Houlihan Lokey Inc

##### Oversight

###### We maintain a full-time team that develops and implements our regulatory compliance policies and procedures, monitors our business activities, ensures compliance with all policies and procedures, and reports on our progress to our senior management.

- Personal/Private Investments

- Conflicts of Interest

CEO Letter

###### 02
Note from Board
of Directors

Legal and Human Capital teams manage global compliance, ethics, and risk
management strategies.

The Audit Committee oversees ethics and compliance programs and receives
quarterly updates on reports to the ethics hotline.

##### ~14,000
###### Legal and Compliance Courses Completed Globally in ~4,770 Hours

##### ~2,590
###### Anti-Money Laundering Courses Completed Globally in ~1,000 Hours

###### 03
About
Houlihan Lokey

###### 04
Social

###### Houlihan Lokey's Core Policies

- Anti-Bribery and Corruption

- Political Contributions

- Anti-Money Laundering

- Whistleblower Protection and Non-Retaliation

- Client Due Diligence and Background Checks

- Restricted List/Insider Trading

###### 05
Governance

###### 06
Environmental

- Outside Business Activities

- Data Privacy/Confidentiality/Cybersecurity

- Gifts, Entertainment, and Charitable Contributions

- Records Retention

- Communications and Public/Social Media

### Governance and Oversight

##### Oversight and sign-off from management and the board are essential, as they are often the first to respond to regulatory enforcement in cases of non-compliance.

Companies should expect significant efforts to collect and report data since board members and
management could potentially be held liable for incomplete or inaccurate disclosure. In extreme cases,
such as in France, non-compliance with CSRD may result in jail time[(1)] for directors.

More commonly, regulations mandate reporting on the role of board oversight regarding
sustainability and climate-related risks and opportunities. This includes indicating the responsibilities
and sign-offs related to approving sustainability targets, monitoring firm performance, and ensuring
accurate disclosure of relevant data. Additionally, ISSB IFRS S1 and S2 require companies to disclose
whether executive compensation is tied to sustainability performance.

Many organizations are building dedicated teams to ensure compliance, recognizing establishing the
appropriate processes can take months or even years. However, looming regulations should not be
the only incentive to accurately track and assess sustainability and climate-related data. Climate
impacts and economic disruption from the transition to a low-carbon economy or social issues are
often financially material factors for companies to consider. Companies that understand, address, and
work to mitigate risks early will position themselves to be more resilient and competitive in the future.

### Governance and Oversight

##### Oversight and sign-off from management and the board are essential, as they are often the first to respond to regulatory enforcement in cases of non-compliance.

Companies should expect significant efforts to collect and report data since board members and
management could potentially be held liable for incomplete or inaccurate disclosure. In extreme cases,
such as in France, non-compliance with CSRD may result in jail time[(1)] for directors.

More commonly, regulations mandate reporting on the role of board oversight regarding
sustainability and climate-related risks and opportunities. This includes indicating the responsibilities
and sign-offs related to approving sustainability targets, monitoring firm performance, and ensuring
accurate disclosure of relevant data. Additionally, ISSB IFRS S1 and S2 require companies to disclose
whether executive compensation is tied to sustainability performance.

Many organizations are building dedicated teams to ensure compliance, recognizing establishing the
appropriate processes can take months or even years. However, looming regulations should not be
the only incentive to accurately track and assess sustainability and climate-related data. Climate
impacts and economic disruption from the transition to a low-carbon economy or social issues are
often financially material factors for companies to consider. Companies that understand, address, and
work to mitigate risks early will position themselves to be more resilient and competitive in the future.