Melia Hotels International SA

The Company's organisational structure and governance assigns ESG responsibilities to the different executive bodies and Delegate Committees of the Board of Directors in addition to all aspects related to climate change. This governance structure is aligned with the most advanced recommendations on corporate governance and the TCFD. [...] The Board of Directors approves and supervises ESG and climate strategy, and delegates their internal control to its Delegate Committees in addition to defining incentives for the achievement of objectives. [...] To reinforce the integration of sustainability as part of our business strategy and throughout our value chain, in 2020 Meliá created a Sustainability Committee. The main objective of this new governing body is to support the development and implementation of projects that ensure value creation in all three dimensions (environmental, social and governance) in the face of social change and global challenges, as well as to promote the recognition and reputation of Meliá as a responsible and sustainable Company in the long term. [...] Meliá's Senior Executive Team (SET) regularly supervises performance with regard to the sustainability and climate change strategies and ensures compliance with the targets defined. [...] The Sustainability Committee is responsible for defining and proposing to the SET the roadmap, commitments and objectives for ESG and climate change, and for monitoring and reporting on progress and achievements. [...] The Risk Control & Compliance area of the Company is responsible for updating the Corporate Risk Map, including climate-related risks. The Corporate Risk Catalogue currently contains 103 identified risks, of which 20 are related to climate change. [...] The Corporate Responsibility, Energy & Environment, Risk Control & Compliance and Hotel Operations Departments also assist in the process of identifying risks and opportunities related to climate change and in assessing their impact, probability of occurrence, severity and time horizon as part of the annual review of the Corporate Risk Catalogue. [...] Meliá has a Corporate Risk Map which identifies the key risks the Company faces. Special attention has been paid to the specific risks related to climate change in the Risk Map in order to analyse and develop them in a more effective way. The map is reviewed every year and presented to the Audit and Compliance Committee, responsible, among other things, for the supervision of Risk Management Systems, including non-financial risks, and also to the Board of Directors.

Board of Directors: According to the provisions of the Regulations of the Board of Directors, the Board is responsible for determining and approving the general policies and strategies of the Company, including this Policy. Likewise, it shall be periodically informed by the Appointments, Remuneration and Corporate Social Responsibility Committee on the levels of compliance and application of this Policy. [...] Appointments, Remuneration and Corporate Social Responsibility Committee: This Committee is responsible for monitoring the corporate responsibility strategy and practices and assessing its level of compliance. In particular, environmental issues are deemed to be included. [...] Sustainability Committee: The positioning as regards climate change and environment is one of the fields of action of the Sustainability Committee, as a matter to be promoted by it. Likewise, it is the body responsible for ensuring the inclusion of ESG criteria in the business strategy, promoting the implementation and execution of projects or initiatives that are necessary for the compliance with the principles and goals set forth in this Policy. Sustainability Committee is the body that reports to the Appointments, Remuneration and Corporate Social Responsibility Committee.

**IV. MONITORING AND CONTROL**

Meliá assigns different roles and functions for the monitoring, control and improvement of this Policy to the following bodies:

**Board of Directors: According to the provisions of the Regulations of the Board of Directors, the Board is** responsible for determining and approving the general policies and strategies of the Company, including this policy. Likewise, the Appointments, Remuneration and CSR Committee must inform the Board on a regular basis of the compliance levels and application of this Policy.

**Appointments, Remuneration and Corporate Social Responsibility Committee: This Committee is responsible** for monitoring the strategy and practices in terms of sustainability, as well as for assessing its level of compliance.

**Sustainability Committee: The body responsible for ensuring that ESG criteria are included in the business** strategy, by promoting the implementation and execution of projects or initiatives which are necessary to comply with the principles and objectives set forth in this Policy. The Sustainability Committee is the body which reports to the Appointments, Remuneration and CSR Committee about these matters.

**IV. MONITORING AND CONTROL**

Meliá assigns different roles and functions for the monitoring, control and improvement of this Policy to the following bodies:

**Board of Directors: According to the provisions of the Regulations of the Board of Directors, the Board is** responsible for determining and approving the general policies and strategies of the Company, including this policy. Likewise, the Appointments, Remuneration and CSR Committee must inform the Board on a regular basis of the compliance levels and application of this Policy.

**Appointments, Remuneration and Corporate Social Responsibility Committee: This Committee is responsible** for monitoring the strategy and practices in terms of sustainability, as well as for assessing its level of compliance.

**Sustainability Committee: The body responsible for ensuring that ESG criteria are included in the business** strategy, by promoting the implementation and execution of projects or initiatives which are necessary to comply with the principles and objectives set forth in this Policy. The Sustainability Committee is the body which reports to the Appointments, Remuneration and CSR Committee about these matters.

