Company Profiles

Hyflux Limited

Singapore

Hyflux Limited is an environmental technologies company involved in the design, construction, and operation of various water treatment and liquid separation technologies. Currently, one-third of the world's population lives in water-stressed areas and over a billion people lack access to clean water. A majority of these people live in developing countries, which are the primary markets for Hyflux. Hyflux offers a variety of technologies to address water contamination and scarcity, including seawater desalination, wastewater reclamation, and water recycling. For example, in China, Hyflux has built the Changshu Wastewater Treatment plant. This is currently the only municipal wastewater treatment plant for the Southeast Economic Development Zone, which houses the majority of China's printing, dyeing and textile plants. Using advanced technology, Hyflux has overcome many of the wastewater problems in this region, and its treated wastewater now meets China's discharge standard. While these services are clearly ”end-of-pipe” solutions rather than the more sustainable approach of redesigning the processes that produce the waste, the environmental benefits are significant. Hyflux also develops and manufactures membranes that improve industrial process yields and materials efficiencies. The company's Specialty Materials division develops and commercializes lactic and polylactic acids from natural renewable resources. Portfolio 21 has asked the company to address the issue of genetically modified feedstock for its Specialty Materials division, and has asked Hyflux to increase its transparency regarding the company's environmental performance data.

Globalization Concern

Portfolio 21 is aware of the limited environmental and social regulations in place and enforced in developing countries, including China, where over two-thirds of Hyflux's revenues were generated in 2006. As a result, we have taken a cautious approach in analyzing Hyflux within this context. In sum, Portfolio 21 believes the ecological and social benefits of the products and services offered by Hyflux outweigh the risks of operating in these regions. Read Portfolio 21's Globalization, Human Rights and Social Justice policy.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/07 and may not reflect current opinions or subsequent events.