Cairn Homes PLC

Policymakers **How and why we engage** We regularly engage with key policy makers at local and national government level through proactive and open communication on matters of common interest in the residential construction industry. As Ireland's leading homebuilder, Cairn is in a unique position to provide valuable and relevant insights into all aspects of the industry, including planning, design and construction, and how this feeds into housing policies. We engage with Government departments, state agencies and local authorities both directly and through membership of lobbying groups. **How this helps us build** **lasting partnerships** Ensures policy makers are educated and in a position to make informed policy decisions which help to underpin a sustainable homebuilding industry in Ireland.

Policy makers: We regularly engage with key policy makers at local and national government level through proactive and open communication on matters of common interest in the residential construction industry. With our track record, Cairn is in a unique position to provide valuable and relevant insights into all aspects of the industry, including planning, design and construction, and how this feeds into housing policies. We engage with Government departments, state agencies and local authorities both directly and through membership of industry lobbying groups.

The Audit & Risk Committee maintains oversight of the risk register, monitors our response to risk and has identified the impacts of climate change as a principal risk. The risk management framework supports and promotes the identification and management of climate-related issues on a business wide basis, managed through our embedded risk management process. This is reflected in the inclusion of sustainability within our LTIP (Long Term Incentive Plan), which in turn is underpinned by sustainability metrics incorporated into our remuneration frameworks (approved by the Remuneration Committee), ensuring that targets and objectives of employees, including Executive Directors, and the business, are aligned. [...] The Chief Executive Officer retains responsibility for defining the strategic direction of the business and Cairn's climate-related performance. Operationally, our Senior Leadership Team, supported by Cairn's ESG Team and Innovation Forum, direct the management of climate-related risks and opportunities. Separately, the Chief Financial Officer is responsible for ensuring the financial impacts of climate-related issues are fully understood and reflected in Company budgets. [...] All employees in Cairn, regardless of seniority, are responsible for supporting the delivery of goals and objectives, identifying and managing risks, and promoting Company values. Through our People Strategy, the Chief People Officer ensures that climate-related issues, and our response to them, are both communicated and incorporated into employees' annual objectives and associated incentives.

###### 4. Governance

### Responsibility and Accountability

###### 4.1 Board Oversight, Reporting and Culture
The Board is ultimately responsible for sustainability at Cairn while the Executive Directors (CEO and CFO) maintain full strategic and operational oversight of the sustainability agenda.

The Board has also created a new role to assist with ensuring more oversight and support for the sustainability agenda. The Director responsible for Sustainability and Environmental Impact, oversees operational workstreams, meets with various on-site and central office personnel across key functions responsible for carbon reduction, waste management and biodiversity etc. and reports back to the Board on their findings, recommendations and anything else relevant the Board need to be aware of.

This is in addition to the responsibilities of the Workforce Engagement Director, who regularly meets with employees across the business to gain more insights and a better understanding of the culture of the business, the wellbeing, benefits and challenges of working in Cairn and overall, getting a more complete picture of some of the social priorities for our employees.

Cairn's sustainability agenda incorporates our response to the transition risks associated with the shift to a lower carbon economy, and the physical risks it faces in respect of climate change. At each Board meeting (approximately seven per year), progress towards our strategic objectives is discussed, together with factors that are affecting or may affect those objectives and our strategy. Climate-related issues are a key lever in our strategic objectives and, consequently, form an integral part not only of the strategic reporting cycle, but also the annual strategic review.

The Audit & Risk Committee maintains oversight of the risk register, monitors our response to risk and has identified the impacts of climate change as a principal risk. The risk management framework supports and promotes the identification and management of climate-related issues on a business wide basis, managed through our embedded risk management process. This is reflected in the inclusion of sustainability-related metrics within our remuneration frameworks, including our annual bonus plans, long-term incentive plans and our sustainability-linked financing facilities. This ensures that our targets, as well as the individual goals and objectives of our employees, including Executive Directors, are fully aligned.

###### 4.2 Management's Role in Assessing and Managing Climate Risks
The CEO retains responsibility for defining the strategic direction of the business and Cairn's climate-related performance. Operationally, our Senior Leadership Team, supported by Cairn's Head of Sustainable Construction, Sustainability Team and the Innovation forum, direct the management of climate-related risks and opportunities. Separately, the Chief Financial Officer is responsible for ensuring the financial impacts of climate-related issues are fully understood and reflected in Company budgets.

