AECI Ltd

POLITICAL CONTRIBUTION AECI is politically agnostic. Donations to political parties are prohibited in all geographical operations. [...] COMPLIANCE MONITORING AND REPORTING Compliance with these principles is an essential element in the success of our business. The AECI Board is responsible for ensuring these principles are applied throughout the Group. [...] TCFD and TNFD BOARD: The Board is responsible for the overall governance, management and strategic direction of the organisation. The Board has delegated the primary responsibility to consider, recommend and monitor AECI's activities regarding climate change and environmental matters, including land use, to the SESC and SHEC. The Board and its committees provide leadership to embed the principles of good corporate governance across AECI, ensuring all decisions and actions are based on integrity, accountability and transparency. MANAGEMENT'S ROLE: The execution of our sustainability strategy and critical imperatives, including climate change and environmental stewardship, falls under the ambit of the group head of sustainability and ESG, who is supported by the S-MANCO, comprised of the most senior leaders in the business. A working group has been established to ensure operational and day-to-day measures and initiatives are implemented as required.

POLITICAL CONTRIBUTION AECI is politically agnostic. Donations to political parties are prohibited in all geographical operations. [...] COMPLIANCE MONITORING AND REPORTING Compliance with these principles is an essential element in the success of our business. The AECI Board is responsible for ensuring these principles are applied throughout the Group. [...] TCFD and TNFD BOARD: The Board is responsible for the overall governance, management and strategic direction of the organisation. The Board has delegated the primary responsibility to consider, recommend and monitor AECI's activities regarding climate change and environmental matters, including land use, to the SESC and SHEC. The Board and its committees provide leadership to embed the principles of good corporate governance across AECI, ensuring all decisions and actions are based on integrity, accountability and transparency. MANAGEMENT'S ROLE: The execution of our sustainability strategy and critical imperatives, including climate change and environmental stewardship, falls under the ambit of the group head of sustainability and ESG, who is supported by the S-MANCO, comprised of the most senior leaders in the business. A working group has been established to ensure operational and day-to-day measures and initiatives are implemented as required.

