SECOIN SUSTAINABILITY REPORT

2022 SUSTAINABLE BUSINESSES 2022

Sustainable Development Board www.secoin.com

Contents Message from Secoin's Chairman

1

Secoin system overview

2

Secoin sustainable management system

3

Secoin sustainable development goals (SDGs)

4

Secoin sustainable development report through ICS assessment system

5

Future orientation and conclusion

Sustainable Development Board - Secoin System Sustainability Report 2022

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Message from Secoin's Chairman Honored to be recognized as Vietnam's National Brand continuously from 2016 to now and as Sustainable Business of Vietnam in 2022, Secoin's success has always been based on the foundation of the capturing the values of Knowledge, Technology, Nature, People and History - Culture. Since the first day of establishment, the production business process at Secoin has always been built on the passion of researchers and the strength of creativity and innovation to always keep the leading position in the field of production of High-class Artistic Tiles. Through the process of non-stop research and development, we are always looking for new products to serve the development of infrastructure and the country's economy. Thanks to that, Secoin has clearly formed a consistent path to achieve this goal, to ensure a sustainable future and at the same time contribute to building a sustainable economy. From the beginning of 2021 and especially after the Covid-19 pandemic, Secoin continues to emphasize sustainability as an important factor in the long-term development strategy of the business. The sustainability factor is considered as an integral part of the operation and evaluation of production and business efficiency throughout the Secoin system in North - Central South Vietnam. Especially for the Secoin product supply chain abroad, sustainability is more focused than ever through the ICS - Initiative for Compliance and Sustainability assessment program. The goals that Secoin is aiming for are in line with the 17 Sustainable Development Goals of the United Nations by 2030. Not only protecting the global climate, these goals also aim to address many of the challenges faced by humanity, such as biodiversity loss, global inequality, climate change, etc. Economic development cannot be traded for climate, living environment, and human health. Industries and manufacturers like Secoin need to play an active role in creating a sustainable economy and a sustainable community. Secoin is clearly aware of and committed to our responsibility to develop new building materials, not using natural resources, not polluting the environment, ensuring the health and safety of users. Sustainable materials can be used for a long time and can be reused, creating jobs for workers, bringing a better life, contributing to the construction of sustainable smart urban areas, contributing to the sustainable economic development of Vietnam and participating in global sustainable supply chains. Secoin would like to thank the trust that our partners, customers, staff and community have placed in us over the past 34 years. A sustainable business path will continue to guide our activities in 2023 and beyond. Yours faithfully, Dinh Hong Ky

Secoin's Chairman Chief Sustainability Officer

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I/ SECOIN SYSTEM OVERVIEW

Introduction about Secoin System

ABOUT SECOIN Secoin is the leading artistic tile manufacturer in Southeast Asia with 3 showrooms and 9 factories in Hanoi, Hung Yen, Da Nang, Ho Chi Minh City, Binh Duong, Dong Nai and Ba Ria - Vung Tau. Secoin's products are supplied to major projects across the country and exported to 60 countries on 6 continents. Secoin brand has been recognized by the government as Vietnam's National Brand continuously from 2016 up to now. Having nearly 35 years of experience and the production management system consulted by Panasonic (Japan), Secoin is always committed to making products of high quality, being environment-friendly and recyclable.

Lean production management system consulted by Panasonic Since March 2018, Panasonic ESBCT Institute of Education and Training (Japan) has implemented the Lean Manufacturing Consultancy Project for Secoin's factory system. By the time of program completion in March 2019, Secoin became the first Vietnamese enterprise to receive consulting, training and implementation of lean production from Panasonic ESBCT.

Business Philosophy - MissionVision

Business Philosophy Secoin was created, development sustainably and reaped achievements based on capturing the basic values: Knowledge – Technology - Nature – People – History and Culture For an enterprise of leading brain Always original so as to be the pioneer at all times Reaching beyond the country's border to exploit the local potential

Mission We are deeply aware that a prominent enterprise should not only be concerned about its well-being but also have to contribute to solving social problems. The biggest problems our human -being is facing are environment and climate. Making environment-friendly products, protecting the global climate and creating recycled products is the criteria for Secoin during the course of our production.

Vision Secoin desires to maintain the leading position in the world in the field of manufacturing non-fired building materials and environment-friendly products. Secoin products will be supplied to the domestic market and will increase distribution worldwide.

