SUSTAINABILITY - SK Jewellery Group Limited...brand specialises in bespoke bridal jewellery, particularly, made-to-order engagement rings and wedding bands. 010 SUSTAINABILITY REPORT

01 SUSTAINAB I L I T Y REPORT 2018

SUSTAINABILITY REPORT 2018


C O N T E N T S

CEO’S STATEMENT 4

ABOUT THIS REPORT 6

ORGANISATIONAL PROFILE 8

GOVERNANCE

1. Sustainability Approach 14

2. Supply Chain Management 15

3. Stakeholders Engagement 16

4. Materiality Matrix 17

5. Membership of Association 19

6. Corporate Governance 20

7. Conflict of Interest Policy 20

8. Dealing In Securities Policy 21

9. Fraud and Whistleblowing Policy 21

ECONOMIC

1. Anti-corruption and Anti-money Laundering Policies 22

ENVIRONMENTAL

1. Energy Management 23

EMPLOYEE DEVELOPMENT AND DIVERSITY

1. Employee Welfare 24

2. Diversity and Equal Opportunity 26

3. Training and Education 28

COMMUNITY

1. Customers Privacy 29

GRI CONTENT INDEX 30

This sustainability report (“Report”) has been prepared by SK Jewellery Group Limited (the “Company”) and has been reviewed by the Company’s sponsor, United Overseas Bank Limited (the “Sponsor”) for compliance with Rules 226(2)(b) and 753(2) of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) Listing Manual Section B: Rules of Catalist. This Report has not been examined or approved by the SGX-ST. The SGX-ST assumes no responsibility for the contents of this Report, including the correctness of any of the statements or opinions made or reports contained in this Report. The contact person for the Sponsor is Mr Lim Hoon Khiat, Director, Equity Capital Markets, who can be contacted at 80 Raffles Place, #03-03 UOB Plaza 1, Singapore 048624, Telephone: +65 6533 9898.



“Our commitment towards running a responsible business requires a delicate balancing of the long-term interests of our employees, planet, and profitability.”

C E O ’ S S T A T E M E N T

Dear Stakeholders,

As the leading jewellery retailer in Singapore, SK Jewellery Group Limited (“SKG”, and together with its subsidiaries, the “Group”) strives to create long-term value for its stakeholders. In 2018, SKG released its inaugural Sustainability Report, which shared the Group’s current practices of embedding sustainability within its day-to-day operations. Our commitment towards running a responsible business requires a delicate balancing of the long-term interests of our employees, planet, and profitability. This year’s report aims to highlight the Group’s on-going progress in its sustainability efforts, as well as its near-term strategies and long-term approaches to sustainability.

The first key pillar of our sustainability strategy revolves around understanding SKG’s economic viability, with our customers being our key stakeholders. Over the last 10 years, we have witnessed a mass shift towards new digital technology

Mr Lim Yong Sheng Executive Director & Group CEO


in consumer purchasing patterns, which is rapidly transforming the jewellery business landscape. We believe long-term business sustainability requires investment towards digital technologies, and to adopt a digital first mind-set in all our business efforts to drive growth. Specifically, we are focusing efforts in our e-commerce platform, and also adopting digital transformation of our core operational processes.

In addition, one of the key facets of the Group’s business sustainability is centred on building our status as an international brand, championed through Love & Co. bridal jewellery collections. We are heavily investing efforts in the Thailand and the People’s Republic of China (“PRC”) markets, to focus on encapsulating a share of the increasing affluence and rising disposable incomes of the millennial customers there. I am pleased to share that in September 2018, we opened our fourth Love & Co. outlet in the PRC, and are heavily bolstering brand building efforts in Thailand.

The social pillar is focused on the wellness, and improvement of the quality of life of our direct community. To reach out and make a difference towards the less privileged, we have partnered with Radin Mas Community Centre. Project Sayang, a goodwill initiative, seeks to improve the quality of life of low-income households. Our employees readily volunteered to help deliver food, necessities, and household appliances to these families, and we aim to drive this initiative forward as an example of how companies can seek to improve inclusive growth within the local community. We have recently concluded our third series of volunteering in April 2019, and will continue to explore opportunities within the social sphere.

Our final pillar focuses on our employees, who make all the difference towards our drive for success. We want to encourage lifelong learning, and prepare our employees for the fast-changing environment of the retail landscape. Therefore, we identify high-performing staff, and place them on training courses to further develop their expertise.

On behalf of the Board, I would like to reiterate the Group’s commitment towards building a sustainable business. We invite you, our key stakeholders, to join us on this journey, and share your views with us on our sustainability journey.

06 SUSTAINAB IL I T Y REPORT 2018

A B O U T T H I S R E P O R T

REPORTING PERIOD AND SCOPE This is SK Jewellery Group Limited’s (the “Company” and together with its subsidiaries, the “Group” or “we” or “us” or “our”) second sustainability report for the financial year (“FY”) ended 31 December 2018. This report covers data and information from 1 January 2018 to 31 December 2018 pertaining to Singapore context and discusses the Company’s achievements and performance towards Environmental, Social and Governance (“ESG”) issues.

The Group’s sustainability report is prepared in compliance with the requirements of Rules 711A and 711B of the Singapore Exchange Securities Trading Limited (“SGX-ST”) Listing Manual Section B: Rules of Catalist (“Catalist Rules”) and the Global Reporting Initiative (“GRI”) reporting guidelines, “Core” Option.

