Sustainability Report 2021

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EBOS Group Limited Sustainability Report 2021

Introduction

CEO and Chair Message	4
About EBOS	5
Our ESG Program	8
ESG Governance	12
Health & Animal Care Partners	14
Delivering essential infrastructure for health	15
FY21 Highlights: EBOS partnerships for essential care	16
Implementing robust systems	17
EBOS partnerships for enhancing resilience	18
Consumers & Patients	20
Upholding our quality promise	21
Managing social and environmental impacts of our products	22
Community & Environment	24
Taking action on Climate Change	25
EBOS Energy Road Map	26
Partnerships to restore native forests	27
Reaching out to make a difference	28
Our People	30
Profle of our People in FY21	32
Equal Opportunities, Diversity and Inclusion	33
Worker Health & Safety	34
Measuring our progress	35
Reconciliation Action Plan	37
Responsible Business	38
Business Ethics and our policies	39
Risk Management Framework	40
Supply Chain Management	41
About this report	42
ESG Data summary	44
GRI Content Index 2021	46

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EBOS Group Limited Sustainability Report 2021

CEO and Chair Message

John Cullity Chief Executive Officer

Elizabeth Coutts Chair

Our key focus during this time has been on maintaining the high standards of service that we pride ourselves on.

It is with great pleasure that we present EBOS’ inaugural Sustainability Report.

As a leading healthcare and animal care company in New Zealand and Australia, we recognise our responsibility to lead by example.

We are relied upon to deliver for our customers, stakeholders and communities across New Zealand and Australia, every day. Our Environmental, Social and Governance (ESG) Program sets out our priorities and actions to ensure that we will consistently and sustainably uphold our responsibilities as a provider of essential network infrastructure, products and services.

Our ESG Program serves as a framework for responsible organisational practices that will ensure EBOS maintains its social license to operate. Many of the initiatives we will undertake as part of our ESG Program build upon the work we have done over many years through our established corporate social responsibility program, ECHO (Environment, Community, Helping Others). The intention of our ESG Program is, therefore, to formalise this activity in a way that is measurable and can be accurately reported on. Importantly, we also seek to highlight areas where we can continue to improve, thereby enabling more structured governance, evaluation and disclosure as part of our approach to responsible corporate leadership.

Core values and value creation

Running a successful healthcare and animal care business requires a sense of community responsibility and a commitment to ethical and sustainable business practices that ensure we continue to uphold the expectations of our stakeholders and the wider community. In recent years, we have achieved significant growth as a business that has seen EBOS adopt market leading positions in the provision of healthcare and animal care

across New Zealand and Australia. However, the strength of EBOS goes beyond the black-and-white of our financial statements and we have set out a range of ESG criteria to help us assess our performance in these critical areas.

Lessons from the pandemic

The challenges of the last 18 months have brought out the very best of our business and our people. In these times of uncertainty and adversity, EBOS is fortunate to be a company of scale and financial strength, operating in markets where the majority of our products and services are non-discretionary in nature.

Our key focus during this time has been on maintaining the high standards of service that we pride ourselves on. We have also been committed to ensuring the safety and wellbeing of our people by enacting strict health measures across the business. We thank all of our people for their continued flexibility and commitment to adhering to these protocols that are designed to keep them, their families and the community safe.

Our vision for the future

Threats to the health and wellbeing of the communities we serve across New Zealand and Australia are multifaceted and becoming increasingly complex. In recent years, we have faced a measles epidemic and the global COVID-19 pandemic as well floods and bushfires associated with increasing risks from ongoing climate change.

In responding to these challenges, we acknowledge that some are within our sphere of influence, while others require coordinated efforts. Importantly, our belief that life matters drives our commitment to doing our part to address the key social and environmental issues of our time through policies and initiatives under the five pillars of our ESG Program as outlined in this report.

Thank you for your ongoing support.

Introduction

About EBOS

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

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

Our businesses and functions operate from 63* locations across New Zealand and Australia with a value chain encompassing manufacturing, manufacturer services, wholesale, distribution and direct marketing to consumers.

FY21 Highlights

$9.2b 11,650 revenue shareholders $188.2m 63[*] locations in New underlying NPAT Zealand and Australia

114.9c underlying earnings per share

*Includes all offices and warehouses in New Zealand and Australia.

3,700+ employees

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72% Australian employees

28% New Zealand employees

Our business

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80% Australia
20% New Zealand
Animal
Care
14%
51% Pharmacy
Healthcare 26% Institutional Healthcare
86% 9% Contract Logistics
14% Animal Care
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Segment and divisional splits are based on gross operating revenue, which comprises revenue less cost of sales (including any adjustments to inventory). Geographical split is based on revenue.

EBOS Group Limited Sustainability Report 2021

Healthcare

Community Pharmacy

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Institutional Healthcare

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Contract Logistics

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Introduction
Animal Care
Animal Care
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EBOS Group Limited Sustainability Report 2021

Our ESG Program

Our ESG Program builds on the findings of a materiality assessment that we conducted in 2020 to understand and prioritise the issues that matter most to the people who are impacted by our business.

When developing our ESG Program, we reflected on the views of EBOS’ key stakeholder groups as well as the performance of industry peers, trends in ESG reporting and leading international frameworks.

In designing and carrying out our materiality assessment, we referenced AccountAbility’s AA1000SES standard for creating and conducting inclusive stakeholder engagement practices. To ensure that we considered the full range of significant ESG issues for EBOS’ business, we referenced relevant industry standards and reporting frameworks.

The Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) are two leading organisations in this space. Their standard-setting processes build on years of research and extensive market input.

