SLNG Sustainability Report 2023

ENERGISING

Bringing openness, ideas and passion to relationships, so that others are motivated to do more.

OUR VISION AND VALUES

ENTERPRISING

Willingness to try new things and to go the extra mile to get things done

FORWARD-LOOKING

Seeing what’s possible – focusing on opportunities and solutions rather than obstacles.

COLLABORATIVE

Teamwork and partnerships for win-win outcomes.

VISION

CATALYSE NEW POSSIBILITIES IN THE ENERGY TRANSITION

COURAGEOUS

Resolve and conviction about our strategy for the future; committed to doing the right thing now.

ENGAGING

Connecting and reaching out to share ideas and solutions.

INTRODUCTION

Singapore LNG Corporation Pte. Ltd. (SLNG) is the owner and operator of Asia’s first open-access, multi-user liquefied natural gas (LNG) terminal. Located on a 40-hectare plot of land on Jurong Island, the SLNG Terminal (Terminal) currently features two jetties for LNG vessels ranging from 2,000m³ to 265,000m³, four storage tanks with a total capacity of 800,000m³, and an annualised average gas supply capacity of up to 9 million tonnes per annum (Mtpa), with a peak capacity of up to 11 Mtpa. Presently, the Terminal supplies about 50% of Singapore’s total natural gas demand for power generation.

SLNG’s vision is to Catalyse New Possibilities in the Energy Transition, which guides our efforts in helping to enhance Singapore’s energy security; being an advocate for sustainable new energy developments and innovations; and supporting the development of the LNG eco-system.

We fully support a national-level LNG strategy for Singapore that will facilitate the growth of LNG-related businesses in Singapore and establish Singapore as a LNG hub for the region. In this regard, we offer an extensive range of services for the domestic and regional markets, including long-term throughput, spot throughput, storage and reload, gassing-up/ cool-down, transhipment, LNG bunkering and truck loading services.

We are collaborating with like-minded partners to explore opportunities offered by low-carbon alternatives, such as ammonia and hydrogen; as well as harnessing cold energy to support decarbonisation.

At SLNG, we are committed to taking action, and being innovative to create a positive impact in the market, and the LNG eco-system. We view this as our vital role in helping to secure Singapore’s energy future.

CERTIFICATIONS

• SS 651:2019 Safety and health management system for the chemical industry

• ISO 45001:2008 Occupational health and safety systems

• ISO 55001 Asset management systems

• ISO 27001 Information security management systems

• bizSAFE Star

MEMBERSHIPS AND ASSOCIATIONS

• ASEAN Council of Petroleum (ASCOPE)

• International Group of Liquefied Natural Gas Importers (GIIGNL)

• Singapore Shipping Association (SSA)

• Singapore National Employee Federation (SNEF)

• Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) signatory

• World Energy Council (WEC)

For information on SLNG’s Awards, please refer to our website.

INTRODUCTION

BOARD STATEMENT

SLNG’s Board of Directors (Board) recognises the importance of responsibly and proactively managing the Company’s most significant economic, environmental, and social impacts, along with the corresponding risks and opportunities. We continue to review the relevance of material sustainability topics that may affect our business. Our strategic approach emphasises energy security, a sustainable energy transition, emissions-mitigation measures, promoting energy efficiency, and delivering lasting value to all our stakeholders.

A robust governance structure has been developed to oversee our sustainability agenda, ensuring that it is aligned with our corporate objectives and embedded in our decisionmaking processes. Our focus on innovation and operational excellence enables us to continuously improve our reliability and efficiency, reduce our carbon footprint, and contribute to the broader decarbonisation of the energy sector. A holistic and robust approach to health, safety, security and the environment further enables the Company to deliver on our commitment to be a reliable pillar of national resource.

As we navigate an evolving energy landscape, the Board is optimistic about the prominent role that LNG will continue to play in global energy markets, as a much cleaner and more readily available alternative to coal and oil. Additionally, the Board recognises the important and inevitable transition towards more sustainable and lower-carbon fuels. We view this transition not as a challenge, but as an opportunity to innovate and diversify the Company’s portfolio.

In FY2023, we are designated by the government to develop the options for Singapore’s second LNG terminal. The new facility will better enable Singapore to meet its power generation needs entirely by LNG, if necessary.

A key player in Singapore’s national energy strategy, we believe it is important to continue exploring strategic research, investments and partnerships in projects that complement our operations. We are committed to leveraging our expertise and infrastructure to contribute to the broader goals of energy security and environmental sustainability.

The Company aims to boost resilience and refine its strategy to ensure reliable operations, seize opportunities, and achieve sustainable growth. We are committed to continue delivering long-term value for our stakeholders.

ABOUT THIS REPORT

This Sustainability Report 2023 (SR2023) is the fourth Report published by SLNG and provides information on SLNG’s sustainability performance from 1 April 2023 to 31 March 2024 (FY2023). It defines the Company’s targets for each of the material economic, environmental, social and governance (EESG) topics, as well as our longer-term commitments.

This is a voluntary report and all information and data have been disclosed in good faith. The Company continues to make our annual Sustainability Report accessible via our website.

This Report has been prepared with reference to the Global Reporting Initiative (GRI) Sustainability Reporting Standards, the International Sustainability Standard Board’s (ISSB) International Financial Reporting Standards and IFRS S2 Industry-based Guidance on implementing Climate-related Disclosures, Vol 12. The GRI Reporting Principles have been applied in the development of this Report’s content to help increase accountability; encourage transparency and demonstrate our commitment to the United Nations’ Sustainable Development Goals (SDGs). We endeavour to transition to the ISSB IFRS Framework in coming reports.

The scope of the Report covers SLNG’s operations spanning the following locations:

We welcome feedback from our stakeholders. Please contact us via email at Sustainability@SLNGCorp.com

SLNG’s Office located at Alexandra Road

SLNG’s Terminal located on Jurong Island

SUSTAINABILITY AT SLNG

SUSTAINABILITY PERFORMANCE HIGHLIGHTS IN FY23

ENERGY SECURITY

0

INCIDENTS of gas supply disruption, equipment failure, or human errors impacting send out

PROCUREMENT PRACTICES

ESG SCREENINGS

successfully implemented for all SLNG Tier 1 suppliers

CUSTOMER EXPERIENCE

95.84% SATISFACTION SCORE from marine operation customers

TECHNOLOGY

12

DIGITAL INITIATIVES planned for FY2023 completed

CLIMATE CHANGE AND RESOURCE EFFICIENCY

REDUCE GHG EMISSIONS BY 0.6% FROM 2018/19 BASELINE Completed planned initiatives in Terminal Decarbonisation Roadmap and attained target for FY2023 to reduce greenhouse gas (GHG) emissions

Achieved site-specific energy consumption of 0.0232

KWH/NM3 below internal target of 0.0249 kWh/Nm3

747 MWH generated from Terminal Solar PV Panels

VALUE CREATION AND SUSTAINABLE GROWTH

Successful execution of Terminal Use Agreements (TUAs) for new storage and send-out services

Jetty Flare Retrofit Project completed successfully and safely

Designated to develop 2ND LNG TERMINAL to enhance Singapore’s energy security

OCCUPATIONAL HEALTH AND SAFETY EMPLOYEE EXPERIENCE

0 INCIDENTS of workplace fatality and work-related ill health

0

PROCESS SAFETY INCIDENTS

SILVER AWARD

Received Workplace Safety and Health Performance Award

100% OF EMPLOYEES achieved at least 30 hours of training

100% OF EMPLOYEES completed at least 1 development goal identified in their Individual Development Plans

0 ESCALATIONS of employee-related matters for external arbitration

SUSTAINABILITY AT SLNG

SUSTAINABILITY APPROACH

SLNG’s approach to environmental and social responsibility is outlined in the Company’s Sustainability Framework.

This framework defines our Sustainability Vision, which is upheld by the fundamental pillars of Economic, Environmental, and Social commitments to the Company’s internal and external stakeholders. This is underpinned by strong Corporate and Sustainability Governance Framework that spans across the Company to provide direction for compliance as well as ethical and responsible business practices.

SLNG SUSTAINABILITY VISION

Harnessing sustainability to facilitate energy security, support the energy transition, drive business opportunities and livelihoods responsibly, and future-proof our organisation

ECONOMIC

Contributing to Singapore’s energy security and economic growth, while enabling a sustainable circular economy

• Facilitating energy security and supporting energy transitions in Singapore

• Driving value creation and sustainable growth

• Providing excellent customer experience

ENVIRONMENT

Minimising our environmental impact and risks, mitigating and offsetting GHG emissions

• Managing and reducing energy and resource consumption

• Reducing GHG emissions

• Responding to physical climate risks

• Engaging in sustainable procurement

SOCIAL

Ensuring the safety, wellbeing and welfare of internal and external stakeholders (where relevant) and developing human capital and skills for the future

• Prioritising occupational health and safety

• Becoming the employer of choice while fostering diversity and inclusivity

• Upskilling employees and growing the nation's LNG expertise

• Outreach to key external stakeholders and the local communities

Commitment

To secure Singapore’s energy security and facilitate Singapore’s new energy transition

Commitment

To materially reduce our GHG emissions by 30% by 2030 and strive to attain carbon neutrality by 2050 (if viable)

Governance:

Commitment

To positively impact the lives of SLNG’s key stakeholders (including employees and local communities)

Upholding good corporate governance and ethical business practices

Shared Values and Our Value Chain: In partnership with our stakeholders, drive sustainability in a collaborative manner with the LNG ecosystem

SUSTAINABILITY AT SLNG

SUSTAINABILITY GOVERNANCE

The Board has oversight of SLNG’s Sustainability Strategy and its integration into the Company’s overall business approach. The Board assumes overall responsibility for good corporate governance, has the collective responsibility to provide leadership and oversee the strategic direction of the Company, as well as work together with Management for the best interests of stakeholders. The Board is composed of a diverse group of individuals with a wide range of expertise, reflecting SLNG’s commitment to inclusivity and varied perspectives.