REPORT BACKGROUND Our Board of Directors (the “Board”) recognises the importance of the sustainability in the Group’s business operations and performance. The Board continues to manage the Group’s sustainability direction, which sustainability efforts are led by our Sustainability Steering Committee that ensures

that sustainability practices are embedded in the business operations and that sustainability goals are aligned with the Group’s overall strategic business direction. Therefore, the Group published its first sustainability report for FY2017 and we continue to communicate with our stakeholders on the Group’s achievements and targets for FY2019.

This report will continue to discuss the challenges and material issues that are important to our stakeholders and our strategy in addressing and managing these challenges and issues, and lastly, how the Group has performed in terms of our key performance indicators as compared to the Group’s performance in FY2017.

Topic-specific GRI StandardsUniversal Standards

GRI200

GRI300

GRI400

GRI101

FOUNDATION

GRI103

MANAGEMENTAPPROACH

GRI102

GENER ALDISCLOSURES• GOVERNANCE

Starting point for using the GRI Standards

To report contextual information about an organization

To report the management approach for each material topic

Select from these to report specific disclosures for each material topic

ECONOMIC• ANTI-CORRUPTION

ENVIRONMENTAL• ENERGY

SOCIAL• DIVERSITY AND EQUAL OPPORTUNITY• TRAINING AND EDUCATION• CUSTOMER PRIVACY

We have prepared this report using the international reporting framework, GRI Standards: “Core” option, the latest set of standards issued by the GRI Global Sustainability Standards Board. We adopted the GRI reporting framework, for its robust regime and detailed guidance on which offers an internationally-recognised benchmark for the disclosure of governance approaches, the environmental, social and economic performance and impacts on organisation.

REPORTING PRINCIPLES The Group continues to adhere to the GRI Reporting Principles for the definition of the report’s content, disclosures and


sustainability reporting practices and the management approaches relating to information relating to the Group. The report contains consolidated environmental and social performance data for the Group and the data is reported in good faith and to the best of our knowledge. The GRI Content Index can be found on pages 30-31 of this report.

No external assurance has been sought for this report, however, we rely on our internal process to verify the accuracy of the ESG, economic performance data and information presented in this report. The Group will review the option of seeking external assurance in the future.

A B O U T T H I S R E P O R T

ACCESSIBILITY In line with our sustainability efforts, we only released this report in electronic edition (pdf format) and it is available for download via our website at https://www.skjewellerygroup.com.

CONTACT We welcome stakeholders’ feedback and suggestions as part of our continued efforts to improve our sustainability journey. If you have any questions about this report, you can reach us at [email protected].


Headquartered in Singapore and founded in 1991, we are listed on the Catalist of the SGX-

ST since 20 August 2015. We have an established presence of over 20 years in Singapore and

over a decade in Malaysia. We have one of the largest networks, with more than 60 retail

stores strategically situated in prime shopping malls in Singapore, Malaysia, the People’s

Republic of China (“PRC”) and Thailand.

OUR BRAND STORY

We are a leading premier jeweller, recognised for brilliant craftsmanship, signature

expressions and timeless quality. Our aim is to add a touch of sparkle to your brilliance

through providing an exclusive range of pieces that you will cherish forever.


O R G A N I S A T I O N A L P R O F I L E

1991Founding of

Soo Kee Jewellery

2008You are a Star!

Soo Kee Christmas

1999Exclusive distributorship

of Brilliant Rose

2010Launch of Mine to Mine

Private Collection

2006Singapore First Diamond

Christmas Tree

2015Top brand 2015 Winner in

Gold and Jewellery category by Influential Brands®

2017SK Jewellery awarded

“Retailer of the Year” at Jewellery News Asia (“JNA”)

1996Introduced White Gold and Diamond Jewellery

2007Launch of Untitled Black, with Wykidd Song

Chairperson of Singapore Jewel Fest

2018Joint-venture with Aurora Design Co. Ltd (“Aurora”), a leading retailer of gold ornament and fine jewellery in Bangkok, Thailand

Opening of four retail outlets in Shanghai and Shenzhen

2009Inaugural launch of Polaris Ice Diamond

Exclusive distributorship of Versace Fine Jewellery

2005Retail jewellery products on Krisshop and Skyshop

2013Brilliant Rose Eternal Love Collection

2016SK Jewellery won Intellectual Property Office of Singapore’s (“IPOS”) award for Trade Mark Portfolio

M I L E S TO N E S


The Group offers an extensive range of jewellery products and mementoes through our

Soo Kee Jewellery, SK Jewellery and Love & Co. brands. We offer delicate, elegant luxury

jewellery pieces, targeting confident, contemporary women with delicate and discerning

tastes. Our products and offerings collections predominantly showcase premium diamonds,

coupled with gold or platinum settings whereas our contemporary jewellery showcases

precious gemstones and pearls.

Each of our brands carries a unique identity, with distinctive branding, marketing efforts

and product offerings and we are the exclusive distributor in Singapore and Malaysia for the

distinctive Brilliant Rose brand.

The Group offers an array of fashionable jewellery and mementoes for a wide range of

consumers. Our SK Jewellery’s exclusive distributorship of the ALLOVE brand of diamonds

pushes the boundaries in diamond-cutting techniques with an all-new 81-facet in Singapore

and Malaysia, and the innovative Dancing Star and Star Carat collections as well as the SK

999 Pure Gold collection, showcasing bridal jewellery, sculpted art pieces, commemorative

gold bars and coins.

Our brand signatures were the and collections as this

brand specialises in bespoke bridal jewellery, particularly, made-to-order engagement rings

and wedding bands.


