Sage Group PLC/The

The CEO and ELT are accountable for our ESG and climate strategy. Our Board provides oversight of the strategic direction and the progress being made in achieving its intended outcomes, as shown in the organisational chart below. The Board has delegated authority to the Audit and Risk Committee to implement appropriate oversight of ESG risks, ensuring that the Group has appropriate mitigations or a plan to introduce mitigations to enable successful development and execution of the Group's Sustainability and Society strategy. The Board has ultimate responsibility for approving certain sustainability policies, with ESG matters delegated to the appropriate Committee as required. The Board retains overall responsibility for setting Sage's risk appetite and for risk management and internal control systems. Sustainability risks and opportunities are channelled through the Global Risk Committee, which reports to the Executive Leadership Team, and escalates matters to the Audit and Risk Committee, where required. [...] Responsibility for Sage's climate change strategy, including the approach to TCFD, is devolved to the Chief People Officer. Day-to-day implementation of our climate strategy and co-ordination of the approach to TCFD is led by the Sustainability and Society team in collaboration with leaders across Sage functions. The EVP of Sustainability and Society is responsible for implementation of our Protect the Planet climate action plan, including the assessment and management of climate-related risks, with support and oversight from our Sustainability and Society Committee. The Sustainability and Society Committee is chaired by the Group's Chief People Officer and includes senior representation from across the business, including the General Counsel and Company Secretary, Chief Risk Officer, Chief Corporate Affairs Officer and the Chief Architect & Technology Advisor.

We've also evolved the governance structures that underpin our sustainability focus: - We evolved the Sustainability and Society steering group into a formal management committee with attendance from Executive Leadership Team (ELT) members. [...] And with Maggie's appointment to our Board, we now have a non-executive director with overall oversight of our ESG strategy and activities. [...] During the year, we evolved the Sustainability and Society steering group into a formal management committee comprising ELT members and senior leaders, including the General Counsel and Company Secretary, Chief People Officer, Chief Corporate Affairs Officer, Chief Risk Officer, Chief Data and Performance Officer, Chief of Staff, and the EVP of Sustainability and Foundation. This improved governance process helps provide strategic direction and ensures that our targets, objectives, and supporting programmes remain relevant, ambitious, and on track for delivery. The Committee's mandate is to provide oversight on the Sustainability and Society strategy and progress. It meets quarterly, sharing discussion summaries and outputs with the CEO and broader ELT through regular briefing sessions and with the Board, via Maggie Chan Jones, our Non-executive Director responsible for ESG (see her letter on page 3). Cross-functional working groups are in place for each of the strategic priorities. They include members of the sustainability team and subject matter experts from relevant business functions. They collaborate throughout the year and report on progress to the Sustainability and Society Committee. ESG is a Principal Risk for Sage Group, meaning it is considered a strategic risk to our business model, future performance, [solvency, or liquidity (find out more in our ARA, page 81).](https://www.sage.com/investors/financial-information/annual-report/) As such, ultimate oversight rests with our Board. ESG risks and opportunities are considered by Management at the Global Risk Committee. For further information, see our TCFD statement in [our Climate Report, pages 33 to 34.](https://www.sage.com/en-gb/company/sustainability-and-society/) [...] Monitoring and engagement Progress against our Sustainability and Society strategy is measured quarterly, tracking key performance indicators (KPIs) within our Sustainability and Society dashboard. The dashboard along with a quarterly report is shared at each Sustainability and Society Committee meeting. Our annual bonus and long-term incentive plans for the ELT and senior management have been designed to include measures that support delivery of our Sustainability and Society strategy. [...] Advocate for enabling policies and standards that support SMBs in their transition to net zero. - Specific engagement through the World Business Council for Sustainable Development (WBCSD), Bankers for Net Zero, and the All-Party Parliamentary Group on ESG. - During COP27, in Sharm el-Sheikh, Sage launched the SME Climate Impact Report, authored in collaboration with Oxford Economics and the International Chamber of Commerce.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Our stakeholder engagement and communications activities are governed as part of our Sustainability and Society Governance Framework. Stakeholder engagement plans are developed and reviewed for each pillar of our strategy, for example Protect the Planet. In addition, our over-arching strategy is monitored within our Sustainability and Society Steering Group, chaired by our Chief People Officer (C-Suite).

Our steering groups meet regularly and bring together experts across functions like Sustainability, Procurement, People, Sage Foundation, Business Transformation, Public Affairs and Communications.

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?[…]Our stakeholder engagement and communications activities are governed as part of our Sustainability and Society Governance Framework. Stakeholder engagement plans are developed and reviewed for each pillar of our strategy, for example Protect the Planet. In addition, our over-arching strategy is monitored within our Sustainability and Society Steering Group, chaired by our Chief People Officer (C-Suite).

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