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EBOS Key Stakeholder Groups
Board and
Executive Employees Healthcare Animal Care
Leadership customers customers
Team
Suppliers Non-profit Government Investors
partners & regulators
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Plan Prepare

Act, Review & Improve Implement

Introduction

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During our materiality assessment, we considered SASB standards specific to the following sectors: Biotech & Pharma, Drug Retailers, Health Care Delivery, Health Care Distributors, Managed Care, Medical Equipment & Supplies as well as Household & Personal Products and Multiline/ Speciality Retailers & Distributors.

We also referenced GRI sector guidance for Healthcare Providers and Services and Healthcare Technology.

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

EBOS supports the United Nations Sustainable Development Agenda—a collection of 17 interlinked global goals that create a blueprint to achieve a better and more sustainable future for all. Our ESG Program links directly to three specific goals (and related targets) - Good Health and Wellbeing, Climate Action and Decent Work and Economic Growth. This is where we feel we can make the most significant contribution in our communities.

The result

Through our ESG Program, EBOS embraces the full range of responsibilities that come with our role as a provider of essential health and animal care products and services. The program comprises five pillars encompassing 20 material ESG topics that are significant for the sustainability of our business and/or the interests of our stakeholders.

• Core business offering

Pillars 1 and 2 of our ESG Program, Health & Animal Care Partners and Consumers & Patients, focus on impacts of the Group’s daily business operations.

We support our customers to achieve better health outcomes by ensuring the availability and reliability of medicines and other essential products and services, especially during times of crisis. Our direct

customer relationships are often with other businesses, professionals, governments and government bodies, but we never lose sight of our ultimate connection with consumers, patients, pets and their owners.

• Social and environmental role

Pillar 3 of our ESG Program, Community & Environment, addresses broader sustainability challenges facing our communities.

Reaching out to help out is an integral part of our corporate culture across the Group. We aspire to contribute positively towards resolving complex problems such as responding to climate change and helping to create a fairer, healthier and more equal society.

• Firm foundations

Pillars 4 and 5 of our ESG Program, Our People and Responsible Business, recognise that corporate sustainability stems from solid foundations embedded in our corporate culture.

EBOS is a large and growing organisation unified by core values. Our engaged, diverse and talented workforce is committed to upholding ethical behaviour and responsible practices in all areas of our business.

EBOS Group Limited Sustainability Report 2021

As a market leading healthcare and animal care company, we know that our stakeholders and the communities we serve rely on us.

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.

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Health & Animal Consumers Community Care Partners & Patients & Environment Delivering essential infrastructure Managing the impacts of our Environmental Resilience for human and animal health products • Carbon offsetting • Community service role • Waste and packaging • Minimising our impact • Nurturing customer and • Responsible procurement Reaching out to help out government relationships Upholding our Quality Promise • Supporting causes close to us Implementing robust systems • Quality Management System • Advancing equity, fairness and • Business continuity management • Compliance opportunity in society • Data and technology security/ privacy Our People Responsible Business • Employee safety, health and wellbeing • Legal compliance • Culture and engagement • Reporting with integrity • Talent and capability • Ethical behaviour • Performance and reward • Corporate governance – recognition Health & Animal Consumers Community Care Partners & Patients & Environment Our People Responsible Business Enabling the delivery of Caring for the Supporting the Building an engaged, Ensuring ethical and world class healthcare consumers of our communities we diverse and talented responsible behaviour and animal care to products and services serve and facing the workforce with a focus and practices communities across by conducting our challenges of creating on health, safety and throughout our New Zealand and business in a socially a fairer, more equitable wellbeing is the key to business. Australia. responsible manner. and sustainable our success. We ensure that Through investing In designing and society. We foster a culture of responsible in our business, we developing our We empower our safety and wellbeing business practices have the critical products, we take people to make a and support our are implemented infrastructure and into account their difference and improve employees to lead throughout the robust quality real impact through the lives of people, healthy, balanced lives. organisation, and will management systems the value chain; this animals and the We attract and build continue to build trust that support means sourcing environment. a diverse and talented with our stakeholders professionals and materials from ethical by ‘doing the right This means supporting workforce, investing in government in the and responsible causes close to their development to thing’. delivery of reliable and suppliers, reducing efficient healthcare waste and finding us and being an provide them with the We recognise the and animal care. practical packaging active participant in charitable and social skills and capabilities to deliver. importance of legal compliance, ethical compliance, ethical solutions that minimise Ensuring we continue endeavours that make trading of products to support our our impact on the our communities We recognise and and services, and environment. reward performance partners to care for stronger. upholding good in a fair and equitable patients, consumers Whether we are Our commitment way, encouraging corporate governance and pets in pharmacy, providing a product or extends to the our people to strive practices, including hospital, primary and service, we do so with environment and for excellence in transparent corporate aged care, veterinary our consumers top reporting. services, retail and of mind. Trust is built ensuring we develop everything they do. and encourage other settings. through the decisions sustainable business and choices we make practices. every day.

We recognise the importance of legal compliance, ethical compliance, ethical trading of products and services, and upholding good corporate governance practices, including transparent corporate reporting.

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Introduction
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Malpa Young Doctors Program

EBOS Group Limited Sustainability Report 2021

ESG Governance

The mandate for delivery on our ESG Program comes from the very top.

The ESG Steering Committee was established in 2020 and is comprised of senior executives to ensure close alignment of our ESG goals and initiatives with our overall corporate strategy. The Committee is responsible for establishing our ESG strategy, benchmarking and evaluating our performance, and responding to emerging risks and opportunities. Updates are provided to the Board at each Board meeting.

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Highest governance body Board
Chief Executive Officer oversight Chief Executive Officer
Management oversight ESG Steering Committee
Strategic
Human Group
Operations &
Resources Legal
Innovation
Corporate Investor
Affairs Relations
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Introduction

EBOS Group Limited Sustainability Report 2021

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EBOS enables reliable and efficient healthcare and animal care across New Zealand and Australia.

We support our professional and government partners to care for patients, consumers and pets through a multitude of access points, including pharmacies, hospitals and primary and aged care facilities as well as veterinary clinics and retail stores.

Health & Animal Care Partners

Health & Animal Care Partners

In this chapter of the report, we address the following ESG topics that are material to our business and considered to be of high significance for stakeholders representing our key business partners:

Delivering essential infrastructure for health
Implementing robust systems

Delivering essential infrastructure for health

EBOS is responsible for building and maintaining physical infrastructure and business networks that are critical for the timely and reliable delivery of health and animal care across New Zealand and Australia. The ‘essential infrastructure’, to which we refer in this context, is underpinned by our business network and supported by robust organisational structures that connect thousands of professionals and government partners with the products and services they need. These relationships are sustained and supported by our physical infrastructure network comprising supply chain, manufacturing and logistics capabilities.

The scale of our essential infrastructure is such that EBOS plays an integral role in maintaining the stable supply of medicines throughout New Zealand and Australia. For example, our Retail Pharmacy division services 4,800+ community pharmacy customers, including 465 TerryWhite Chemmart pharmacies.

At the same time, EBOS’ Animal Care segment supplies 5,000+ pet retailers, veterinary clinics and other animal care partners throughout New Zealand and Australia.

Community Service Obligation

The Australian Government recognises the vital role performed by community pharmacies and Community Service Obligation (CSO) wholesalers in ensuring that Australians enjoy equitable access to the full range of Pharmaceutical Benefits Scheme (PBS) medicines.

As a CSO wholesaler, EBOS’ Symbion business upholds specified performance standards for the timeliness, accuracy and reliability of medicine supply. Performance against these standards is subject to regular and ad hoc audits in every state and territory.

72,713[*] Customers

110,299[*] Product lines

8,916,285[ *] Orders

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*FY21

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EBOS Group Limited Sustainability Report 2021
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National Immunisation Program

Another example of our role in creating and sustaining essential infrastructure for health is the National Immunisation Program (NIP), which is an Australian government funded initiative aimed at reducing preventable diseases by increasing immunisation coverage across Australia. Over the past seven years, EBOS has provided storage and distribution services for close to four million doses of government funded vaccines per year in the state of Victoria. We provide a next day delivery service across the entire state for up to 80% of our deliveries utilising refrigerated transport, therefore minimising the usage of cold chain packaging while ensuring the integrity of the products.

EBOS is proud to support the annual influenza vaccination initiative coordinated by the Immunisation Coalition of Australia, an independent not-for-profit organisation that fights vaccine hesitancy with evidence-based information. In addition to our NIP services, our Healthcare segment delivers vaccines to more than 5,600 delivery points throughout Australia, including 3,200 community pharmacies.

FY21 Highlights: EBOS partnerships for essential care

During FY21, Onelink New Zealand supplied in excess of 35,000 items of personal protective equipment (PPE) to more than 500 delivery points across the country. During the height of the pandemic, Onelink New Zealand was supplying more than 25,000 COVID-19 testing swabs per day. In support of the COVID-19 vaccine roll-out, Onelink New Zealand is now also distributing clinical supplies to vaccination centres in the Northern Region.

TerryWhite Chemmart (TWC) has a pioneering approach to empowering pharmacists to build stronger connections with local communities through integrated education. This includes promoting increased access to the full range of immunisations that are administered by pharmacists, helping to drive vaccine uptake in the community.

Partnership for National COVID-19 response in New Zealand

From the start of the global pandemic, EBOS’ Healthcare segment has worked in close partnership with the Ministry of Health (MoH) at the forefront of New Zealand’s national COVID-19 response. We have facilitated centralised storage and distribution of PPE on behalf of the MoH, helping to ensure the safety of frontline workers in a variety of settings, including general practitioner clinics, pharmacies, community COVID-19 testing stations and managed isolation and quarantine facilities.

Under the national COVID-19 vaccination plan, everyone in New Zealand aged 16 and over is eligible to receive free COVID-19 vaccinations. To ensure safe handling of the vaccine from Pfizer/BioNTech—New Zealand’s primary COVID-19 vaccine provider—EBOS has implemented ultra-low temperature cold chain storage between -60 and -90 degrees Celsius. Under instruction from the MoH, our teams receive and repack in appropriate quantities for delivery to hospitals, vaccination centres, aged care centres, quarantine hotels and anywhere else they are required.

Health & Animal Care Partners

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TerryWhite Chemmart Masterclass
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Responding to medicine supply shortages as they arise

Symbion has participated in the Therapeutic Goods Administration’s Medicines Shortages Working Party since the emergence of COVID-19 in Australia to carefully monitor the supply of critical medicines. We have played a key role in providing real time data about the availability of products facing potential shortages in order to facilitate proactive decisionmaking.

EBOS’ Symbion Hospital Services business has procured and maintained medical supplies on behalf of the majority of Australian states and territories as well as private hospital providers. Moving forwards, we will continue to evaluate our role in ensuring fair and equitable access to all healthcare essentials for all Australians.

Setting the benchmark for pharmacist education

TWC is a recognised market leader for pharmacist education. Their signature annual training program, known as Masterclass, is now in its seventh year. This event, which consistently attracts industry leading health professionals from across the globe, is supported by a range of education and supplier partners, and aims to empower its network of pharmacists with information and skills to become even better healthcare professionals.

Since its inception, over 3,000 pharmacists have attended the Masterclass program and in 2021, over 800 pharmacists will participate in a free virtual event. This is the first year that the program has been delivered virtually in order to increase accessibility and facilitate social distancing.