Sustainability Steering Group ('SSG') and Senior Review Team ('SRT')
The SSG is a decision-making body with responsibility to drive and determine Cairn's sustainability strategy and roadmap. The SSG is supported by the SRT, who are responsible for integrating sustainability considerations into day-to-day operations and decision making, including through the gateway process. For sustainability considerations to be fully embedded in the business, the SSG and SRT have responsibility to engage managers, employees and workers and clearly communicate the role of each team and individual in achieving Cairn's sustainability statement of intent. In addition to communicating the roadmap and progress to managers, employees and workers, the SSG communicate progress to Executive Directors and the Board, who provide oversight.

The Board comprises 10 members, of which two (the Chief Executive, Michael Stanley and the Chief Financial Officer, Shane Doherty) are executive members. The Board is led by the NonExecutive Chairman, John Reynolds. Reporting to the Board, the Executive Directors maintains full strategic and operational oversight of the Company's sustainability agenda, which incorporates our response to the transition risks associated with the shift to a lower-carbon economy, and the physical risks it faces in respect of climate change. The Board is informed of and has oversight of climate-related issues through two channels: The Executive Directors and Senior Leadership Team, supported by Cairn's ESG Reporting and Research Team and ESG Innovation Forum, direct the management of climate-related issues, in the context of their impact on the Company's strategic intent, as well as the risks posed to the business (including as identified by the Company's risk management framework). Where necessary, these teams are advised by third party experts, ensuring advice is objective and current. The Chief Executive Officer retains responsibility for defining the strategic direction of the business and Cairn's climate-related performance and does so with the benefit of guidance from specialist teams within the business including the Technical and ESG Research and Reporting Team. Separately, the Chief Financial Officer is responsible for ensuring the financial impacts of climate-related issues are fully understood and reflected in company budgets. [...] The Audit & Risk Committee of the Board monitors and reviews the effectiveness of the Company's risk management system, and advises the Board on principal risks and uncertainties, as well as the risk aspects of its strategy, specifically climate-related risk as a principal risk, and core element of strategy. As part of this activity, the Audit & Risk Committee maintains oversight of the risk register and monitors our response to risk. [...] In 2022, we are taking our commitments further by incorporating sustainability into our remuneration frameworks. This demonstrates the importance we place on accountability for our sustainability commitments. We are: - Incorporating environmental metrics on biodiversity net gain into our long-term incentive plan; and - Incorporating social metrics, including our customer and people framework with a health and safety underpin, into our short-term incentive plan.

The Board is ultimately responsible for sustainability at Cairn while the Executive Directors (CEO and CFO, who are Board Members) maintain full strategic and operational oversight of the sustainability agenda. Cairn's sustainability agenda incorporates our response to the transition risks associated with the shift to a lower carbon economy, and the physical risks it faces in respect of climate change. [...] The Audit & Risk Committee maintains oversight of the risk register, monitors our response to risk and has identified the impacts of climate change as a principal risk. The risk management framework supports and promotes the identification and management of climate-related issues on a business wide basis, managed through our embedded risk management process. This is reflected in the inclusion of sustainability within our LTIP (Long Term Incentive Plan), which in turn is underpinned by sustainability metrics incorporated into our remuneration frameworks (approved by the Remuneration Committee), ensuring that targets and objectives of employees, including Executive Directors, and the business, are aligned. [...] The Chief Executive Officer retains responsibility for defining the strategic direction of the business and Cairn's climate-related performance. Operationally, our Senior Leadership Team, supported by Cairn's Head of Sustainable Construction, Sustainability Team and the Innovation forum, direct the management of climate-related risks and opportunities. Separately, the Chief Financial Officer is responsible for ensuring the financial impacts of climate-related issues are fully understood and reflected in Company budgets. [...] All employees at Cairn, regardless of seniority, are responsible for supporting the delivery of goals and objectives, identifying and managing risks, and promoting company values. Through our People Strategy, the Chief People Officer ensures that climate-related issues, and our response to them, are both communicated and incorporated into employees' annual objectives and associated incentives. The Chief People Officer is also responsible for ensuring the Company's resources and capabilities match its climate-related responses.

Policymakers **How and why we engage** We regularly engage with key policy makers at local and national government level through proactive and open communication on matters of common interest in the residential construction industry. As Ireland's leading homebuilder, Cairn is in a unique position to provide valuable and relevant insights into all aspects of the industry, including planning, design and construction, and how this feeds into housing policies. We engage with Government departments, state agencies and local authorities both directly and through membership of lobbying groups. **How this helps us build** **lasting partnerships** Ensures policy makers are educated and in a position to make informed policy decisions which help to underpin a sustainable homebuilding industry in Ireland.