SUSTAINABILITY GOVERNANCE STRUCTURE

The diversity in gender, ethnicity, and professional backgrounds of our Directors reinforces the Company’s ability to make well-rounded decisions. For more information on SLNG’s Board of Directors, please refer to https://www.slng. com.sg/our-board

The Board is supported by the Sustainability Steering Committee (SSC) which is responsible for advancing SLNG’s sustainability initiatives and progress reporting.

A Sustainability Task Force, consisting of cross-functional work groups, ensures that initiatives are implemented across the organisation and for all staff.

SLNG’s Sustainability Governance is deeply intertwined with our approach to Corporate Governance.

The Board sets SLNG’s sustainability agenda, ensures the integration of sustainability considerations into the Company’s strategic planning, and approves, guides, and reviews EESG topics that are significant to the business. The Board also reviews and discusses SLNG’s sustainability performance at least twice a year. Additionally, the Audit & Risk Committee receives updates for review every quarter.

The SSC assists the Board in advancing sustainability-related initiatives. Led by the Chief Executive Officer (CEO) and supported by a Senior Sustainability Manager, the SSC comprises SLNG’s senior management and is responsible for implementing SLNG’s sustainability strategy, managing and monitoring overall sustainability performance, and ensuring progress towards our sustainability targets. EESG priorities have been integrated with SLNG’s strategy and annual business plans.

The Task Force spearheads sustainability programmes throughout the organisation via cross-functional work groups and ensures that the initiatives are executed robustly and consistently. Specialised working groups are formed where appropriate to focus and provide support on priority areas. Meetings and discussions are organised regularly.

All SLNG staff are expected to contribute to the implementation of action plans and the achievement of key sustainability objectives, and where applicable, assist in the ongoing monitoring and management of critical sustainability focus areas.

CORPORATE GOVERNANCE

SLNG is firmly committed to ensuring a sound and robust system of corporate governance. The Company’s Governance and Enterprise Risk Management Frameworks are designed to promote transparency, accountability, and ethical business practices. This commitment enables us to develop and maintain the trust of our stakeholders, who include our customers, suppliers, and regulators.

SUSTAINABILITY AT SLNG

ENTERPRISE RISK MANAGEMENT

Effective risk management is a crucial component of SLNG’s Corporate Governance Framework, enabling senior management and the Board to monitor and manage the Company’s risk landscape. A Risk Management Committee oversees SLNG’s Risk Management Framework which identifies, assesses and manages risks that could affect our business operations and sustainability objectives. Dynamic communication and regular risk assessments are performed systemically to identify potential risks for the business. These risks are reviewed by the Risk Management and Audit Risk Committees quarterly.

BOARD

Reporting to

INTERNAL AUDIT

AUDIT & RISK COMMITTEE (ARC)

RISK MANAGEMENT COMMITTEE (RMC)

CHIEF RISK OFFICER (CRO) AND RISK MANAGER

RISK OWNERS

ROBUST LINES OF DEFENCE AND INDEPENDENT INTEGRITY BOARD AND ARC

Sets the tone from the top and oversees the 1st, 2nd and 3rd line of defence.

1 ST LINE: RISK OWNERS

Manages and owns SLNG’s key risks. Typically involved in day-to-day operational activities.

2 ND LINE: RISK MANAGEMENT

Coordinates risk management, reporting activities and ensuring that risks are effectively identified, mitigated and monitored.

Challenges input from 1st Line of Defence where required.

SUSTAINABILITY RISKS

3 RD LINE: INDEPENDENT ASSURANCE (E.G. INTERNAL AUDIT)

Provides independent review on adequacy and effectiveness of risk management efforts within SLNG.

SUSTAINABILITY AT SLNG

SUSTAINABILITY GOVERNANCE

HOW RISKS ARE IDENTIFIED AT SLNG

Identify risks, assess inherent risks and include in Risk Register

Log risks in register for quarterly review

Close and remove risks from Risk Register

ETHICS AND COMPLIANCE

Document key controls, assess control strength and residual risks

Report key risks on a quarterly basis

SLNG is a key part of national infrastructure and plays an important role in Singapore’s energy security. As such, the organisation takes ethics and compliance matters very seriously.

A Code of Conduct, which includes the Code of Ethics Policy, sets out SLNG’s expectations of ethical standards and behaviours in relation to all employees, include Senior Management and Board. We also prescribe standards in relation to anti-bribery; anti-corruption; zero-tolerance for fraudulent conduct; adherence to applicable sanctions and anti-money laundering laws (AML); and avoidance of conflicts of interests in our Code of Conduct, which is to be read with our Conflict of Interest Policy and our Gifts and Entertainment Policy. The policies and frameworks are reviewed routinely for relevance and effectiveness, and are additionally supported by a regular ethics and compliance training programme and a whistle-blowing system that allows stakeholders to raise concerns without fear of reprisal.

Ethics and compliance at SLNG are integrated across the Company, and are implemented through governance and structure, compliance functions, risk assessment, policies and procedures, training and awareness, open communication and concern reporting, as well as investigations and reporting mechanisms for SLNG.

Develop and implement mitigating measures/action plans, and assess target risks

Monitor risks using key risk indicators

REGULAR COMMUNICATION OF KEY POLICIES AND GUIDELINES

As part of our engagement strategy to build a culture of good corporate governance, employees are required to renew their acknowledgement and commitment annually to comply with key corporate policies and guidelines listed below:

• Code of Ethics Policy

• Conflict of Interest

• Data Protection Policy

• Drug and Alcohol Use

• Gifts and Entertainment Policy

• SLNG HSSE Policy

• No Smoking Policy

• Whistleblowing Policy

WHISTLEBLOWING POLICY

We maintain a clearly communicated Whistleblowing Policy which is supplemented by an Investigation and Regulatory Disclosure Policy. Details of the Whistleblowing Policy are made available through our website, and all submissions sent through the stated channels are received directly by the Chairman of the ARC in confidence and without fear of reprisal, discrimination or other adverse consequences. More information can be found at https://www.slng.com. sg/whistleblowing-policy

SUSTAINABILITY AT SLNG

SUSTAINABILITY GOVERNANCE

KNOW-YOUR-COUNTERPARTY (THIRD PARTY RELATIONS)

SLNG’s policy and procedures relating to Know-YourCounterparty (KYC) are crucial components of our commitment to maintaining a secure and compliant business environment. They outline the steps we take to verify the identity of our customers, suppliers and other counterparties, to ensure compliance with applicable laws and to safeguard SLNG’s reputation. When SLNG intends to transact with a counterparty, such counterparty will be subject to a multi-factor risk screening process. Counterparties with more complex risk profiles are managed using enhanced KYC measures. This framework is designed to ensure that our operations are in alignment with applicable legal and regulatory requirements, to protect the integrity of our business and mitigate the risk of regulatory breaches.

STAKEHOLDER ENGAGEMENT

DATA PROTECTION AND PRIVACY

The Company has in place Data Protection Policy and Data Retention Policy, which provide cross-functional guidance on the secure collection, storage, and processing of personal and sensitive information.

SLNG maintains transparent and regular communications with our stakeholders, through various channels. This is to ensure that we keep our fingers on the pulse of their key business issues and concerns, so that we can actively identify and manage these issues and concerns dynamically.

SLNG has identified seven core stakeholder groups, who have significant influence on the Company and vice versa. A summary of how we interact and communicate with our stakeholders is outlined in the below table.

STAKEHOLDER ENGAGEMENT IN SLNG

Key Stakeholders Key Issues of Concern

Regulators

• Security of gas supply to Singapore

• Reliability and safety

Engagement Approaches and Channels

• Strict compliance to regulatory requirements and licence standards

• Regular and frequent monitoring of management systems and internal controls

• 24-hour manned direct telephone connection to the Power Supply Operation Division (PSOD) of EMA

• Meetings and emails with EMA representatives

Shareholders • Reputational impact in the event of non-delivery of services by SLNG, major safety issues, change in authorised business or reserved matters etc.

