Jardine Matheson : 2021 Sustainability Report – Jardine Matheson

SUSTAINABILITY REPORT 2021

Content

LEADERSHIP MESSAGE	03		CARING FOR	44
CREATING VALUE	08		OUR COLLEAGUES
	GOVERNING SUSTAINABLY	54
LEADING CLIMATE ACTION	15
	DATA SUMMARY	62
DRIVING RESPONSIBLE	26
CONSUMPTION			CONTENT INDEX	67
SHAPING SOCIAL INCLUSION	35		ASSURANCE REPORT	71

Welcome to the first Sustainability Report ('SR') published by the Jardine Matheson Group ('Jardines' or the 'Group'), covering the period 1 January 2021 to 31 December 2021.

The scope of this report reflects the Group's operational control1 and/or influence in its businesses, which we refer to interchangeably as business units ('BU's), businesses or operating companies. This report contains no restatements of information compared with previous reports or disclosures. All financial data in this report is consistent with the figures published in the audited financial statements of the 2021 Annual Report ('AR') of Jardine Matheson Holdings Limited ('JM' or 'the Company').

To inform the preparation of this report, we have referenced the World Economic Forum ('WEF') Stakeholder Capitalism Metrics, Global Reporting Initiative ('GRI') Universal Standards, and Recommendations from the Taskforce for Climate-related Financial Disclosures ('TCFD'). Please refer to our content indexfor a list of relevant disclosures.

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 & Safety ('EHS') policies. Performance indicators are reported on a 100% basis and are not adjusted to reflect the proportion of shareholdings.

Leadership Message

Jardines is a diversified Asia-based group, and throughout our 190-year history as a family-owned business we have developed strong values and principles that are fundamental to how we operate, and which have helped our businesses thrive over the long term - values like integrity, steadfastness, collaboration and an entrepreneurial spirit.

Leadership Message

Creating Value

Leading Climate Action

Asia faces a host of challenges that could put the growth and prosperity of our communities at risk, including climate change, environmental degradation, resource scarcity and rising social inequality. Addressing sustainability has become imperative, and our scale and close relationship with our communities mean that we're in a unique position to help government efforts to address these challenges.

Through our portfolio, we touch the lives of millions of people daily, providing places to live and work, enabling mobility, and meeting the everyday needs of consumers. We know that we have a part to play in addressing the challenges of sustainability to bring positive impact to our communities and our businesses.

Sustainability is also a guide to opportunities to evolve our business operations and our portfolio to meet the needs of our stakeholders, partners, customers and communities. Our businesses have begun exploring the products, services and technologies of the future including renewable energy, sustainable construction, circular solutions and AI-powered energy and resource management for buildings. Sustainability considerations have become integral to decisions about our daily operations - and our future growth.

A new phase in our sustainability journey

Our Group approach has evolved over the past few years and will continue to evolve as we learn and further embed our strategy. We've asked ourselves tough questions, balancing the Group's social and environmental impacts with our responsibility to our communities. We established the Sustainability Leadership Council, composed of

the leaders of each of our core businesses, to drive a systematic approach to sustainability, and support our businesses as they pursue their own sustainability strategies.

This shared sense of purpose across the Group further encourages closer collaboration between our businesses to share learnings, measure, evaluate and maximise impact together. Many of our businesses are already actively pursuing sustainability agendas and are leading in their markets and sectors. By working together and combining support from the Group with the energy and drive of our businesses, we believe we can achieve even more.

We're on a journey to incorporate sustainable development priorities into operations, business planning and investment decision-making. Together with our

businesses, we have developed the Jardines sustainability strategy - Building Towards 2030 - which identifies nine focus areas, organised under the three core pillars that are being integrated into the strategies and business models of the Group and our businesses. This strategy aligns with the United Nations' 2030 Agenda for Sustainable Development.

A key element of our focus on sustainability is the launch of this, our inaugural Group-wide Sustainability Report. We know that we cannot manage what we do not measure, so we have gathered data from across our businesses to evaluate our baseline performance on a common set of metrics. Over time, our future Sustainability Reports will serve to document our progress against this baseline.