II/ SECOIN SUSTAINABLE MANAGEMENT SYSTEM

Top 100 Sustainable Businesses in 2022 - CSI 100 On November 16, 2022, Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Business Council. Industry for Sustainable Development in Vietnam (VBCSD) officially announced that Secoin was recognized as Top 100 Vietnam Sustainable Development Enterprises 2022.

The CSI 2022 program aims to evaluate, gather and praise businesses that perform successful business and production activities with the great sense of responsibility in three aspects of economy - society – environment. Vietnam Sustainable Development Enterprises 2022 are selected based on the CSI 2022 index, including 130 indicators divided into 5 parts: Enterprise overview; Main results of economic - environment - labor and social activities; Management indicators; Environmental index; Labor - social index. The CSI 2022 program also commends businesses with good achievements in promoting the implementation of the circular economy model and responding to climate change; Promoting women's empowerment and gender equality in the workplace; and complying with human rights and children's rights.

BAN PHÁT TRIỂN BỀN VỮNG Sustainable Devellopment Board

Sustainable Development Board

Born in:

1966 Academic background -Engineer in Automatic Control - Hanoi University of Science and Technology. - Master of Business Administration - Griggs University (USA) & Hanoi International University - Certificate of professional Director TrainingProgramme

Current Position: - Chairman of Secoin Group - Vice Chairman of Vietnam Association for Building Materials(VABM) - Vice Chairman/ General Secretary of Saigon Association of Construction & Building Materials (SACA) - Members of the Executive Committee of Ho Chi Minh City Business Association (HUBA)

Born in:

1962 Academic background - Engineer in Solid-state Physics - Hanoi University of Science and Technology - Researcher in National University of Science and Technology MISiS (Russia) - Master of Business Administraion Griggs University (USA) & Hanoi International University - Certificate of professional Director training programme Current Position: - Executive Board Member/ Vice president of Secoin Corporation. - Execitive Board Member of Secoin Building Material Company - Chairwoman of Secoin Hung Yen One-member limited Liability Company - Executive Board Member of Secoin Saigon JSC - Member of Executive Committee of Vietnam Association for Building Materials (VABM)

Born in:

1975

Academic background Bachelor of English Literature - Hanoi University

Master of Business Administration - National Economics University, Business school - Certificate of Professional Director Traing progamme - Certificate of Digital Marketing, Concordia University, Canada Current Position: - General Director of Secoin Corporation - Chairwoman of Secoin Danang Corporation - Chairwoman of Secooin Western Saigon JSC - Vice General Director of Secoin Saigon IndustryInvestment JSC

Secoin Ecosystem

Secoin Value Chain

Secoin Value Chain and Ecosystem

Sustainable Development Board - Secoin System Sustainability Report 2022

Secoin's Sustainable Development Policy Secoin's product are supplied with the characters of uniqueness, high individualization and distinctiveness Secoin offer variety to products with attractive designs and high artistic value Secoin products meet basic technical requirements for being used in construction, interior and exterior decoration

MEET THE STANDARDS OF BUSINESS ETHICS AND SOCIAL RESPONSIBILITIES IN THE GLOBAL SUPPLY CHAIN

ENVIRONMENTALLY FRIENDLY PRODUCTS AND SAFE FOR HUMAN'S HEALTH

Secoin's "Positive Products" program in the global supply chain Secoin has started participating in the global supply chain since 2014 and has become a link in Adeo Group’s supply chain (France). Facing the Covid-19 pandemic in 2021, the supply chain has launched "Positive Products" program for Secoin and other enterprises who participating in the supply chain to build a sustainable production system in a positive direction. The criteria of the program are: Safe for human and planet

Made from sustainable resources and recyclable

Being manufactured in a way that respects human and labour rights; prevent pollution

Made to last

Bring sustainable functions and features

5 business strategy orientations Secoin's business strategy is to create the DIFFERENCE and INNOVATION, this strategy is expressed through the slogan “ALWAYS ORGINAL” Uniqueness and Differentiation: Secoin always strives to produce products with unique designs and features. Secoin has a different position from competitors in its industry by continuously launching new and unique products to the market. Customers can always find at Secoin new things that they have not seen elsewhere. The market leader: Secoin has always maintained its position as the market leader in terms of both scale and quality. The optimal price/quality ratio: Secoin does not go with the strategy of the low-cost selector. Instead, Secoin emphasizes providing its customers with the optimal price/quality ratio. Ecosystem: Secoin has invested in expanding its operation fields to create an overall ecosystem to supply projects in Vietnam and globally. Secoin has been investing in the fields of design, architectural planning, landscape & Japanese Onsen industry, and the field of mechanical architecture for construction projects according to international standards. In cooperative strategy with great real estate investors: Expanding strategic cooperative partnership is the direction that Secoin concentrates during the time of economic recovery. This strategy can both help Secoins take advantage of the internal strengths, affirm Secoin’s brand in the market and ensure the stable consumption for the output.