• Updates via Monthly Management reports

• Shareholder representative on the Board of Directors

Engagement Frequency

• Whole year

• In-person or email communications on a need basis

• Whole year

• On a need basis

• Monthly

• Quarterly, and whenever the need arises

• Ad-hoc

SUSTAINABILITY AT SLNG

STAKEHOLDER ENGAGEMENT

Key Stakeholders Key Issues of Concern

Employees

• Security of employment

• Competitive remuneration and benefits package

• Fair and equal treatment

• Career progression

• Growth of SLNG

Customers

• Competitive pricing

• Efficient delivery of services

• Ease of doing business

Engagement Approaches and Channels

• Townhall sessions (in-person/virtual)

• Monthly e-newsletters and postings on topical microsites

• Staff workshops

• Focus group discussions

• Representation on work committees

• Employee Engagement Surveys

• Pulse Surveys

• HR representative based at Terminal for site-based employees

• Union representation

• Communication via email, Intranet, and mobile app

• Account managers to liaise with customers

• Customer forums and networking events

• Stakeholder engagement surveys

• Webinars

Suppliers and Contractors

• Safety

• Fair competition, equal treatment, and ethical practices

• Timely payment

Union

Communities

• Progression, upskilling and employability for represented employees

• Equity and fairness

• Continuity of support from SLNG for their causes

• Project kick off meetings

• Workplace Health and Safety Committees

• Toolbox meetings for onsite contractors

• Permit to work meetings

• Annual Vendor Evaluation at the end of contract

• After Action reviews at the end of contract

• Consultation at least twice a year (in-person/virtual)

• Emails/phone calls

• Engagement events

• Emails/phone calls to keep them updated

Engagement Frequency

• Quarterly

• Monthly

• Ad-hoc

• Ad-hoc

• Ad-hoc

• Every 2-3 years

• Ad-hoc

• Accessible through working weekdays

• Quarterly and ad-hoc

• Weekly

• Daily

• Bi-annually

• Annually

• Ad-hoc

• On a need basis

• Monthly

• Daily

• Daily

• On a need basis

• On a need basis

• Bi-annually

• On a need basis

• ~2-3 times a year

• On a need basis

SUSTAINABILITY AT SLNG

MATERIALITY ASSESSMENT

SLNG MATERIAL TOPICS FOR SR2023

SLNG is guided by the GRI Standards in its approach to materiality assessment. A list of EESG topics was developed through an exercise, which included peer benchmarking, consideration of the GRI Standards Oil and Gas Sector Standard (GRI 11), and an analysis of key industry and business needs. These material topics are reviewed annually to ensure that they are updated to reflect the current landscape of the business and organisation. The survey captures the input of internal stakeholders, including the Sustainability Steering Committee and staff who directly interact with our key stakeholders.

SUSTAINABILITY AT SLNG

MATERIALITY ASSESSMENT

SLNG’s material topics are identified in the red box in the matrix on the previous page. Its topical approaches are detailed in the below table as well as the respective chapters. The Company has chosen to disclose additional pertinent information on topics that may not be identified as material through this exercise.

SLNG actively supports the SDGs and we recognise the role we can play in contributing to responsible social and economic development in the communities we serve. Of the 17 SDGs, we have identified targets and metrics in nine SDGs where we have the ability to directly impact. These are Good Health and Well-Being (SDG 3), Quality Education (SDG 4), Gender Equality (SDG 5), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), Responsible Consumption and Production (SDG 12), and Climate Action (SDG 13).

Below are the material topics used for SR2023 and why they are important to SLNG. The material topics have been mapped against the SDGs that the Company can impact, and the relevant GRI Standards that have guided the reporting.

FACILITATE NATIONAL ENERGY SECURITY

ECONOMIC

Key stakeholders impacted: Customers, Regulators, Shareholders, Suppliers and Contractors, and Union

SLNG owns and operates Singapore’s first LNG Terminal. We have a responsibility to ensure robust and safe business operations to support Singapore’s energy security through a reliable and uninterrupted supply of natural gas. Key approaches adopted are Business Continuity Management and Robust Operating Systems.

FACILITATE AND SUPPORT NEW ENERGY TRANSITION

We facilitate the adoption of LNG by various industries, including the maritime industry; and facilitate the transition to other more sustainable lower-carbon fuels. This helps to build a better and cleaner-energy future for the people in Singapore and beyond.

VALUE CREATION AND SUSTAINABLE GROWTH

SLNG supports Singapore’s position as a regional LNG trading hub and helps to grow the LNG ecosystem. We leverage on our Terminal’s infrastructure and operational expertise to develop and grow the portfolio of LNG services and product offerings, including LNG bunkering.

TECHNOLOGYDIGITALISATION AND CYBERSECURITY

As a critical cross-functional enabler within the organisation, Technology offers a range of risks and opportunities that have the potential to significantly impact SLNG’s EESG factors. Digital innovations enable us to increase efficiency, productivity and enhance relationships with our customers, partners, and collaborators. The threats of data and digital system breaches require robust management systems, which in turn safeguard our operational and informational technology environments.

CUSTOMER EXPERIENCE

We aim to cultivate mutually beneficial partnerships with our customers, partners and collaborators. By meeting and supporting our customers’ evolving needs, we ensure positive experiences that strengthen these relationships.

SUSTAINABILITY AT SLNG

MATERIALITY ASSESSMENT

CLIMATE CHANGE AND RESOURCE EFFICIENCY

Energy

(Referenced GRI: 302-1)

ENVIRONMENT

Key stakeholders impacted: Customers, Regulators, Shareholders, Shareholders, and Community

SOCIAL

Key stakeholders impacted: Employees, Supplier and Contractors, Union, Customers, and Regulators

It is important for SLNG to efficiently manage and reduce the use of energy (electricity) and where possible, produce and use clean energy.

Emissions

(Referenced GRI: 305-1, 305-2)

While meeting the nation’s energy needs, we also seek to reduce our carbon footprint and potential greenhouse gas emissions when planning future infrastructure.

OCCUPATIONAL HEALTH, SAFETY AND ASSET INTEGRITY

(Referenced GRI: 11-8, 403-1 to 403-10)

Ensuring the safety of our employees, customers, contractors, and terminal users is our priority. As part of the oil and gas sector, GRI’s sector-specific guideline to incorporate a performance measure for asset integrity and critical incident management has been implemented as we share the view that asset integrity is of paramount importance to SLNG and its community.

EMPLOYEE EXPERIENCE

Employment and Employee Wellbeing

(Referenced GRI: 401-1)

Employees are our greatest asset. Improving employee wellbeing can translate into improved efficiencies and reduced staff turnover rate, thereby reducing the cost of business, and ensuring the attraction and retention of the right talent.

Climate

(Referenced standards: TCFD, IFRS S2)

With the SLNG Terminal being a critical installation for the country, it is important to understand and manage physical climate change risks to the Terminal’s infrastructure and operations. We recognise our Company’s increasing exposure to the low-carbon economy transition and the need to plan, adapt and mitigate associated risks.

PROCUREMENT PRACTICE

(Referenced GRI: 308-2, 414-2)

The Company recognises the potential impact that the supply chain has on its EESG matters, and seeks to manage its procurement practices for more strategic and collaborative benefits.

Training and Education

(Referenced GRI: 404-1, 404-2, 404-3)

SLNG seeks to equip employees with the right competencies – functional/ technical, and behavioural softskills for the workplace – to prepare employees for current and future work in the organisation. We also want to align learning opportunities with individual interests and career aspirations to strengthen the learning agenda across the organisation.

Diversity and Equal Opportunity

(Referenced GRI: 405-1)

We focus on providing equal opportunities to all of our employees, as encouraging diversity creates a positive work environment, strengthens our employees’ commitment to the organisation, fosters innovation, and ensures continuity of our business.

Union Relations

SLNG believes that having good mutual relations between employees represented by the Union and SLNG is a cornerstone in sustaining an engaged workforce that contributes to the continued success of the organisation.

ECONOMIC

• Zero non-compliance of EMA Performance Standards

• Take a leading capacity in the development of an additional LNG storage and regasification facility in Singapore

As Singapore continues to pursue and invest in renewable energy sources, natural gas has a pivotal role as an essential transitional fuel in its decarbonisation strategy. As the nation takes steps towards a sustainable energy future, SLNG’s key mandate is to ensure that Singapore has a reliable and continuous supply of LNG to balance the nation’s needs in energy security, economic growth, and environmental stewardship.

FACT

On 10 November 2023, SLNG achieved a record of 6.4Mtpa output, the highest amount of gas supply since the start of the Company’s commercial operation.

Since 2013, natural gas has accounted for over 90% of Singapore electricity.

We regard the role we play in the nation’s energy security with utmost importance and are fully committed to ensuring that both our facility and people deliver the highest reliability and availability in the delivery of natural gas for the domestic market.

• No non-compliances nor service disruptions

• Designated by Singapore Government to develop and eventually own 2nd LNG terminal to meet Singapore’s growing energy demand and to enhance the country’s energy security

SLNG has also been tasked by the government to develop a second LNG terminal, which will provide enhanced energy security for Singapore and to meet future natural gas demand. The new facility will increase SLNG’s ability to deliver additional capacity, and explore the application of a Floating Storage and Regasification Unit (FSRU) to significantly strengthen national ability for greater gas supply flexibility and deployment capabilities.

ECONOMIC

FACILITATE ENERGY SECURITY

BUSINESS CONTINUITY AND CRISIS MANAGEMENT

Business continuity and crisis management are integral to SLNG’s ability to fulfil our role as a pillar of the national energy system. The Company maintains robust contingency systems and inventory of critical spare parts, as part of its operational approach for uninterrupted and reliable services.

