Supplier Code of Conduct Policy

Acceptance and adherence to this Supplier Code of Conduct (the "Code") are factors in determining eligibility to be registered, and to remain registered, as Rex International Holding Ltd's supplier.

Rex will periodically review and update this Code as necessary. Any revisions will be communicated to suppliers to ensure alignment with our principles.

1. OBJECTIVE

1.1 Rex International Holding Ltd ("Rex") and its subsidiary companies (collectively, the "Group" and each a "Rex Company") are committed to conducting business ethically and responsibly. This Supplier Code of Conduct (the "Code") sets out the standards of conduct expected from suppliers, vendors, contractors, traders, consultants, and agents in our supply chain.

1.2 As a multinational company, the sustainability of our supply chain is crucial to the long-term success of our businesses. Through close cooperation with our suppliers, we strive to positively influence their environmental, social and governance performance.

2. ROLES AND RESPONSIBILITIES

The respective department heads and management teams of the Rex Companies are responsible for overseeing compliance to the Code in accordance with the legal framework in their respective jurisdictions.

3. SCOPE AND DISTRIBUTION

3.1 This Code applies to the Group's entire supply chain, including suppliers, vendors, contractors, traders, consultants and agents and sets out the standards of conduct to which the Group's suppliers and their parent entities, subsidiary or affiliate entities and employees, are expected to adhere.

3.2 A "supplier" refers to any person or entity, as decided by Rex or a Rex Company, including:

  • contractors of a Rex Company;
  • direct suppliers to a Rex Company; and
  • selected sub-suppliers.

3.2 These standards of conduct fall into the broad categories of:

  • Business conduct;
  • Human rights;
  • Safety and health; and
  • Environmental management.

3.4 All Group employees are required to inform suppliers of the existence of this Code during the supplier on-boarding process. This ensures that suppliers are aware of our expectations and can align their operations accordingly. Non-compliance with this Code may result in a review of the suppliers' ability to continue business with the Group.

3.5 Key suppliers as determined by Rex or a Rex Company (including but not limited to suppliers involved in oil and gas exploration and production) will be required to sign a declaration and acknowledgement in the form set out in Appendix A and to communicate the requirements to all their subcontractors, and to contribute to compliance with the requirements in the supply chain. It is the responsibility of suppliers to ensure their employees, group entities, subcontractors and others who act on suppliers' behalf comply with this Code.

4. BUSINESS CONDUCT

The Group expects our suppliers to conduct their business operations with the highest standards of integrity, fairness and impartiality, in an ethical and proper manner.

4.1 Legal Compliance: Suppliers shall observe and comply with all local and international laws and regulations applicable in their respective countries of operations. In cases where the standards in this Code differ from national laws or other applicable regulations or standards, suppliers shall abide by the stricter requirements.

4.2 Anti-corruption and Bribery: Rex does not under any circumstances tolerate illegal, unethical or any form of corrupt behaviour, as set out in its Anti-Corruption & Bribery Policy, which suppliers are expected to comply with.

4.3 Fair Competition: Rex has a strict policy to act in compliance with applicable competition laws and expects its suppliers to do the same, and not to participate in price fixing, market or customer allocation, market sharing or bid rigging with competitors which are in breach of applicable competition laws.

4.4 Conflict of Interest: No family or other personal relationship is to be used to improperly influence business judgment of either a Rex Company employee or a supplier's employee. This includes interactions that could result in preventing acting in the best interest of the Group. Suppliers should notify all affected parties immediately if an actual or potential conflict of interest arises.

4.5 Confidentiality: Suppliers shall adhere to all applicable data privacy laws and regulations concerning the processing of personal and sensitive data, taking appropriate steps to safeguard and maintain confidential and proprietary information of its business partners and use such information only for the purposes authorised for use by the governing contractual agreement or, where there is not yet a contractual agreement in place, then by the understanding in place for the intended purpose. Suppliers shall comply with contract requirements relating to information and confidentiality, and not share confidential or business sensitive information with third parties.

4.6 Record Keeping: Suppliers shall maintain accurate financial and business records in accordance with applicable laws and regulations.

4.7 Reporting: The Group is governed by SGX-ST Listing Rules (Manual section B) to disclose immediately all suspected irregularities that have material financial impact. the Group's staff and any other persons may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other matters relating to the Group and its officers by submitting to the Audit Committee a whistle-blowing report to whistleblowing@rexih.com, as stated on the Company's webpage: https://investor.rexih.com/whistle_blowing_policy.html.

5. HUMAN RIGHTS

Rex upholds and respects the fundamental principles set out in the United Nations Universal Declaration of Human Rights, the International Labour Organisation's (ILO) Declaration on Fundamental Principles and Rights at Work, the Internation Covenant on Economic, Social and Cultural Rights of 1966, and the International Covenant on Civil and Political Rights of 1966.

The Group is committed to compliance with employment laws in the jurisdictions in which we operate and upholding the human rights of our workforce. When tendering goods and services, we review any associated human rights issues and consider how we can ensure that our operations do not conflict with any of these fundamental human rights principles, especially with regard to human trafficking or forced labour.

We expect our suppliers to respect and uphold fundamental human rights in their operations, including:

5.1 Respect and Support of Human Rights: Supplier shall respect and support fundamental human rights in their operations, guided by general concepts from the United Nations Guiding Principles on Business and Human Rights.

