International Container Terminal Services Inc

To further our efforts towards operating more sustainably, our management implemented the following changes: [...] A Board-level committee was created in 2020 to specifically address ESG issues, risks, and concerns. [...] A Chief Sustainability Officer was appointed to champion sustainability within the ICTSI Group. [...] Programs, which include more comprehensive monitoring of our company's environmental impact, were duly executed. [...] Lastly, we revamped and enhanced our reporting processes on critical sustainability issues and plan to release regular reports that focus preliminarily on legal and compliance, governance, and human resources, to improve other processes in the years to follow. [...] To deliver on our ESG strategy, we have continuously redefined our leadership functions and responsibilities to strengthen ICTSI's ESG approach to sustainability and our key priorities and focus areas. [...] ESG Committee. The CSO reports to the board-level ESG Committee chaired by former Chief Justice Diosdado M. Peralta. The Committee reviews and approves the CSO's ESG strategy. The ESG Committee is a subcommittee of the Board of Directors that focuses on issues related to environmental impact, social responsibility, and corporate governance. The primary role of the Committee is to provide oversight and guidance on the company's ESG policies, practices, and performance. Other functions of the ESG Committee include: 1. Monitoring and evaluation of ICTSI's ESG performance and report findings to the Board of Directors; Identify emerging ESG issues that may impact the Company operations or reputation and recommend strategies to address them; 2. Provide oversight and guidance on the Company social responsibility initiatives, including community engagement and philanthropy; 3. Ensure that the company is complying with relevant ESG regulations and reporting requirements and work with senior management to integrate ESG considerations into the Company's overall strategy and decision-making processes. Through the Committee, the Board of Directors demonstrates its commitment to responsible business practices and ensures that ESG issues are given the attention they deserve in the Company's governance structure, including the enhancement of ICTSI's reputation and appeal to investors and other stakeholders who place a high value on sustainability and social responsibility.

Our commitment to our ESG priorities are stronger now more than ever in the face of the COVID-19 pandemic as a sustainability issue. Our board-level ESG Committee, which was created last year, continues to provide valuable oversight and direction on the Company's sustainability strategy, policies, programs and performance, especially on urgent concerns such as climate change. [...] Committed to the continual effort to support sustainability more systematically and deeply through strategic visioning, planning, and execution—creating positive impact across operations, across borders, and across generations — our ICTSI Board instituted the ESG Committee, to steer ICTSI's ESG priorities, policies, and programs. Among these priorities is the Climate Change impact assessment on the terminals, and strategic planning for mitigation based on the Intergovernmental Panel on Climate Change (IPCC) scenarios. [...] The Sustainability Steering Committee, composed of key management personnel which reports directly to the Chief Risk Officer and the Compliance Officer, and the ESG Committee at the board level, continue to be responsible for the execution of the Company's sustainability strategy, policies and programs that are currently implemented and those that are to be formulated.

Our commitment to our ESG priorities are stronger now more than ever in the face of the COVID-19 pandemic as a sustainability issue. Our board-level ESG Committee, which was created last year, continues to provide valuable oversight and direction on the Company's sustainability strategy, policies, programs and performance, especially on urgent concerns such as climate change. [...] Committed to the continual effort to support sustainability more systematically and deeply through strategic visioning, planning, and execution—creating positive impact across operations, across borders, and across generations — our ICTSI Board instituted the ESG Committee, to steer ICTSI's ESG priorities, policies, and programs. Among these priorities is the Climate Change impact assessment on the terminals, and strategic planning for mitigation based on the Intergovernmental Panel on Climate Change (IPCC) scenarios. [...] The Sustainability Steering Committee, composed of key management personnel which reports directly to the Chief Risk Officer and the Compliance Officer, and the ESG Committee at the board level, continue to be responsible for the execution of the Company's sustainability strategy, policies and programs that are currently implemented and those that are to be formulated. Our Global Sustainability Champions, on the other hand, play a vital role in driving the implementation of sustainability and impact strategy across ICTSI business units worldwide.