Making an impact

We face a wide range of sustainability challenges and we are taking steps to address them in a credible way that aligns with our values and fulfils our responsibilities. For example, we operate in

Driving

Responsible

Consumption

Shaping Social Inclusion

Caring for Our Colleagues

Governing Sustainably

Data Summary

Content Index

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growth markets that are currently reliant on coal as a dependable source of energy to power their economies, and we recognise the urgent need for a Just Transition to a zero-carbon economy to mitigate climate change. We recently announced our commitment to scaling up investments in renewable energy and related innovations. We have also committed to making no investments in new thermal or metallurgical coal mines, and no investments in new thermal coal-fired power plants across the Group.

These commitments are part of our wider climate action agenda which includes a decarbonisation strategy that will align the Group towards our ultimate goal of net-zero greenhouse gas emissions. In the process, we aim to evolve our portfolio now, so that we're ready for the future.

One example is Jardine Cycle & Carriage ('JC&C')'s investment in Refrigeration Electrical Engineering Corporation ('REE') based in Vietnam where renewable energy capacity is expected to double by 2030. REE has been capitalising on this opportunity through the investment and development of renewable, clean and sustainable infrastructure and solutions.

We're also leveraging our Group's size and scale - with a workforce of more than 400,000 colleagues - to maximise our community engagement impact. We have developed a Group-wide approach to volunteering, supported by a platform that will allow us to scale up the impact we have in our communities by enabling colleagues to participate in volunteering initiatives across our businesses.

We have long seen education as critical to improving livelihoods. For the past 40 years, the Jardine Foundation has been supporting access to higher education. In 2021 alone, it awarded US$4.5 million in scholarships. Identifying a gap in positive health outcomes as a result of stigma, Jardines established MINDSET in 2002, a mental health charity which has supported numerous beneficiaries over the years. In Hong Kong, over 13,700 beneficiaries were supported in 2021.

Creating value for the long-term

Jardines has long been a business with deep roots in Asia - a local partner, globally minded, holding ourselves to the highest international standards. We understand

our markets, we know how to succeed in diverse environments, and we know how to forge strong partnerships that enable us to thrive in the communities in which we operate.

We are proud of what we have achieved in a short period of time as we have moved into this new phase in our sustainability journey. We still have much to do. We are a unique Group, and we move forward with confidence and purpose, embracing opportunities to create value that can last across generations.

Ben Keswick	John Witt
Executive Chairman	Group Managing Director

Leadership Message

Creating Value

Leading Climate Action

Driving

Responsible

Consumption

Shaping Social Inclusion

Caring for Our Colleagues

Governing

Sustainably

Data Summary

Content Index

Sustainability considerations have become integral to decisions about our daily operations - and our future growth.

Ben Keswick	John Witt
Executive Chairman	Group Managing Director

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2021 Highlights

Leadership

Message

Held 2 Sustainability Leadership Council

meetings, which included major business leadership representatives to drive our sustainability agenda across the Group

All BUs have aligned on a common set of

sustainability performance metrics

Group approach to decarbonisation formulated,

with the goal of transitioning towards net-zero; Hongkong Land has committed to the Science Based Targets initiative ('SBTi'), aiming to limit

global warming to 1.5°C

Preliminary physical climate risk analysis

completed for more than 800 significant

assets across 14 BUs in 22 countries and regions

Jardine Foundation awarded US $4.5 million

in scholarships in 2021; US $34 million in scholarships have been awarded since the Foundation's

establishment in 1982

More than 1,600 volunteer hours were contributed during the first Group-wide Colleague

Volunteering week-long event, which aims to leverage the Group's size to optimise our contribution

Group Diversity & Inclusion ('D&I') strategy

being rolled out to guide our journey towards better representation, starting with gender diversity

First Group-wide learning week attended by close

to 5,000 colleagues from 14 BUs and

34 countries and regions

Sustainability Reports

Published by our Businesses

Astra

DFI Retail Group

Gammon Construction

Hong Kong Air Cargo Terminals Limited

Hongkong Land

Jardine Cycle & Carriage

Jardine Engineering Corporation

Mandarin Oriental Hotel Group

Creating Value

Leading Climate Action

Driving

Responsible

Consumption

Shaping Social Inclusion

Caring for Our Colleagues

Governing

Sustainably

Data Summary

Content Index

Assurance

Report

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