31 December 2020

Dear stakeholders of Provident Biofuels,

I am pleased to confirm that Provident Biofuels reaffirms our commitment and support of the Ten Principles of the United Nations Global Compact in the area of Human Rights, Labour, Environment and Anti-Corruption. In 2020, we have implemented a company wide policy to ensure that our employees and stakeholders understand our corporate culture.

In this annual Communication on Progress, we will describe our plan to continuously improve the integration of the Global Compact and its principles into our business strategy, culture and operations. We also demonstrate our commitment to sharing this information through our maiden Environmental, Social and Governance report which reports on our sustainability performance for the year.

Sincerely yours,

Douglas Tay
Chief Executive Officer
Provident Biofuels Pte Ltd

- The United Nations Universal Declaration of Human Rights and principles of UN Global Compact was adopted as a technical guidance and framework for the development of Provident Biofuel's Corporate Policy.
- Provident Biofuels aims to be compliant with the human rights laws and regulations in the countries we operate in.
- Provident Biofuels also embrace UNSDG #16 (Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels) and abide by international human rights laws, ensuring equal access to justice for all.
- Any disciplinary measures are to be carried out in accordance with national laws and internationally recognized human rights standards.
- All employees have the right and freedom to join, resign from the Company or form any associations for the purpose of promoting and protecting employees' interests.
- Provident Biofuels also takes into consideration the human rights and customary rights of local communities and indigenous people in the communities we operate in.

- A grievance mechanism has been set up and all information will be kept confidential. We also provide assurances that all victims, whistleblowers, witnesses will be protected from any retaliation and all grievances reported will be followed up with an independent, thorough and prompt investigation with appropriate corrective and remedial actions to be taken.
- Training will be provided for all our employees on Human Rights in the local languages to ensure all employees are informed.
- Our Human Resource Director has been allocated the responsibility to protect and ensure Human Rights within the Company.
- Provident Biofuels will continually improve and integrate principles of Human Rights into our policies and procedures across our supply chain.
- All employees are encouraged and actively notified of their employment rights, freedom of associations without any negative consequences or retaliation towards them.
- Provident Biofuels ensures that our suppliers are legally entitled to the land they farm on and that our suppliers have considered human and customary rights when they acquired the land from local people.

- Provident Biofuels implemented our first Corporate Policy which provides a technical framework for the observance and compliance of all human rights laws, ensuring access to justice for all stakeholders.
- All our staff and external business partners have been informed and provided training on the Company’s business values and practices, which ensure that we abide by all human rights regulations and conventions in the operating countries we operate in.
- The Company’s senior management will review our internal processes on an annual basis to ensure all employees are treated equally and offered equal opportunities.
- All incidents of Human Rights violations will be kept confidential with our Human Resources department and any disciplinary measures can only be carried out in accordance with internationally recognised human rights standards.
- Provident Biofuels also plans to hire external consultants - Virgeo Eiris to provide an audit and ESG rating for our Company. This rating will be reviewed annually to ensure that Provident continually improves their Human Rights performance.

- Provident Biofuels have adopted the principles of UN Global Compact, Labour standard of the International Labour Organisation (ILO), The SA8000 Standard of Social Accountability International and UNSDG#3, #4, #8 and #10 as the technical guidance and framework for developing our ESG policy.
- Provident Biofuels ensure that our labour policy complies and abides by all international and local labour regulations in the countries we operate in.
- Provident Biofuels has included the following policies in our Corporate policy:
o Prohibition of any form of child labour or exploitation of children or young workers.
o All employment must be on a voluntary basis, with mutual consent and agreement and our business partners are not permitted to employ any form of forced, bonded, trafficked labour or labour carried out in servitude.
o All employees have the right and freedom to join, resign from the Company or form any associations for the associations for the purpose of promoting and protecting employees’ interests. Employees can exercise their rights, and any collective bargaining agreement will be respected by our Company.
o Any form of discrimination – based on rase, ethnicity, national origin, nationality, religion, age, disability, gender is strictly not permitted within our Company.
- Our Company Policy prescribes that all short and long-term suppliers, traders and business partners of Provident Biofuels must adhere to the strict labour policies of Provident Biofuels

- Training sessions are held annually for all our staff, employees and business partners (if applicable) to ensure our business partners and employees understand Provident’s labour rights and policies.
- All employees are provided with written contracts of employment that are drafted based on the legal requirements required in Singapore, Malaysia and Indonesia.
- Our Company’s policy mandates the minimum age of employment to be at least 15 and all young workers below the age of 18 will not be exposed to night shifts, hazardous conditions, or have more than 8 hours of continuous work per day. In the event of any labour violations, Provident will take remedial action and ensure our business partner takes the appropriate remedial action.
- In the event where the right to freedom of association and collective bargaining is restricted by law, Provident Biofuels will explore alternative possibilities for collective bargaining to be created and workers will have the right to elect their own representatives.
- Provident Biofuels has implemented a health and safety plan across our business operations and supply chain. Provident Biofuels will ensure that protective equipment, access to clean sanitary facilities and drinking water as well as a safe, secure and hygienic work environment is provided for all our staff.
- Provident Biofuels, together with our suppliers and business partners, aim to pay wages that is above the legal minimum salary in the countries we operate in as part of our commitment to achieve UNSDG #1.