OUR MISSION

We pride ourselves on being a visionary company, striving to continually challenge ourselves and going beyond to meet the

ever-evolving needs and aspirations of smart, modern and globally-minded customers in Asia.

OUR VISION

We are committed to an active and progressive approach in everything we set out to do. We look ahead and move towards

our goals and objectives, with confidence and belief.

OUR CORE VALUES

CUSTOMER-CENTRIC We celebrate the aspirations and desires of smart, modern and globally-minded customers for creativity and self-expression.

SMART DETERMINATION We harness our experience, knowledge and capabilities to

continually meet ever-changing needs.

CREATIVE INNOVATION We embrace creativity and innovation to go beyond and inspire.





S I N G A P O R E

CENTRALION Orchard 2 Orchard Turn#B2-64 ION OrchardSingapore 238801Tel: 6509 8633

Plaza Singapura 68 Orchard Road#01-07 Plaza SingapuraSingapore 238839Tel: 6835 7533

Vivo City 1 Harbourfront Walk#01-145/146 Vivo CitySingapore 098585Tel: 6376 9033

WEST Jem 50 Jurong Gateway Road#01-47 Singapore 608549Tel: 6734 8033

S I N G A P O R E

CENTRAL ION Orchard 2 Orchard Turn#B2-66 ION OrchardSingapore 238801Tel: 6509 8533

Vivo City 1 Harbourfront Walk#01-27A Vivo CitySingapore 098585Tel: 6376 9433

WEST Jurong Point1 Jurong West Central 2#01-64/65 Jurong Point Shpg CtrSingapore 648886Tel: 6791 0233

S I N G A P O R E

CENTRAL Bugis 200 Victoria Street#01-24 Parco Bugis JunctionSingapore 188024Tel: 6337 2933

NORTH Nex 23 Serangoon Central#01-41 NexSingapore 556083Tel: 6634 4733

M A L AYS I A

Gurney PlazaLot 170-G-47A, 10250 PenangTel: +604 227 6911

Johor Bahru City SquareJ1-02 Level 1, 80000 Johor BahruTel: +607 221 3633

One Utama Shopping CentreLot G138, 47800 Petaling JayaTel: +603 7733 6266

Sunway PyramidLot 1.75, 47500 Petaling JayaTel: +603 5613 0633

The Gardens , Midvalley City#Lot F-239A 59200 Kuala LumpurTel: +603 2282 5633

The Mall, Mid Valley SouthkeyLot G-061, 80150 Johor BahruTel: +607 338 4322

T H A I L A N D

CentralWorld1st Floor, Beacon 3 Zone, 999/9 Rama 1 Road, Pathunwan, Bangkok+6622645978

CentralPlaza Rama 31st Floor, 79 Sathupradit Road, Yannawa, Bangkok+6620613591

C H I N A

深圳华强北九方购物中心深圳市福田区中航路1号+86 0755 88601813

上海香港广场上海黄浦区淮海中路283号香港广场南座一层+86 021 63390563

世纪汇购物中心上海市浦东新区世纪大道1192号+86 021 50756833

上海凯德晶萃广场上海市黄浦区徐家汇路268号凯德晶萃广场L1层+86 021 63590098


S I N G A P O R E

CENTRAL Bugis Junction 200 Victoria Street#01-34/35 Parco Bugis JunctionSingapore 188024Tel: 6337 1233

ION Orchard 2 Orchard Turn#B2-61 ION OrchardSingapore 238801Tel: 6509 8733

Lucky Plaza304 Orchard Road #01-56/57/58/59Lucky PlazaSingapore 238863Tel: 6733 5233

People’s Park Complex 1 Park Road#01-52 People’s Park ComplexSingapore 059108Tel: 6538 0933

Plaza Singapura68 Orchard Road#01-27/27A Plaza SingapuraSingapore 238839Tel: 6336 1033

Tiong Bahru Plaza302 Tiong Bahru Rd #01-148Tiong Bahru PlazaSingapore 168732Tel: 6254 5733

Vivo City 1 Harbourfront Walk#02-180 Vivo CitySingapore 098585Tel: 6376 8033

NORTHAMK Hub 53 Ang Mo Kio Avenue 3#B1-11 AMK HubSingapore 569933Tel: 6554 1433

Causeway Point 1 Woodlands Square#01-K01 Causeway PointSingapore 738099Tel: 6893 7533

Compass One1 Sengkang Square#01-42 Compass OneSingapore 545078Tel: 6386 9633

Hougang Mall90 Hougang Avenue 10#01-22/23/24 Hougang MallSingapore 538766Tel: 6288 0433

Junction 8 9 Bishan Place#01-43 Junction 8Singapore 579837Tel: 6250 5033

Northpoint 930 Yishun Avenue 2#01-27 Northpoint Shpg CtrSingapore 769098Tel: 6759 2733

Northpoint City 1 Northpoint Drive #01-179/180Northpoint CitySingapore 768019Tel : 6484 2033

Serangoon Nex23 Serangoon Central#B1-60/61Singapore 556083Tel: 6634 4533

Waterway Point83 Puggol Centre #01-48Waterway PointSingapore 828761Tel : 6385 9633

EAST Bedok Mall 311 New Upper Changi Road#01-42/43/44 Bedok MallSingapore 467360Tel: 64478733

Changi Airport T3 Departure Check-in Hall Ctrl#02-84 Changi Airport T3Singapore 819663Tel: 6242 3433

Tampines Mall4 Tampines Central 5#01-19/20 Tampines MallSingapore 529510Tel: 6260 0133

