Roadmaps of Sustainability Teams

Released April 4, 2024

Environment & Safety

Climate change

Step1 2023	Step2 2024	Step3 -2030	Step4 2050-2060
Reviewed PCGs’ climate risks and opportunities against TCFD framework Continued peer benchmarking and implementation of common group metrics (carbon – scope 1, 2 & 3, energy, renewables)	Establish carbon (scope 1, 2 & 3) collaboration group to share and align (as appropriate) on measurement, mitigation, and improvement initiatives Continue to review and action carbon disclosures (TCFD, IFRS/CDSB) as appropriate.	NIPSEA Group: 15% Scope 1 & 2 reduction 2025 (2021 baseline) DuluxGroup (Pacific): 50% renewable electricity consumption and 50% Scope 1 & 2 reduction 2030 (2020 baseline) DuluxGroup (Europe): Targets to be established 2024 Japan Group: 37% Scope 1 & 2 reduction 2030 (2019 baseline)	Net zero carbon (Scope 1 & 2)

Resources & Environment

Step1 2023	Step2 2024	Step3 -2060
Continued peer benchmarking and implementation of common group metrics (waste, water, VOC)	Review circularity best practice (waste, water) and identify improvement opportunities Review emerging nature-related disclosure standards (TNFD) and action as appropriate	Significantly improve the circularity of our supply chains (e.g. renewable resources, waste, water)

Safe People & Operations

Step1 2023	Step2 2024	Step3 -2060
Reviewed global best practice for high-consequence safety risk management	Establish process safety risks collaboration group to develop common group standards Support implementation of high potential incident reporting and improvement action across all PCGs	Enable effective control of high-consequence safety risks to reduce high-potential incidents and prevent all disasters and fatalities

People & Community

DE&I

Step1
2023

Step2
2024

Step3
2025

Launched D&I training in each PCG

NIPSEA Group: Launched Women Mentorship Program
Dunn-Edwards: Launched DEI curriculum for all employees at all levels

Launched D&I working group in each PCG

NIPSEA Group: Launched D&I across NIPSEA Group
DuluxGroup: Formed a working group for inclusive recruitment. Formed a partnership with a disability job platform for employment of people with disabilities

NIPSEA Group: Develop the 1st batch of mentees to become mentors in their respective NPX
DuluxGroup: Leader-led approach driving toward gender balance
Dunn-Edwards: Continue the women hiring and promotional practices
Japan Group: Plan to create a development program targeting junior and middle level employees

NIPSEA Group: Implement and monitor progress of roadmap towards the goal of achieving 35% female representation in both management & emerging leader category
DuluxGroup: Continue to drive toward our ambition of gender balance across the group
Dunn-Edwards: Continue the women hiring and promotional practices
Japan Group: Increase the ratio of women in managerial positions to 10%

Growth with community

Step1 2023	Step2 -2025
NIPSEA Group: Develop Group CSR Website Japan Group: Advanced “HAPPY PAINT PROJECT” strengthen our Brand and Business	NIPSEA Group: Invest at least US$5 million to support CSR initiatives each year DuluxGroup: Increase the number of employee volunteer hours by at least 10%

Innovation & Product Stewardship

Sustainable Products

Step1 2023	Step2 2024	Step3 -2030
Life Cycle Assessment (LCA) of selected products can be calculated at each PCG DuluxGroup: Implementation of sustainable product sales and packaging roadmaps	Develop methodologies & modeling of LCA (PCF^*1, software, database) IT Tool implementation for product sustainability scoring in system Sustainable products portfolio optimization DuluxGroup: Develop recommendation for Scope 3 reduction target and roadmap Continue implementation of sustainable products sales and packaging roadmaps	Manage the performance of Sustainability Scoreboard of each PCG every quarter Promote creation of more innovative sustainable products Implement sustainable products and Scope 3 roadmaps DuluxGroup: Deliver 2030 Best in Class sustainable product sales target