Strengthening sustainability governance During the year, we created a new position in our senior leadership structure. The role of head of sustainability and ESG is dedicated to the continued development and implementation of our group sustainability strategy. Kavita Pema, was appointed in late 2022 and took office in early 2023. She brings significant knowledge and experience in the field of sustainability (and its spectrum of components) as well as decades of experience in the industries in which we operate as well as in the public sector. Kavita has existing in-depth knowledge of our business, having spent many years with AECI earlier in her career. We are delighted to welcome her back into the AECI family. At a business level, we continued to support the group's sustainability steering committee, which is chaired by Dean Mulqueeny who, among other duties, is a group executive committee member and group executive sponsor for sustainability. This steering committee comprises sustainability champions from across the group, including all subsidiary businesses globally, as well as champions from head office support functions. The committee has continued to evolve and improve its processes, with a view to enabling our intent to act as One AECI in a coordinated and aligned manner across all our businesses and our extensive geographic footprint. To further strengthen our commitment to sustainability and enable the effective implementation of our growth strategy, the board approved amendments to the group's LTI scheme to include sustainability-related performance criteria into the vesting conditions. The LTI now includes a 25% weighting for sustainability-related performance, based on a selection of key sustainability metrics. Furthermore, we have established a group-wide sustainability dashboard which enables the collation, analysis and reporting of our performance against ESG KPIs. The dashboard has been entrenched across AECI and is the foundation for internal reporting on these critical KPIs. [...] Governance approach UN Global Compact and SDG Alignment In line with the AECI growth strategy, Governance remains a key driver to enable AECI's strategic vision. The AECI SESC supports the board in the governance of ethics to further enable the implementation of AECI's strategic imperatives. Furthermore, the SESC, in collaboration with the with the SHEC and Audit and Risk Committees, oversees all risk management policies and practices group-wide. In 2022, a specific focus was placed on the following key aspects: � Addressing key risks identified through the materiality survey � Applying key risk frameworks and disclosures, such as Task Force on Climate-related Financial Disclosures (TCFD) to our reporting � Implementing policy-related system and process changes � Aligning reporting with the relevant global reporting standards Our approach to sustainability governance and implementation In alignment with the company's growth strategy and our commitment to place sustainability at its centre, the former social and ethics board committee was renamed the 'social, ethics and sustainability committee' in 2022. This change is reflected in the committee's mandate. The SESC is currently chaired by Fikile De Buck who has extensive experience and expertise in guiding large organisations on matters relevant to the mandate of such a committee. At operational level, the group executive sponsor for sustainability is Dean Mulqueeny. Dean is a member of the group executive committee, he leads AECI Water and is also Chairman of AECI Much Asphalt. Furthermore, Dean heads up innovation, which is one of our three growth platforms. [...] Governance approach CONTINUED Early in 2023, the group filled the newly created group head of sustainability and ESG position. Across the group, sustainability champions, together with the group heads for safety and sustainability respectively, have been appointed as part of a sustainability steering committee to ensure alignment with the group's sustainability strategy within each business. The role of the sustainability steering committee is to ensure alignment across all group entities on sustainability-related matters, to ensure consistent and aligned action throughout the organisation and to ensure the appropriate implementation of the sustainability strategy by each business. The committee meets quarterly to review and discuss pertinent sustainability-related matters and makes recommendations for approval by the group executive committee, the SESC and the board as required. During 2022, the AECI board formally adopted a group-wide sustainability policy. In addition, we initiated the process to formulate a group-wide climate change policy. This policy will further enable our commitment to achieving our 2050 Net Zero Goal, as well as our related mitigation and adaptation efforts. The integration of five priority ESG performance metrics into the group's LTI scheme (see RR [page 10)](https://www.ftp.aeciworld-online.com/reports/ar-2022/pdf/REMReport2022.pdf) was approved by the board in 2022. This is in line with our commitment to sustainability and in response to feedback received from shareholders and wider stakeholders on what they consider material. We acknowledge that sustainability is a key driver for achieving our growth strategy. In addition to a sharper focus on this imperative, this also requires that we reinforce a sustainability culture among all our employees and that we heighten their awareness of its importance as an enabler of business growth. All our employees should be sustainability champions, across all employment levels, business and support functions and geographies. In support of this, sustainability training programmes will be rolled out in 2023.