WEST Choa Chu Kang Lot 1 21 Choa Chu Kang Avenue 4

#01-19B Lot 1 Shopper’s MallSingapore 689812Tel: 6769 2433

IMM Building2 Jurong East Street 21#01-26/27 IMM BuildingSingapore 609601Tel: 6569 3733

Jurong Point 1 Jurong West Central 2#01-29/29A Jurong Point ShpgCtrSingapore 648886Tel: 6792 2933

Jurong Point 63 Jurong West Central 1#01-53/54 and #01-83/84 TheCentrisSingapore 648886Tel: 6794 3133

The Clementi Mall 3155 C’Wealth Ave West#03-43/44/45 The ClementiMallSingapore 129588Tel : 6570 3133

M A L AYS I A

AEON Bukit IndahLot G31No 8 Jalan Indah 15/2 Bukit Indah81200 JohorTel: +607 236 6933

City SquareLot J1-04 108 Jalan Wong Ah Fook80000 JohorTel: +607 221 6933

City SquareLot M1-02108 Jalan Wong Ah Fook80000 JohorTel: +607 223 7933

KSL CityLot G-32 No.32 Jalan Seladang ,Taman Abad80250 JohorTel: +607 3331 933

AEON Bandaraya MelakaLot G75 No 2 Jalan Lagenda, Taman I-Lagenda 75400 MelakaTel: +606 283 9933

Dataran Pahlawan Melaka MegamallLot G-006 & BX-003AUpper Ground Floor & Lower Ground FloorJalan Merdeka, Bandar Hilir75000 MelakaTel: +606 283 6633

AEON Bkt TinggiLot G33 No.1Persiaran Batu Nilam 1/KS6 Bandar Bukit Tinggi 241200 Klang, SelangorTel: +603 3326 2933

Paradigm MallLot GF07 No. 1, Jln SS 7/26A, Kelana Jaya 47301 Petaling Jaya, SelangorTel: +603 7887 9733

Sunway PyramidLot LG2.149 No.3, Jln PJS 11/15, Bandar Sunway, 46150 Petaling Jaya, SelangorTel: +603 5631 9033

Sunway Velocity MallLot G48, Lingkaran SV,Jalan Peel, Maluri55100 Kuala LumpurTel: +603 92029363

AEON Ipoh Station 18Lot G15 No 2 Susuran Stesen 18, Station 18 31650 Ipoh, Perak, MalaysiaTel: +605 322 0633

Plaza GurneyLot 170-G-46A Persiaran Gurney 10250 PenangTel:+6 04 229 1633


G O V E R N A N C E

SUSTAINABILITY APPROACH

Firstly, we seek to understand the concerns and opinions of our key stakeholders through various engagement activities which will be explained in the next section of the report. Subsequently, we strive to design a framework which will incorporate their needs and expectations together with the ESG factors identified and present them in this report. Through this process, we will build mutually beneficial

relationship which will benefit the Group.

BOARD OF DIRECTORS (“BOARD”)

SUSTAINABILITY STEERING COMMITTEE

SUSTAINABILITY TASK FORCE

Oversees and manages the direction, approach and performance of sustainability of the Group.

Provides and oversees the Group’s sustainability practices and communicates to the Board for any updates.

• Steering Committee Members• Non-Executive Chairman

• Executive Director and Group CEO• Executive Director and Group COO

• Chief Financial Officer

Comprises data owners from various department who are responsible for the sustainability performance of their

respective departments.


SUPPLY CHAIN MANAGEMENT

We believe that focusing on product responsibility is essential at the start of the supply chain of products. Through responsible management of supply chain, key stakeholders of our business, in particular our customers, will establish

confidence in our products, enhanced satisfaction and long term relationship with our business.

The Group main purchases were diamonds and gold and continue to purchase high quality diamonds and gold. To ensure our products are at highest level of quality and safety for our customers and to encourage sustainable business practices, we continue to assess the quality of our suppliers, based on their experience, expertise, quality and

past performance that we have with these selected suppliers.

In our approach to sustainable and responsible business practices, we actively monitor and ensure that our suppliers comply with the relevant regulations such as Best Practice Principles (BPP) of De Beers, Responsible Jewellery Council

(RJC), World Diamond Council (WDC) and World Jewellery Confederation (CIBJO).

We monitor compliance measures implemented by our suppliers such as know-your-customer checks to establish identity ownership in ensuring diamonds sourced are conflict-free, and uphold responsible and ethical practices

within the industry.

The Group generally does not put itself in long-term exclusive agreements with any of our suppliers as this provides us with the opportunity and flexibility to evaluate and select other suppliers in accordance with the

Group’s policy and criteria as mentioned above.


STAKEHOLDERS ENGAGEMENT

An important starting point in our sustainability journey is to identify our stakeholders and material aspects relevant to our business. The interests and requirements of key stakeholders are also taken into account when formulating corporate strategies. These key stakeholders include, but are not limited to, investors, customers, employees and the community. We adopt both formal and informal channels of communication to understand the needs of key stakeholders, and incorporate these into our corporate strategies to achieve

mutually beneficial relationships.