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Social activities towards "Net-zero" Secoin has actively participated and delivered speeches on the subjects of Circular Economy, Smart Cities, Green Export, Green Logistics, Sustainable Development of Building and Construction Indstry,... in many seminars across Vietnam.

Sustainable Development Board - Secoin System Sustainability Report 2022

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III/ SECOIN’S SUSTAINABLE DEVELOPMENT GOALS (SDGS)

Overview of Sustainable Development Goals The Sustainable Development Goals (SDGs), also known as the Global Goals, are a set of 17 integrated and interrelated goals that aim at eradicating poverty, protecting the planet and ensuring that humanity can enjoy peace and prosperity by 2030.

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7 Priority Goals of Secoin For Sustainable Development Among the 17 Sustainable Development Goals of the United Nations, Secoin has 7 priority goals and 8 sub-goals

Objective 3 – Good Health And Well-Being Secoin's products are manufactured in Vietnam and supplied to the world market rely on their uniqueness and difference. Thereby, Secoin contributes to enriching the society, providing stable jobs for employees, and helping Vietnamese workers (especially workers in the Vietnam traditional cement tile industry) have a fuller life.

Objective 4 – Quality Education At Secoin, the training programs are focused on both external and internal to enhance knowledge and capacity for the leadership team and all employees.

Objective 8 – Decent Work And Economic Growth The strategy of always being the leader, always innovating helps Secoin maintain and develop the domestic and foreign markets, contributing to the country's economic growth goals.

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7 Priority Goals of Secoin For Sustainable Development Objective 9 – Industry, Innovation And Infrastructure Secoin artistic tile always create novelty, uniqueness and difference. Products are supplied to thousands of construction projects in Vietnam and more than 60 countries across 6 continents.

Objective 12 – Responsible Consumption And Production Secoin is a pioneer in bringing environmentally friendly roof tile production technologies into Vietnam. Secoin is also considered a contributor to the non-fired building materials industry in Vietnam.

Objective 13 – Climate Action The orientation strategy of Secoin is to always make environmentally friendly products. The production process of Secoin does not use agricultural land, natural resources, does not burn the tiles and does not use fuel.

Objective 17 – Partnerships For The Goals Building Secoin ecosystem and strategic cooperation with domestic and international investors. Building a value chain and become a link in the global supply chain with distribution systems in Europe and North America.

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8 Sub-Goals of Secoin For Sustainable Development

Objective 1: No poverty Secoin contributes to enriching the society, providing stable jobs for employees Objective 5: Gender Equality Objective 10: Reduced Inequalities Secoin always facilitates and encourages women to hold key leadership positions both in the senior management system, the middle and junior management team. Continuously developing training and capacity building programs for female leaders. Objective 6: Clean Water And Sanitation Objective 7: Affordable And Clean Energy Secoin's production process has the water saving solution and does not consume energy. The production system also takes advantage of clean energy sources such as solar energy systems. Objective 15: Conservation and sustainable development of forest and biodiversity; developing ecosystem services, preventing desertification and restoring land resources. Secoin's products can be the substitute for traditional building materials that made from terracotta. This improvement contributes to protecting land resources. The non-fired building material production process also helps reduce energy consumption and prevents deforestation. Objective 16: Enhancing a sustainable society based on peace, democracy, fairness, equality, civilization; improving accessibility the justice for everyone; formulation of effective institutions which have the accountability and all levels of participation. Secoin implement international management programs with standards of society and working environment; regime and benefits for employees. Sustainable Development Board - Secoin System Sustainability Report 2022

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Risk Management In Secoin's development strategy, Secoin's leadership always takes into account possible risks. Secoin's risk management strategy is built on the following aspects:

Diversifying markets and distribution channels Developing domestic market and diversifying foreign markets in parallel has helped Secoin have a stable output market, especially during the Covid-19 pandemic.

Diversification of products Secoin has created a stable and large market with a wide range of products. The flexibility in expanding/reducing the production of each product range is also a factor that helps Secoin minimize risks during periods of market volatility and crisis.