*1 Product Carbon Footprint

Chemicals of Concern

Step1 2023	Step2 2024	Step3 -2030
The execution of the phase out plan of Chemicals of Concern in each PCG NIPSEA Group: Focus on 4 hazardous heavy metals^*2 DuluxGroup: Completed position statements for 75% of CoC and develop a structured program of CoC in Europe	Proceed the COC phasing out plan by regions and business units based on local status Continuously evaluate other CoC restriction requirements and implementing action plans DuluxGroup: Continue development of positions statement for 95% of CoC	Create sustainable products based on phase out plan Phase-out 4 heavy metals before the end of 2030 globally

*2 Lead, Chromate (Cr6+), Cadmium, and Mercury

R&D

Step1 2023	Step2 2024	Step3 -2030
R&D activities for sustainable products from PCG beyond Japan and NIPSEA, e.g. DuluxGroup, Dunn-Edwards, etc.	Initiate and Drive Flagship Projects in Sustainability; Create sustainable project portfolio and drive sustainable business growth	Drive innovation towards UN SDGs and carbon neutrality

Product Stewardship

Step1 2023	Step2 2024	Step3 -2030
Identified inquiry items Stakeholder questionnaire NIPSEA Group: Reinforced PS&RA^*3 team DuluxGroup: Implemented Product Vision to help with formulation management & regulatory tracking	Monitor, record and communicate the change of global regulations Assess raw materials introduction, register new substance and ensure SDS and GHS label generation, registration hazard chemical permits correctly and precisely Respond to customers requests, i.e., RoHS, IMDS etc.	Implement inquiry management database Inquiry response training Training for customers and business partners DuluxGroup: Implement packaging roadmaps

*3 Product Stewardship & Regulatory Affairs

Governance

Board of Directors governance

Step1 2023	Step2 2024	Step3 -2026
Further streamlined the Board of Directors operations (Careful selection of agenda items, thorough use of IT tools and others Further increased contributions by Independent Directors (Use of the Meeting of Independent Directors) Enhanced succession plan (Monitoring the status of measures to strengthen the Group’s human capital)	Enrichment of discussion on growth strategy Improvement of the operational efficiency of Board meetings Thorough engagement in succession planning Further fine tuning of the "Audit on Audit" framework	Further sophistication of growth strategy discussions Enhance and implement succession plans

Execution governance

Step1 2023	Step2 2024	Step3 -2026
Improved effectiveness of Risk Management through CSA List Firmly establishing and increasing the effectiveness of the whistleblowing hotline at each PCG Overviewed stakeholder needs and activities of the Sustainability Teams, proposed and established an Anti- Bribery and Corruption/Anti-Money Laundering Statement to the Board of Directors	Proactive improvement tailored to the situation of each PCG through voluntary self-inspections by CSA List Operating and enhancing the effectiveness of internal reporting channels tailored to the situation of each PCG Strengthening collaboration within the Sustainability Team to respond to changes in social demands such as "human capital" and others	Verify effectiveness and refine risk management system whistleblowing hotline Upgrading the governance framework (Including compliance and risk management) to respond to changes in social demand

Sustainable Procurement

Strengthen Internal Mindset and Enhance Understanding of Sustainable Procurement

Step1 2023	Step2 2024	Step3 2025
Explored sustainable projects Established indicators	Support Group Environment, Health, and Safety (EHS) to compile Scope 3 for the NIPSEA group progressively Improve understanding of Scope 3/ESG among the group’s procurement through training Develop supplier ESG audit program with NP China	Conduct supplier ESG assessment Refine Scope 3 disclosure (raw materials related)

Sustainable Procurement Actions with Suppliers

Step1 2023	Step2 2024	Step3 2025
Conducted supplier questionnaire (target top % by value 40%)	Conducted supplier questionnaire (target 75% by value) Engage suppliers to provide primary data to improve Scope 3 data quality	Conduct supplier questionnaire (target 90% by value)

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