The figure below sets out our engagement with our stakeholders:

SK JEWELLERY GROUPBOARD OF DIRECTORS

EMPLOYEESCOMMUNITIES

INVESTORS CUSTOMERS

GOVERNMENT BUSINESS PARTNERS

STAKEHOLDER GROUP ENGAGEMENT ACTIVITIES STAKEHOLDER EXPECTATIONS

CUSTOMERS• Feedback channels

• Email queriesExcellent customer service and good quality products

and offerings

BUSINESS PARTNERS• Regular dialogue sessions

• Established channels of communications

Trustworthy, excellent and cohesive working relationships

EMPLOYEES• Induction programme

• Performance appraisals• Training and development

Staff rights and welfare, personal development, conducive working environment

INVESTORS • Annual reports • Annual general meetings • SGXNet announcements

• Informal discussions

Profitability, transparency, timely reporting, fair purchasing practices

GOVERNMENT• Meetings and dialogue sessions

• Regular reports

Environmental-friendly business approach, compliance with relevant rules and regulations, timely reporting and

resolution of issues

COMMUNITIES • Corporate giving and activities • Engagement with community

projects and charities

Helping the underprivileged, giving and contributing back to the society


G O V E R N A N C E

MATERIALITY MATRIX

Through active engagement with our stakeholders, we have evaluated and identified factors which would have significant economic, environmental and social impacts and are material to the organisation and stakeholders.. Based on the feedback and reviews gathered, we continue to report on the five material topics previously identified and disclosed in FY2018. A detailed explanation on the factors, together with its performance

indicators and targets were discussed in the subsequent sections of this report.

SELECTED SUSTAINABILITY TOPICS:

• Anti-Corruption • Energy

• Diversity and Equal Opportunity• Training and Education

• Customer Privacy

INFL

UEN

CE

ON

STA

KEH

OLD

ERS

ASS

ESSM

ENT

S A

ND

DEC

ISIO

NS

SIGNIFICANCE OF ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACT

MATERIALITY MATRIX

1

3

4

5

0 1 3 4 5

Training and Education

Diversity and Equal Opportunity

Energy Anti-Corruption

Customer Privacy



SINGAPORE JEWELLERS ASSOCIATION (SJA) – MEMBER SINCE 1991

We are an Executive Committee Member of the Singapore Jewellers Association (SJA) which is the only non-profit organisation representing jewellery operators in Singapore. Currently, there are about 360 corporate members which include most of the reputable and long-established jewellers in Singapore.

DIAMOND EXCHANGE OF SINGAPORE (DES) – MEMBER SINCE 2003

The Diamond Exchange of Singapore (DES) is the consolidated voice of the diamond industry in Singapore. It provides regulation and support for the members and help maintain professional and ethical standards in the trade so as to reinforce consumer confidence in diamonds and jewellery. It is an affiliate member of the World Federation of Diamonds Bourses (WFDB) since 1980 and the members are bound by the high standards of the WFDB trading rules and code of business practice.

SINGAPORE BULLION MARKET ASSOCIATION (SMBA) – MEMBER SINCE 2016

SMBA is a non-profit organisation established to represent the interests of industry stakeholders of the precious metals market. As a member, we engage with other industry, governmental and non-governmental players regularly, and strive to build Singapore into a global precious metals trading hub.

SINGAPORE BUSINESS FEDERATION (SBF) – MEMBER SINCE 2014

SBF is a business board championing the interests of the Singapore business community in the areas of trade, investment, and industrial relations. It represents the interests of 25,800 companies, as well as key local and foreign business chambers.

CASETRUST – CERTIFIED SINCE 2015

We are a member of CaseTrust, the accreditation arm of the Consumers Association of Singapore (CASE), Singapore’s de facto standard for fair and transparent trading standards. This represents our commitment to high quality business practices.

AWARDS AND ACCREDITATIONS

Our Group has received various awards and accreditations, which include:

i. JNA Award – Retailer of the Year 2017 (450 outlets and below);ii. JNA Award – Outstanding Enterprise of the Year 2016 (ASEAN Category);iii. JMA International Jewelry Design Competition 2016; andiv. WIPO-IPOS Award 2016 – IPOS Award for Trade Mark Portfolio.

MEMBERSHIP OF ASSOCIATION

The Group is actively involved in projects, dialogues and is committed in several industry associations. We aim to maintain positive working relationship with these associations and

strengthen our capabilities in order to deliver excellent service to our consumers who trusted in us.


CORPORATE GOVERNANCE

We remain committed to good corporate governance practices through adequate controls and policies and procedures in place to guide employees, safeguard against fraud and protect the interests of our stakeholders. For instance, we adhere to the principles and guidelines set out in the Code of Corporate Governance 2012 (the “Code”), where appropriate. These principles and guidelines serves as a basis and guideline to the Board’s commitment in having effective corporate practices to safeguard against fraud and dubious financial transactions, with the aim of protecting shareholders’ interests and to promote confidence from our shareholders, which plays a vital role in the Group’s long

term success.

The Group recognises the importance of, and is committed to ensuring a healthy and safe working environment for our employees. As such, we place emphasis on accountability, being transparent and conduct our business in an ethical manner. Employees of the Group are expected to exhibit highest standards of integrity and trust in all

business relationships and dealings, at all times.

In order to achieve the above, the Group has established policies for conflict of interest, insider trading and fraud and whistleblowing.

CONFLICT OF INTEREST POLICY

The Group has established a conflict of interest policy to guide our employees in identifying potential and or actual conflict of interest from the daily operations and how management deals with such confirmed incidence of conflict of interest. Conflict of interest is defined broadly in the policy to refer to any situation where an employee has a personal interest that is sufficient to influence, or appears to influence, the objective exercise of his official duties. The conflict of interest policy will require employees to declare real or perceived conflicts of interests in accordance with documented

procedures and to comply with the actions recommended by our management to address such conflicts.