All plans are reviewed on an annual basis. Additionally, SLNG conducts an annual crisis management exercise to test its current systems for resilience and ensure emergency preparedness.

A CROSS FUNCTIONAL BUSINESS CONTINUITY PLAN

SLNG RESPONSE PLANS

Crisis Management Plan

Emergency Response Plan

Business Continuity Plan

Disaster Recovery Plan

Cyber Incident Response Plan

Pandemic Flu Response Plan

ROBUST OPERATIONS SYSTEMS

Rigorous operating and maintenance management systems are in place to ensure that the Company meets the strict Energy Market Authority (EMA) Performance Standards. This encompasses a range of areas, which include supply availability, reliability, restoration speed and quality.

Emergency responsiveness forms a core component of the Terminal’s reliability and resilience action plans. The production team is required to undergo quarterly training to ensure that onsite personnel are well equipped with the skills and familiarity to execute SLNG’s comprehensive operational strategies.

1 2 3 4 5

MANAGEMENT OF CHANGE PROCEDURE PLANS AND PROCEDURES REVIEW PROCESS

Any near miss incident, which may potentially affect gas supply and customers, is captured in the J5 incident reporting system.

An OAR is raised in situations of any abnormal operation, which may potentially affect gas supply or customers.

All works are to be thoroughly reviewed, assessed, and approved for safety and gas supply related risks before execution. OPERATION ABNORMALITY REPORT (OAR) PROCEDURE

PERMIT TO WORK SYSTEM INCIDENT MANAGEMENT SYSTEM

All modifications, from intiation to implementation, are assessed, reviewed, controlled, and documented to prevent undesirable or unexpected consequences resulting from the modifications.

All production and maintenance procedures, including Terminal Gas Send-Out Operating Philosophy, are constantly reviewed to ensure compliance, effectiveness, and efficient operations.

ECONOMIC

FACILITATE AND SUPPORT NEW ENERGY TRANSITION

TARGETS

• Identify energy transition initiatives and collaborate with relevant stakeholders to support national decarbonisation efforts

FY2023 PERFORMANCE

• In progress

A SLNG-Sembcorp consortium was shortlisted to participate in a closed Request for Proposal (RFP) to provide a low or zero-carbon ammonia solution for power generation and bunkering on Jurong Island

As the world transitions to a low-carbon economy, it is critical for SLNG to develop and leverage its capability and capacity to support Singapore’s decarbonisation roadmap.

FUTURE-PROOFED CAPABILITIES

SLNG’s current LNG terminal is designed and engineered for flexibility and scalability, allowing for facility expansion as needed to meet future market demand. It is strategically positioned to promote the adoption of LNG in the region and support the shift towards more sustainable fuel sources.

NEW ENERGY INITIATIVES

SLNG is actively leading and collaborating with national regulators, academic institutions, and independent specialists to research and develop low-carbon energy solutions.

Ongoing projects to support national decarbonisation roadmaps include:

Exploration of cold energy recovery and application (such as decarbonising technology) through joint collaborations to examine the feasibility and development of a CO2 liquefaction and storage facility.

A SLNG-Sembcorp Industries consortium was one of the six shortlisted by EMA and Maritime and Port Authority of Singapore (MPA) to participate in a closed RFP to provide a low or zero-carbon ammonia solution for power generation and bunkering on Jurong Island.

This RFP was issued subsequent to an Expression of Interest (EOI) that was launched in December 2022 and closed in end-April 2023. Under the EOI, EMA and MPA received a total of 26 proposals, underscoring strong interest from local and international companies.

The project will have a potential to achieve an end-to-end solution to generate close to 55 megawatts of electricity using low or zero-carbon ammonia; and facilitate ammonia bunkering at a capacity of at least 100,000 tons per annum.

If selected by EMA and MPA, the SLNGSembcorp consortium will proceed to the next phase of RFP.

ECONOMIC

VALUE CREATION AND SUSTAINABLE GROWTH

TARGETS

• Maintain customers’ interests in our long-term services; and future-proof our infrastructure to meet and provide appropriate market and/or decarbonisation solutions

FY2023 PERFORMANCE

• Successful execution of Terminal Use Agreements (TUAs) for new storage and send-out services

• Continued enhancement efforts to current infrastructure and services

• Retrofit of primary jetty flare completed successfully and safely

• Develop business case for green or decarbonisation projects in the future

EXISTING INFRASTRUCTURE: FUTURE-PROOFING

SLNG is proud to be able to offer its customers a full range of services spanning storage and reload (including small and mid-scale breakbulking), gassing up and cooldown, LNG transhipment, LNG truck loading, and LNG bunkering.

SLNG undertakes a continuous journey to constantly enhance its facilities. In FY2023, these included:

• Undertaken technical studies on the feasibility of building additional storage tanks that can be used to store LNG, or alternative green fuels such as ammonia to facilitate the energy transition.

• Continued efforts on identification and exploration of business opportunities

• Undertaking detailed technical studies for an additional small-scale jetty infrastructure. This is in anticipation of growing LNG bunkering demand as the regional maritime industry evaluates LNG as a viable greener fuel. SLNG is also looking at future-proofing the new jetty infrastructure that can be used to transfer both LNG and other alternative fuels.

• Executed an increase in truck loading operations to meet the robust growth in customer demand for LNG. Additionally, exploration of a new truck loading infrastructure is underway to expand the operations beyond the current capacity.

• A retrofit of SLNG’s primary jetty flare was successfully completed with zero incident in FY2023.

NEW INFRASTRUCTURE: DEVELOPMENT OF SECOND LNG TERMINAL

As part of Singapore’s enhance energy security efforts, SLNG has been tasked to the development efforts of a second LNG Terminal. The facility is scheduled to come online by the end of the decade and will feature a gas supply capacity of up to 5 million tonnes per annum (“Mtpa”) and additional onshore gas pipeline network which will be connected to Singapore’s gas pipeline grid. When complete, it will provide SLNG with a strong growth impetus as well as SLNG’s reputation and capability as a leading LNG player.

ECONOMIC

VALUE CREATION AND SUSTAINABLE GROWTH

NEW INFRASTRUCTURE: DEVELOPMENT OF SECOND LNG TERMINAL

As part of enhancing Singapore’s energy security, SLNG has been tasked to develop a second LNG terminal. The facility is scheduled to come into operation by the end of the decade; and will feature a throughput capacity of up to 5 Mtpa and additional onshore gas pipeline network which will be connected to Singapore’s gas pipeline grid. When completed, it will provide SLNG with a strong growth impetus as well as reinforces SLNG’s reputation and capability as a leading LNG player.

Recent engagements with external stakeholders, together with active participation in international LNG discussions and conventions, enable SLNG to vigilantly monitor the landscape and identify potential opportunities for sustainable business growth and collaborations.

OPPORTUNITIES IN THE TRANSITIONING ECONOMY

While no opportunities on potential circular economy initiatives nor relevant synergistic decarbonisation solutions were identified, SLNG will continue exploration in this regard in FY24. SLNG is also assessing opportunities to offer high-quality carbon credits to the market.

It is important for SLNG to continue to understand its customers’ changing needs; and provide new and enhanced services to the market.

EXPANDED BUSINESS OFFERINGS

CUSTOMER EXPERIENCE

In FY2023, SLNG successfully developed and launched storage and sendout services. This will enable our Generation Company (Genco) customers to exercise flexibility in these services.

TARGETS

• Zero service unavailability for jetty and trucking operations

• Zero valid Letters of Protest (LOPs)1

• Maintain a customer satisfaction score of ≥90% for marine operations

• Continuous improvement to stakeholder engagement

FY2023 PERFORMANCE

• 3 instances of trucking service unavailability; standard operating protocols initiated with no significant impact to operations

• 1 valid LOP received and addressed

• Received an average satisfaction score of 95.84% from marine-operation customers’ feedback

• More thorough approach adopted for Stakeholder Engagement Survey

• Launched a management procedure for customer complaints

1 Valid LOPs are defined as those with clear impact relating to Asset, People, Environment, and Reputation. The Marine Team will verify validity of all LOPs in order to establish an investigation.

A valid LOP shall constitute but is not limited to:

a. Incidents or occurrences resulting in injury and loss;

b. A deviation in contractual requirement or expectation applicable to a prudent operator;

c. Unacceptable actions or practices that compromise safety of operations, cause harm to people, asset or the environment, and/or have reputational impacts.

ECONOMIC

CUSTOMER EXPERIENCE

Customers are valued partners and collaborators, and meeting their needs is crucial to strengthening these relationships. To elevate the customer’s experience, SLNG works closely with stakeholders to understand their needs and adopt industry best practices to refine our operations and service delivery.

