Arvida Group Ltd

Through this process we look to actively address areas needing improvement. We also put a high degree of rigour into ensuring the process around moving in and living with Arvida is fair and transparent. [...] The results from our resident surveys, covering both those living independently in our retirement communities and those living in our care centres, indicate a highly satisfied constituency – and exceptionally high when compared across the service sector. The net promoter score for our village residents was +38 and +59 for residents living in care. [...] Commentary on the poor state of New Zealand's healthcare system has headlined regularly in the media throughout the year; and will likely form a campaign issue for the upcoming general election. A pathway that shifts to a more outcomes-focused, equity-based healthcare offering will require government policy transformation. [...] The government has responded to sector advocacy with a process to reduce nurse pay disparity as well as including nurses on the green list pathway for residency. Neither have had a discernible impact on resolving sector workforce issues yet. Further work is required on the overall policy framework to deliver a permanent increase in nurse numbers in New Zealand, together with equality in nurse remuneration between the public and private sectors.

The Board has statutory responsibility for, and approves, the strategic direction of the Company. The strategy is informed by and includes consideration of Arvida's climate-related risks and opportunities. Board responsibilities are set out in the Board Charter and include: - approving the Company's overall strategy, business plans and budgets - monitoring actual results against the business plan and strategic objectives - setting sustainability policy A review of the Company's strategy and business plan is performed by the Board at least once a year. This year that review included the review and approval of a sustainability framework (page 51), which presents the future goals for the Company around climate and sustainability. The Board normally meets around eight times a year. Sustainability is a standing agenda item for Board meetings. Management board reporting involves an update on sustainability and climate-related issues. This includes progress against goals and targets set. The Board, through these sessions, has the opportunity to further refine the Company's strategy and plans. Pursuant to its charter, the Audit and Risk Committee has delegated responsibilities in relation to compliance and risk management practices. It is responsible for reviewing and assessing Arvida's risks, risk management processes, and internal controls. This includes climate-related risks and controls. New and emerging risks are considered initially by the Audit and Risk Committee, and where they are assessed as being high or extremely high, they are added to the Company's risk register and then approved by the Board. Climate change risk was added to our risk register in 2020. This year the Audit and Risk Committee reviewed this risk as part of a deep dive session where the risk, including its likelihood and impact, were scrutinised and re-evaluated. The Audit and Risk Committee assessed overall climate change risk as 'high' risk. The Audit and Risk Committee's recommendations to the Board were accepted and approved. [...] The Company has a dedicated Head of Sustainability & Compliance who leads the assessment of climate-related risks and opportunities, and coordinates the Company's response as part of the overall sustainability programme. During the year, a sustainability working group was formed to assist in providing recommendations around the broader sustainability programme. The working group comprises seven members, including three directors (of which two are the Chair and chair of the Audit and Risk Committee), the Chief Executive Officer, Chief Financial Officer, the General Manager Strategy and the Head of Sustainability & Compliance. The working group has assisted in developing the sustainability framework and in monitoring management's progress. It is the intention that the working group will meet at least four times yearly.

The Board has statutory responsibility for, and approves, the strategic direction of the Company. The strategy is informed by and includes consideration of Arvida's climate-related risks and opportunities. Board responsibilities are set out in the Board Charter and include: - approving the Company's overall strategy, business plans and budgets - monitoring actual results against the business plan and strategic objectives - setting sustainability policy A review of the Company's strategy and business plan is performed by the Board at least once a year. This year that review included the review and approval of a sustainability framework (page 51), which presents the future goals for the Company around climate and sustainability. The Board normally meets around eight times a year. Sustainability is a standing agenda item for Board meetings. Management board reporting involves an update on sustainability and climate-related issues. This includes progress against goals and targets set. The Board, through these sessions, has the opportunity to further refine the Company's strategy and plans. Pursuant to its charter, the Audit and Risk Committee has delegated responsibilities in relation to compliance and risk management practices. It is responsible for reviewing and assessing Arvida's risks, risk management processes, and internal controls. This includes climate-related risks and controls. New and emerging risks are considered initially by the Audit and Risk Committee, and where they are assessed as being high or extremely high, they are added to the Company's risk register and then approved by the Board. Climate change risk was added to our risk register in 2020. This year the Audit and Risk Committee reviewed this risk as part of a deep dive session where the risk, including its likelihood and impact, were scrutinised and re-evaluated. The Audit and Risk Committee assessed overall climate change risk as 'high' risk. The Audit and Risk Committee's recommendations to the Board were accepted and approved. [...] The Company has a dedicated Head of Sustainability & Compliance who leads the assessment of climate-related risks and opportunities, and coordinates the Company's response as part of the overall sustainability programme. During the year, a sustainability working group was formed to assist in providing recommendations around the broader sustainability programme. The working group comprises seven members, including three directors (of which two are the Chair and chair of the Audit and Risk Committee), the Chief Executive Officer, Chief Financial Officer, the General Manager Strategy and the Head of Sustainability & Compliance. The working group has assisted in developing the sustainability framework and in monitoring management's progress. It is the intention that the working group will meet at least four times yearly.

Through this process we look to actively address areas needing improvement. We also put a high degree of rigour into ensuring the process around moving in and living with Arvida is fair and transparent. [...] The results from our resident surveys, covering both those living independently in our retirement communities and those living in our care centres, indicate a highly satisfied constituency – and exceptionally high when compared across the service sector. The net promoter score for our village residents was +38 and +59 for residents living in care. [...] Commentary on the poor state of New Zealand's healthcare system has headlined regularly in the media throughout the year; and will likely form a campaign issue for the upcoming general election. A pathway that shifts to a more outcomes-focused, equity-based healthcare offering will require government policy transformation. [...] The government has responded to sector advocacy with a process to reduce nurse pay disparity as well as including nurses on the green list pathway for residency. Neither have had a discernible impact on resolving sector workforce issues yet. Further work is required on the overall policy framework to deliver a permanent increase in nurse numbers in New Zealand, together with equality in nurse remuneration between the public and private sectors.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Any climate related engagement activities are drafted by the Head of Sustainability and Compliance and reviewed by the General Manager of Strategy and the CEO who are intimately involved with the Sustainability Framework and Climate Strategy. All other engagement activities are reviewed by the General Manager of Strategy and CEO and are discussed at the Senior Leadership Team meetings as relevant. Potential inconsistencies between engagement activities and our overall climate change strategy are discussed and resolved at these meetings.

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?[…]Any climate related engagement activities are drafted by the Head of Sustainability and Compliance and reviewed by the General Manager of Strategy and the CEO who are intimately involved with the Sustainability Framework and Climate Strategy. All other engagement activities are reviewed by the General Manager of Strategy and CEO and are discussed at the Senior Leadership Team meetings as relevant. Potential inconsistencies between engagement activities and our overall climate change strategy are discussed and resolved at these meetings.