All of our key management personnel, including but not limited to our Executive Directors and Executive Officers, have to complete annual declaration of conflict of interest to the Board.

G O V E R N A N C E

021 SUSTAINAB I L I T Y REPORT 2018021 SUSTAINAB I L I T Y REPORT 2018

DEALING IN SECURITIES POLICY

The Group has adopted a policy whereby the Directors and employees of the Group are prohibited from dealing in the securities of the Company while in possession of price-sensitive information as well as during the period commencing one (1) month before the announcement of the Group’s full year results and two (2) weeks before the announcement of the first, second and third quarter results until the said results announcement has been made. The Directors and

employees of the Group are to refrain from dealing in the Company’s securities on short-term considerations.

The Directors and employees of the Group are also required to adhere to the provisions of the Securities and Futures Act, Companies Act, Chapter 50 of Singapore, the SGX-ST Listing Manual Section B: Rules of Catalist (“Catalist Rules”)

and any other relevant regulations with regard to their securities transactions.

Directors and employees of the Group are also expected to observe insider trading laws at all times even when dealing with securities within the permitted trading period.

FRAUD AND WHISTLEBLOWING POLICY

The Group adopts a fraud and whistle-blowing policy which demonstrates the Group’s zero tolerance towards dishonesty and corrupt practices. This policy provides a transparent channel of communication for employees and external parties to raise in confidence, to report any possible improprieties in financial reporting, fraud, corruption, bribery, and any non-compliance with laws and regulations without fear of reprisal. A dedicated secured email address

has been set up to allow whistle blowers to contact the chairman of the Audit Committee of the Company directly.

In FY2018, there were no lapses with requirements under the Catalist Rules leading to reprimands from the SGX-ST, and there were no whistle-blowing reports received.


E C O N O M I C

ANTI-CORRUPTION AND ANTI-MONEY LAUNDERING POLICIES

The Group strives to maintain the highest standards in our business operations which safeguards shareholders’ interest in the Group. Integrity and honesty are the basic values that we hope to embed in our daily operations. The code of conduct and ethics policy are established in the Employee Handbook and reiterated to employees through email communication. Any forms of malpractices such as giving and or accepting bribes and money laundering are strictly prohibited within the Group. Our employees are provided with an avenue to report incidents of fraud or malpractice to their immediate supervisor or any of our Executive Directors or Executive Officers. Any confirmed instances of such malpractices would be handled accordingly.

We have implemented the anti-money laundering procedures which are aligned with the Financial Action Task Force to prevent money laundering cases. Cash sales transactions above SGD 20,000 are required to file a completed Form NP 759, with particulars of the consumer, to the Suspicious Transaction Reporting Office and submit a Cash Transaction Report.

A preliminary investigation will be conducted by management on suspected illegalities, dishonesty or improper activities to determine whether further investigation or disciplinary action is necessary or the matter should be escalated to the local authorities.

In the Group, apart from delivering the best diamonds to our consumers, we aim to be transparent about the diamonds origin and authenticity. Concerns that may arise such as utilising synthetic diamonds to pass off as authentic diamonds, mixing goods to disguise country of origin were addressed by the Group through our combined effort with our audit team to rigorously review and

verify the quality and authenticity of the diamonds as well as the diamonds supply documentations.

In FY2018, there were no confirmed incidents of corruption and money laundering. The Group will continue to assess our internal controls relating to corruption and we hope to maintain zero confirmed incidents of corruption and money laundering for the subsequent sustainability reports.

INDICATOR TARGET 2018 PERFORMANCE 2018 TARGET 2019

Confirmed incidents of corruption and money laundering and actions taken

Zero confirmed incidents of corruption and money laundering




E N V I R O N M E N T A L

OUR ENVIRONMENT

The Group views environment as one of the key sustainable factor for future generations to come. As such, we promote environmental protection and sustainable development in our daily operations. From the Group’s perspective, we advocate environmental protection through our waste management and

conserving energy by minimising energy usage when not in used.

The Group’s approach relating to energy management involves reducing consumption when not in use and monitoring usage. We strongly encourage employees to switch off lights and air-conditioning in offices when they are not in use. Additionally, installation of motion sensor lighting in public areas of the head office has helped to conserve electricity.

The main energy used by our head office comes from our air-conditioning accounts. The Group have collaborated with district cooling systems developer and service provider Keppel DHCS that can save energy consumption of up to 40%1 when compared to buildings with conventional in-building chilled water production.

In FY2018, the head office has embarked on the building management system that monitors the building’s ventilation and regulates the office temperature to ensure comfort and to reduce overall energy consumption. For example, the head office adopted the use of doubled glazed glass panels to prevent ultraviolet and infrared radiation from entering, hoping to reduce the indoor temperature. The reduction of ultraviolet and infrared radiation will reduce the electricity consumption of air-conditioners.

Source 1 : http://www.kepcorp.com

ENERGY MANAGEMENT Our main energy consumption comes from purchased grid electricity.

The Group’s performance for 2017 and 2018 includes both Singapore and Malaysia offices and outlets.

INDICATOR PERFORMANCE 2017 TARGET 2018 PERFORMANCE 2018 TARGET 2019

Head Office – Building Energy Intensity

About 664 mWh(0.21 mWh per sqm)

Maintain building energy intensity at equal or below 2017 intensity for head office and outlets

About 912 mWh(0.18 mWh per sqm)

Maintain building energy intensity at equal or below 2018 intensity for head office and outlets

Outlets – Building Energy Intensity

About 1,103 mWh(0.45 mWh per sqm)

About 1,116 mWh(0.45 mWh per sqm)


E M P L O Y E E D E V E L O P M E N T A N D D I V E R S I T Y

PEOPLE

Employees are crucial to our progress and growth and we recognise the importance of attracting and retaining talents within the Group.