MARINE ASSURANCE AUDITS

In FY2023, a structured review system on the marine activities in the Terminal was implemented as part of the efforts to develop a trusted full-service experience for customers. The Marine Team developed and launched the Plans and Procedures Review (PPR) initiative on core service providers and the services they provide for our marine operations. Examples of such services include the function for loading masters, independent LNG Surveyors, tugboat services, pilotage services, and line handling services. A total of 12 reviews on plans and procedures in FY2023 were completed and we set out their details below: SHIPS TECHNICAL INSPECTION

4

4

DONE: 3/4 DONE: 4/4

OBJECTIVES

4

4/4

1/2

Audit process strengthens SLNG’s commitment to customer satisfaction through consistent, safe and reliable product supply.

Establish and maintain SLNG’s strict expectations on safety as well as reliability and quality of marine-based services.

Ensure operational activities at the terminal meet the highest standards of safety.

Uncover opportunities for the ecosystem to increase productivity and innovation.

Meet reliability commitments by minimising risks associated with jetty downtime, unavailability or undelivered services.

Proactively set benchmarks on best practices and expectations for service providers.

Achieve customer-satisfaction performance indicators of zero complaints.

Integrate cross-sector cooperation and continual improvement with industry players.

ECONOMIC

CUSTOMER EXPERIENCE

STAKEHOLDER ENGAGEMENT SURVEY

A more robust approach was taken for our Stakeholder Engagement Survey in FY2023. The survey focuses on the following categories:

ENGAGEMENT OPPORTUNITIES

PERFORMANCE OF TERMINAL OPERATIONS

ENGAGEMENT QUALITY

RESPONSIVENESS

EFFICIENCY OF PROCESS AND SYSTEMS

Each category was scored; and action plans will be put in place to improve the two lowest scored categories: Engagement Opportunities, and Efficiency of Processes and Systems.

Majority of respondents to the survey agree that SLNG’s engagement with them have improved over the years, and their needs have been adequately addressed.

TECHNOLOGY

TARGETS

• Execute SLNG Digital Roadmap initiatives

• On Track 12 initiatives planned for FY2023 completed

Note: SLNG monitors cybersecurity performance for internal reporting purposes.

Digital technology represents a wide range of potential risks and opportunities for SLNG. While issues such as the threat of cyber breaches and system failures pose potential risks to the business, innovative technology and its applications have enabled many processes to be automated for efficiency and accuracy. They have further enhanced security, and enabled the Company to improve reliability, health, safety conditions of our operations.

ECONOMIC

TECHNOLOGY

This section takes a deeper look into how SLNG manages two material issues - Digitalisation and Cybersecurity.

DIGITALISATION

A Board-endorsed digital transformation roadmap has been guiding SLNG’s ambition to be at the forefront of LNG industry by being technologically resilient, relevant and competitive.

Progress on the roadmap and projects are led by and reviewed by the Digital Transformation and LEAN Steering Committee biennially. The Digital Team is responsible for monitoring the landscape to identify and assess feasibility of innovative technologies that have the potential to augment SLNG’s way of doing business.

DIGITAL TRANSFORMATION ROADMAP

ECONOMIC

TECHNOLOGY

FY2023 update of SLNG Digital Roadmap

ROADMAP PROGRESS

75%

ACCUMULATED COST SAVINGS OVER SGD $429,000

ESTIMATED MAN-HOURS SAVED

6,050 man-hours a year

SLNG DIGITAL ROADMAP: FY2023 MILESTONE HIGHLIGHTS

CYBERSECURITY

As a designated critical information infrastructure operator, SLNG complies with both the ISO27001:2022 information security standards, as well as the Cybersecurity Code of Practice (CCOP) issued by the Cyber Security Agency of Singapore pursuant to the Cybersecurity Act 2018 (Singapore Statutes).

There are regular internal audits conducted in the areas of IT General Controls, Network and Technical Security. Bi-annual vulnerability assessments, penetration testing and adversarial attack simulations are undertaken with an external auditor to assess preparedness, in particular of the Company’s operational technology systems.

Our senior management is fully committed to maintaining SLNG’s cybersecurity. There are monthly cybersecurity review meetings chaired by the CEO to ensure that all necessary cybersecurity obligations are met, and that cybersecurity continues to facilitate terminal reliability and business growth.

The Cybersecurity and Governance Team is set up to:

The initiatives saved an estimated $107,000, and contributed to the effectiveness and efficiency of the Company’s business operations. Prominent initiatives include:

Machine learning for Operational Technology (OT) Network Anomaly Detection

Performance Dashboards, which include procurement, terminal and jetty operations

LNG Analysis Data Reporting System (LADAR) to expedite approval process of LNG analysis data and accurate

2FA (Two factor authentication) for enhanced security to the distributed control system (DCS)

Digitisation of

- Project Risk: Management System

- Legal Compliance Registry

- Production Shift Handover Log

Ensure compliance to cybersecurity policies and procedures

Raise awareness, conduct phishing campaigns and provide ongoing training on cybersecurity threats

Facilitate routine internal and external audits to provide assurance on SLNG security controls

Based on the ISO27001:2022 and CCOP standards, we have multiple network, access control, and process controls in place such as the use of unidirectional gateways to segregate networks, internet and email isolation, multi-factor authentication, application whitelisting, as well as the conduct of regular cybersecurity risk assessments, vulnerability assessments and penetration testing.

Given the prevalence of phishing scams, regular phishing campaigns have also been conducted since 2015. Phishing campaign results are published on a cybersecurity dashboard to raise awareness among staff, and phishing performance is also set as an individual key performance indicator for every employee.

ENVIRONMENTAL

CLIMATE CHANGE AND RESOURCE EFFICIENCY

TARGETS

• Implement 5-Year Carbon Reduction Roadmap for the Terminal

• GHG emissions reduction by 30% by 2030

• Carbon neutrality by 2050 (if viable).

ENERGY

SLNG’s Energy Team was established to conduct energy management reviews and implement targeted initiatives. The team monitors and measures the Terminal’s overall energy consumption, as well as the specific usage of high-energy consuming equipment, such as in-tank pumps, booster pumps, seawater pumps, and boil-off gas compressors. The effectiveness of these energy efficiency measures is also assessed, with an emphasis on verifying the resulting reduction in carbon emissions.

FY2023 PERFORMANCE

• In progress

Completed planned energy efficiency initiatives in the roadmap and met target for FY2023 to reduce carbon emissions by 0.6% from 2018/19 Baseline

• Achieved site-specific energy consumption of 0.0232 kWh/Nm3, below the internal target of 0.0249 kWh/Nm3

ENERGY CONSUMPTION (TJ)

An Energy Management System (EnMS), supplemented by an Energy Policy and a digital Energy Management Information System (EMIS), enables SLNG to monitor and address energy efficiencies in real time. The data provides process-specific and energy related information, and thereby enhancing the Company’s energy and emission management, decision-making, and reporting efforts.

ENERGY EFFICIENCY INITIATIVES IMPLEMENTED

Boil-off Gas (BOG) Management System

Reduced energy consumption

Sodium Chloride (NaCl) System

Optimising the operation regime of the hypochlorite unit to be more energy efficient

Jetty Operations and Tank Pressure Operations

Achieve energy optimisation

LED Lighting Replacement Phase 3

Phased replacement of lighting within the Terminal to those with lower-energy consumption

ENVIRONMENTAL

CLIMATE CHANGE AND RESOURCE EFFICIENCY

GHG EMISSIONS

SCOPE 1 AND 2 GHG EMISSION (tCO2e)

CLIMATE RISK MANAGEMENT

SLNG adopts a phased and reasonably practicable approach to enhancing our strategic resilience and management of climate-related risk and opportunities (CRRO). Given the Terminal role as a critical infrastructure for national energy security, it is essential to understand and manage climate risks and opportunities that our assets and operations are exposed to. These risks can significantly impact our business, strategy, and financial planning across different time horizons; and are reviewed to develop SLNG’s adaptation and mitigation strategies.

METHODOLOGY

In FY2023, there was an increase in Scope 2 GHG emissions due to higher gas supply send-out from the Terminal. Our GHG intensity, which monitors emissions against gas supply throughput measured in normal cubic metre (Nm3), stood at 0.009 kgCO2/Nm3, representing a 45% decrease from FY2022’s 0.016 kgCO2/Nm3.

SLNG is part of the National Environment Agency’s (NEA) corporate reporting community. Annual energy use and emissions are reported to NEA; and we engage regulators actively to respond to any queries.

GHG EMISSIONS INTENSITY

SCOPE 1 AND 2 GHG EMISSION INTENSITY (kgCO2/Nm3)

We undertake research and continuously monitor national and industry-related regulations, guidelines and studies; and take them into consideration when developing and updating our policies and procedures relating to CRRO governance, strategy, risk management, and operations. In FY2023, we specifically took into consideration the following information and materials:

International

• The Paris Agreement and guidance for national commitments and actions

• Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report

• Task Force on Climate-related Financial Disclosures (TCFD) and relevant sector guidelines

• International Sustainability Standard Board’s (ISSB) International Financial Reporting Standards (IFRS) S2: Climate-related Disclosures and relevant standards and sector guidelines

National

• 3rd National Climate Change studies (V3) by Centre for Climate Research Singapore (CCRS) and Meteorological Service Singapore (MSS)

• Public Utilities Board’s (PUB) report on coastal inland flood model

• Relevant EMA studies

• Climate-related Nationally Determined Contributions (NDCs) and other national targets announced

• Singapore government plans on energy and adaptation

For physical risk resilience review, an external consultant worked with SLNG in FY2022 to research, identify, evaluate and prioritise risks as well as develop mitigation and monitoring strategies. SLNG’s enterprise risk management framework and parameters were applied to assess likelihood and impact.