Masterclass not only drives professional development but is often used as the launch vehicle for significant campaign events and health initiatives, propelling strengthened consumer offers across the network of 465 TerryWhite Chemmart pharmacies.

In addition to the annual Masterclass event, TWC hosts two state-based forums per year to ensure that pharmacists within the network have access to information about the latest clinical developments. Other professional development opportunities, such as the Dispensary Excellence Program and various online modules, are available throughout the year via the TWC iLearn platform.

Implementing robust systems

In early 2020, the onset of COVID-19 prompted consumers in New Zealand and Australia to stockpile pharmaceuticals and other healthcare products at levels never before encountered.

In March 2020, our Australian wholesaling business Symbion, along with other members of the National Pharmaceutical Services Association (NPSA), distributed more than 70 million PBS medicines. This represented an increase of 70% compared with the same period in the previous year. In New Zealand, order volumes at Onelink increased significantly. This placed enormous pressure on our teams, with some sites operating around the clock to continue to meet the needs of our customers.

To cope with this unprecedented surge in demand, EBOS implemented business continuity plans and provided daily guidance for our customers. The ability of our systems to withstand the challenges of this period is a testament to both the outstanding commitment of our people and the long-term investments we have made in capital works projects to achieve increased capacity and productivity across our business.

Business continuity and risk management

Business continuity plans and disaster recovery procedures form part of our Healthcare segment’s approach to risk management. These have been prepared in line with relevant standards: AS/ NZS 5050:2010 Business continuity and AS/NZS ISO 31000:2009 Risk management and in accordance with the core principle of proactive identification and mitigation of disruptive events.

Symbion’s Business Continuity Plan identifies the roles and responsibilities of key personnel at state and national levels and is overseen by the Healthcare Executive Management team in order to implement comprehensive response actions for temporary loss of site events and pandemic effects.

At our distribution centres, we conduct comprehensive site assessments to evaluate operational risks associated with fire, flood and other natural hazards, disruption to transport and utilities services, impact of industrial action, and potential physical or information security breaches, among other operational risks. The purpose of these assessments is to ensure that appropriate mitigation measures have been put in place, including adequate insurance cover.

Resilient by design

We undertake extensive preparatory and precautionary measures to enhance the resilience of our sites and operations. Beyond compliance with relevant building codes and specifications, we also strive to improve the lifetime performance of our facilities by selecting and procuring responsibly sourced construction materials and furnishings.

EBOS Group Limited Sustainability Report 2021

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SES volunteers delivering Symbion medical and
healthcare products during the March 2021 floods.
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At Symbion’s distribution centre in New South Wales, acoustic panels are made from post-consumer recycled content that is 100% recyclable, and specially selected carpet tiles with a moisture mitigation system helps to reduce wear and tear.

Information management systems

EBOS is committed to exploring and advancing the potential of big data and health information technology to help our partners achieve better health outcomes while respecting the rights of customers, consumers and patients to privacy and personal data protection.

EBOS respects the privacy of every individual and is committed to protecting the confidentiality, integrity and availability of personal data it collects in accordance with the principles set out in our Security Policy, IT Security Management Policy and related guidelines or procedures that are managed by the Chief Information Officer and her team.

As part of our approach to risk management, a defence-in-depth approach is deployed to ensure that there are various mitigation measures across multiple layers to protect against IT system failure and malicious attacks. These include (but are not limited to) industry-leading intrusion detection and prevention systems, managed perimeter security across email and network communications, network firewalls including VPNs and advanced user and entity behaviour analytics. In FY21, we were not aware of any breaches of customer privacy and/or identified leaks, thefts, or losses of customer data.

EBOS partnerships for enhancing resilience

Responding to crisis

In times of crisis, EBOS plays a vital community service role by helping keep affected communities connected

and well-served with vital healthcare and animal care supplies. We have consistently demonstrated our capacity to overcome significant logistical challenges with minimal disruption to our services thanks to the efforts of our employees, who are well-equipped and highly experienced in dealing with crises. We are continually learning valuable lessons from our experiences in emergency-response situations, including earthquakes, bushfires and floods.

In March 2021, extreme rainfall led to widespread flooding in New South Wales and Queensland causing many families to lose their homes, businesses and livestock or pets. Our Healthcare segment sprang to action, working closely with emergency services to co-ordinate deliveries by boat into communities that were no longer accessible by road.

No pet should suffer

At Aristopet, we believe that no pet should suffer. However, more than half of Australian dog and cat owners do not regularly treat their animals for common parasites, with the most common reason being the high cost of treatment products.

Our purpose is to help Australian pet owners ‘do what’s right’ by their animals by providing cost effective, self-managed treatments at everyday low prices with the aim of reducing the overall cost of caring for pets. Compared with another leading parasiticide protection brand, our product is 20% better value, while still containing the same active ingredient.

As an increasing number of consumers choose Aristopet products to care for their animals thanks to our approach of delivering lower cost products with proven efficacy, the brand achieved 77% growth in sales during the 2021 financial year when compared with the year prior.

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Health & Animal Care Partners
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Symbion and TWC drone delivery service
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Improving our reach into remote areas

In February 2021, Symbion and TWC announced a new partnership with Swoop Aero, a Melbourne-based company, to trial regional Australia’s first medical drone delivery service based out of Goondiwindi on the Queensland and New South Wales border.

With the capacity to service customers within a 130km radius of home base, and the ability to withstand extremes in weather, including 50kmp/h winds and heavy rain, we anticipate this new technology will prove invaluable for responding to emergency situations when there is limited access to remote areas, such as during seasonal floods.

EBOS Group Limited Sustainability Report 2021

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At EBOS, we strive to build and maintain trust in our brands by making and advocating responsible business choices.