###### 4. Governance

### Responsibility and Accountability

###### 4.1 Board Oversight, Reporting and Culture
The Board is ultimately responsible for sustainability at Cairn while the Executive Directors (CEO and CFO) maintain full strategic and operational oversight of the sustainability agenda.

The Board has also created a new role to assist with ensuring more oversight and support for the sustainability agenda. The Director responsible for Sustainability and Environmental Impact, oversees operational workstreams, meets with various on-site and central office personnel across key functions responsible for carbon reduction, waste management and biodiversity etc. and reports back to the Board on their findings, recommendations and anything else relevant the Board need to be aware of.

This is in addition to the responsibilities of the Workforce Engagement Director, who regularly meets with employees across the business to gain more insights and a better understanding of the culture of the business, the wellbeing, benefits and challenges of working in Cairn and overall, getting a more complete picture of some of the social priorities for our employees.

Cairn's sustainability agenda incorporates our response to the transition risks associated with the shift to a lower carbon economy, and the physical risks it faces in respect of climate change. At each Board meeting (approximately seven per year), progress towards our strategic objectives is discussed, together with factors that are affecting or may affect those objectives and our strategy. Climate-related issues are a key lever in our strategic objectives and, consequently, form an integral part not only of the strategic reporting cycle, but also the annual strategic review.

The Audit & Risk Committee maintains oversight of the risk register, monitors our response to risk and has identified the impacts of climate change as a principal risk. The risk management framework supports and promotes the identification and management of climate-related issues on a business wide basis, managed through our embedded risk management process. This is reflected in the inclusion of sustainability-related metrics within our remuneration frameworks, including our annual bonus plans, long-term incentive plans and our sustainability-linked financing facilities. This ensures that our targets, as well as the individual goals and objectives of our employees, including Executive Directors, are fully aligned.

###### 4.2 Management's Role in Assessing
and Managing Climate Risks
The CEO retains responsibility for defining the strategic direction of the business and Cairn's climate-related performance. Operationally, our Senior Leadership Team, supported by Cairn's Head of Sustainable Construction, Sustainability Team and the Innovation forum, direct the management of climate-related risks and opportunities. Separately, the Chief Financial Officer is responsible for ensuring the financial impacts of climate-related issues are fully understood and reflected in Company budgets.

Sustainability Steering Group ('SSG')
and Senior Review Team ('SRT')
The SSG is a decision-making body with responsibility to drive and determine Cairn's sustainability strategy and roadmap. The SSG is supported by the SRT, who are responsible for integrating sustainability considerations into day-to-day operations and decision making, including through the gateway process. For sustainability considerations to be fully embedded inthe business, the SSG and SRT have

**G O V E R N A N C E S T R U C T U R E**

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###### 4. Governance

responsibility to engage managers, employees and workers and clearly communicate the role of each team and individual in achieving Cairn's sustainability statement of intent. In addition to communicating the roadmap and progress to managers, employees and workers, the SSG communicate progress to Executive Directors and the Board, who provide oversight.

###### 4.3 Culture
All employees in Cairn, regardless of seniority, are responsible for supporting the delivery of goals and objectives, identifying and managing risks, and promoting company values. Through our People Strategy, the Chief People Officer ensures that climaterelated issues, and our response to them, are both communicated and incorporated into employees' annual objectives and associated incentives. The Chief People Officer is also responsible for ensuring the Company's resources and capabilities match its climate-related responses.

Our Commercial and Procurement Teams are responsible for engaging with our supply chain to increase efficiencies and reduce negative environmental impacts thus improving their own sustainability performance. This responsible sourcing approach is designed to be supportive to our supply chain and ensure they have the resources needed to support the delivery of our sustainability objectives. We challenge our team and our supply chain to explore innovative and sustainable methods of construction and envision the possibilities of the future.

###### Our Innovation Forum is tasked with improving our ways of working, ensuring that we remain at the forefront of sustainable construction.

###### 4.4 Incentives and Remuneration
In 2020, the Board determined that non-financial KPI's, particularly those pertaining to our sustainability strategy, be reflected in our remuneration frameworks.

Since then, we have incorporated biodiversity net gain, energy efficiency and carbon reduction through building to Passive House standards, customer experience, employee engagement and satisfaction and health and safety metrics into our annual bonus plan and long term incentive plan. This ensures that Company strategy and targets, as well as individual objectives of employees, including Executive Directors, are aligned.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We have committed to the SBTi, to align with a 1.5 degree world. These targets are across all scopes which directly influence and impact the work that is carried out both operationally and functionally. Our engagement with suppliers, customers, employees and other value chain partners is governed by our overarching commitment to CO2 reductions.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes