20th December 2022

H.E. António Guterres
Secretary-General
United Nations
New York, NY 10017
USA

Subject: Statement of Continued Support

To our stakeholders,

I am pleased to confirm that Sumisaujana TCM Chemicals Sdn. Bhd. continues its relentless support of the Ten Principles of the United Nations Global Compact on Human Rights, Labour, Environment and Anti-Corruption. With this communication, we express our intent to keep recognizing and implementing these principles.

We are committed to making UN Global Compact and its principles part of the strategy, culture and day-to-day operations of our company and to engaging in collaborative projects which advance the broader development goals of the United Nations, particularly the Sustainable Development Goals.

We recognize that a key requirement for participation in the UN Global Compact is the annual submission of Communication on Progress (COP) that describes our commitment to the Ten Principles. We support public accountability and transparency and therefore reaffirm our commitment to submit a report on our progress at the end of every year according to the policy of UN Global Compact.

Sincerely yours,

Mr. Norazlam Norbi
Executive Director

Company Goals
SSTCM respects internationally proclaimed human rights. Our goals are to provide a safe and healthy working environment and to promote work-life balance among our employees, taking into account gender equality.

Current Policies
• Anti-Slavery and Human Trafficking Policy
• Fair Employment Policy
• Health, Safety, Security and Environment (HSSE) Policy
• Human rights topics are covered in our Employee Handbook.

Public Commitments
Currently, SSTCM does not employ foreign labour. We are committed to implementing and enforcing effective systems and controls to ensure modern slavery and human trafficking are not taking place anywhere in our own business. We further expect that our suppliers will hold their suppliers to the same standards.

SSTCM provides equal employment opportunities to all employees and applicants for employment without regard to race, religion, gender identity or disabilities. We prohibit any form of workplace harassment. We work towards SDG 5 Gender Equality and SDG 8 Decent Work and Economic Growth.

HSSE is a critical, integral part of SSTCM's business. We commit to inculcating HSSE as a way of life among our employees and other stakeholders, contributing to SDG 3 Good Health and Well-being.

• Policies are displayed prominently on our premises and relayed to our vendors and suppliers.
• All staff and new hires are briefed on the policies during their induction program, and a refresher course was carried out from May to June of 2022.
• Annual supplier survey now includes human rights issues.
• We ensure that all workers including their representatives understand their respective accountabilities on HSSE matters. We constantly consult, regularly review and share our commitment to continually improve our HSSE standards
• We have an HSE committee in place, regularly monitoring working conditions, dengue prevention, etc.
• Employees are encouraged to freely share their ideas and concerns. Town hall meetings were held, and the last company-wide meeting took place on 20th January 2022. Regular management review meetings are held to deliberate not only on business but also on employees' concerns.

• We monitor monthly loss time injury, total recordable incident rate, and sick leave of employees. The frequency of injury is 1/2288 and the incident rate is 200,000/229,669 = 0.87.
• We monitor hiring and attrition, gather feedback from potential employees and leavers to improve our hiring policies with respect to human rights and fair employment. Currently, gender equality is not a concern. For senior leadership level positions, 28.6% are women.
• We conduct supplier surveys annually to evaluate their performance on HSSE and human rights.
• We have Management Review Meetings monthly.

Company Goals
SSTCM respects labour rights of our human capital. We aim to eliminate all forms of forced and compulsory labour and discrimination in our workplace.

Current Policies
• Anti-Slavery and Human Trafficking Policy
• Fair Employment Policy
• Health, Safety, Security and Environment (HSSE) Policy
• Whistleblowing procedure
• Labour rights topics our covered in our multiligual Employee Handbook.

Public Commitments
Currently, SSTCM does not employ foreign labour. Our small workforce is not unionized. We do not prohibit freedom of association or collective bargaining. We comply with labour laws of the country with regard to working hours and minimum pay. We believe in providing decent work and contribute to economic growth of the country (SDG 8).

SSTCM provides equal employment opportunities to all employees and applicants for employment without regard to race, religion, gender identity or disabilities. We prohibit any form of workplace harassment.

HSSE is a critical, integral part of SSTCM's business. We commit to inculcating HSSE as a way of life among our employees and other stakeholders, contributing to SDG 3 Good Health and Well-being.

• Policies are displayed prominently on our premises and relayed to our vendors and suppliers.
• All staff and new hires are briefed on the policies during their induction program, and a refresher course was carried out from May to June of 2022.
• The Employee Handbook is being updated to ensure that labour rights topics are addressed and communicated more clearly.
• We ensure that all workers including their representatives understand their respective accountabilities on HSSE matters. We cconstantly consult, regularly review and share our commitment to continually improve our HSSE standards
• We have a HSE committee in place, regularly monitoring working conditions, dengue prevention, etc.
• In Q1 2022, we engaged our shift workers and changed shift work hours to optimise rest time and income (including over time payment) for our workers.
• We also engaged our office workers and formalise hybrid working (work from home vs office) arrangement to reduce commute and improve work-life balance.
• We refreshed our Anti-bribery and Corruption Policy to include whistle blowing procedures for the employees.
• We adjusted our compensation package to be in-line with the market rate (based on Kon Ferry survey report) and ensure that our employees are fairly compensated as they gain skills and proficiency in their work.