Consumers and patients in New Zealand and Australia increasingly have the expectation that the healthcare and animal care products and services they consume demonstrate values consistent with their own. We use the term ‘product integrity’ to refer to the ability of our products to meet and exceed consumer expectations by focusing on the fundamentals of good quality, social responsibility, and environmental protection throughout the product lifecycle; from design to disposal and all the steps in between.

Consumers & Patients

Consumers & Patients

In this chapter of the report, we address the following ESG topics that are material to our business and of high importance for stakeholder groups who represent ‘end users’ or ‘ultimate beneficiaries’ of our products and services:

Upholding our quality promise
Managing the impacts of our products

Upholding our quality promise

EBOS touches the lives of millions of consumers and patients in New Zealand and Australia every day through the direct and indirect marketing of healthcare and animal care products. In all areas of our business, it is imperative that we provide products of the highest quality that are safe for consumers and the environment, without exception. This is our quality promise. Across our various business units, we have attained certifications for quality management systems in accordance with standards established by the International Standards Organisation (ISO), including for the sale, warehousing and distribution of medical supplies as well as manufacturing of consumer products. This certification process helps ensure our teams maintain a strong customer focus and sustain their motivation for achieving continuous improvement.

Exceptional service and consumer loyalty

Despite the disruption caused by COVID-19 to international supply chains and local market operations, EBOS has never lost sight of our commitment to maintaining exceptional service standards. Looking ahead, we are confident that we will continue to uphold our contractual obligations and meet and exceed the expectations of consumers in this regard.

During 2022, we plan to introduce a Net Promoter Score within our Retail Pharmacy division to monitor overall satisfaction with EBOS’ products and services as well as consumer loyalty to our brands.

Transparency and accountability

HPS and its network of Approved Pharmacies is one of Australia’s most established providers of pharmacy services to private hospitals, cancer centres and correctional facilities. We work closely with these customers—our valued business partners—to ensure compliance with health and safety protocols for medication management.

Our Healthcare segment in Australia fulfils the requirements of the CSO Funding Pool Operational Guidelines, the Australian Code of Good Wholesaling Practice for Medicines (Schedules 2, 3, 4 and 8) and International Quality Management Standard: ISO 9001.

Elements of our management approach to quality

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Compliance

Compliance with applicable laws and regulations concerning product quality in New Zealand and Australia.

Preventative Action

Traceability

Supplier qualification for vendors to mitigate the risk of counterfeit products.

Tracking our products at every stage of the journey through our wholesale and distribution network.

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Security

Supply chain safety and security protocols focussed on protecting the integrity of our products and their packaging.

Logistics

Recall

Maintaining quality, safety and temperature control in accordance with manufacturer specifications.

Clear and actionable standard operating procedures for implementing product recalls, when applicable.

EBOS Group Limited Sustainability Report 2021

Good for people, pets and the environment

An important part of our management approach to ensuring that products designed, developed and manufactured by EBOS are good for people, pets and the environment, is working with our suppliers to ensure they contain only the very best ethically and sustainably sourced ingredients.

All Black Hawk® products are proudly manufactured with ingredients sourced in Australia. Every product we make has been carefully crafted to ensure that pets get all the nutrition they need. At Black Hawk®, Every Ingredient Matters®. Our primary objective is to improve the health, happiness and longevity of pets by supporting their owners to provide them with good nutrition.

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Red Seal® is our health and wellbeing consumer brand, committed to making good health accessible and affordable to everyone by delivering natural alternatives across a variety of product categories. We are working with leading international certification program, UTZ, to ensure that ingredients used in Red Seal products are sourced in a sustainable and ethical manner. Our target is to have 90% of Red Seal® teas UTZ-certified by 2024.

Managing social and environmental impacts of our products

EBOS strives to meet and exceed consumer expectations for product quality, social responsibility, and environmental protection throughout the product lifecycle—from design and development, to consumption and disposal, and all the steps in between.

Mitigating misadventures through medication management We recognise our responsibility to mitigate potential harm for consumers and patients associated with ‘medicine misadventures.’ This broad term refers to any iatrogenic hazard or incident arising from misuse of medications as a result of non-compliance, inappropriate prescription or substance abuse. To help mitigate the risk that our products will be misused in this way, EBOS is pioneering the development of education programs and new technologies for enhancing medication management in various settings.

Software solutions: HPS ClinPod® mobile clinical pharmacy application

The proprietary ClinPod® system is a mobile clinical pharmacy application designed and developed by HPS for its network of Approved Pharmacies to coordinate,

TerryWhite Chemmart snapshot

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465 community pharmacies

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2 million+ customers visit a TWC pharmacy every month

Consumers & Patients

document and evaluate clinical activities in real-time at the point of delivery. This improves accuracy and efficiency, thereby reducing the likelihood of error and increasing the amount of time that clinical pharmacists have available to engage directly with patients and their caregivers.

ClinPod® facilitates timely communication of medication-related issues between patients, pharmacists, and other medical professionals. Electronic medication discharge reports create total service oversight and transparency that is vitally important for ensuring patients experience a smooth transition from care in a hospital setting to their local community pharmacy.

HPS medication management services in correctional centres

HPS has pioneered the delivery and management of pharmacy services in correctional facilities since 1985 and its network of Approved Pharmacies currently provide services to more than 12,000 prisoners each week. Building on its long experience and deep understanding of the specific health needs and security challenges associated with providing healthcare to secure populations, HPS has created a unique set of tools for its Approved Pharmacies designed to help improve health outcomes for prisoners.

MACI® (Medication Administration Client Interface) is a fully integrated medication management platform that allows each correctional facility to control its own formulary and supervised medication list. The system prepares and packs medicines into ‘unsupervised’ and ‘supervised’ streams. For prescriptions involving low-risk medication, prisoners are supported to improve their health literacy and take responsibility for managing their own health. Conversely, pharmacists perform clinical checks prior to dispensing high-risk medication for administration to patients under supervision.

