Jardine Matheson : Sustainability 2023 – Jardine Matheson

Sustainability 2023 Report

Contents

03 About this Report

05 Leadership Message

11 Creating Value

18 Leading Climate Action

1. Driving Responsible Consumption

1. Shaping Social Inclusion

58 Caring for Our Colleagues

70 Governance for a Sustainable Future

85 Data Summary

89 Content Index

98 Assurance Report

Jardines Sustainability Report 2023	2

About this		Leadership		Creating		Leading		Driving Responsible		Shaping Social
Report		Message		Value		Climate Action		Consumption		Inclusion

About this Report

Caring for

Our Colleagues

Governance

Data Summary

Content

Index

Assurance Report

Taking a long-term view of our organisation has always been integral to the success of our business, and our approach to sustainability has been an extension of that philosophy. The decisions we make for our business take into consideration sustainability and the impact our actions have on the environment, current and future generations.

This report aims to provide an insight into our progress on sustainability. It covers our sustainability strategy and material issues that could impact our business and our communities amid climate change, the depletion of natural resources and rising inequality.

Reporting Period

The Jardine Matheson Group (Jardines, or the Group) 2023 Sustainability Report reflects activities and initiatives that took place from 1 January 2023 to 31 December 2023.

Scope

This report covers the businesses under the Group's influence. We report environmental and social data from businesses under our operational control. For financial data, the reporting boundary is consistent with the audited financial statements of the 2023 Annual Report of Jardine Matheson Holdings Limited (the 'Company').

Reporting Principles

We have referenced the following for our reporting approach: The United Nations Sustainable Development Goals, the Global Reporting Initiative, recommendations of the Task Force on Climate-related Financial Disclosures ('TCFD'), Sustainability Accounting Standards Board ('SASB') and the World Economic Forum Stakeholder Capitalism Metrics. For a list of disclosures, please refer to the content index.

Other Reports

• The Sustainability Report website: additional case studies and highlights from the Group and our businesses
• The Company's2023 Annual Report: a sustainability summary and our TCFD report
• The sustainability section of our corporate website: the latest updates about sustainability at the Group.

Feedback

We are committed to keeping you informed about our performance in sustainability. Your feedback is valuable as it helps us to do things better, including improving our disclosures. Your opinions, remarks, or feedback are welcome, please drop us a note at jml@ jardines.com

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About this Report

Leadership Message

Creating Value

Leading Climate Action

Driving Responsible Consumption

Shaping Social Inclusion

Caring for

Our Colleagues

Governance

Data Summary

Content

Index

Assurance Report

2023 Highlights

Leading

Climate Action

Decarbonisation targets to limit global warming

All businesses have developed 2030 scope 1 & 2 decarbonisation targets and roadmaps to achieve them

DFI, Gammon, Hactl and Hongkong Land have SBTi-validated medium-termtargets

-18% GHG emissions from Group total (excluding mining and energy business) since 2021

41% of total energy sourced from renewable sources

Driving

Responsible Consumption

Targets to reduce and divert waste

All businesses have set waste reduction or diversion targets

94% diverted waste across the Group

-25% disposed waste

-4% total waste generated

Shaping

Social Inclusion

Invest in current and future generations to build stronger communities

US$64m total community investment*

US$5m	in scholarship awards
	through Jardine
	Foundation
US$2m	channelled towards
	mental health through
	MINDSET
95,000+	volunteer hours
	contributed*

Caring for Our Colleagues

Create an inclusive culture and build a strong sense of belonging
42.6%# female representation for	+15% average training	Conducted two surveys on employee
Executives and above	hours per employee	engagement and culture at the head office
		with a 77% active response rate

* includes subsidiaries, major associates and joint ventures

# excludes Astra, which has its own IE&D programme and grading structure

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About this Report

Leadership Message

Creating Value

Leading Climate Action

Driving Responsible Consumption

Shaping Social Inclusion

Caring for

Our Colleagues

Governance

Data Summary

Content

Index

Assurance Report

Leadership

Message

Ben Keswick
Executive Chairman
John Witt
	Group Managing Director

As Jardines makes progress on its sustainability journey, how does sustainability fit into the Group's plans for the future?

Ben

Our home base is Asia. Asia faces complex and urgent sustainability challenges, which could have a big impact on the growth and prosperity of the region and our communities. This motivates us to do our part to address these pressing issues now.

As a key pillar of our business strategy, we increasingly consider sustainability in our investment decisions, day-to-day operations and engagements with our partners. We're searching for opportunities from innovative technologies and practices, efficiencies in resource consumption and circularity, and we're looking at sustainability as a factor in our capital allocation decisions.

We believe all of this will make our businesses and our communities stronger for the future.

John

We operate in growing consumer markets and we meet our customers' different needs through our broad portfolio, which covers many sectors and markets. Our goal is to be market leaders in each of our businesses and we see entrepreneurialism, innovation and operational excellence as key to achieving this. To succeed, we must adapt to changing stakeholder demands and find new sources of

competitive differentiation. Just as we have expectations for financial performance, equally, we have expectations for sustainability across our businesses, which we will monitor accordingly.

As Ben says, we see sustainability as strengthening our businesses and embedding it across our operations creates long-term value for our stakeholders.

The alignment of our sustainability strategy with developing trends in Asia allows us to capture future business opportunities and drive growth.

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About this Report

Leadership Message

Creating Value

Leading Climate Action

Driving Responsible Consumption

Shaping Social Inclusion

Caring for

Our Colleagues

Governance

Data Summary

Content

Index

Assurance Report

What have been the key highlights and challenges since the launch of Jardines' "Building Towards 2030" sustainability strategy in 2021?

Ben

Our sustainability strategy prioritises climate action by decarbonising our businesses and building climate resilience. We're also driving responsible consumption by using fewer resources in operations and encouraging our businesses to convert waste into resources for greater circularity. And we aim to shape social inclusion by addressing key social and economic issues in our communities, especially mental health and education.

John

Our progress on decarbonisation has been a key highlight. We've seen our holistic and rigorous approach to sustainability increasingly recognised by stakeholders, and that has been reflected in improvements to our sustainability ratings. Other highlights for me are the actions of our businesses, both big and small. DFI has invested in innovative water loop systems to replace traditional centralised refrigeration. This new technology is expected to improve energy efficiency compared to the traditional system, water loop uses 80% less refrigerant gases which contribute to climate change.

As a Group, we have made good progress in advancing this strategy. All of our businesses have set targets for Scope 1 and 2 emissions reductions. Hongkong Land, DFI Retail Group, Gammon and Hactl have already had their targets validated by the Science Based Targets Initiative ('SBTi'), and a number of our other businesses will be seeking SBTi validation in the near future.

Setting targets is of course just one part of the journey towards our Group ambition of net-zero by 2050 - we need to meet those targets. With this in mind, all of our businesses have developed detailed roadmaps, with a focus on interim milestones, identifying opportunities around lower carbon fuels, renewable energy and electrification.

Astra's agribusiness has already operated a circular business model for a number of years, converting all of its solid waste to energy, mulch and fertiliser. In Hong Kong, our businesses have come together to convert locally- sourced waste cooking oil from their restaurants into

B5 biodiesel which is then used by Gammon as a lower carbon fuel to power their equipment. This is an example of Group synergy and we're looking for more.

We also invest in social inclusion in our communities for positive impact and to strengthen our social licence

In terms of challenges, it's worth remembering that decarbonisation may not be a straight line to net-zero emissions in 2050. We may see our emissions temporarily increase at times, due to market conditions or business growth, as they did in 2022. New technology may not deliver the significant emissions reductions we expected, or may do so but only on timelines longer than anticipated. Further, the policy environment in our markets may not develop as quickly as we would hope.

We have, however, built a solid foundation and have a credible plan to achieve our objectives. And, as conditions change, we will reconsider our assumptions and adjust our approach, to ensure we continue to make progress on our decarbonisation journey.

to operate. There's been a jump in volunteering across the Group since we set up the Colleague Volunteering Programme three years ago. I'm also happy to share that we have brought back the in-person format of our flagship mental health fundraising campaign, Walk Up Jardine House, which raised over HK$5 million for MINDSET, our mental health charity, in last year's event.

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About this Report

Leadership Message

Creating Value

Leading Climate Action

Driving Responsible Consumption

Shaping Social Inclusion

Caring for

Our Colleagues

Governance

Data Summary

Content

Index

Assurance Report

What is Jardines' approach to sustainability in capital allocation?

John

We're increasingly embedding sustainability into all aspects of our business, including capital allocation. To make sure our business investments are aligned with our sustainability objectives, we need to assess all our capital allocation plans through a sustainability lens. This will help us identify and explore new areas of potential growth.

In 2023, we developed guidance and frameworks to integrate sustainability due diligence and carbon costs into the capital allocation process, both at the Group level and within our businesses. We want to give decision-makers a clear view of sustainability-related risks and opportunities as they decide when and where to allocate resources.

We hope to roll out the framework to our Group businesses in 2024. Going forward, this approach to capital allocation should allow us to plan more effectively as our markets transition to a low-carbon economy.

It'll also help future-proof our business, achieve our decarbonisation ambitions and manage climate risks in a focussed and cost-effective way.

How have you integrated sustainability considerations into the governance structure and decision-making process?

Ben

John

Our strong governance approach underpins our sustainability agenda. It ensures transparency, ownership and accountability and it builds trust among our stakeholders.

I chair the Sustainability Leadership Council, which brings together the senior leadership from the Group and our key businesses to discuss an aligned approach to sustainability. The consensus from this dialogue is brought back to individual company boards, which are ultimately responsible for overseeing sustainability within their business.

