EBOS : 2022 Sustainability Report

Sustainability Report 2022

Looking to the future

EBOS Group Limited / Sustainability Report 2022	Introduction 3

Our ESG Program sets out the actions we will take to ensure we consistently and sustainably deliver on our responsibilities as a provider of essential network infrastructure, products and services.

Contents

Introduction	4
Leadership Message	4
Towards the next 100 years	5
ESG highlights for FY22	6
About EBOS	7
EBOS Group Overview	8
Our ESG Program	10
ESG Governance	11
Health & Animal Care Partners	12
Delivering essential infrastructure for health	13
Implementing robust systems	15
Information management systems	15
Consumers & Patients	18
Ethical sourcing	19
Consumer packaging	20
Quality management	21
Community & Environment	24
Environmental stewardship	25
Carbon Neutrality Statement	25
Reaching out to help out	30
Our People	34
Profile of our people	35
Culture and engagement	36
Talent and capability	39
Performance and reward	39
Health, safety and wellbeing	40
Responsible Business	42
Corporate Governance	43
Risk management	44
About this report	47
Questions and answers	48
ESG Data summary	50
Content Index for ESG Disclosures	54

EBOS Group Limited / Sustainability Report 2022	Introduction 5

Leadership Message

Towards the next 100 years

Elizabeth Coutts

Chair

Welcome to the second Sustainability Report for EBOS Group in which we share information and insights about the Environmental, Social and Governance (ESG) policies, initiatives and performance of our diversified portfolio of healthcare and animal care businesses.

Reflecting on 100 years of service

This year, EBOS marked the centenary of the start of our corporate journey, which began in 1922 when Early Brothers Trading Co. Ltd was founded in New Zealand. We are immensely proud of our heritage; growing and evolving from humble origins into the expansive and progressive organisation that we are today.

Looking out for future generations

EBOS specialised in surgical supplies in the 1950s, commenced trading in Australia in the late 1980s, and ventured into animal care in 2011. At every stage of our growth and development we have embraced scientific, technological, social and economic change to make positive contributions in the

Partnerships for sustainable development

Every pillar of our ESG Program engages with key stakeholder groups to achieve shared goals. From our own brand businesses aligning with the Australian Packaging Covenant Organisation (APCO) on creating a circular economy, to investing in charities doing tremendous work in our communities such as Ovarian Cancer Australia, LandSAR, BackTrack and Cerebral Palsy Alliance.

This year, we celebrated 15 years of partnership with Greenfleet, a leading not- for-profit working to protect the climate by restoring native forests. Since 2007, our healthcare segment has offset estimated annual transport emissions from customer deliveries with carbon credits from Greenfleet totalling over 90,000 tonnes of CO2e.

Plans towards carbon neutrality

More New Zealanders and Australians than ever before are voicing their concerns about

When the Early Brothers Trading Co. Ltd commenced operations in New Zealand in 1922, it was an optimistic time to start a business as the country was emerging from the Spanish flu pandemic and First World War to embrace the modern era. Now, a century later, people and their animals in our communities throughout New Zealand and Australia enjoy vastly improved standards of living, benefitting collectively from incredible advances in many aspects of our lives.

As society evolves, so do our businesses. We reflect with pride on EBOS' transformation from a small, family firm to the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products, as well as a leader in animal care brands. By embracing technological change and scientific advances, we provide better products, solutions and services to meet the needs of our communities.

EBOS has been active as a responsible corporate citizen and committed partner in sustainable development for a long time and we are excited

for our next one hundred years. We believe in the power of people working together to bring about positive change as demonstrated by the success of our enduring partnerships with our key stakeholders

• investors, employees, suppliers, customers, clients, consumers, patients and community-based organisations.

This Sustainability Report outlines our strategies for several high priority topics within our ESG Program. We are proud to work with valued partners making a difference in many important ways, from finding a cure for ovarian cancer to feeding rescue dogs. In the fight against climate change, we are reducing the impact of our operations, enhancing the resilience of our network and offsetting our emissions by revegetating critical habitat in partnership with Greenfleet, a not- for-profit environmental organisation with whom we have had a close relationship for 15 years.

When it comes to facing up to social and environmental challenges in our communities, we are all in this together.

John Cullity

Chief Executive

Officer

communities we serve. As we embark on the next one hundred years, we will continue to invest in new opportunities to promote better health and wellbeing for current and future generations.

Strategies update

In FY22, EBOS has progressed several new initiatives to deliver on our ESG Program, including setting targets, milestones and Key Performance Indicators (KPIs) for Environmental Stewardship, Consumer Packaging, Ethical Sourcing and Our People.

Leading by example

EBOS celebrates unity in diversity. Within our organisation we continue to build our leaders capability through our Integrity training on key people policies together with Cultural Awareness training.

Worker safety, health and wellbeing is another major priority across EBOS. This year, there has been marked improvement in our work safety performance with a significant reduction in the frequency rate of recordable injuries. We have also launched our 'Be Well from Anywhere' program again offering a range of activities to improve the physical and emotional wellbeing of our people.

the effects of climate change on our ecology, economy and society. In response to the emerging climate crisis, EBOS supports widespread consensus that governments, corporates and civil society must work together to limit global warming within

1.5 degrees Celsius of pre-industrial levels.