Shared responsibility and circular economy

EBOS recognises the urgent need for systemic change in the way that product packaging is created, collected and recovered. We support the vision of the Australian Packaging Covenant Organisation (APCO), which is tasked with leading the way towards developing a circular economy for packaging, including coordinating public and private sector shared responsibility for achieving Australia’s 2025 National Packaging Targets.

More than

half a million flu vaccines administered in 2020

We also support similar initiatives under development in New Zealand.

To the extent that we are able, EBOS is working on redesigning packaging for our branded products in order to consume less materials and switch to materials that are commonly recyclable. For products that we store and transport (but do not design or manufacture), we are also looking at how we can help reduce businessto-business packaging waste and ensure as much as possible ends up in the hands of recyclers.

Masterpet is a signatory to the APCO and recently published its third Annual Report Responses under that scheme

Within EBOS, Masterpet and its subsidiaries Aristopet, Botany Bay Export and Lyppard are taking the lead on developing and implementing a packaging sustainability strategy referencing the APCO Sustainable Packaging Guidelines.

Our goal is to achieve 100% recyclable packaging for Masterpet products by 2025, including total elimination of non-recyclable plastics and complex combinations of packaging materials. We plan to achieve these objectives without compromising the safety and integrity of our finished products, which must remain fresh and healthy on the shelf for 18 – 24 months.

In FY22, we will commence operations at our own pet food manufacturing site in Australia, which provides us with greater control over the design of our packaging. To date, we have engaged with our suppliers to gather information about the material structure, recyclable content and volume of packaging used in all products. We have also implemented waste recovery for businessto-business packaging in our distribution centres.

Masterpet progress on packaging

57 product categories for which a reduction in total material weight has been achieved

57 product categories for which we disclose recycled or renewable content

Packaging materials consumed (FY21)

114 tonnes of paper; 70% recycled content

120 tonnes of cardboard; 84% recycled content

214

tonnes of Low-Density Polyethylene; 32% recycled content

EBOS Group Limited Sustainability Report 2021

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Healthy communities are central to everything we do at EBOS.

We strive to make a difference by improving the lives of people and animals and protecting our environment. In addition to ensuring that we develop and implement sustainable business practices in our own operations, we are committed to supporting charities and not-for-profit organisations that contribute to making our communities more cohesive and resilient.

Community & Environment

Community & Environment

Taking action on Climate Change

EBOS recognises climate change as one of the greatest sustainability challenges. In our own operations and in our relationships with all stakeholders, we are committed to promoting climate resilience, which means enhancing our collective ability to anticipate, prepare for and respond to threats from the changing climate.

In accordance with recommendations from the

Taskforce on Climate-related Risk Disclosure (TCFD) , we understand that climate related threats and opportunities for our business may be ‘physical’—as a result of specific events or climate patterns—as well as ‘transitional’—because moving to a lower-carbon economy will entail policy, legal, technological and market changes.

Moving towards Carbon Neutrality

Carbon neutrality refers to the net balance of greenhouse gases that are produced and removed from the atmosphere. In 2015, 187 nations ratified the Paris Agreement with the objective of keeping global warming to within 1.5 degrees Celsius of pre-industrial levels. To meet this target, climate scientists believe that greenhouse gas emissions must be reduced to net zero by mid-century.

Working to enhance climate resilience through direct and indirect action

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Impacts we control and manage Impacts we can influence and help
directly within our operations to mitigate in partnership with
local communities
• Pathways to eliminate or offset • Offsetting greenhouse gas
greenhouse gas emissions from use emissions from fuel used for
of electricity, gas and water within transportation in our distribution
our sites: network
> Improving energy efficiency > Our long-term partnership with
Greenfleet aims to ‘sink’ excess
> Switching to renewable energy
carbon into regenerated natural
sources
forests
• Enhancing operational resilience
• Our community service role helps
to physical risks such as rising
to ensure communities affected by
temperatures, flooding and
extreme weather events continue
bushfires through our risk
to receive vital medical supplies
management framework and
and services.
Business Continuity Plans.
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Measuring our progress

We cannot manage what we do not measure. That is why it is so important that we have engaged an independent third party to assist us in implementing a robust and comprehensive monitoring platform for energy and emissions in line with industry best practices. To improve visibility over electricity use, we have consolidated utility metering at all of our large sites in Australia* with a single service provider.

FY21 is the first year for which the Group can disclose Group-wide data on energy and Scope 2 greenhouse gas emissions encompassing 63 office and warehouse sites in New Zealand and Australia.

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Metric Unit FY21
Total energy ‘000 GJ 77.1
On-site renewable energy ‘000 GJ 2.5
Greenhouse gas emissions (Scope 2) ‘000 tCO2e 12.6
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*where allowed by regulations.

EBOS Group Limited Sustainability Report 2021

Moving forward, we are committed to deepening and broadening our Energy Road Map to progress towards accredited Carbon Neutral status for our sites. We have introduced the following guidelines/policies for designing new builds and upgrading existing sites:

EBOS Energy Road Map

In FY21, 10 EBOS sites accounted for more than twothirds (68%) of the Group’s total energy consumption. Our Energy Road Map is focussed on improving energy efficiency and making better use of renewable energy resources within these key sites in order to reduce the Group’s overall greenhouse gas emissions from consumption of purchased electricity.

Energy and Sustainability Performance Specification
Energy Performance Controls Specification for Refrigeration systems

During FY21, we experienced a significant upturn in business operations as a result of increased demand for our goods and services during the global pandemic. Coping with the additional operational pressure on our sites limited the extent to which efficiency projects could be delivered during this time period. Nonetheless, since 2018, we have made significant progress on a number of initiatives.