Strengthening sustainability governance During the year, we created a new position in our senior leadership structure. The role of head of sustainability and ESG is dedicated to the continued development and implementation of our group sustainability strategy. Kavita Pema, was appointed in late 2022 and took office in early 2023. She brings significant knowledge and experience in the field of sustainability (and its spectrum of components) as well as decades of experience in the industries in which we operate as well as in the public sector. Kavita has existing in-depth knowledge of our business, having spent many years with AECI earlier in her career. We are delighted to welcome her back into the AECI family. At a business level, we continued to support the group's sustainability steering committee, which is chaired by Dean Mulqueeny who, among other duties, is a group executive committee member and group executive sponsor for sustainability. This steering committee comprises sustainability champions from across the group, including all subsidiary businesses globally, as well as champions from head office support functions. The committee has continued to evolve and improve its processes, with a view to enabling our intent to act as One AECI in a coordinated and aligned manner across all our businesses and our extensive geographic footprint. To further strengthen our commitment to sustainability and enable the effective implementation of our growth strategy, the board approved amendments to the group's LTI scheme to include sustainability-related performance criteria into the vesting conditions. The LTI now includes a 25% weighting for sustainability-related performance, based on a selection of key sustainability metrics. Furthermore, we have established a group-wide sustainability dashboard which enables the collation, analysis and reporting of our performance against ESG KPIs. The dashboard has been entrenched across AECI and is the foundation for internal reporting on these critical KPIs. [...] Governance approach UN Global Compact and SDG Alignment In line with the AECI growth strategy, Governance remains a key driver to enable AECI's strategic vision. The AECI SESC supports the board in the governance of ethics to further enable the implementation of AECI's strategic imperatives. Furthermore, the SESC, in collaboration with the with the SHEC and Audit and Risk Committees, oversees all risk management policies and practices group-wide. In 2022, a specific focus was placed on the following key aspects: � Addressing key risks identified through the materiality survey � Applying key risk frameworks and disclosures, such as Task Force on Climate-related Financial Disclosures (TCFD) to our reporting � Implementing policy-related system and process changes � Aligning reporting with the relevant global reporting standards Our approach to sustainability governance and implementation In alignment with the company's growth strategy and our commitment to place sustainability at its centre, the former social and ethics board committee was renamed the 'social, ethics and sustainability committee' in 2022. This change is reflected in the committee's mandate. The SESC is currently chaired by Fikile De Buck who has extensive experience and expertise in guiding large organisations on matters relevant to the mandate of such a committee. At operational level, the group executive sponsor for sustainability is Dean Mulqueeny. Dean is a member of the group executive committee, he leads AECI Water and is also Chairman of AECI Much Asphalt. Furthermore, Dean heads up innovation, which is one of our three growth platforms. [...] Governance approach CONTINUED Early in 2023, the group filled the newly created group head of sustainability and ESG position. Across the group, sustainability champions, together with the group heads for safety and sustainability respectively, have been appointed as part of a sustainability steering committee to ensure alignment with the group's sustainability strategy within each business. The role of the sustainability steering committee is to ensure alignment across all group entities on sustainability-related matters, to ensure consistent and aligned action throughout the organisation and to ensure the appropriate implementation of the sustainability strategy by each business. The committee meets quarterly to review and discuss pertinent sustainability-related matters and makes recommendations for approval by the group executive committee, the SESC and the board as required. During 2022, the AECI board formally adopted a group-wide sustainability policy. In addition, we initiated the process to formulate a group-wide climate change policy. This policy will further enable our commitment to achieving our 2050 Net Zero Goal, as well as our related mitigation and adaptation efforts. The integration of five priority ESG performance metrics into the group's LTI scheme (see RR [page 10)](https://www.ftp.aeciworld-online.com/reports/ar-2022/pdf/REMReport2022.pdf) was approved by the board in 2022. This is in line with our commitment to sustainability and in response to feedback received from shareholders and wider stakeholders on what they consider material. We acknowledge that sustainability is a key driver for achieving our growth strategy. In addition to a sharper focus on this imperative, this also requires that we reinforce a sustainability culture among all our employees and that we heighten their awareness of its importance as an enabler of business growth. All our employees should be sustainability champions, across all employment levels, business and support functions and geographies. In support of this, sustainability training programmes will be rolled out in 2023.

###### Furthermore, in alignment with the company's growth strategy and commitment to place sustainability at its centre, the former social and ethics board committee was renamed the "social, ethics and sustainability committee" (SESC) in 2022. This change better reflected the committee's mandate. [...] Lastly, it should be noted that early in 2023, the group filled the newly created Group Head of Sustainability and ESG position and commissioned the Sustainability Steering Committee (SSC). [...] The SSC's role will encompass oversight of systems, policies, and processes to achieve the group's sustainability objectives and monitor sustainability risks. The Committee will perform activities within the scope of responsibilities that will be set out in the charter or terms of reference (which still need to be developed), and to make appropriate recommendations to the SESC and the board.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]AECI ensures that all its direct and indirect activities that influence policy are consistent in terms of messaging through:

• Adherence to the SHEQ Policy and the Sustainability Strategy and Framework;
• Adherence to the Group's Code of Ethics and Business Conduct and associated guidelines;
• Central coordination of stakeholder engagement; and
• The introduction of programmes and targets to drive consistent messaging, such as the Going Green programme.

If any inconsistencies are identified, these inconsistencies are raised with the Risk Committee and the Social and Ethics Committee who then implement the required actions to address the inconsistencies, mitigate any impacts from these inconsistencies and put controls in place to ensure that they do not reoccur.

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