The senior management teams in our businesses ensure that sustainability priorities are embedded at the operational level. Sustainability updates are provided twice a year to our boards across the Group, with an appropriate focus on priority areas such as decarbonisation.

One more point to add is that we now integrate sustainability considerations into our financial planning and forecasting, recognising that a bold vision and long- term perspective is vital. We budget for the necessary resources - the capital and operational expenditure - to deliver the right results.

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About this

Leadership

Creating

Leading

Driving Responsible

Shaping Social

Caring for

Governance

Data

Content

Report

Message

Value

Climate Action

Consumption

Inclusion

Our Colleagues

Summary

Index

What's in store for Jardines' sustainability strategy?

Assurance Report

Ben

Jardines has always taken a long-term view of the growth and development of our businesses and our communities. We apply the lessons we learn to unlock future opportunities and refine our approach. We have a unique opportunity to leverage our diversified businesses and scale to make a meaningful difference for our Group and our communities.

In 2024, we will continue to prioritise our efforts in decarbonisation. Our businesses will progress their Scope 1 and 2 emissions reductions and will track

their achievements carefully. There is also a focus on understanding better where we can use renewable energy and its cost impact. We'll also collect data on Scope 3 emissions, so we can establish a preliminary Group-wide picture.

Working together on our sustainability journey alongside our businesses, I'm inspired by the expertise, passion, curiosity and collaboration that runs throughout the Group. We have the right people and mindset to move Jardines forward for a stronger future.

Jardines Sustainability Report 2023

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About this Report

Leadership Message

Creating Value

Leading Climate Action

Driving Responsible Consumption

Shaping Social Inclusion

Caring for

Our Colleagues

Governance

Data Summary

Content

Index

Assurance Report

About Jardines

Founded in 1832, we are an Asia-based conglomerate with rich experience in the region. The diversified nature of the Group's interests in businesses active across a range of sectors and geographies underpins our resilient performance, as well as the scope and scale of our sustainable development strategy.

The Company oversees Group operations and actively supports our Group companies. In order to create long- term value, we are concentrating on achieving operational excellence and looking for new growth opportunities. We are confident in our long-term strategy of focussing on Asian markets.

The following businesses are part of Jardine Pacific's diverse portfolio of industry leading businesses:

• Jardine Engineering Corporation ('JEC')
• Gammon Construction Limited ('Gammon')
• Hong Kong Air Cargo Terminals Limited ('Hactl')
• Jardine Restaurant Group ('JRG')
• Zung Fu Hong Kong and Macau ('Zung Fu')
• Jardine Schindler Group ('JSG')

A major listed property investment, management and development group, with prime office and luxury retail assets, and high-quality residential, commercial and mixed-use developments in a number of major Asian cities.

DFI Retail Group ('DFI') is a listed Pan-Asianmulti-brand retailer with six major operating divisions: food, health and beauty, 7-Eleven, IKEA, restaurants (Maxim's) and other retailing.

Mandarin Oriental ('MO') is a listed international hotel investment and management group with luxury hotels, resorts and residences in sought-after destinations around the world.

Jardine Cycle & Carriage ('JC&C') is a listed investment holding company in Southeast Asia, which includes Astra (disclosed separately due to its significance); Direct Motor Interests under the Cycle & Carriage banner (in Singapore, Malaysia and Myanmar) and Tunas Ridean in Indonesia; THACO; and Other Strategic Interests such as Refrigeration Electrical Engineering Corporation ('REE'), Siam City Cement and Vinamilk around the region.

An Indonesia-based listed conglomerate with seven core businesses in Automotive; Financial Services; Heavy Equipment, Mining, Construction and Energy; Agribusiness; Infrastructure and Logistics; Information Technology and Property. Major subsidiaries include PT United Tractors Tbk ('UT'), PT Astra Agro Lestari Tbk ('AAL'), PT Agincourt Resources ('PTAR'), PT Astra Otoparts Tbk ('AOP'), among others.

Jardines Sustainability Report 2023

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About this Report

Leadership Message

Creating Value

Leading Climate Action

Driving Responsible Consumption

Shaping Social Inclusion

Caring for

Our Colleagues

Governance

Data Summary

Content

Index

Assurance Report

Business operations across the Group

Underlying profit attributable to shareholders by geographical area

South East Asia

China

Rest of the World

7%

Chinese mainland

Myanmar

Thailand

Hong Kong

Macau

Taiwan

37%

56%

Based on underlying profit attributable to shareholders before corporate and other interests, which amounted to US$1,765 million in 2023

Vietnam

Philippines

Cambodia

Worldwide

Sectors

Property

Financial Services

Malaysia

Brunei

Automotive

Retail and Restaurants

Hotels

Others

Singapore

Indonesia

Engineering, Heavy Equipment,

Mining and Construction

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