The EBOS Board has taken decisive action by approving the scoping of an 18.8MW solar array. This major piece of infrastructure is planned to meet the total annual electricity demand of our Australian operations. EBOS is also progressing plans to work towards carbon neutrality, aiming to be carbon neutral for Scope 1 emissions in FY23*.

In the meantime, we will continue to improve energy efficiency across our organisation and invest in solar power generation at other sites.

No time like the present

The success we have achieved as a business over the past century is the result of the combined efforts of our people. With

their commitment to each other and the businesses and communities we serve, there is no limit to what we may achieve in the next one hundred years. It is a privilege to lead such a dynamic and dedicated team.

Focused on the Goals

At EBOS, we evaluate the success of our business by considering our impacts on economy, society and the environment because we know that all three facets of our performance are integrally linked. The United Nations 2030 Agenda identifies 17 Sustainable Development Goals (SDGs) outlining a blueprint for a better and more sustainable future.

Our ESG Program aligns strategically with three goals and nine targets where we feel we can make the most significant difference.

3	Good Health		8 Decent Work and		13 Climate
		and Wellbeing		Economic Growth		Change
Target		Fighting communicable	Target	Decent work with equal pay	Target	Strengthen resilience to
3.3		diseases	8.5		13.1	climate related disasters
Target		Reducing mortality from	Target	Ending Modern Slavery	Target	Build knowledge and
3.4		non-communicable	8.7		13.3	capacity to meet climate
		diseases				change
Target		Achieving universal health	Target	Promoting safe work	Target	Implement the UN
3.8		coverage	8.8	environments	13A	Framework Convention on
						Climate Change

The way we measure and disclose meaningful information about our Group's performance is also guided by international best practices from the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB).

*Excludes LifeHealthcare, Transmedic and Australian Biotechnologies.

We thank all of our stakeholders for their ongoing support.

EBOS Group Limited / Sustainability Report 2022	Introduction 7

ESG highlights for FY22

About EBOS

Every day, communities across New Zealand and Australia benefit from the work we do.

FY22 Highlights

294 million

units of prescription

medicines to

pharmacies and

hospitals

Carbon

Neutral targets established

1.1 million*

medical devices supplied to surgeons and clinicians for use in patient surgery and treatments

Pet care

manufacturing

facility in

Parkes, NSW

opens

1.2 million TerryWhite Chemmart COVID-19

vaccinations

Ethical

Sourcing strategy developed

Sustainable

Packaging

goals set

$217,000

donated to

UNICEF

12,192

tonnes of CO2

offset with Greenfleet

465,762

TerryWhite

Chemmart flu vaccinations

$160,000

of medical supplies

for Ukraine

Be Well from

Anywhere

Program delivered to employees

EBOS Group is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It is also a leading marketer and distributor of recognised animal care brands.

EBOS operates from 109* locations across New Zealand, Australia and Southeast Asia. Our value chain encompasses 'own brand' manufacturing and retail businesses, wholesale and distribution to a wide ranging network of business customers, as well as direct marketing to consumers.

LifeHealthcare, Transmedic and Australian Biotechnologies

On 31 May 2022 we announced the successful completion of the acquisition of LifeHealthcare, Transmedic and Australian Biotechnologies. LifeHealthcare is one of the largest independent distributors of third-party medical devices, consumables and capital equipment in Australia, New Zealand and Southeast Asia. We plan to assess and integrate the sustainability initiatives of LifeHealthcare within the broader EBOS Group over the next financial year. Therefore this Sustainability Report does not include the initiatives of LifeHealthcare, Transmedic and Australian Biotechnologies for FY22. Targets in this Sustainability Report exclude LifeHealthcare, Transmedic and Australian Biotechnologies.

Gross operating revenue by Segment

Healthcare

87%

Animal Care

13%

Gross operating revenue by Division

Pharmacy

46%

Contract Logistics

10%

Institutional Healthcare

31%

Animal Care

13%

$10.7b

revenue

12,765

shareholders

$228.2m

underlying net profit after tax

129.0c

underlying earnings per share

109*

locations within New Zealand, Australia and Southeast Asia

65* Australia

23* New Zealand

21* SoutheastAsia

5,000**

employees

*Includes all offices and warehouses in New Zealand, Australia and Southeast Asia including LifeHealthcare, Transmedic and Australian Biotechnologies. Office location data within the remainder of the report excludes LifeHealthcare, Transmedic and Australian Biotechnologies.

• Includes LifeHealthcare, Transmedic and Australian Biotechnologies. People data within the remainder of the report excludes employee data from LifeHealthcare,Transmedic and Australian Biotechnologies.

*Includes LifeHealthcare, Transmedic and Australian Biotechnologies.

EBOS Group Limited / Sustainability Report 2022	Introduction 9

EBOS Group Overview

EBOS' success is built on a diverse range of industry leading brands spanning community pharmacy, institutional healthcare, contract logistics and animal care.

Healthcare			Animal Care
Community Pharmacy	Institutional Healthcare	Contract Logistics	Animal Care