Rolls-Royce Holdings PLC

In addition, we are reviewing the climate policy positions of the trade associations and industry groups we are members of to understand alignment with our climate commitments. Where there is a divergence between our climate position and those of our partners, particularly trade associations, we will work with them to seek to reconcile those divergences where we can and where appropriate, particularly advocating for climate commitments in line with the Paris Climate Agreement goals. [...] The actions we are taking to engage and advocate for the enabling environment we need: – Engaging our government partners in our core geographies in support of the policy principles set out above; – Advocating for partners in our value chain, both upstream and downstream, to join us in the Race to Zero and in committing to reach net zero by 2050 at the latest; – Working with industry groups and trade associations to accelerate climate commitments in line with the Paris Climate Agreement goals; – Reviewing the climate policy positions of the trade associations and industry groups we are members of to understand alignment with our climate commitments; – Working with existing partners, including customers, to help them realise their own net zero ambitions, and encourage further commitments and action where appropriate.

###### INDUSTRY PARTNERSHIPS, ASSOCIATIONS AND INDUSTRY GROUPS

We are members of trade associations and industry groups relevant to our business activities and geographical locations. Doing so ensures that we can amplify and align our voice on policy and industry priorities; co-ordinate engagement activities to maximise outreach; and share intelligence on policy and legislative developments.

###### During 2022, we completed a review of the associations we are members of to better understand their positions with regards to climate change, including any stated decarbonisation targets. The organisations we are members of are taking positions in support of decarbonisation through their policy work and we will be engaging them on the evolution of their support for the energy transition and net zero.

Delivery of our sustainability approach, including execution of policies and progress against our priorities and targets, is overseen by the Safety, Ethics & Sustainability Committee (see page 96) at Board level, and the environment & sustainability committee, which operates as a subset of the Executive Team to monitor progress routinely at management level. [...] Our sustainability approach and areas of focus are kept under constant review to respond to immediate and emerging trends, such as changes in legislation, as part of a dynamic materiality assessment. This is continuously assessed to ensure we are meeting the expectations of our customers, investors, regulators and our people, and is reviewed by the Safety, Ethics & Sustainability Committee.

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 a well established framework for our climate-related policy engagement, which includes a public position on the global policy principles we advocate for. This is supplemented by local and sector specific principles that complement the operating landscape we require to enact our decarbonisation strategy, for example policy that supports the increased use of sustainable fuels. This framework sets out our blueprint for our engagement activities.
For each trade association or industry body engagement we look to align these principles, and our broader position on climate change, with those that we work with. This includes a review of their stated positions on climate change and commitments to net zero. In the event that a stakeholder position differs substantially from our own we will, in the first instance, look to work with that entity to align our positions, including encouraging recognition of the reality of climate change and the need to decarbonise; if we were unable to reconcile differences in our position on climate change we will ultimately look to cease relationships with that entity.

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

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]We have completed a review of the trade associations and industry groups that we are part of, or whom we actively support, to understand their position in relation to climate change and their alignment with our decarbonisation targets and transition plan. This included reviewing public information, including published policies, and direct engagement - either face to face or virtually to request further information where necessary. The organisations we are members of are taking positions in support of decarbonisation in their policy work and we will continue to engage with them to help shape their thinking and approach to ensure it remains consistent with our own. To date we have identified no instances of clear inconsistency in approach.