH Manager, or safety personnel at headquarters directly. To prevent reprisals against workers, workers are encouraged to remain anonymous via feedback boxes to ensure privacy. A culture of tolerance, understanding and being compassionate is strongly encouraged.

2. Robust risk management system

Hazard and risk identification

Work-related hazards and assessed risks are available in our job hazard study handbook and further enhanced by the method statement with input by Yongnam's staff. Risk assessment ("RA") is done in accordance with the code of practice identifying Yongnam as the occupier (factory owner), while the hierarchy of controls is applied to eliminate hazards and minimise risk.

These hazards have been determined during the work process. The table below details the top hazards identified and actions by Yongnam to reduce their risks:

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	Hazard				How Yongnam manages these hazards
				• Only trained and qualified personnel are allowed to lead, organise
	Lifting operation related injuries;				and participate in the work process i.e. experienced manager and
				foreman, lifting supervisor, signalman & rigger.
	amputation, collision, impact
			•	Ensure equipment and tools are examined by an Authorised
					Examiner7 with risk assessment duly carried out.
				• Conduct method and risk assessments to minimise risks of work-at-
					height activities
	Work at height inflicted injuries			•	Boom-lift access used (where feasible) with a certified operator
				• Train workmen on procedure for working at height in accordance with
					WSH Institute Code of Practice
				• Perform risk assessments, take control measures and communicate
					to workmen
	High energy machines;			•	Use of barriers, guards and exclusion zones
	mechanical, electrical, hydraulic,			•	Semi-automation and robots used for complicated jobs
	air, thermal and gases*			•	Safety and non-return valves used for gas cutting related work to
					ensure no back fire nor leakage
				• Air Receiver8 certification obtained when pressured air is involved
				• Follow maintenance regimes with "lockout, tag out" safety procedures
				• Conduct management inspections and safety patrols
Figure 19: Identified Safety Hazards and Response

Where we are engaged by a main contractor, we will have to comply with their hazard management system on the project work site. At our in-house steel factory, the risk assessment is conducted once in 3 years and reviewed whenever there is an incident, accident or new hazard.

To ensure the quality of these processes, Yongnam trains the RA leader and champion under the bizSAFE Star program and for the annual audit. This inspection is done periodically. Where we are contracted by the Land Transport Authority or other multinational corporations, we are further audited by their systems.

The risk management team consists of the Project Manager, Department Manager, Engineer, Supervisor, Foreman and Safety Practitioners as well as Safety Coordinators, WSH Coordinators and WSH Officers according to the demands of the project. Through this system, Yongnam achieved an accident severity and frequency rate much lower than the national average for the construction industry.

In 2019, Yongnam's Accident Severity Rate9 was 18.35.

We recorded 11 work-related injuries, without any fatalities, with a rate of 1.85 of recordable work-related injuries 10 . Yongnam

Near -termt argetLong-termt arget takes every injury seriously and has taken every measure possible to prevent its re-occurrence.

Maintain accident	Zero Incident
severity rate <20	Zero Injury
		Figure 2010: Safety targets

1. Authorised Examiner defined by the Ministry of Manpower
2. Air Receiver defined by the Ministry of Manpower
3. Accident Severity Rate follows MOM guidelines, calculated by the following formula: (No of man days lost to workplace accidents/no of man- hours worked) x 1,000,000
4. Rate of recordable work-related injuries is calculated by the following formula: (Number of recordable work-related injuries/no of man-hours worked) x 1,000,000

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Incident Investigation

In the event of a work-related incident, the WSH Coordinator or registered officer conducts an investigation into the incident and reviews the risk assessment in accordance with the Code of Practice on WSH Risk Management.

3. Participation by workers

Our staff actively contributed to development of our occupational health and safety management system. This input is obtained from staff weekly through our WSH Alert. Learning from past incidents and accidents allows us to create a safer environment for our workers.

At project worksites where Yongnam is the subcontractor, the Project Manager and Safety Coordinator will participate in the project safety committee meeting and program. At Yongnam's factory, the safety committee consists of members who are representatives of persons at work and also the management of the factory.

Safety patrol is conducted and issues are discussed for further improvement. Improvement efforts cover infrastructure improvements, skills training, Personal Protective Equipment (PPE) usage, and other issues on utilities and facilities for the well-being of Yongnam's workers. As many of Yongnam's staff have been with us for many years (ranging from 6 to 30), they appreciate such programmes and actively participate in them. For new workers, they are attached to the more experienced workers to receive training on the system.

4. Training and Communication

Safety training is mandatory for all employees and workers involved in construction work. The top management of Yongnam attends various workshops and seminars, while all other personnel attend the mandatory course sponsored by the company (as aforementioned under the "Training and Development" section). The operation director and project manager (PM) attend the "WSH safety for Project Manager" course, while engineers and supervisors attend the following Singapore Workforce Skills Qualifications (WSQ) courses:

• Risk assessment leaders, champion, participants;
• Work-at-heightfor manager, assessor and workers;
• Lifting supervisor, rigger and signalman course;
• Certified first aider;
• Fire safety manager;
• Airport fire fighter and SCDF academy firefighting course;
• Boom lift and forklift operator course;
• Scaffold erector and supervisor course;
• Confined space, tunnel entry and manholes entry course;
• Graduate specialist WSH course for auditor

Representatives who have gone through these rigorous courses conduct in-house training on a monthly basis and briefings on site daily. These in-house trainings and briefings at the factory are sometimes translated into the native languages of our workers for their easy understanding.

Field skill training and field work training are also provided to new workers to reduce the possibility of major injuries and causing harm to others due to negligence.

Yongnam participated in the WSH Work-At-Height clinic. Safety briefings and demonstration are carried out to workers on site, in addition to fire drills and emergency evacuations. WSH alert, findings, programme, and banners are also dispatched to the site to remind workers of their safety. Whenever there is an accident, the management will perform an investigation and debrief other workers to prevent recurrence.

We have achieved zero demerit points and zero accident involving falling from scaffolding, owing to the scaffold erector course in place to train fitters and welders to erect scaffold safely.

20

GRI Content Index

								Page
	GRI Standard		Disclosure		Section of Report
					Reference

GRI 102:

General Disclosures 2016

		Organizational profile
		102-1		Name of the organization		About the Report		3
	102-2		Activities, brands, products, and		About Yongnam	2
				services
		102-3		Location of headquarters		About the Report		3
	102-4		Location of operations		About Yongnam	2
		102-5		Ownership and legal form		About Yongnam		2
	102-6		Markets served		About Yongnam	2
		102-7		Scale of the organization		About Yongnam		2
	102-8		Information on employees and other		Our People	13
				workers
		102-9		Supply chain		About Yongnam		2
	102-10		Significant changes to the organization		N.A. as this is the first year of reporting		N.A.
				and its supply chain
		102-11		Precautionary Principle or approach		Yongnam adopts a risk-based approach		N.A.
						to sustainability.
	102-12		External initiatives		None.		N.A.
		102-13		Membership of associations		About Yongnam		2
		Strategy
	102-14		Statement from senior decision-maker		Board Statement	5
		Ethics and integrity
		102-16		Values, principles, standards, and		Maintaining our market leader position		9-10
				norms of behavior		through quality and strong business
						values
		Governance
		102-18		Governance structure		Sustainability Governance		4
		Stakeholder engagement
	102-40		List of stakeholder groups		Stakeholder Engagement	6
		102-41		Collective bargaining agreements		Stakeholder Engagement		6
	102-42		Identifying and selecting stakeholders		Stakeholder Engagement	6
		102-43		Approach to stakeholder engagement		Stakeholder Engagement		6
	102-44		Key topics and concerns raised		Stakeholder Engagement	6
		Reporting practice
		102-45		Entities included in the consolidated		Annual Report		Refer to
				financial statements				section Notes
								to the
								Financial
								Statements
	102-46		Defining report content and topic		About the Report	3
				Boundaries