Board of Directors: According to the provisions of the Regulations of the Board of Directors, the Board is responsible for determining and approving the general policies and strategies of the Company, including this Policy. Likewise, it shall be periodically informed by the Appointments, Remuneration and Corporate Social Responsibility Committee on the levels of compliance and application of this Policy. [...] Appointments, Remuneration and Corporate Social Responsibility Committee: This Committee is responsible for monitoring the corporate responsibility strategy and practices and assessing its level of compliance. In particular, environmental issues are deemed to be included. [...] Sustainability Committee: The positioning as regards climate change and environment is one of the fields of action of the Sustainability Committee, as a matter to be promoted by it. Likewise, it is the body responsible for ensuring the inclusion of ESG criteria in the business strategy, promoting the implementation and execution of projects or initiatives that are necessary for the compliance with the principles and goals set forth in this Policy. Sustainability Committee is the body that reports to the Appointments, Remuneration and Corporate Social Responsibility Committee.

The Company's organisational structure and governance assigns ESG responsibilities to the different executive bodies and Delegate Committees of the Board of Directors in addition to all aspects related to climate change. This governance structure is aligned with the most advanced recommendations on corporate governance and the TCFD. [...] The Board of Directors approves and supervises ESG and climate strategy, and delegates their internal control to its Delegate Committees in addition to defining incentives for the achievement of objectives. [...] To reinforce the integration of sustainability as part of our business strategy and throughout our value chain, in 2020 Meliá created a Sustainability Committee. The main objective of this new governing body is to support the development and implementation of projects that ensure value creation in all three dimensions (environmental, social and governance) in the face of social change and global challenges, as well as to promote the recognition and reputation of Meliá as a responsible and sustainable Company in the long term. [...] Meliá's Senior Executive Team (SET) regularly supervises performance with regard to the sustainability and climate change strategies and ensures compliance with the targets defined. [...] The Sustainability Committee is responsible for defining and proposing to the SET the roadmap, commitments and objectives for ESG and climate change, and for monitoring and reporting on progress and achievements. [...] The Risk Control & Compliance area of the Company is responsible for updating the Corporate Risk Map, including climate-related risks. The Corporate Risk Catalogue currently contains 103 identified risks, of which 20 are related to climate change. [...] The Corporate Responsibility, Energy & Environment, Risk Control & Compliance and Hotel Operations Departments also assist in the process of identifying risks and opportunities related to climate change and in assessing their impact, probability of occurrence, severity and time horizon as part of the annual review of the Corporate Risk Catalogue. [...] Meliá has a Corporate Risk Map which identifies the key risks the Company faces. Special attention has been paid to the specific risks related to climate change in the Risk Map in order to analyse and develop them in a more effective way. The map is reviewed every year and presented to the Audit and Compliance Committee, responsible, among other things, for the supervision of Risk Management Systems, including non-financial risks, and also to the Board of Directors.

The Meliá Hotels International Sustainability Committee, formalised in 2020, has new leaders this year, 2023, as a result of the changes made to the Company's Executive Committee (SET). It keeps the same structure of responsibilities, with roles being assumed by the current representatives of Real Estate and Legal & Compliance, two critical areas due to the relevance of the regulatory framework currently required and demanded by both Europe and Spain. While the Real Estate area brings together under its responsibility very significant areas in terms of sustainability, primarily: works & maintenance, procurement and energy and water consumption management. In 2023, this governing body set the objective of holding monthly meetings to ensure the transformation and adaptation of our business model to sustainability standards, in an increasingly demanding regulatory context which requires more agile and effective decision-making and implementation. This Committee also reports to the Company's Senior Executive Team (SET) and maintains a close link with our Board of Directors through direct reporting to the Appointments, Remuneration and Sustainability Committee and the Audit & Control Committee on non-financial reporting. [...] The Company has developed an organisational and governance structure that assigns and allocates specific responsibilities in terms of sustainability to the different executive bodies and committees of our Board of Directors. The Board of Directors approves and oversees the sustainability strategy, including that related to climate change, and delegates different sustainability roles to its two committees. The Remuneration, Appointments and Sustainability Committee is the governing body that has been delegated the roles in this area and is responsible for the application of the policy and its public commitments, for ensuring progress in sustainability and for monitoring the strategy and practices concerning sustainability and the environment, as well as the progress that the Company is making in its hotel portfolio in terms of climate risks. Likewise, to reinforce the Company's commitment to sustainability and climate change, a Sustainability Committee was set up in June 2020, chaired and vice-chaired by two members of the Company's senior management and made up of different corporate and operational departments that are key to driving progress in this area. This Committee assumes a key essential role: to ensure the integration of sustainability at all levels of the organisation and make sure that our roadmap contributes to fulfilling the public commitments assumed in terms of ESG from a global, integrated perspective, and to address the main challenges of Agenda 2030. Nine sessions were held in 2023, all incorporating information related to climate change, the environment or climate risk management, a topic that has been very much present at all the Committee's meetings. On the other hand, the Company has strengthened its organisational structure in terms of sustainability, particularly in the fight against climate change, giving the Sustainability Department roles and responsibilities in relation to all (1) public commitments associated with the carbon footprint, (2) the promotion of the conclusions identified in our analysis of climate-related risks and improving our management by applying the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and (3) waste management and the drive towards a circular economy. Finally, the Sustainability Department has expanded its structure in two of the Company's key destinations, Mexico and the Dominican Republic, with the aim of becoming a benchmark in environmental and biodiversity issues.