For transition risk resilience review, a review was conducted in FY2023 with SLNG Risk Team.

ENVIRONMENTAL

CLIMATE CHANGE AND RESOURCE EFFICIENCY

SCOPE

All of SLNG’s assets, and functions in Singapore, as well as material value chain impacts were considered.

SCENARIOS APPLIED

The IPCC is one of the world’s most authoritative and widely recognised climate science organisations; and its scenarios were shortlisted for SLNG’s scenario-analysis exercises to ensure that the Company’s climate-related planning activities and assessments are based on science-backed global benchmarks and aligned with the international standards (including those set out in the Paris Agreement, an international treaty on climate change).

IPCC-aligned Scenarios

Scenario description

Paris-aligned Scenario

SSP1-RCP2.6 Current Commitments

• Lowest extent of warming in a Paris-compliant wellbelow 2°C degree world

• Singapore establishes stern target and approach to greening the economy

SSP2-RCP4.5

• Considered as the most likely, based on our current path and firm national commitments

• It shows minimal change across societal structures

• Moderate effort and expectation from government and stakeholders

SSP5-RCP8.5

• The worst-case scenario for climate outcomes based on current policies

• This scenario is consistent with no policy changes to reduces emissions Temperature increase (by 2100)

Risk landscape

TIME HORIZONS

• Low physical risks

• Very high transition risks

• High physical risks

• Moderate transition risks

• Very high physical risks

• Low transition risks

SLNG defines short term as 0-3 years; medium term as 3-10 years; and long term being that of 10 years.

REPORTING FRAMEWORK

This section on SLNG’s climate-related disclosures takes reference from both the TCFD and the IFRS S2.

ENVIRONMENTAL

CLIMATE CHANGE AND RESOURCE EFFICIENCY

GOVERNANCE

SLNG’s Climate Change Task Force (CCTF) is the key overseer to review and monitor climate-related issues. The CCTF reports to the SSC for strategy setting, developing policies and financial planning.

Board

Overseeing the strategy

Sustainability Steering Committee

Responsible for driving the strategic transformations related to climate change risks (including physical and transition risks)

Delegate

Audit & Risk Commitee

Delegated oversight of standard risk matters

Risk Management Commitee

Responsible for driving risk management activities outlined in SLNG’s Risk Management Framework

CRO and Risk Manager

CRO and Risk Manager to implement duties stipulated under the Risk Management Framework

Climate Change Task Force

Multidisciplinary team (including strategy, risk, operations, finance, etc.) that can inform and respond to climate change actions, i.e. responsibility for tracking Key Risk Indicators (KRIs), responsibility for certain mitigation measures, responsibility for key actions under the defined implementation roadmap

STRATEGY

SLNG’s approach to all sustainability matters, including CRROs, is managed holistically as part of the Company’s business strategy and approach. SLNG’s sustainability vision and roadmaps underscore our commitment to managing our impact on the climate and environment. Our strategic decisions are informed by a comprehensive range of physical and transitional climate scenario analysis, thereby positioning the Company for strengthened resilience in the short, medium and long terms to reach our goal to reduce emissions by 30% by 2030 and be carbon neutral by 2050 (if viable).

For more information on current initiatives that have tapped into our climate-related opportunities, please refer to the Economic chapter.

RISK MANAGEMENT

The approach for all of SLNG’s CRROs treatment follows the Company’s Risk Management Framework. The CCTF (which includes representatives from relevant business functions, including sustainability and risk) supports the Company’s efforts to identify, monitor and manage climate-related impacts. KRIs are developed for all identified risks and monitored by the respective risk owners over an applicable time period. In the event of identified triggers, risks are escalated for review and management as required.

For more information on our processes, please refer to the Corporate Governance section.

ENVIRONMENTAL

CLIMATE CHANGE AND RESOURCE EFFICIENCY

RISK MANAGEMENT - SNAPSHOT OF SLNG’S RISKS

Type of Risk

Risk (physical)

Risk (physical)

Risk (physical)

Risk (transition)

Risk and Potential Impact

Operational downtime due to changes in marine biology, which is caused by ocean acidification

Operational downtime (such as due to utility downtime and/or asset damage) during extreme storm events; coastal flooding, pluvial flooding events

Higher operational costs due to extreme heat events

Inability to keep pace with ESG policies (global and local)

Management Measures

• Operations Abnormality Reports record frequency and blockage of any impacts due to marine life

• Robust facility and Terminal function contingency plans

• Exploration of infrastructure reinforcement and defensive mechanisms

• Annual review of assets’ operating regime for any abnormality due to temperature changes

• Periodic reviews of ESG performance against salient frameworks

• Dedicate resource to track ESG regulations and policies

Risk (transition)

Exposure to higher carbon taxes through increasing emissions as a result of business growth

Value chain and market low-emission preference

Risk (transition)

Risk (transition)

Risk (transition)

Risk (transition)

Risk (physical)

METRICS AND TARGETS

Compromised access to capital and other financial services

Reduced competitiveness and/or relevance in future energy landscape due to

• Opportunity cost from not investing into emerging efficiency and clean energy technologies

• Shift to alternative energy solutions (eg. renewables, or type of storage)

Supply chain disruption and market demand fluctuation due to geopolitical factors, conflicts, or natural disasters

• Development and implementation of revised Decarbonisation Roadmap

• Ongoing monitoring of operational emissions and carbon pricing mechanisms

• Development and implementation of revised Decarbonisation Roadmap

• Ongoing review of supplier/contractor management systems and Scope 3 impacts

• CRRO governance and management in place

• Sustainability vision and functional roadmaps in progress

• Ongoing initiatives by the Company’s business function to monitor and manage identified risks

• Operational contingency plans (for Terminal functions and equipment parts) in place

• Holistic engagement of supply chains and customers

As we refine our processes to manage CRROs and their impacts, the Company continues to develop its long-term management strategies, metrics and targets.

More information on SLNG’s current climate-related metrics and targets can be found in the rest of the Environmental chapter.

ENVIRONMENTAL

PROCUREMENT PRACTICES

• Develop and implement a Sustainable Procurement Programme

• In progress

PERFORMANCE

Successfully rolled out screening mechanism to all Tier 1 suppliers TARGETS FY2023

A Sustainable Procurement Programme entered into Phase 2 in FY2023. Developed to supplement the Company’s sustainability strategies, the programme underscores SLNG’s proactive stance on sustainability and aims to mitigate risks, improve resilience, and contribute to a more sustainable and equitable business environment.

It is currently focused on Tier 1 partners, which SLNG defines as in-house contractors, critical suppliers providing critical infrastructure service and raw materials, as well as strategic suppliers.

As part of the programme, the following activities are planned to be implemented in phases over the next five years:

• Intergrate ESG evaluation criteria for future bids and tenders

• Implement ESG Screening to beyond Tier 1 suppliers

• Implement Fraud Risk Analytics into the procurement process

• Enhanced collaboration to reduce emissions

• Enhanced collaboration on potential innovations and circular supply chain

• Potential recognition and incentivisation programme

In FY2023, SLNG successfully rolled out a new ESG screening process which considers environmental, social and governance risks to all Tier 1 procurement partners. There are a total of nine areas of assessment.

NINE CATEGORIES

ENVIRONMENTAL

PROCUREMENT PRACTICES

SUPPLIER ESG SCREENINGS

Total Number of Tier 1 Suppliers

Environmental, Social, Governance Metrics

• % of Tier 1 suppliers screened

• Number of suppliers identified to have actual/ potential negative impacts

• Number of suppliers engaged for improvement as a result of screening

• Number of suppliers terminated as a result of screening and engagement

FY2023

25

SLNG takes a strong stance against fraud and corruption in our Procurement Practices. Whilst the KYC approach screens counterparties for past news on fraud and corruption, SLNG also conduct annual internal audit exercise on the procurement process as well as fraud risk assessment to identify any potential areas for such risks to occur.

For more information on SLNG’s KYC approach to third-party relations, business ethics, as well as governance processes, please refer to the Corporate Governance section.

SLNG organised a Sustainable Procurement Workshop for its Tier 1 suppliers and vendors in FY2023. In addition to introducing SLNG’s new ESG screening process for Tier 1 partners, the workshop took the opportunity to delve into future goals that SLNG had for the ecosystem. This includes Scope 3 emissions management in the value chain, diversification of supply chain assessments, and the importance of innovative partnerships for long-term success.

A first for SLNG, the workshop marked an exciting milestone of cross-sector engagement and collaboration. Participating partners hailed from a range of sectors and represented different parts of the LNG value chain ecosystem. Together with SLNG, there was rich and active sharing of sustainability challenges, opportunities and experience in developing solutions.

The initiative reflects SLNG’s commitment to integrating robust ESG practices into its supply chain for impactful change in our long-term strategy.