- Provident Biofuels implemented our first Corporate Policy in 2020 which provides a basic framework for our Company’s labour practices.
- The Company’s senior management will continually review our internal processes on an annual basis to ensure that our labour policies complies and abides by international standard and Global Compact Labour principles.
- An internal employee survey will be conducted by Provident Biofuels to monitor and evaluate our Company’s labour policies.
- All incidents of labour policies will be kept confidential with the Human Resources department and the senior management will take the necessary remedial action.
- Provident Biofuels will also engage Virgeo Eiris to provide an audit and ESG rating for our Company’s labour policies.

- Provident Biofuels is committed to continuous efforts to promote greater environmental responsibility and reduce environmental damage. The Company aims to increase the positive impact we have on the environment and ecosystem we operate in. We aim to achieve UNSDG #13 and #15 as well as the environmental principles of UN Global Compact.
- Provident Biofuels aim to contribute to building a recycling-oriented society or circular economy by using Palm Kernel Shells (PKS), which is viewed as waste in the palm industry, as a renewable fuel.
- Provident Biofuels aims to contribute to building a low-carbon society as power generators and end-users enjoy Greenhouse Gas (“GHG”) savings from the replacement of coal with PKS.
- Provident Biofuels also aim to reduce GHG emissions in our business operations and increase energy efficiency to reduce resource consumption.
- Provident Biofuels also ensure that our business partners and suppliers are aware and committed to the Company’s environmental goals to promote greater environmental responsibility.

- Training sessions are held annually for all our staff, employees, suppliers and business partners to ensure everyone understands Provident’s environmental policies.
- Provident Biofuels have taken the initiative to obtain a chain of custody certification by international bodies such as Green Gold Label (‘GGL”) or the Roundtable on Sustainable Biomaterials (“RSB”). Both certifications are internally recognized, global certification standards that will ensure transparency and traceability of Provident Biofuels’ business operations and supply chain.
- Provident Biofuels have taken the initiative to encourage all suppliers (including first collectors, CPO mills) and business partners within our supply chain to obtain the chain of custody certification with GGL and RSB to ensure traceability of our supply chain.
- Provident Biofuels have developed a strong internal control system with records keeping across our entire supply chain using information technology and data.
- Provident Biofuels has introduced the Greenhouse Gas emissions calculation for each of our shipment of PKS, enabling us to effectively measure the carbon footprints of our operations.
- Provident Biofuels has commissioned Peterson, an external consultant, to produce a White Paper on the use of PKS as a sustainable biofuel.

- Provident Biofuels is a pioneer in the PKS industry to obtain RSB certification. The Company is currently collaborating with RSB and to pilot a study on the standards and requirements to promote traceability of their supply chain and operations. These standards and requirements will be applied across our supply chain with our suppliers and business partners.
- Provident Biofuels will perform regular risk monitoring, documentation, tracking and tracing of every batch shipment of PKS from CPO mills to the eventual sale to end users.
- The White Paper concluded that utilizing PKS as a feedstock to power plants instead of coal results in an 80% - 90% greenhouse gas emission reduction, thus contributing to a low-carbon society.
- In order to be GGL and RSB certified, external audits will be conducted by both GGL and RSB which will measure Provident Biofuel’s environmental performance.
- Provident Biofuels will engage Virgeo Eiris to provide an audit and ESG rating for the Company’s environmental policy.

- Provident Biofuels will conduct all our businesses and operate based on fairness and abide by the Prevention of Corruption Act (Cap 241) in Singapore and all corresponding international regulations and standards.
- Provident Biofuels will not tolerate any form of monetary or non-monetary bribery or corruption.
- All agents, staff and representatives of Provident Biofuels who corruptly accept or obtain undue advantages as an act in relation to the Company’s business without approval from the Company is strictly prohibited. Honest, integrity and fair play will always be upheld by our Company’s management and staff as a core value of Provident Biofuels.

- Provident Biofuels will conduct training on ethical business practices as well as anti-corruption policies once per year for all employees and external business partners.
- Any information or incidents regarding bribery or corruption can be reported through our incident reporting framework. We also provide assurances that all victims, whistleblowers, witnesses will be protected from any retaliation and all information will be kept confidential.
- Provident Biofuels takes a strict approach to anti-corruption and will take all necessary actions to resolve any incidents involving bribery and corruption.
- All agents, staff and representatives of Provident Biofuels must ensure that have read, understood, and agree to comply with our anti-corruption policy

- Provident Biofuels will terminate contractual relationships with agents or representatives who are in breach of our anti-corruption policy. Any staff who are in breach of this policy will also face disciplinary action from the Company’s management which might result in a dismissal.
- Provident Biofuels senior management will continually review our internal processes on an semi-annual basis to ensure that all internal processes do not provide opportunities for corruption and bribery.
- Provident Biofuels will engage Virgeo Eiris to provide an audit and they will provide feedback on Provident’s anti-corruption performance.