EMPLOYEE WELFARE

We advocate fair employment practices and we recruit and select employees based on merits, treat them fairly and with due respect, allow equal opportunities for training and development, reward our employees according to their performances and abilities, as well as to abide with

the relevant laws and regulations.

The Group provides competitive benefits to the full-time employees which are in line with market practices. These benefits include Central Provident Fund, annual leave, insurance coverage, medical benefits, maternity and paternity leave in accordance with the recommendations of the

Ministry of Manpower of Singapore.

A strategic reward system is put in place to recognise top performing employees that have made contributions to the Group. Dedicated, loyal and performing employees were also granted Long Service Awards to show the Group’s appreciation towards employees who served the Group with dedication. This award also signifies the employee in playing a vital role to help the Group in achieving its

corporate milestones.

In FY2018, we have given the following awards to the employees for the recognition of loyal and excellent performance :

1. Long service awards ranging from 5 years to 20 years to 52 employees;2. Top sales awards to 20 employees; and

3. Excellent attendance awards to 87 employees.



DIVERSITY AND EQUAL OPPORTUNITY

The Group advocates equal opportunity to all employees, regardless of gender, race, marital status, religion and age and discourages discrimination. An employee’s career growth will be based on fair work practices and remuneration based on the individual employee’s performance without discrimination. To ensure that the Group continues to provide exceptional customer service and is able to serve our customers at different age groups, we value diversity and recruit dynamic individuals from diverse backgrounds. We want our business to benefit from opportunities provided by our employees’ diverse experience and perspective. In FY2018,

there was no incident of discrimination reported.

Female65.4%

Male34.6%

FY2017WORKFORCE BY GENDER

Female66.4%

Male33.6%

FY2018WORKFORCE BY

GENDER

BREAKDOWN BY GENDER

BREAKDOWN BY AGE

FY2017WORKFORCE BY

AGE GROUP

FY2018WORKFORCE BY

AGE GROUP

<3050.5%

30 - 5042.7%

>506.8%

>507.4%

30 - 5045.3% <30

47.3%

COMPOSITION OF WORKFORCE FROM BOTH SINGAPORE AND MALAYSIA

OFFICE AND OUTLETS


BREAKDOWN BY GENDER DIVERSITY BY EMPLOYMENT CATEGORY

In FY2018, the Group did not have any temporary employees.

The Board currently comprises seven Directors, one of whom is female. This is recommended under the Code, which is to provide appropriate gender diversity within the Board for holistic and balanced

decision-making.

FY2017WORKFORCE BY

EMPLOYMENT CATEGORY

FY2018WORKFORCE BY

EMPLOYMENT CATEGORY

BREAKDOWN BY EMPLOYMENT CATEGORY

Senior Management

2.0%

Executives27.4%

Middle Management

8.9%

Junior Staff61.6%

FY2017GENDER DIVERSITY BY EMPLOYMENT CATEGORY

FY2018GENDER DIVERSITY BY EMPLOYMENT CATEGORY

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

SENIOR M

ANAGEMENT

MID

DLE MANAGEM

ENT

EXECUTIVES

JUNIO

R STAFF

0.8%0.6%

7.0%

5.3%

16.6%

9.6% 20.2%

39.9%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

SENIOR M

ANAGEMENT

MID

DLE MANAGEM

ENT

EXECUTIVES

JUNIO

R STAFF

0.9%1.1%

5.4%

3.5%

20.0%

7.4% 20.0%

41.6%

FEMALE MALE

Middle Management

12.3%

Senior Management

1.4%

Junior Staff60.1%

Executives26.2%


TRAINING AND EDUCATION


Total training hours 5,783 hours To increase training hours by 10%

7,344 hours To increase training hours by 10%

As the Group believes in upgrading one’s skills, a dedicated team of personnel had been formed to conduct training courses relating to daily operations such as customer service, sales techniques, product knowledge and leadership. These training courses are designed to support employees at various levels and across all functions to facilitate their daily work and business operations. For instance, our retail staff have received customer service training, a training program designed to ensure consistent execution of our service strategies, when they first

joined the Group with at least 3 training sessions for each retail staff on an annual basis.

The average training hours each employee received in FY2017 and FY2018 was 15.38 hours and 20.86 hours, respectively for both Singapore and Malaysia staff.

In FY2018, all our employees received an annual performance appraisal, during which their learning needs were assessed, strengths were highlighted and improvement points were conveyed to the employees. In FY2019, we aim to continue to provide all eligible employees

with an annual performance appraisals to sharpen their skills.


C O M M U N I T Y

In the environment that the Group operates in, personal data privacy is one of the key concern for our customers and also, the public. We have implemented certain measures to protect our customer’s data and data is only released strictly on a need-to-know basis. Advertising or marketing messages are only

sent with a customer’s prior approval.

The Group strictly abides with the PDPA and we review the PDPA on a frequent basis. The Group targets to improve the process of managing IT security with the IT department to minimise the possibility of

leaking customer’s data.

The Group has assigned the Head of the IT department to be the Data Protection Officer to conduct quarterly meetings and training on PDPA compliance and implement robust digital system to safeguard

customer’s data protection.

In FY2018, there was no substantiated violation and/or confirmed violations of the PDPA.