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

TARGETS

• Sustainable Employee Engagement Index score of 3% points above the Singapore national norm

• Review Functional Competency and Learning Roadmap for various businesses and corporate functions to enhance current competencies and insert new competencies required for the current and near-term business requirements

• Achieve at least 30 hours of training for each employee

• Reduce voluntary attrition rate <10%

• All employees to review, update and complete at least 1 development goal identified in their Individual Development Plans

• Timely renewal of Collective Agreement with union

FY2023 PERFORMANCE

• Sustainable Employee Engagement Index score of 1% above Singapore national norm

• Work in-progress for the Functional Competency and Learning Roadmap with the reporting managers, subject matter experts and HR, post review and validation of Career Map

• Enhance succession management for leadership roles for current and future organisation

• 100% of employees received 30 hours of training

• 13.4%; Action plans from FY23 Sustainable Employee Engagement Survey were committed for execution in FY2024

• 100% of all employees completed at least 1 development goal identified in their Individual Development Plans

• Three-year Collective Agreement renewed as scheduled in FY2023

• Zero escalation of employee-related matters for external arbitration

• In progress Moving forward, we aim to enhance the structure and robustness of the succession pipeline.

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

EMPLOYMENT AND EMPLOYEE WELLBEING

The wellbeing of our employees and access to equal opportunities for our diverse workforce are essential to our Company’s sustainability and long-term success in an evolving market.

We believe it is important to strengthen our employees’ commitment to the organisation. By prioritising fair employment practices, professional development, and a supportive work environment, we will enhance employee satisfaction; and foster a culture of responsibility and engagement; and are able to attract and retain the right talents.

FY2023 SNAPSHOT

Total staff strength stood at 187 EMPLOYEES as at 31 March 2024.

Overall hiring rate was 29.9% compared to FY2022’s rate of 21.1%.

SOCIAL

AND STAKEHOLDER ENGAGEMENT

HIRING RATE BY GENDER

TURNOVER RATE BY AGE GROUP

TURNOVER RATE BY GENDER

EMPLOYEE TRANSITION SUPPORT

Employees, who have reached the legislated retirement age, are engaged early on potential transition employment plans to mutually agree on scope of work, as well as terms and conditions of continued employment. We believe this transparency and proactiveness supports a healthy employee culture; and encourages structured knowledge and skills transfer within our workforce.

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

FAIR RECRUITMENT AND EMPLOYMENT PRACTICES

SLNG is a signatory to the Singapore TAFEP Employer’s Pledge of Fair Employment Practices. We continue to abide by the Tripartite Guidelines on Fair Employment Practices; and in June 2023, we completed an overarching review of the recruitment process for fair selection as part of the Company’s external fraud risk assessment.

Attract a diverse and highly skilled workforce by offering competitive compensation and benefits

Recruit and select employees based on merit (such as skills, experience, ability to perform the job), regardless of age, race, gender, religion, marital status and family responsibilities, or disability

Periodic review of regular benefits and pay benchmarking

Biennial Employee Engagement Survey

Recognition and reward schemes

EMPLOYEE VALUE PROPOSITION

Reporting Managers trained to identify key risk factors (such as workplace stress or personal difficulties) and apply management skills to support employees’ wellbeing

SLNG’s comprehensive Employee Value Proposition underlines our commitment to offering a supportive environment that fosters growth and helps employees fulfil their aspirations and needs, across various demographics and career stages. SLNG believes in continual enhancement of the Employee Value Proposition as we acknowledge that different employees may have different aspirations at various stages of their career and personal fronts, and the challenge is to support these individual aspirations and align them with the Company’s growth and goals. Extending beyond just having competitive remuneration packages, our approach also ensures employee participation in certain organisational decisions which relate to employeewelfare such as our Collective Agreement with the union, how we manage diversity and provide equal opportunities, and train and nurture individuals. These form important aspects of the Company’s strategy to retaining top the right talents.

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

DIVERSITY AND EQUAL OPPORTUNITY

At SLNG, all employees are treated fairly and equally, without bias based on gender, race, age, disability, sexual orientation, or any other characteristic. We believe that embracing a diverse range of backgrounds, experiences, and ideas, allows us to foster an empowered and innovative culture, which in turn enhances our effectiveness as a company. We remain committed to promoting diversity within our workforce, creating an equitable environment where all stakeholders are respected, welcomed, and valued.

DIVERSITY WITHIN ORGANISATION’S BOARD OF DIRECTORS BY AGE GROUP

<35 years old

35-50 years old

51-63 years old >63 years old

DIVERSITY WITHIN ORGANISATION’S BOARD OF DIRECTORS BY GENDER

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

DIVERSITY WITHIN ORGANISATION’S EMPLOYEES BY AGE GROUP

<35 years old

35-50 years old

51-63 years old

>63 years old

FY2021

FY2022

FY2023

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

DIVERSITY WITHIN ORGANISATION’S EMPLOYEES BY GENDER

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

TRAINING AND EDUCATION

Recognising that a well-informed and skilled workforce is essential to SLNG’s business, the Company has adopted a structured, competency-based training approach. Employees are guided and enabled to acquire the relevant knowledge and skills required for their current and future roles, thereby supporting both their personal growths and the Company’s long-term success.

Our commitment to training and education extends beyond technical skills and professional development. We recognise that individuals in SLNG have different aspirations in relation to their career and personal fronts, and we endeavour to support our employees’ aspirations whilst aligning them with the Company’s growth and goals.

100% of employees achieved 30 hours of training

100% of employees received regular performance and career development reviews with their Reporting Managers

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

TRAINING AND EDUCATION INITIATIVES

SLNG’s Learning and Development Procedures provide a framework for an organised learning management, which facilitates effective knowledge transfer and ensures that training programmes are aligned with both individual and organisational needs. A SAP Success Factors Career Development Plan and Learning Management System enable the Company to track progress, evaluate the effectiveness of training programmes, and identify areas for improvement.

Tracking the completion of Individual Development Plans (IDPs) for employees.

Targeting to conduct regular leadership programmes for People Managers to enable their leadership development.

Tracking and evaluating the pipeline for leadership positions through the biennial SLNG Talent Review session with our Senior Management.

Continually identifying learning needs at company, business group and individual levels to ensure our employees are equipped with competencies required by the business.

Supporting employees in their career development through financial assistance/sponsorship to pursue part-time academic programmes or professional certifications.

Providing new hires with a better understanding of our business, process and culture through SLNG101.

On-going competency-based training and assessment for Technicians and Supervisors in Operations to ensure they are competent and qualified in their roles.

Engaging the Senior Management through workshops (i) to identify LEAN improvement opportunities that support our business strategy and, (ii) define and implement LEAN projects with LEAN Leads.

SOCIAL

EMPLOYEE EXPERIENCE AND STAKEHOLDER ENGAGEMENT

STAFF WELFARE ACTIVITIES

Throughout FY2023, the Staff Welfare Committee (SWC) organised various wellness activities designed to support physical, emotional and social well-being. Through the activities, we also aim to strengthen workplace social connections; and foster inclusivity, a sense of belonging and camaraderie.

FAMILY DAY 2023

A range of objective-oriented physical wellness activities was organised for employees with a specific purpose tied to each activity. A major event in the reporting year was SLNG’s Family Day, where employees and their family members came together to participate in games, enjoy good food and strengthen relationships.

HOLISTIC WELLNESS

Mental wellness continues to be a priority of the Company. SLNG employees are provided confidential access to an Employment Assistance Programme facilitated by an external provider, where staff can seek advice and support on issues that may be causing personal stress. To promote awareness of mental health, the SWC invites medical para-professionals for lunch-hour talks on topics such as improved sleep and rest practices, and positive psychology.

The SWC, together with the HR department, organises talks to highlight various employee related benefits. In FY2023, a session was held with our insurer to share about term insurances and inpatient benefits.

UNION RELATIONS

SLNG is committed to improving the workplace for our employees by partnering with unions. The Union of Power and Gas Employees (UPAGE) is a crucial partner for its ability to provide valuable insights into industrial relations, share best practices for enhancing employee well-being, and faciliate SLNG management and the Company to have a deeper understanding of our employees.

Through regular meetings and communication, the union is a key channel for intervention on behalf of employees in the event of grievances. Worker and employee representatives also actively participate and contribute to the Company’s policy formulation and actions on key topics. These include the establishment of a union-represented Company Training Committee, workplace safety and health matters, as well as the Company’s approach to employee benefits and welfare.

SLNG has in place a Collective Agreement with UPAGE since April 2021; and the Company strongly believes in employees’ rights to freedom of association and collective bargaining. During onboarding, employees are provided information on the support the union can provide. Currently, more than half of our workforce is represented by this agreement. In FY2023, the Collective Agreement was updated to include additional benefit items.

