Jardine Matheson : Sustainability 2022 – Jardine Matheson

SUSTAINABILITY REPORT

2022

Contents

About this Report	03
Leadership Message	04
Creating Value	10
Leading Climate Action	24
Driving Responsible Consumption	33
Shaping Social Inclusion	45
Caring for Our Colleagues	55
Governance for a Sustainable Future	69
Data Summary	86
Content Index	91
Assurance Report	100

JARDINES SUSTAINABILITY REPORT 2022

About this Report

About this

Report

Reporting Period

The Jardine Matheson Group ('Jardines' or the 'Group') 2022 Sustainability Report reflects activities and initiatives that primarily took place between 1 January 2022 and 31 December 2022.

Scope

The report covers the businesses or operating companies, under the Group's operational control1 and/or influence. All financial data in this report are consistent with the figures published in the audited financial statements of the 2022 Annual Report ('AR') of Jardine Matheson Holdings Limited ('JMH' or the 'Company').

Reporting Principles

We have referenced the Global Reporting Initiative ('GRI') Universal Standards, the recommendations of the Task Force on Climate-related Financial Disclosures ('TCFD'), and the World Economic Forum ('WEF') Stakeholder Capitalism Metrics while preparing this report. For a list of pertinent disclosures, please refer to the content index.

Leadership

Message

Creating Value

Leading Climate Action

Driving

Responsible

Consumption

Our reporting includes

• TheSustainability Reportmini-site,which includes additional case studies and highlights from the Group and our businesses.
• TheJMH 2022 Annual Report, which includes a sustainability summary and our TCFD report.
• Thesustainability section of our corporate website, which provides timely updates about sustainability at the Group.

For us to continuously improve our reporting and sustainability practices, feedback from our stakeholders is essential. Your opinions, remarks, or feedback are welcome and can be sent to [e-mail]

Shaping Social Inclusion

Caring for Our Colleagues

Governance

Data Summary

Content Index

Assurance

Report

1 Based on the definition provided in The Climate Registry's General Reporting Protocol, a reporting entity has "operational control" over an operation if it has the authority to introduce and implement operating or Environmental, Health and Safety ('EHS') policies. Performance indicators are reported on a 100% basis and are not adjusted to reflect the proportion of shareholdings.

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Leadership Message

"Sustainability is a key driver of our strategy, decisions and relationships, and underpins our continuing focus on making Jardines stronger for the future."

John Witt

Group Managing Director

Ben Keswick

Executive Chairman

About this

Report

Leadership

Message

Creating Value

Leading Climate Action

Driving

Responsible

Consumption

Jardines has been working to meet the needs of current and future generations for almost two centuries, particularly in its core markets in Asia, which is forecast to remain the world's most populous region in the coming decades. Asia is also on track to represent half of the expansion in global consumption by 20301 and more than half of global GDP by 20402. We grow and prosper together with the communities we serve across Asia, and we share the challenges of the region in moving towards a greener economy. Together with our 425,000 colleagues, we are committed

to embedding sustainability in all our businesses and to introducing sustainable solutions that drive positive change and create long-term value.

Our Group-wide sustainability strategy, Building Towards 2030, structures our response to the megatrends unfolding around the region, including the acceleration in climate impacts, biodiversity loss, urbanisation and rising social and economic inequalities. We are working with our businesses across three core pillars to:

1. Lead Climate Action, by decarbonising our business and enhancing climate resilience;
2. Implement circular solutions that Drive Responsible Consumption through resource efficiency and waste reduction; and
3. Shape Social Inclusion by tackling relevant social and economic issues that impact our communities.

These efforts, together with our overall performance, our successes and the challenges we face, are shared in this report.

Shaping Social Inclusion

Caring for Our Colleagues

Governance

Data Summary

Content Index

Assurance

Report

1. https://www.mckinsey.com/featured-insights/asia-pacific/the-trailblazing-consumers-in-asia-propelling-growth
2. https://www.mckinsey.com/featured-insights/asia-pacific/the-future-of-asia-asian-flows-and-networks-are-defining-the-next-phase-of-globalization

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Our decarbonisation journey

At a Group level, our primary focus is on addressing climate change, which is a complex and urgent issue in Asia. In 2022, we saw an overall increase in greenhouse gas emissions and energy usage across the Group, compared to 2021. We anticipated this outcome as we resumed full business operations post-pandemic. Further increases are expected to continue in the short- term, in line with business expansion. This reflects the challenge that we face to decarbonise. Setting medium-term targets and formulating credible emissions reduction pathways that take business growth into account is therefore of the utmost importance.

In last year's report, we introduced our net-zero framework for guiding decarbonisation efforts across the Group, in line with climate science. In 2022, we reached a significant milestone, when Hongkong Land was the first of our businesses to secure approval from the Science Based Targets initiative ('SBTi') for its 1.5°C-aligned 2030 targets. Other Group companies have followed suit. Gammon and Hong Kong Air Cargo Terminals Limited ('Hactl') have submitted commitment letters to SBTi,

while DFI Retail Group ('DFI') has committed to 1.5°C-aligned scope 1 and 2 targets for 2030 and 2050.

4 On an equity-adjusted basis

All our businesses are developing decarbonisation pathways for their operational emissions. We acknowledge the importance of value chain emissions, and will also work towards understanding and reducing them in due course.

Investing for a more sustainable future

While much work is being done to set targets and improve our performance, we believe that an important lever for us to strengthen business performance and increase competitiveness is to embed sustainability considerations into our organic and inorganic investment decisions. This will contribute to the long-term growth of the business and, thereby, ensure continuous payment of dividends.

We are making key investments in practical solutions to support the region's transition to a greener economy. For example, in Vietnam, as of December 2022, 72%4 of the energy capacity of the portfolio of REE Corporation, a strategic interest of Jardine Cycle & Carriage, was generated from renewables, specifically hydro, solar and wind. Other highlights of 2022 investments across some of our sectors include:

• In mining, PT United Tractors ('UT'), a subsidiary of PT Astra International, signed a conditional

sale and purchase agreement to acquire nickel mining and processing businesses. UT aims to cut its reliance on coal by diversifying into non- coal mineral mining, with the goal of increasing Astra's business resilience by growing non-coal revenue to 88% by 2030. This diversification into nickel will also enable UT to contribute to the development of the electric vehicle value chain in Indonesia.

• In motors, PT Astra Honda Motor has announced a plan for sales of one million electric motorcycles annually by 2030, as part of its commitment to driving carbon neutrality in Indonesia. PT Toyata-Astra Motor is also introducing a range of new electric vehicles in Indonesia, to increase the supply of greener vehicles there.
• In retail, DFI has been trialling Water Loop technology in Hong Kong. This helps significantly reduce refrigerant gas volumes and risk of leakage, enhancing energy efficiency and reducing greenhouse gas emissions.
• In construction, Gammon has tested a new technology to reduce the overall carbon footprint of concrete by 5%. In partnership with CarbonCure, a Canadian start-up, Gammon aims to address the issue of embodied carbon - the carbon footprint of the materials used in the construction of the building or infrastructure.

About this

Report

Leadership

Message

Creating Value

Leading Climate Action

Driving

Responsible

Consumption

Shaping Social Inclusion

Caring for Our Colleagues

Governance

Data Summary

Content Index

Assurance

Report

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