To further our efforts towards operating more sustainably, our management implemented the following changes: \n\n###### p [A Board-level committee was created ]\nin 2020 to specifically address ESG\nissues, risks, and concerns.\n###### p [A Chief Sustainability Officer was ]\nappointed to champion sustainability\nwithin the ICTSI Group.\n###### p [Programs, which include more ]\ncomprehensive monitoring of our\ncompany's environmental impact,\nwere duly executed.\n###### p [Lastly, we revamped and enhanced ]\nour reporting processes on critical\nsustainability issues and plan to release\nregular reports that focus preliminarily\non legal and compliance, governance,\nand human resources, to improve other\nprocesses in the years to follow.\n\nTo deliver on our ESG strategy, we have\ncontinuously redefined our leadership\nfunctions and responsibilities to strengthen\nICTSI's ESG approach to sustainability and\nour key priorities and focus areas.\n\n--NEW-PAGE--\n\n2. Provide oversight and guidance on the\nCompany social responsibility initiatives,\nincluding community engagement\nand philanthropy;\n3. Ensure that the company is complying\nwith relevant ESG regulations\nand reporting requirements and\nwork with senior management to\nintegrate ESG considerations into\nthe Company's overall strategy and\ndecision-making processes.\n\nThrough the Committee, the Board of\nDirectors demonstrates its commitment to\nresponsible business practices and ensures\nthat ESG issues are given the attention\nthey deserve in the Company's governance\nstructure, including the enhancement of\nICTSI's reputation and appeal to investors\nand other stakeholders who place a\nhigh value on sustainability and social\nresponsibility.\n\n**ESG Reporting Team. In February 2023,**\nMr. Gonzalez streamlined ICTSI's corporate\noffices, which included rationalization\nof ESG Reporting. Arthur R. Tabuena,\nTreasury Director and Head of Investor\nRelations, was appointed lead for ESG\nReporting. The team reports to the\nCSO and collects, analyzes, and reports\non the Company's ESG performance,\nsupported by a Project Management\nTeam from Global Investor Relations\nand Legal Affairs; Content Management\nTeam from Global Investor Relations and\nPublic Relations; and the Lead Global\nChampions for Environment, Economy,\nSocial and Governance (EESG). Ultimately.\nThe team's goal is to enhance ICTSI's\nreputation as a responsible corporate\ncitizen and demonstrate our commitment to\nsustainable business practices.\n\nprograms to reduce ICTSI's\nenvironmental footprint, promote social\nresponsibility, and enhance governance;\n3. Ensuring compliance with regulations\nand standards: The CSO ensures\nthat ICTSI complies with all relevant\nenvironmental, social, and governance\nregulations and standards. He is\nresponsible for overseeing the\nCompany's reporting on sustainability\nissues and ensuring that ICTSI meets\nthe requirements of relevant reporting\nframeworks, such as the Global\nReporting Initiative (GRI); and\n4. Engaging with stakeholders: The\nCSO works closely with stakeholders,\nincluding investors, customers,\nemployees, and community groups,\nto ensure that ICTSI's sustainability\ninitiatives are aligned with stakeholder\nexpectations and needs. He also\ncollaborates with external partners, such\nas NGOs and industry associations, to\nidentify opportunities for collaboration\nand knowledge sharing.\n\n**ESG Committee. The CSO reports to the**\nboard-level ESG Committee chaired by\nformer Chief Justice Diosdado M. Peralta.\nThe Committee reviews and approves the\nCSO's ESG strategy. The ESG Committee\nis a subcommittee of the Board of\nDirectors that focuses on issues related to\nenvironmental impact, social responsibility,\nand corporate governance. The primary\nrole of the Committee is to provide\noversight and guidance on the company's\nESG policies, practices, and performance.\n\nOther functions of the ESG\nCommittee include:\n\n1. Monitoring and evaluation of ICTSI's\nESG performance and report findings\nto the Board of Directors; Identify\nemerging ESG issues that may\nimpact the Company operations or\nreputation and recommend strategies\nto address them;\n\n**Chief Sustainability Officer. In June 2022,**\nthe Board of Directors established the\noffice of the Chief Sustainability Officer\nand appointed Christian R. Gonzalez as\nCSO, concurrent with his role as ICTSI\nExecutive Vice President and President\nof the ICTSI Foundation. As CSO, Mr.