Generic optimisation measures, including door seals, temperature resets, insulation and lighting controls

This map shows the location of our key sites in terms of energy consumption, as well as the various energy investments that have been completed or are underway.

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3
6
8
9
1
5 2
4
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Key sites

3New Zealand	Site location Initiative
7Australia	1.Pemulwuy, NSW Solar array 100 kW
Targets (under development)	2.Greystanes, NSW High-speed automatic cool room doors 3.Acacia Ridge, QLD Solar array 330 kW
Electricity savings	4.Keysborough, VIC Assessment of rooftop solar viability
Renewable energy	5.Underdale, SA Solar array 330 kW, Lighting replacement 6.Mangere, NZ (2 sites)
Carbon neutrality	7.Kewdale, WA 8.Mansfeld, QLD Lighting replacement 9.Mt. Wellington, NZ

Investments in roof-top solar systems

Since 2019, 0.7 MW solar power generation capacity has been installed across three key sites at Pemulway, Acacia Ridge and Underdale in Australia. In FY21, these rooftop solar arrays produced over 685 MWh of clean energy. Our most recent installation at Symbion’s warehouse in Underdale, SA offsets up to 60% of daytime energy demand at this site.

Partnerships to restore native forests

Through our continued association with our long-term partner Greenfleet, a leading not-for-profit organisation that is committed to protecting our climate by restoring native forests, EBOS offsets the estimated greenhouse gas emissions from transport associated with customer deliveries in the healthcare segment across New Zealand and Australia.

Atiu Creek, NZ

Atiu Creek Regional Park officially opened to the public in 2008. The Auckland Regional Council is developing the park as a countryside Regional Park, managed and operated on the principles of protection, preservation and enhancement of its natural and cultural values. At 847 ha, it’s Auckland’s third largest Regional Park but remains quite unknown to Aucklanders.

The park is a patchwork of countryside park pasture, groves of mature exotic trees and native bush. Three nationally threatened bird species; the NZ dabchick, brown teal, and the North Island brown kiwi live at the park and the area also has intact areas of coastal forest which are now rare nationally.

In 2015, Greenfleet and NZ supporters planted 1,000 native trees to help with an ongoing reforestation program in the park.

Whitehurst, Victoria

Whitehurst is located about an hour from Wilson’s Promontory in Victoria. The incredible transformation on the site since 2012 is helping make the property a tranquil and biodiverse retreat. In total since 2012, Greenfleet has planted nearly 21,000 trees on the property. Some of the native species planted include Blackwood ( Acacia melanoxyln ), Silver Wattle ( Acacia dealbata ) and Southern Blue Gum ( Eucalyptus globulus ). Over their lifetime, this forest will capture more than 23,000 tonnes of CO2-e from the atmosphere. Building wildlife habitat is an additional benefit of this growing forest. Swamp wallabies, echidnas and wombats are now common within the planted area.

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Community & Environment
Solar panels at Symbion Underdale, South Australia
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Whitehurst, Victoria
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Since 2007, our long-term partnership with Greenfleet has directly enabled native reforestation, thereby helping to enhance climate change resilience through the restoration of biodiverse ecosystems and the provision of critical habit for native wildlife.

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$976,000 67,000 tCO e 2 donations to Greenhouse gas Greenfleet emissions offset (2007 – 2021) (2007 – 2021)[] Estimates provided by Greenfleet

1,980 sqm roof-top solar panels installed over the last 18 months

EBOS Group Limited Sustainability Report 2021

Reaching out to make a difference

By the very nature of our business, EBOS supports strong and healthy communities in New Zealand and Australia by providing access to medicines and other healthcare and animal care products. We are proud of our business’ positive contribution to society, and we feel that it is also important to reach out and help out where we can.

Under our Match Funding Policy, which was introduced in 2018, EBOS supports employees who raise funds for registered health and animal welfare charities in New Zealand and Australia by matching the funds donated by our employees. To date, we have contributed to 72 charities through this scheme.

Ovarian Cancer Australia

Over the past 15 years, TerryWhite Chemmart has been a proud supporter of Ovarian Cancer Australia. During this time, more than $1.5 million has been raised to improve treatment of the deadliest cancer affecting Australian women.

Researchers’ increasing confidence that they are close to finding a cure for advanced disease fills the ovarian cancer community with hope. “We need more evidence and more resources to improve the lives of the women with this horrific cancer and we’ve made enormous progress over the last few years thanks to our generous supporters like TerryWhite Chemmart,” said Ovarian Cancer Australia CEO Jane Hill.

In 2021, TerryWhite Chemmart is celebrating 15 years of this important partnership by giving away 15,000 free Symptom Diaries to help women better understand the signs and symptoms associated with ovarian cancer. TerryWhite Chemmart also aims to raise $150,000 across its network of pharmacies by the end of the year.

Humanitarian assistance after the Beirut port explosion

In early August 2020, a major explosion occurred in the port region of Beirut, Lebanon claiming more than 200 lives and leaving around 300,000 local residents without a home. Soon after the explosion, our Healthcare team received a call for help from a former colleague who now works with a major logistics company in the region, seeking emergency support for people who were injured and displaced by the disaster.

Our EBOS Healthcare Kingsgrove Warehouse team responded rapidly with seven pallets which were delivered directly to Beirut via a charter flight containing urgently needed medical supplies and handwritten messages of support.

BackTrack

Founded in 2006 by youth worker Bernie Shakeshaft, BackTrack delivers programs designed to help at-risk youth make meaningful connections, build job pathways and lead happier and healthier lives.