CUSTOMERS PRIVACY


Substantiated and/or confirmed violations of Personal Data Protection Act (“PDPA”) in Singapore

No substantiated and/or confirmed violations the PDPA

Continue to improve data privacy and data management practices

No substantiated and/or confirmed violations the PDPA

Continue to improve data privacy and data management practices

To have a designated compliance officer to monitor PDPA compliance


G R I C O N T E N T I N D E X

This report has been prepared in accordance with the GRI Content Index (Core Option)

GENERAL STANDARD DISCLOSURE PAGE REFERENCE AND REASONS FOR (OMISSION, IF APPLICABLE)ORGANISATIONAL PROFILE 102-1 NAME OF THE ORGANIZATION PAGE 6102-2 ACTIVITIES, BRANDS, PRODUCTS, AND SERVICES PAGE 9102-3 LOCATION OF HEADQUARTERS PAGE 8102-4 LOCATION OF OPERATIONS PAGE 8, 12, 13102-5 OWNERSHIP AND LEGAL FORM PAGE 8102-6 MARKETS SERVED PAGE 8102-7 SCALE OF THE ORGANIZATION PAGE 8, 9, 11 & 48 (FY2018 ANNUAL REPORT)102-8 INFORMATION ON EMPLOYEES AND OTHER WORKERS PAGE 26102-9 SUPPLY CHAIN PAGE 15102-10 SIGNIFICANT CHANGES TO THE ORGANIZATION AND ITS SUPPLY CHAIN NONE102-11 PRECAUTIONARY PRINCIPLE OR APPROACH PAGE 14102-12 EXTERNAL INITIATIVES PAGE 15102-13 MEMBERSHIP OF ASSOCIATIONS PAGE 19

STRATEGY102-14 STATEMENT FROM SENIOR DECISION-MAKER PAGE 4

ETHICS AND INTEGRITY102-16 VALUES, PRINCIPLES, STANDARDS, PAGE 10 AND NORMS OF BEHAVIOUR

GOVERNANCE102-18 GOVERNANCE STRUCTURE PAGE 14

STAKEHOLDER ENGAGEMENT102-40 LIST OF STAKEHOLDER GROUPS PAGE 16102-41 COLLECTIVE BARGAINING AGREEMENTS NONE102-42 IDENTIFYING AND SELECTING STAKEHOLDERS PAGE 16102-43 APPROACH TO STAKEHOLDER ENGAGEMENT PAGE 16102-44 KEY TOPICS AND CONCERNS RAISED PAGE 17

REPORTING PRACTICE102-45 ENTITIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS PAGE 6 (FY2018 ANNUAL REPORT)102-46 DEFINING REPORT CONTENT AND TOPIC BOUNDARIES PAGE 6102-47 LIST OF MATERIAL TOPICS PAGE 17102-48 RESTATEMENTS OF INFORMATION Information on energy consumption and composition of workforce in FY2017 has been restated after including Malaysia office and outlets operation, which is not expected to have any material impact on Sustainability Report 2017.

102-49 CHANGES IN REPORTING NOT APPLICABLE

102-50 REPORTING PERIOD PAGE 6102-51 DATE OF MOST RECENT REPORT 15 NOVEMBER 2018102-52 REPORTING CYCLE PAGE 6102-53 CONTACT POINT FOR PAGE 7 QUESTIONS REGARDING THE REPORT

102-54 CLAIMS OF REPORTING IN ACCORDANCE PAGE 6 WITH THE GRI STANDARDS


G R I C O N T E N T I N D E X

GENERAL STANDARD DISCLOSURE PAGE REFERENCE AND REASONS FOR (OMISSION, IF APPLICABLE)

Note: The Group takes a phased approach to the adoption of GRI indicators at “Core” Option and will review the relevance of indicators marked as Not Applicable to its operations annually.

102-55 GRI CONTENT INDEX PAGE 30-31102-56 EXTERNAL ASSURANCE PAGE 7

103-1 EXPLANATION OF THE MATERIAL TOPIC AND ITS BOUNDARY PAGE 17103-2 THE MANAGEMENT APPROACH AND ITS COMPONENTS PAGE 14103-3 EVALUATION OF THE MANAGEMENT APPROACH PAGE 14

MATERIAL TOPICSTOPIC: ANTI-CORRUPTION205-1 OPERATIONS ASSESSED FOR RISKS RELATED TO CORRUPTION PAGE 22205-2 COMMUNICATION AND TRAINING ABOUT ANTI-CORRUPTION POLICIES AND PROCEDURES PAGE 20, 21205-3 CONFIRMED INCIDENTS OF CORRUPTION AND ACTIONS TAKEN PAGE 22

TOPIC: ENERGY302-1 ENERGY CONSUMPTION WITHIN THE ORGANIZATION PAGE 23

TOPIC: TRAINING AND EDUCATION404-1 AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE PAGE 28404-2 PROGRAMS FOR UPGRADING EMPLOYEE SKILLS AND TRANSITION ASSISTANCE PROGRAMS PAGE 28404-3 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS PAGE 28

TOPIC: DIVERSITY AND EQUAL OPPORTUNITY405-1 DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES PAGE 26, 27

TOPIC: CUSTOMER PRIVACY418-1 SUBSTANTIATED COMPLAINTS CONCERNING BREACHES OF CUSTOMER PRIVACY AND LOSSES OF CUSTOMER DATA PAGE 29

Documents

SUSTAINABILITY - SK Jewellery Group Limited...brand specialises in bespoke bridal jewellery, particularly, made-to-order engagement rings and wedding bands. 010 SUSTAINABILITY REPORT