• We monitor monthly loss time injury, total recordable incident rate, and sick leave of employees. The frequency of injury is 1/2288 and the incident rate is 200,000/229,669 = 0.87.
• We monitor hiring and attrition, gather feedback from potential employees and leavers to improve our hiring policies with respect to human rights and fair employment. Currently, gender equality is not a concern. For senior leadership level positions, 28.6% are women.
• We monitor our compensation package against market survey reports. Currently, our average compensation package is close to the 50th percentile for our sector.
• We have Management Review Meetings monthly.

Company Goals
SSTCM takes our responsibility in environmental protection seriously. Our goal is to minimise pollution and optimise the use of energy and natural resources in our business activities. We also aim to help our stakeholders to internalise the care for environmental in their value systems.

Current Policies
• Environmental Policy
• Health, Safety, Security and Environment (HSSE) Policy

Public Commitments
SSTCM is committed to complying with environmental regulatory requirements in all of our business activities. We are committed to providing a safe and healthful workplace for our employees and being environmentally responsible for our neighbours. We are also committed to promote environmental awareness among our stakeholders. We work towards SDG 12 Responsible Consumption and Production, SDG 13 Climate Action, SDG 14 Life Below Water, SDG 15 Life on Land.

We are a small medium size enterprise. Many of our procedures are put in place for compliance with environmental protection laws.
• Policies are displayed prominently on our premises and relayed to our vendors and suppliers.
• We ensure that personnel are properly trained with the appropriate safety and emergency equipment.
• Our ISO 45001 certified occupational health and safety management system includes waste management procedures, and we report our scheduled waste to Department of Environment. We plan to implement an ISO 14001 certified environmental management system in the near future.

Even though options available are constrained by infrastructure and capital availability, we are proactively taking steps towards climate change mitigation. Large improvements will be implemented when we move to a new facility in 2023/2024.
• In 2021, we upgraded the thermal oil system of a reactor to significantly reduce the electricity consumption of the equipment.
• We have spent a fair amount of R&D effort to explore the replacement of raw materials from North America & European imports to local raw materials. This initiative reduces the carbon footprint of the products.
• We provided safety awareness training to employees about flooding and we promote employee volunteerism to render assistance to flood victims in the district.
• Although we have not set many firm environmental goals beyond legal requirements, we have taken a few steps to raise environmental awareness among the employees and their family members. Two tree planting events were organised in collaboration with the city council. One was mangrove restoration that would protect the district from climate change disasters such as flooding, while conserving mangrove forest and biodiversity of that ecosystem The other one was in conjunction with local cultural heritage event. We promote circular economy and recycling activities. An innovative initiative was to collect old shoes from the employees and communities so that the soles can be recycled into rubberised surface materials for playground.
• We disclose our sustainability performance via CDP & IntegrityNext platforms.

• Regular assessments and monitoring by third party competent person as required by law. These include the Chemical Health Risk Assessment, Control of Industrial Major Accident Hazard Assessment and Local Exhaust Ventilation Monitoring of NO, NO2, SO2, CO, particulate matter and dark smoke.
• We started monitoring energy and resource on an aggregate basis. However, we have not set the annual target as we are still gathering detailed data.
• Our greenhouse gas emissions are measured and calculated to be :
Scope 1 emissions:
2020 - 387 tCO2e
2021 - 515 tCO2e
• Scope 2 emissions in
2020 - 617 tCO2e
2021 - 1003 tCO2e
We did not monitor Scope 3 emissions in these reporting years. The increase emissions are due to a 33% increase in production volume, and more employees working in the office after the pandemic restrictions were eased in 2021.

The calculation protocol is in accordance with the IPCC Guidelines for National Greenhouse Gas Inventories, 2006, The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) and Malaysia Biennial Update Report to the United Nations Framework Convention for Climate Change, 2020.

• Renewable energy consumption as a percentage of total energy consumption is 4%, mainly from biodiesel components in our diesel consumption.
• Water consumption is 9.819 megaliters.

Company Goals
SSTCM has zero tolerance against all forms of bribery and corruption.

Current Policies:
We have an anti-bribery and corruption policy with the associated system that address:
- Gifts, entertainment, hospitality, travelling, donations and sponsorship
- Facilitation and extortion
- Training procedure
- Financial controls
- Non-financial controls
- Reporting and whistleblowing
- Due diligence and management of business associates
- Communication plan
- Employment process and controls
- Disciplinary procedure

Public Commitments:
SSTCM is committed to conduct its business affairs in strict compliance with the law and adhere to the highest principles of business ethics. This is aligned to SDG 16 Peace, Justice and Strong Institutions.

• Policies are displayed prominently on our premises.
• Training is provided to employees, contractors and direct suppliers of the organisation.
• Review topic on ad hoc basics.

There has been no incidents this reporting year related to corruption.