Building risk management process The risk management process with code number QTSG-08 has been an important part of Secoin's Quality Management System for many years. This process is to identify possible hazards in the company's activities; assessing possible risks and determine control measures to prevent or reduce those risks.

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IV/ 2022 SUSTAINABLE MANAGEMENT RESULT REPORT THROUGH ICS ACCESSMENT

Sustainability assessment results at Secoin through the ICS criteria system SOCIAL

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Sustainability assessment results at Secoin through the ICS criteria system SOCIAL Refering to ICS member audit scoring standards, the following results has been observed: Tham khảo các tiêu chuẩn chấm điểm đánh giá thành viên ICS, các kết quả sau đã được quan sát thấy:: Tiêu chí

Điểm

Xếp hạng

Management System, Transparency and Traceability Hệ thống quản lý, tính minh bạch và truy xuất nguồn gốc

100%

A

Minimum age, Child labour and Young workers Tuổi tối thiểu, Lao động trẻ em và Lao động trẻ

100%

A

Forced labour Cưỡng bức lao động

100%

A

Discrimination Phân biệt đối xử

100%

A

Disciplinary Practices, Harassment and Abuse Thực hành kỷ luật, quấy rối và lạm dụng

100%

A

Freedom of association and Grievance Mechanisms Tự do liên kết và Cơ chế Khiếu nại

100%

A

Working hours and Overtime Giờ làm việc và ngoài giờ

70%

C

Remuneration and Benefits Thù lao và lợi ích

89%

B

Health and Safety Sưc khỏe va sự an toàn

82%

B

Rating Điểm đánh giá tổng thể

94%

B

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Sustainability assessment results at Secoin through the ICS criteria system ENVIRONMENT

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Sustainability assessment results at Secoin through the ICS criteria system ENVIROMENT Refering to ICS member audit scoring standards, the following results has been observed: Tham khảo các tiêu chuẩn chấm điểm đánh giá thành viên ICS, các kết quả sau đã được quan sát thấy::

Tiêu chí

Điểm

Xếp hạng

1. Environmental Management Systems Hệ thống quản lý môi trường

88%

B

2. Energy Use, Transport and Greenhouse Gases (GHGs) Sử dụng năng lượng, Vận chuyển và Khí nhà kính (GHGs)

100%

A

3. Water Use Sử dụng nước

100%

A

4. Wastewater and Effluent Nước thải và chất thải

97%

B

5. Emissions to Air Phát thải vào không khí

95%

B

6. Waste Management Quản lý chất thải

88%

B

7. Pollution Prevention and Hazardous and Potentially Hazardous Substances Ngăn ngừa ô nhiễm và các chất độc hại và tiềm ẩn

68%

C

8. Emergency Response Management Quản lý ứng phó khẩn cấp

85%

B

Audit global rating Điểm đánh giá tổng thể

89%

B

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V/ FUTURE ORIENTATION CONCLUSION

Secoin's development orientation in the coming years

1

Secoin product development in the direction of "Positive Product" Meet international standards and requirements with 5 cores: Safe products: Renewable materials; Social responsibility and environmental responsibility: Products with durable use; Improve product performance.

Manufacturing products for smart cities

2 3

Meet international standards and requirements with 5 cores: Safe products: Renewable materials; Social responsibility and environmental responsibility: Products with durable use; Improve product performance.

Continue to develop Vietnamese Brand in the international market - contribute to building Vietnam National Brand Continue to bring Secoin products to high-end segments of the global market.

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Secoin's development orientation in the coming years

4 5

Developing Secoin Ecosystem, expanding investment and cooperation with foreign partners Secoin ecosystem is built on the basis of cooperation in technology, engineering, design with reputable, experienced and strong partners in the field of architectural design, landscape, technology,. .. towards international standard construction works

Post-Covid recovery and development towards "Circular Economy" Take advantage of circular investment opportunities in the Construction and Building Materials industry, towards the production of building materials for works with guaranteed quality, cost savings and low carbon.

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Conclusion Secoin's development process over the past 34 years is a process of sustainable development: building core values of the business, making persistent efforts to create quality, environmentally friendly, people-oriented products. and community oriented.

Focus on People “We create people before we make products”

Awareness of "Environment" Producing green product, protecting environment and safe for human health

"Capturing the values" and "elevating Vietnamese brand" Contributing to the development of Vietnam's economy and Vietnam's position on the world map

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