5.2 Reasonable Working Hours: Supplier shall comply with applicable laws, regulations, and national industry standards on working time, including overtime, working hours, public holidays, and paid vacations.

5.3 Freedom of Association: Suppliers shall respect the rights of their employees to associate freely and participate in collective bargaining activities, to the extent that it is legally applicable.

5.4 Equal Opportunity: Just as the Group selects and maintains business relationships with its suppliers based on merit, we expect our suppliers to provide a fair working environment in which their employees are recognised based on merit and treated with dignity and respect.

5.5 Fair Compensation: Suppliers shall pay their employees fair and regular compensation in accordance with national laws and regulations, including wages for overtime hours and all legally mandated benefits to which their employees are entitled.

5.6 Non-Discrimination and Anti-Harassment: Suppliers shall provide a work environment that is protected by applicable local laws and free from discrimination and harassment, inclusive of any bias based on age, gender, ethnicity, nationality, religion or disability.

5.7 Preventing Forced Labour: Suppliers shall ensure that all workers conduct work on a voluntary basis, and not based on any form of direct or indirect mental, physical, or financial coercion, threat of any penalty or sanctions, or which in any way exploits the vulnerability of the worker. Supplier shall not retain identification papers, work permits, or deposits (financial including recruitment fee or otherwise) as a condition of their employment.

5.8 Local Communities: Where relevant to the Supplier's operations, the rights and integrity of local communities, indigenous people, or other traditional groups shall always be respected. Suppliers shall respect rights such as culture, customs, and heritage of local communities. Supplier shall further consult and cooperate with people concerned with respect to work that may have a significant impact on land areas inhabited or used by indigenous people or other traditional groups in line with ILO convention 169.

5.9 Whistle-blowing Routines: The Group is committed to observe the highest standards of ethics and integrity in our business conduct. We have procedures in place in confidence and raise concerns about possible misconduct in matters of accounting, financial reporting, human rights transgressions, business conduct, or any other matters. We expect that the Supplier shall establish routines for personnel and business partners along the value chain to raise concerns or request information related to their business operations.

6. SAFETY & HEALTH

Suppliers shall take all necessary measures to safeguard their employees and others involved in their operations.

6.1 As safety and health risks vary across the industries in which Rex and its suppliers operate, suppliers shall comply with the Rex Companies' industry-specific safety and health requirements, where such requirements exist.

6.2 Suppliers shall have, or work towards having, an effective health and safety management system through which they are able to:

  • Identify and control health and safety risks;
  • Reduce the risk of accidents;
  • Comply with relevant laws and regulations;
  • Ensure necessary emergency preparedness and prevention measures are in place; and
  • Improve overall workplace safety and health performance.

6.3 Suppliers are expected to take ownership of strengthening their own safety culture and to continuously work at improving their safety and health performance. This includes providing the necessary safety and health training and equipment for their employees.

7. ENVIRONMENTAL MANAGEMENT

Rex is committed to environmental stewardship and strives to minimise its ecological footprint by managing waste, protecting biodiversity, and enhancing energy efficiency at its exploration and production sites. Close cooperation with our suppliers is crucial for effectively managing our environmental risks and impacts in our supply chain.

7.1 Suppliers shall take a precautionary approach to environmental challenges and undertake initiatives to promote greater environmental responsibility. Supplier shall proactively participate in the protection of the environment in relation to their business operations while complying with applicable laws and regulations, as well as obtaining all necessary environmental approvals, permits and registrations. Suppliers are expected to support environmental commitments and implement activities to continuously reduce the environmental impact of their operations.

7.2 Suppliers involved in oil and gas exploration and production and such other suppliers as required by the Group shall have, or work towards having, an effective environmental management system in place, through which they are able to manage and monitor:

  • Resource use;
  • Energy and water efficiency;
  • Responsible waste management and recycling;
  • Mitigation of greenhouse gas emissions;
  • Pollution prevention; and
  • Biodiversity impact mitigation.

8. COMPLIANCE

8.1 Suppliers are expected to have read and understood this Code.

8.2 Suppliers authorise any Rex Company to conduct audits, with prior notification, at suppliers' premises. The Group must be allowed to exercise its right to audit the ongoing business relationship as and when required.

8.3 In cases of non-compliance, suppliers are expected to work expeditiously to implement appropriate corrective measures in accordance with the practices and requirements of the relevant Rex Company.

8.4 We expect our suppliers to cooperate in an honest and transparent manner with any requests for information with regards to the sustainability aspects of their operations. In the event that the standards in this Code differ from applicable laws or regulations, or differ from the provisions in the specific business contract between the supplier and the relevant Rex Company, the supplier shall abide by the stricter requirements.

8.5 If either the Rex Company or supplier has reasonable cause to believe that deviations from or breaches of the requirements under this Code have occurred, the supplier shall further investigate, to clarify the actual circumstances. If adverse impacts or risks are identified, the supplier shall without undue delay provide information regarding which measures are implemented or plans to implement to cease, mitigate, or as appropriate, remedy these impacts. If the measures proposed or implemented by the supplier are deemed insufficient by the Rex Company to avoid or mitigate the adverse impact, the parties shall meet in good faith to identify and develop possible solutions.

9. SUPPLIER ENGAGEMENT & SUPPORT

9.1 Where clarification on this Code is needed by suppliers, Rex will provide additional guidance.

9.2 The Group reserves the right to conduct regular reviews of supplier performance against Code. This may include audits, self-assessments, and benchmarking exercises to ensure compliance and promote continuous development.