\nGonzalez is the overall champion of ESG\nand sustainability in the ICTSI Group. He\nis responsible for overseeing the Company\nsustainability strategies and initiatives,\nensuring that they align with the Company\npurpose and values. These support ICTSI's\nlong-term success while contributing to\nthe development of more sustainable and\nresilient global supply chains.\n\nSpecifically, the CSO role includes:\n\n1. Developing and implementing ICTSI's\nsustainability policies and strategies:\nThe CSO ensures these align with the\nCompany long-term vision and goals.\nHe works closely with other executives\nand unit heads within the Company to\nensure that sustainability considerations\nare integrated into all aspects\nof the business;\n2. Leading sustainability initiatives: The\nCSO is responsible for leading the\nCompany sustainability initiatives,\nincluding identifying areas for\nimprovement and implementing\n\n--NEW-PAGE--\n\n**Global Sustainability Champions.**\nCollectively, we call our EESG and Lead\nGlobal Champions as Global Sustainability\nChampions. They are responsible for\nleading, promoting, and integrating EESG\nfactors in the organization's strategic\ndecision-making processes and operations,\nand ensuring that ESG performance is\naligned with our organization's Purpose and\nValues. A Global Sustainability Champion\nis often a senior executive or unit head\nwho is passionate about ESG issues and\nhas the expertise to navigate complex\nESG challenges.\n\nThe Lead Global Champions directly report\nto the CSO. Likewise, they have a line\nfunction under the ESG Reporting Team to\nconcur with the ESG Reporting Lead on key\nand material sustainability issues. Terminal\nChampions also play an important role in\nimplementing and reporting ESG initiatives\nat our business units.\n\nThe role of a Global Sustainability\nChampion includes the following:\n\n1. Developing and implementing the\norganization's ESG strategy and policies\nespecially in setting goals and targets\nbased on materiality assessment and\nstakeholder expectations;\n2. Analyzing ESG data to identify trends,\npatterns, and areas for improvement,\nincluding risks and opportunities;\n3. Identifying and prioritizing ESG issues\nthat are material to the organization's\noperations and stakeholders;\n4. Monitoring of key performance\nindicators on ICTSI's ESG performance;\n5. Advocating for ESG integration across\nall business units and departments;\n6. Collaborating with internal and\nexternal stakeholders to promote ESG\nbest practices;\n7. Ensuring that ESG risks and\nopportunities are integrated into the\norganization's overall risk management\nframework; and\n8. Providing leadership and support for\nESG initiatives and projects.\n\nSpecific to the EESG function, we have\nappointed the following teams as part of\nour Global Sustainability Champions:\n\n**1.** **Environment**\n###### p[Climate Change, Resource Use, ]\nWaste - Global Engineering\n(Equipment and Infrastructure),\nGlobal Health, Safety, Security\nand Environment (HSSE),\nGlobal Enterprise Risk\nManagement/Insurance\n###### p[Biodiversity - ICTSI ]\nFoundation (ad interim)\n\n**2.** **Economy**\n###### p[Direct and indirect economic impacts ]\n\n - Global Controllership, Global\nTreasury, Global Investor Relations\n###### p[Tax - Global Tax ]\n\n**3.** **Social**\n###### p[Employees - Global ]\nHuman Resources\n###### p[Customers - Global Commercial] p[Occupation Health & ]\nSafety - Global HSSE\n###### p[Society - Global Public Relations, ]\nICTSI Foundation\n\n**4.** **Governance**\n###### p[Corporate Governance - Global ]\nLegal, Global Investor Relations\n###### p[Supply Chain - Global Procurement] p[IT Governance/Data ]\nPrivacy - Global IT\n\nOverall, the ESG Champion plays a critical\nrole in driving ICTSI's ESG efforts, ensuring\nthat ESG considerations are integrated into\nthe organization's strategy, operations, and\nculture, and positioning the organization as\na leader in sustainable business practices.\n\nAll teams work closely with other\ndepartments within ICTSI to identify\nopportunities for continuous improvement\nin the Company's ESG performance. This\nincludes developing and implementing\nnew policies and initiatives to address\nemerging ESG issues.