Hong Leong Asia : Sustainability Report

MATTERS

SUSTAINABILITY REPORT 2021

ABOUT

THIS REPORT

materials issues described in the report (see pages 7 and 8 under Materiality Assessment).

Information contained in this report covers HLA's business scope of building materials (Malaysia and Singapore) and diesel engine products (China) which contributed significantly to HLA's total revenue in 2021. It reflects the sustainability progress of the building materials and diesel engines operations from 1 January 2021 to 31 December 2021, unless otherwise specified.

The rigid packaging business is not included in this report as it is not material in terms of proportion to the Group's total revenue. Nonetheless, HLA remains committed to its current practices to review and manage key material issues unique to this segment.

A historical comparison to the previous years is presented where possible. We will continue to assess and improve our data collection and progress reporting over time.

This Sustainability Report 2021 ("SR") has been prepared in accordance with GRI Standards core option and complies with SGX requirements on sustainability reporting. The GRI standard was chosen as it is the most widely used reporting standard in the industry and is relevant to our business.

Hong Leong Asia's (HLA) reporting is also in line with the United Nations Sustainability Development Goals (UN SDG) Framework and will focus on SDG 9, "Industry, Innovation & Infrastructure" and SDG 12, "Responsible Consumption and Production". These two SDGs are most relevant to our business and aligned to specificThere is no significant change to the organisation's size, structure, ownership, or supply chain during the year. The 2021 Sustainability Report is published separately in digital format and available to shareholders via SGX website and the Company's website.

This Report is made in accordance with a resolution of the Board dated 6 April 2022.

OUR APPROACH TO SUSTAINABILITY

SUSTAINABILITY FRAMEWORK AND GOVERNANCE

Table 1: HLA Group Sustainability Pillars and Key Material Issues

The HLA Group Sustainability Framework provides a clear articulation of the Group's sustainability priorities. These priorities are interconnected by three pillars that encompass the material Environment, Social and Governance ("ESG") topics facing HLA Group. Ensuring the sound management of these material topics is crucial to the success of our business strategy to create long-term value for our stakeholders.

KEY PILLARS

HLA GROUP MATERIAL ISSUES

HLA Group Sustainability Framework

AT HLA, OUR VISION IS TO DEVELOP AND DELIVER SUSTAINABLE AND INNOVATIVE URBAN SOLUTIONS FOR CITIES OF THE FUTURE. OUR CORE VALUES SET THE FOUNDATION FOR BUILDING RESILIENCE FOR THE LONG-TERM.

*Note: To differentiate the material topic of "Innovative Products" between the business segments of building materials and diesel engines, we have renamed the topic as "Alternative Cement and Concrete Products" and "Energy Efficient Products", respectively.