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OCCUPATIONAL HEALTH AND SAFETY

TARGETS

• Zero workplace fatality

• Zero recordable workplace injury

• Zero work-related ill-health fatality

• Zero recordable work-related ill-health incident

• Zero reportable Tier 1 and Tier 2 process-safety incident

• Continuously strive to improve Workplace Safety and Health (WSH) best practice

FY2023 PERFORMANCE

• Zero workplace fatality

• Zero recordable workplace injury

• Zero work-related ill-health fatality

• Zero recordable work-related ill-health incident

• Zero reportable process-safety incident

• Launched new procedures for:

- Enhanced Heat Stress identification, risk assessment and control measures for employees and inhouse contractors as a response to climate change impact

- Managing safety and work processes during Category 1 lightning alert scenarios

- Applied Workplace Safety and Health in Logistics and Transportation course requirements for warehouse supervisors

• Successful re-certification with zero findings or observations by accredited/approved 3rd party auditors for SS651:2019 and ISO45001

• Implemented Fatigue Risk Management Training Plan for Terminal employees as part of Human Factors Gap Analysis findings

SLNG’s health, safety, security and environmental (HSSE) policies and management systems extend to all staff and third parties involved in work at our premises. This includes access to emergency response teams (CERT) and support, regular work review meetings for risks and compliance, training requirements, empowerment of stop work authority, as well as recognition and incentivisation programmes. SLNG benchmarks its health and safety management standards and practices to international best practice levels and is certified to the ISO 45001 standards for Occupational Health and Safety Management System standards and the SS651:2019 Safety and Health Management System for the Chemical industry.

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OCCUPATIONAL HEALTH AND SAFETY

SLNG’S OCCUPATIONAL HEALTH SERVICES

• Annual health screening package

• Outpatient medical coverage

CASE STUDY

A CULTURE OF PROCESS SAFETY ASSESSMENT

At SLNG, we aim to build a culture that continuously works to prioritise safety, reduce risks and empower all stakeholders for process improvement.

SLNG’S PROCESS SAFETY CULTURE

• Applies to all operations staff

• Guided by taking reference from the American Institute of Chemical Engineers’ Center for Chemical Process Safety (CCPS) and real-life case studies

• 10 core principles with over 200 indicators

Ensure Open and Frank Communications

Maintain a Sense of Vulnerability

Understand and Act Upon Hazards/Risks 7. Empower Individuals to Successfully Fulfill Their Safety Responsibilities

Defer to Expertise

Combat the Normalisation of Deviance

Learn to Assess and Advance the Culture

2. Provide Strong Leadership 3. Foster Mutual Trust

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OCCUPATIONAL HEALTH AND SAFETY

ASSET INTEGRITY AND CRITICAL INCIDENT MANAGEMENT

The Company is responsible for the storage and handling of substantial volumes of flammable materials at low temperatures, presenting significant occupational and process safety risks. Risks must be vigilantly managed across multiple levels and functions to mitigate the potential of fires, explosions as well as health impacts to the workforce and the local community.

SLNG has instituted a robust framework that encompasses detailed risk assessments, comprehensive emergency management plans, rigorous inspection and maintenance protocols, and systematic investigations and audits. These are all supported by targeted training programmes.

DRILLS CONDUCTED IN FY2023

Our framework to monitor process safety performance is guided by the American Petroleum Institute’s best practices, especially the Recommended Practice 754 (Process Safety Performance Indicators for the Refining and Petrochemical Industries) standard as well as the Singapore Ministry of Manpower’s requirements for Major Hazard Installation (MHI) to report process-related safety incidents2. Tier 1 and Tier 2 process safety incidents, which refer to the loss of primary containment release and its consequences, have a direct report and review protocol to our Board, senior management and local authorities.

involvement

as well as in-house contractors to familiarise all parties with work at height scenarios.

2 Tier 1 Process Safety Event - A Tier 1 process safety event is a loss of primary containment of the greatest consequence. It is an unplanned and/or uncontrolled release of flammable or hazardous material that directly results in: an employee, contractor or subcontractor “days away from work” injury; any injury to a third party that is serious enough to require hospital admission; an officially declared community evacuation or community shelter-in-place; or any fire or explosion that is not small enough to be classified as Tier 2. Tier 2 Process Safety Event - A Tier 2 process safety event is a loss of primary containment that results in a lesser consequence.

Annual oil spill drill conducted with the activation of a third party response boat.

A joint rescue and emergency response drill at the Terminal’s P1 Flare was conducted with the

of the Singapore Civil Defence Force

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OCCUPATIONAL HEALTH AND SAFETY

WSH ACTIVITIES IN FY2023

SLNG Safety Day was organised with the theme of “Back to Basics - Together we can achieve ZERO incident”.

Refresher on “Take 3” and “Critical 9” was conducted via a Scavengers369 hunt on site where “Take 3” was performed on “Critical 9” elements at 6 locations.

CRITICAL 9

TAKE 3

The 3 Steps in Risk Assessments practice at every Tool Box Meeting

Life-saving rules in place to ensure that all personnel, including employees, contractors, subcontractors, or visitors, do not place themselves or others at risk of serious injury and/or possible fatality.

Award presentations for “Safest Contractor Programme and Safety Role Models”.

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OCCUPATIONAL HEALTH AND SAFETY

RECOGNITION OF SLNG’S WORKPLACE SAFETY AND HEALTH PERFORMANCE

SLNG is honoured to receive the Workplace Safety and Health Performance Silver Award for its exemplary 2023 performance of no-incidents while demonstrating implementation of industry best practices for safety. A first for SLNG, the award was presented by the Singapore Ministry of Manpower’s Workplace Safety and Health Council.

COMMUNITY ENGAGEMENT

SLNG believes it is important to engage and support local communities to build strong, mutually beneficial relationships with these communities, and give back where we can. We support the long-term growth of these communities through targeted community investments and philanthropic activities.

EMPOWERING MARGINALISED AND VULNERABLE COMMUNITIES

In FY2023, the Company collaborated with ART:DIS as part of its 10th anniversary celebrations. ART:DIS is a non-profit organisation dedicated to creating learning and employment opportunities in the arts for individuals with disabilities.

A painting of the SLNG Terminal was commissioned and presented to then Deputy Prime Minister Lawrence Wong during SLNG’s 10th Anniversary Gala Dinner as a token of appreciation. The painting was created by artist Raymond Lau who lives with Tourette’s syndrome. Environmentally-friendly bags were commissioned as corporate tokens.

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COMMUNITY ENGAGEMENT

A LONG-TERM COMMUNITY PARTNERSHIP

Approximately 40 employees participated in a “Plastic Use Awareness” session to gain deeper insights into reducing and mitigating plastic consumption.

SLNG has been partnering with Life Community Services Society (LCSS) since 2014 and supporting its mission to help children and youth from low-income and/or vulnerable backgrounds, and their families.

SLNG contributed to LCSS’ annual fund-raising golf event with a $5,000 sponsorship.

SLNG continued to support LCSS’ activities, such as their Christmas Carnival held at the Radin Mas Community Club in December 2023. The Company contributed $5,000 to sponsor a game booth at the carnival, and our employees also volunteered to man the booth.

As part of our traditions, SLNG organises an internal donation drive each year, during the Chinese New Year period. In FY2023, our staff raised $3,000, which enabled us to provide each of the 37 families under the care of LCSS’ Mighty Kids, Family and Community programme with $90 worth of shopping vouchers.

In March 2024, SLNG was honoured by LCSS with a token of appreciation for 10 years of partnership with them.

SLNG launched an initiative to reduce and eventually cease the use of paper cups at SLNG’s headquarters.

SLNG Sustainability Day was organised on October 2023. Employees came together to better understand how corporate sustainability can influence business decisions and the bottom line.

PERFORMANCE DATA

3 Source of conversion factors applied: Natural Gas: https://www.nea.gov.sg/docs/default-source/default-document-library/reckonableemissions-calculator_ver-1a8 7d2fe648fb49ec8709da944af850b1.xlsx Diesel: GHG Protocol Emission Factors for Cross Sector Tools V2.0 (March 2024), compiled from 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2.

4 Fuel (diesel) figure for FY2022 has been restated to reflect the updated conversion factors in the latest GHG Protocol Emission Factors for Cross Sector Tools V2.0 (March 2024), compiled from 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2. Natural Gas figure has also been updated to reflect the correct conversion factor.

5 Energy consumption is calculated using a conversion factor of 1kWh to 3.6×10-6 Terajoule (TJ)

6 Energy for FY2021 has been restated from 348.3 to 347.6

7 Scope 1 emission (CO2, CH4, N2O, HFCs, SF6) was calculated from IPCC. Contributors include fuel consumption, and industrial processes and product use (including flares, fugitive emissions, refrigeration, and air-conditioning, use of lubricants and paraffin waxes).

8 Scope 2 emission was calculated from the Energy Market Authority’ grid emission factor as published at https://www.ema.gov.sg/resources/singapore-energystatistics/chapter2.

9 Data has been restated to reflect the above-mentioned updates.

PERFORMANCE DATA

Diversity within Organisation’s Governance Body

PERFORMANCE DATA

GRI CONTENT INDEX

Statement of use

SLNG Corporation Pte. Ltd. has reported the information cited in this GRI content index for the period 1 April 2023 to 31 March 2024 with reference to the GRI Standards.

GRI CONTENT INDEX

GRI CONTENT INDEX

GRI CONTENT INDEX

Singapore LNG Corporation Pte. Ltd.

UEN: 200911659N

991G Alexandra Road, #03-29C Singapore 119975

Singapore LNG Terminal No. 6 Meranti View Singapore 627600

T +65 6376 7856

E enquiries@SLNGCorp.com www.slng.com.sg