SATS Ltd

This Policy has been reviewed by SATS' ESG Steering Committee and approved by the Board of Directors, who are committed to executing and providing resources to support the Policy. It will be periodically reviewed, revised, and communicated to employees via internal communication channels and made available to all other interested parties via the company's website. It will also be translated into various languages for SATS' employees and suppliers globally.

To ensure social responsibility and governance, SATS has been working with our customers and suppliers to implement initiatives that help us reduce the impact of our activities on the environment and the communities in which we operate. We have incorporated various ESG criteria into our business practices. In February 2017, we launched the Supplier Code of Conduct which was further enhanced in November 2021 to include our refreshed purpose, vision and mission, core values and the range of environmental criteria we may use to assess our suppliers. It is now mandatory for potential suppliers to accept SATS' Supplier Code of Conduct before they can participate in SATS' sourcing activities. SATS' Sustainability, Enterprise Risk Management and Global Procurement teams adopt one approach when integrating ESG criteria into our vendor selection and procurement practices across SATS Group entities, including all local and overseas subsidiaries over which we have operational control. We are working to strengthen our supply chain governance and resilience by engaging the partners in our value chain on ESG aspects beyond the traditional assessment criteria. In the Global Procurement Operations Manual implemented starting 1 January 2022, we incorporated ESG criteria into our Global Procurement Best Value framework, Global Procurement Sourcing Principles and Global Procurement Responsible Sourcing framework. We will develop a supplier selection strategy that includes ESG criteria, conduct supply chain risk screening, and measure the ESG performance of our suppliers regardless of their scale of operations.

Embedding sustainability deeper into our business, we formed an ESG Steering Committee comprising members from our senior leadership team to establish greater alignment on ESG-related matters and ensure we invest appropriately in critical initiatives to achieve our goals.

The ESG Steering Committee comprising members from our senior leadership team was set up, in accordance with its terms of reference, to establish greater alignment on ESG-related matters and ensure we invest appropriately in critical initiatives to mitigate climate-related risks. [...] Our Chief Sustainability Officer (CSO) chairs the Sustainability Council which, according to its terms of reference, supports the ESG Steering Committee.

We have established a robust governance structure to foster active participation and ensure accountability at all levels of our organisation. To underscore the value of sustainability in the face of evolving societal and business landscapes for building a lasting competitive edge for SATS, we have established the Safety, Sustainability, and Risk Committee (SSRC) at the board level. Furthermore, a dedicated Safety, Sustainability, and Risk Management Committee (SSRMC) has been implemented at the executive management level to reinforce the integration of sustainability into the company's operations and ensure the allocation of adequate resources to support sustainability initiatives. [...] Our Board of Directors oversees SATS sustainability strategy and performance through the Safety, Sustainability and Risk Committee (SSRC) and ensures that sustainability goals are integrated into all areas of the business. Executive management translates strategy into action through their stewardship. The former ESG Steering Committee, responsible for giving direction and supervision at the executive level, has been replaced by the Safety, Sustainability, and Risk Management Committee (SSRMC) at the executive management level. This committee is chaired by the President and Chief Executive Officer. The SSRMC plays a crucial role in shaping the Group's approach to transparency, challenging our businesses to better understand our environmental and social impacts, setting ambitious improvement targets, ensuring the right resources are deployed to meet our sustainability targets and long-term aspirations and overcoming obstacles. SSRMC also oversees the allocation of proceeds from our Renewable Energy Certificates, directing them towards impactful sustainability initiatives.