Meritus ulaganja d d : Sustainability report for year 2021

SUSTAINABILITY

REPORT

1. Table of Contents

1. Sustainability at M+ Group ..................................................................................................	5
	About the report .......................................................................................................................................	5
	President & CEO Letter .............................................................................................................................	6
2.	Group's Organizational Profile ............................................................................................	8
	Corporate Overview..................................................................................................................................	8
	Products and Services ...............................................................................................................................	9
	Economic Performance...........................................................................................................................	12
	Significant Events During the Reporting Period......................................................................................	14
	Affiliations and Memberships.................................................................................................................	15
	Certifications...........................................................................................................................................	16
	Awards ....................................................................................................................................................	27
3.	Governance .......................................................................................................................	31
	Mission, Vision and Values......................................................................................................................	31
	Business and Strategy of the Group........................................................................................................	32
	Corporate Governance............................................................................................................................	33
	Risk and Opportunities............................................................................................................................	36
	Sustainability in M+ Group......................................................................................................................	40
	Approach to Sustainability......................................................................................................................	40
	Relevant SDGs .........................................................................................................................................	42
	Future plans ............................................................................................................................................	43
	Stakeholder Communication ..................................................................................................................	44
	Materiality Assessment...........................................................................................................................	45
	Ethics and Compliance ............................................................................................................................	47
	Fair whistle-blower system .....................................................................................................................	48
	Anti-corruption framework.....................................................................................................................	49
	Anti-bribery and charitable donations and sponsorships.......................................................................	50
	Responsible business conduct ................................................................................................................	50
	Remuneration .........................................................................................................................................	50
	Human rights...........................................................................................................................................	51
	Internal audit ..........................................................................................................................................	51
4.	Social.................................................................................................................................	52
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	Employees...............................................................................................................................................	52
	Talent Management................................................................................................................................	54
	Locally Hired Senior Management..........................................................................................................	57
	Employees' rights and notification practices..........................................................................................	57
	Health and safety ....................................................................................................................................	57
	Employee Benefits ..................................................................................................................................	59
	Trainings and Education..........................................................................................................................	61
	Performance and Career Development Reviews....................................................................................	63
	Diversity and inclusion ............................................................................................................................	64
	Human rights and due diligence .............................................................................................................	66
	Anti-discrimination .................................................................................................................................	67
	Employee Engagement ...........................................................................................................................	67
	Community Support................................................................................................................................	68
	Donations and Employee Volunteering ..................................................................................................	69
5.	Environment.......................................................................................................................	71
	Environmental Impact.............................................................................................................................	71
	Data collection and materiality...............................................................................................................	72
	Energy efficiency.....................................................................................................................................	73
	GHG emissions ........................................................................................................................................	76
	Scope 1 emissions ...................................................................................................................................	77
	Scope 2 emissions ...................................................................................................................................	77
	Scope 3 emissions ...................................................................................................................................	78
	Waste management................................................................................................................................	80
6.	Supply Chain .....................................................................................................................	81
	Supplier Management ............................................................................................................................	81
	Best practices of the supplier screening process....................................................................................	82
	Greening the Supply Chain .....................................................................................................................	82
7.	Customers .........................................................................................................................	82
	Information management.......................................................................................................................	82
	Data security ...........................................................................................................................................	83
	Cybersecurity ..........................................................................................................................................	83
8.	EU Taxonomy ....................................................................................................................	84
	Economic activities eligible under EU Taxonomy ...................................................................................	86
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KPI-related disclosures............................................................................................................................	87
General and accounting policies.............................................................................................................	87
Proportion of KPIs associated with EU Taxonomy..................................................................................	87

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1. Sustainability at M+ Group

About the report

Meritus ulaganja d.d. presents the second Sustainability Report (or Report) for M+ Group (or Group) that includes information on economic, environmental, and social performance for stakeholders covering the period from January 1, 2021 to December 31, 2021.

This Report has been made with reference to Consolidated Set of the GRI Standards 2021 and covers Group's operations during 2021. The Report also includes information on our performance in the context of the United Nations Global Compact (UNGC) principles, together with the UNGC Content Index at the end of the Report.

This report presents both M+ Group's sustainability efforts during 2021 and an outline of plans on driving improvements, together with disclosure across the Group's environmental, social and governance (together, ESG) initiatives.

Within the scope of sustainability reporting, the Group transparently communicates its activities and performance and intends to continue this practice in future periods by preparing and publishing annual sustainability reports. In order to identify and prioritize material issues to report on within this Report, a survey was conducted as part of our Materiality Assessment to capture the opinion of internal and external stakeholders regarding most pressing ESG topics and their importance for our organization.

Such assessment also contributed to a wider effort we are currently pursuing - together with this report, we are preparing a comprehensive sustainability strategy (or ESG strategy) which will lead us towards reaching UN Sustainable Development Goals (UN SDGs). Our sustainability strategy will contribute to the overall sustainable development within the reach and impact of our business activities.

In terms of growing sustainability efforts at Group level and strong commitment towards creating better working conditions for our employees, while contributing to cleaner environment and reducing our carbon footprint, in the future we plan to join some of the major global initiatives in the field to gain further momentum and apply best practices demonstrated by peers and companies from other sectors. One such outstanding effort is the process of joining the UNGC and officially adopting and incorporating its Ten Principles within our daily business operations which was planned for 2021 but was postponed for 2022 due to lack of resources and increased workload related to our everyday business.

In the future, with the adopted ESG strategy in place and continuous work on achieving its targets, our intention will be to make our sustainability report a showcase example for the industry and to demonstrate, as transparently as possible, M+ Group's devotion to benefiting the world around us through both direct and indirect impacts of our business operations.

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