21

	GRI Standard			Disclosure		Section of Report			Page
						Reference
			102-47	List of material topics		Material Matters			7
			102-48	Restatements of information		N.A. as this is the first year of reporting		N.A.
			102-49	Changes in reporting		N.A. as this is the first year of reporting			N.A.
			102-50	Reporting period		About the Report	3
			102-51	Date of most recent report		N.A. as this is the first year of reporting			N.A.
			102-52	Reporting cycle		About the Report	3
			102-53	Contact point for questions regarding		About the Report			3
				the report
			102-54	Claims of reporting in accordance with		About the Report	3
				the GRI Standards
			102-55	GRI content index		GRI Content Index			22-24
			102-56	External assurance		About the Report	3
	CATEGORY:	ENVIRONMENTAL
	Energy Consumption
	GRI 103:		103-1	Explanation of the material topic and its		Energy Consumption			11
	General			Boundary
	Disclosures 2016
		103-2	The management approach and its		Energy Consumption	11
				components
			103-3	Evaluation of the management		Energy Consumption			11
				approach
GRI 302: Energy	302-1	Energy consumption within the		Energy Consumption	11
2016			organization
	Material Management
	GRI 103:		103-1	Explanation of the material topic and its		Waste and Resource Management			11
	General			Boundary
	Disclosures 2016		103-2	The management approach and its		Waste and Resource Management	11
				components
			103-3	Evaluation of the management		Waste and Resource Management			11
				approach
GRI 301:	301-1	Materials used by weight or volume		Waste and Resource Management	11
Materials 2016
	Waste Management
	GRI 103:		103-1	Explanation of the material topic and its		Waste and Resource Management			11
	General			Boundary
	Disclosures 2016		103-2	The management approach and its		Waste and Resource Management	11
				components
			103-3	Evaluation of the management		Waste and Resource Management			11
				approach
GRI 306:	306-2	Waste by type and disposal method		Waste and Resource Management	11
Effluents and
Waste 2016
			306-3	Significant spills		Waste and Resource Management			11
	CATEGORY: SOCIAL

Occupational Health And Safety

GRI 103:		103-1
General		103-2
Disclosures 2016

Explanation of the material topic and its Health & Safety17 Boundary

The management approach and its components

22

GRI Standard

Disclosure

Section of Report

Page

Reference

and 2018

103-3

Evaluation of the management approach

403-1

Occupational health and safety

Health & Safety

17

management system

403-2

Hazard identification, risk assessment

Health & Safety

17

and incident investigation

403-3

Occupational health services

Health & Safety

17

403-4

Worker participation, consultation and

Health & Safety

17

communication on occupational health

and safety

403-5

Worker training on occupational health

Health & Safety

17

and safety

403-6

Promotion of worker health

Health & Safety

17

403-7

Prevention and mitigation of

Health & Safety

17

occupational health and safety impacts

directly linked business relationships

GRI 403:

403-9

Work-related injuries

Health & Safety

17

Occupational

Health and

Safety 2018

Training And Development

GRI 103:

103-1

Explanation of the material topic and its

Training & Development

14

General

Boundary

Disclosures 2016

103-2

The management approach and its

Training & Development

14

components

103-3

Evaluation of the management approach

Training & Development

14

GRI 404:

404-1

Average hours of training per year per

Training & Development

14

Training and

employee

Education 2016

CATEGORY: GOVERNANCE

Anti-Corruption And Anti-Bribery

Business Ethics

GRI 103:

103-1

Explanation of the material topic and its

Strong Business Values

10

General

Boundary

Disclosures 2016

103-2

The management approach and its

Strong Business Values

10

components

103-3

Evaluation of the management approach

Strong Business Values

10

GRI 205: Anti-

205-3

Confirmed incidents of corruption and

Strong Business Values

10

corruption 2016

actions taken

23