Globaltrans Investment : Sustainability Report 2022

2022

Annual Report & Accounts

Annual Report & Accounts 2022	Overview	Strategic	Sustainability	Governance	Financial	Additional
		Report	Report		Statements	Information

Sustainability

Report

Globaltrans	68		69 Annual Report 2022

Annual Report & Accounts 2022

Sustainability

Overview	Strategic	Sustainability	Governance	Financial	Additional
	Report	Report		Statements	Information

-9%

Decrease in total emissions (Scope 1 and Scope 2)

HIGHLIGHTS OF 2022

LTIFR1 zero

(2021: 0)

GPG2-1%

(2021: -3%)

1.4х

Increase

in training hours

88%

Overall employee engagement score

Green

Office

Ongoing implementation

of Initiative across the Group

Climate Disclosure

Further enhancement: analysis

of climate-related risks and opportunities

OUR APPROACH

The Sustainability Report which

is integrated into the 2022 Annual Report has been prepared in accordance with the sustainability reporting guidelines of the Global Reporting Initiative ("GRI"), Task Force on Climate-Related Financial Disclosures ("TCFD") recommendations and in line with the non-financial and diversity disclosure information contained in the EU's 2014/95/EU Directive.

The overall aim is to achieve high standards in the areas of balance, comparability, accuracy, timeliness, clarity and reliability, as defined by the GRI Standards. The structure and content of this sustainability report reflect the relevant GRI Reporting Principles.

The details within this sustainability report cover the key results and activities of Globaltrans Investment PLC and its subsidiaries in the field of sustainable development for the year ended

31 December 2022.

ESG GOVERNANCE

Over the past few years, Globaltrans has improved its ESG governance structure to communicate and respond effectively to emerging ESG issues while proactively implementing sustainability commitments, initiatives and practices.

The ESG Committee has overall responsibility for the Group's sustainability strategy and is the Company's top

• LTIFR (Loss Time Injury Frequency Rate) is the number of lost time injuries multiplied by 1,000,000, divided by the employee total hours worked in the reporting period.

• The Gender Pay Gap at non-managerial level is the difference between the average hourly earnings of a company's male and female employees who are below management level. Calculating the mean Gender Pay Gap involves adding the hourly rates for all male employees and then for all female employees in two groups and then dividing these totals by the number
  of male or female employees in each list. Then one needs to subtract the female hourly rate from the male hourly rate, divide the total by the male hourly rate, and multiply the figure by 100. This will give a percentage difference in pay.

unit in charge of its sustainable development issues. The Committee was created in January 2021 to support and direct the Group towards improving its sustainability-related practices and policies and its reporting and transparency. Its creation reflects the Group's conviction that behaving responsibly underpins our ability

to deliver sustainable value for all our stakeholders. By assisting the Board with oversight of ESG-related issues, the Committee supports the development of a practical Group-wide approach

to sustainability and disclosure. The Committee's efforts were bolstered by the adoption in January 2021 of a formal ESG policy that sets out formal ESG commitments and established lines

of responsibility and accountability.

The ESG Committee consists of two Board members: Elia Nicolaou, Non- executive Director, who is the Chair, and John Carroll Colley, Independent Non- executive Director. In addition, Globaltrans CEO Valery Shpakov is actively engaged in all ESG-related matters, emphasising the importance the Group attaches

to these issues.

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MATERIALITY

Globaltrans identifies its material sustainability issues through a materiality analysis. Materiality is an important concept in the management of our sustainable development. It makes it possible to identify and consider the Group's key economic, environmental, social, and governance issues, as well as issues most likely to impact its stakeholders. Once identified, they are reviewed annually. The materiality assessment clearly demonstrates that external events such as COVID-19 or any potential change in Globaltrans' business activities can result in a revision of material issues. In 2022, social issues such as business resilience, employee wellbeing, support and development re-emerged as highly relevant issues for the Group.

Materiality matrix

How it works:

Step 1	We identified material topics relevant to the Group's
business operation by carefully reviewing and
Identification	analysing global sustainability trends, our sustainability
performance, internal regulations and non-financial
of material topics	reports issued by peers.
Step 2	To develop a broader, deeper understanding of the
materiality of the sustainability issues the Group faces,
Prioritisation	we sought input from a range of stakeholders
(employees, shareholders, investors, clients, regulators
of material topics	and other authorities) on what mattered to them.
Step 3	We developed a materiality matrix to identify those topics
that are deemed most important to the Group's system
Preparation	of sustainability reporting. A validity check was also
conducted on identified material topics to ensure that all
of materiality matrix	of them are disclosed in the Annual Report.

ESG COMMITTEE CHAIR'S MESSAGE

In 2022, as the world recovered from the COVID-19 pandemic, we faced another set of social and economic challenges and an unprecedented macro environment. Nevertheless, even during these highly uncertain times Globaltrans continued

to operate efficiently, ethically and responsibly. We acted responsibly towards our employees, our clients and the community at large, and maintained our commitment to a wide range of sustainable practices.

stakeholders. And so I am pleased to share with you our fifth integrated Sustainability Report, which outlines our ongoing initiatives to integrate ESG standards more deeply into the organisation.

