Singapore Post Ltd

At SingPost, all sustainability-related matters are governed and managed across various levels in the organisation. The SingPost Board Sustainability Committee (BSC) provides counsel, guidance and governance of the overall direction for SingPost's sustainability strategy. One of its main roles is to oversee the implementation of the SingPost Purpose Statement, which serves to guide the organisation's actions and behaviours with regard to business sustainability. The BSC, reporting to the Board of Directors, oversees and provides guidance to Management in helping to accelerate SingPost's ESG transformation and journey. Under the BSC's guidance, the Group Chief Executive Officer (GCEO) is tasked with executing the organisation's ESG strategies, with support from a dedicated Sustainability function. This dedicated team drives and coordinates ESG efforts across the SingPost Group and its various business units. The Board, through the BSC and Board Risk and Technology Committee (BRTC), is also kept abreast of material ESG-related risks and opportunities, which are reviewed regularly as part of the Group's Enterprise Risk Management (ERM) Programme. Some of these key ESG-related risks identified include climate change, workplace safety and health (WSH), talent management and data privacy which are assessed to potentially pose strategic, financial, operational, compliance, and business continuity risks. SingPost's management internal controls to safeguard stakeholders' interests and the organisation's assets and resources in response to these risks. These are elaborated on in greater detail on pages 85-93 in the Annual Report, and in the Materiality Assessment section on the following page. This year, in line with SGX's new requirements, SingPost's Board has undergone the mandated external sustainability training focusing on the impact and implications of ESG developments on business as well as climate-related risk and opportunities. Internal sustainability training sessions with topics relating to SingPost's material matters are also provided to the Board on a quarterly basis to keep them abreast on the latest sustainability developments. This will enable the Board to effectively guide the management on its sustainability strategy, ensure compliance, mitigate related risks and tap on opportunities that ESG presents. Since 2021, SingPost has linked its ESG performance with the Management Committee members' remuneration. ESG Key Performance Indicators (KPIs) aligned to SingPost's short- and long-term targets are incorporated in the annual Balance Scorecard that gets cascaded down the organisation so as to inculculate accountability of ESG performance by linking it to remuneration and promotion. Additionally, the Long Term Incentive grant to key management personnel also includes ESG targets for long-term value creation.

At SingPost, we ensure that sustainability matters are overseen and implemented at multiple levels throughout our organisation. The Board Sustainability Committee (BSC) of SingPost is pivotal in providing advice, direction, and governance on our overarching business and strategy, while prioritising sustainability matters. One of its primary responsibilities includes supervising the execution of the SingPost Purpose Statement, which is central to steering our organisation's practices and outlook towards sustainable business operations. The BSC, which reports to our Board of Directors (Board), plays an instrumental role in guiding the Management to further SingPost's ESG progression. The Group Chief Executive Officer (GCEO), guided by the BSC, is tasked with the practical application of our ESG strategies, supported by a specialised Sustainability team. This team is dedicated to promoting and synchronising ESG strategy and framework embedment across the Group. In addition, the Board, through both the BSC and the Board Risk and Technology Committee (BRTC), oversees the management and monitoring of ESG factors and its underlying goals and targets, and are also kept well-informed of crucial ESG-related risks and opportunities, including climate-related ones. These considerations are regularly examined as a component of the Group's Enterprise Risk Management (ERM) Framework, and are brought to the Board, via the BSC, at least four times a year. [...] The Management Committee closely monitors ESG-related issues through ESG Key Performance Indicators (KPIs). Since 2021, the remuneration of our Management Committee members has been directly linked to SingPost's ESG performance. ESG KPIs of our material matters, aligned with our immediate and strategic goals, are incorporated into the annual Balance Scorecard that gets cascaded down the organisation, thereby embedding a culture of accountability for ESG performance through linking it with remuneration and career advancement opportunities. Furthermore, the Long-Term Incentive plan for key management personnel also takes into account ESG/sustainability metrics and targets. Since FY2021/22, carbon emissions reduction for Singapore-based operations from FY2018/19 has been added as a performance measure for the Performance/Restricted Share Award. By linking ESG and sustainability performance with incentive pay policies, it affirms our accountability and dedication to long-term value creation.