In terms of environmental responsibility, in 2022 we fully complied with all the relevant environmental rules, regulations and laws during the reporting period. Our total emissions (Scope 1 and Scope 2) decreased by 9% year on year.

As part of our ongoing commitment to lessen the Group's environmental footprint, we launched the Green Office Initiative and embarked

on a small tree-planting project which we intend to expand over the next few years. In addition, recognising the vital importance of global action on climate change, we published our second climate-

The Group invested considerable time and effort into strengthening its Human Resources practices. For example, we increased the total number

of training hours in our educational programme by 1.4 times to better support our employees' development. In addition, the Group is committed to keeping lines of communication open with its employees through

a range of engagement channels. In 2022, we conducted our first employee engagement survey, which provided important insights on staff engagement, staff development, well-being, and culture. We are encouraged by the positive employee engagement score of 88%. The Group always considers employee input and feedback when making decisions about organisational changes

and improvements. For instance, improvements were made to the benefits package for employees, as a result of the findings of another

stakeholder

Extremely

12

2

5

important

3

4

1

6

8

10

9

Materiality for

Important

7

11

Important

Materiality for business

Extremely

important

Economic impact

Environmental impact

Social impact

1 Economic performance

5 Risks and opportunities posed by climate

9 Employee education and development

2 Socioeconomic development of regions

change

10 Employee motivation

3 Business ethics, risk management

6 Management of carbon footprint

11 Diversity and equal opportunity

and anti-corruption

7 Reduction of energy consumption

12 Occupational health and safety

4 Customer satisfaction

8 Compliance with environmental

laws and regulations

In my two years serving on the ESG Committee, I have seen positive progress and a gradual transformation in Globaltrans' corporate culture, employee perceptions, internal procedures and decision-making mechanisms. In addition, we have taken further important steps to advance the governance of our ESG processes at all levels of the Group since this ensures a solid foundation for effective management and accountability.

The ESG Committee's responsibilities include not only managing and overseeing the Group's environmental, social, and governance initiatives but also ensuring that high-quality ESG information is provided to all of our

related disclosure in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures ("TCFD"). In order to meet the standards set by TFCD, we sought to identify and evaluate the risks and opportunities for the business associated with climate change.

In terms of social issues, looking after our people is even more important during uncertain times. Therefore,

in 2022 we remained committed to fulfilling our obligations to our employees. The fact that we could state that we had met our "zero harm" target in 2022 is evidence of the high priority Globatrans gives to workplace safety.

pulse-survey conducted last year. As for the wider community, the Group continued its long-standing partnerships with and support for various charitable organisations throughout 2022.

In conclusion, I am pleased to note the improvements we made in 2022. Furthermore, I can assure you that Globaltrans will continue to uphold its commitment to sustainable business development, report on its progress and create value for its stakeholders.

Elia Nicolaou

Chair of the ESG Committee, Non-executive Director

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OUR ESG JOURNEY

The timeline shows some key highlights and progress we have made to date.

Overview	Strategic	Sustainability	Governance	Financial	Additional
	Report	Report		Statements	Information

KEY ESG ACTIVITIES:

Corporate governance

Environment

Employing more energy-efficient practices, reducing carbon emissions and promoting recycling are means by which we work to minimise the adverse impact of Globaltrans' activities on the environment.

2018

• Publication of our first Sustainability Report in accordance with GRI standard
• First time reporting оf Scope 1 emissions
• Privacy Policy introduced

2021

• ESG Committee formed
• ESG Policy adopted
• First time reporting оf Scope 2 emissions
• Publication of first climate-related report in accordance with TCFD recommendations
• Improvement in ESG ratings and ranking positions (Sustainalytics, Expert RA)

The objective of corporate governance is to support the Board in its efforts to provide effective, transparent and ethical oversight of the Group. Our governance framework is in line with the highest international standards supporting the Board to make decisions that are in the best long-term interests of the Group and its communities that will create value for all its stakeholders.

Communities

We are very conscious of the role we play in supporting our communities. We do this through our employees' interactions, the opportunities our businesses create and the economic value that our Company generates. We also actively contribute to community initiatives and provide direct support to important community causes

2020

• Introduction of various social policies such as Human Rights, Corporate Diversity and Inclusion and Freedom of Association Policies
• Environmental & Energy Policy adopted
• Suppliers' Code of Conduct introduced
• Introduction of Group-wide LTIFR measure of employee health & safety
• Website relaunched with a separate
  Sustainability section

2022

• Health and Safety Policy adopted with LTIFR maintained at 0
• Strengthening of HR practiсes. Employee engagement survey held
• Green Office Initiative introduced

Employees

Creating and sustaining a safe workplace is the key role of a responsible employer. Our goal is to enable people to work with dignity and respect, to provide opportunities for growth and development and to create a just and rewarding work culture. We also ensure that we operate in full compliance with all applicable employment legislation.

through charitable giving.

Globaltrans continuously strives to improve the way it controls, manages and mitigates the impact of non-financial risks, which include strategic, operational and compliance risks. This is not simply to satisfy regulatory obligations but also to meet the expectations of our stakeholders. Further details on Globaltrans' Risk Management are set out on pages 51 to 67.

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