Based at Bernie’s farm in regional New South Wales, Paws Up is a life changing program run by BackTrack that pairs at-risk youth with dogs to teach them high jump and learn many other valuable skills in the process. Paws Up takes young people on the road and keeps them busy with the dogs and has been a significant contributing factor in the reduction of juvenile crime in Armidale. BackTrack has positively impacted the lives of more than 1000 young people and has since supported other communities set up similar programs.

Masterpet believes it’s important to give back to rural Australia, the home of our ingredients and where our food is made. Since 2018, we have donated Black Hawk food, pet necessities and veterinary costs for Paws Up dogs annually, while also providing official team wear for program participants.

LandSAR

Masterpet and Black Hawk are proud to partner with New Zealand Land Search and Rescue Inc. (LandSAR) as the official feeding partner for the organisation’s search and rescue dogs.

LandSAR is a national volunteer organisation providing land search and rescue services to the police and public of New Zealand. Trained LandSAR dogs use scent and tracking skills in many critical rescue and recovery missions, such as locating people missing in avalanches or lost in the wilderness. Black Hawk is proud to provide its specialised Working Dog formula to LandSAR to ensure the organisation’s working dogs have access to quality nutrition that will give them the energy they need to succeed in often challenging search and rescue environments. Each year, Black Hawk and Masterpet donate food and animal care products to LandSAR’s

EBOS Match Funding Program

charities supported through our match funding program since 2018

$45,326

contributed by employees to better health since 2018

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$13,081 contributed by employees to animal welfare since 2018

Community & Environment

24 wilderness and avalanche dogs, and provide puppy packs for all dogs bred for search and rescue training.

MALPA Young Doctors

MALPA is a charity organisation that seeks to address the inequality in health outcomes between Aboriginal and non-Aboriginal Australians and empower First Nations communities to take charge of their health and wellbeing.

One of the organisation’s primary initiatives is the Young Doctors program, which employs respected community members to teach traditional and contemporary methods of creating healthy communities to younger generations.

Over 15 weeks, grade four Aboriginal and non-Aboriginal school students participate in the program, which equips them with knowledge about a wide range of health topics, including nutrition, hygiene, health literacy, environmental health, well-being and identity. Importantly, the Young Doctors program is designed to empower young people to become health leaders among their peers and in their local communities.

The idea of children being ‘doctors’ is deeply embedded in Indigenous culture and life and this program brings an innovative, communitycentric approach to closing the gap in health and contributes toward reconciliation.

Since 2014, EBOS has been supporting the MALPA Young Doctors program by providing health packs, which are presented to students during the project graduation ceremonies. The packs include a range of essential healthcare items and empower these Young Doctors to take their learnings forward for the benefit of their local communities.

MALPA Young Doctors

1,400+ health packs distributed since 2014

17,000+ products donated since 2014

EBOS Group Limited Sustainability Report 2021

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Building an engaged, diverse and talented workforce with a focus on health, safety and wellbeing is key to our success.

We seek to attract and build a diverse and talented workforce and foster a culture of safety and wellbeing to support our people to lead healthy, balanced lives. By investing in their development , we provide employees with the skills and capabilities to deliver for our stakeholders.

We recognise and reward performance in a fair and equitable way, encouraging our people to strive for excellence in everything they do.

Our People

Our People

As a provider of essential services, EBOS is fortunate that our businesses have remained open and operational throughout the COVID-19 pandemic. It has been a challenging period, but our people have continued to play an integral role in servicing customers across New Zealand and Australia. Consequently, EBOS has not implemented any workforce reductions as a result of COVID-19.

EBOS employees are employed either under contract, awards or collective agreements. Across New Zealand and Australia, a number of collective agreements are in place. We seek to have constructive relationships with all unions that our employees choose to associate with. EBOS employees have the opportunity to become financial shareholders through the EBOS Employee Share Plan (ESP). Notably, our latest ESP invitation in 2021 was accepted by close to 60% of eligible employees.

Furthermore, in July 2021, the EBOS Board and Executive Leadership Team provided a one-off payment of $750 to all eligible employees as a way of saying thanks to everyone for their commitment and contribution to our business.

Employee Engagement Survey

As part of the EBOS People Strategy we are committed to listening to our people in order to help us build a diverse and inclusive culture where our people are engaged and aligned to our strategic plan.

A key focus area for FY22 will be creating better development opportunities for our people and leaders.

Celebrating our People

EBOS GEM Awards

The annual EBOS employee awards – the Great Efforts Matter (GEM) Awards – took on extra meaning in 2020 as we recognised the unwavering dedication of our people in the face of extraordinary circumstances.

Over the past 18 months, we have seen countless examples of our people going above and beyond to service our customers and it is these exceptional efforts that the GEM Awards celebrate.

While we weren’t able to convene in person to celebrate, we ran a virtual event to recognise our 2020 award recipients.

Our Heroes

In December 2020, EBOS released an internal publication ‘Our Heroes’ which highlighted the extraordinary efforts of our people in a year like no other.

The publication highlighted the experiences of a selection of EBOS employees who went over and above in continuing to service our customers and our communities, despite being faced with significant adversity and ever changing circumstances.

The Engagement Survey gives us good insight into what is working well and our areas of opportunity. Our consistent areas of strength include:

of employees believe EBOS is committed to safety

of employees know how their work contributes to the goals of the business

of employees are proud to work at EBOS

of employees believe that people from all backgrounds have equal opportunities to succeed in our business

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1 Our Heroes
Our Heroes
highlighting the extraordinary efforts
of our people in a year like no other
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EBOS Group Limited Sustainability Report 2021

Profile of our People in FY21

total employee headcount 3,746

44% participate in collective bargaining agreements

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* including casuals and
those on maximum or
Location 3,533 Contract fixed term contracts
permanent
72% Australia 94% permanent
28% New Zealand employees 6% temporary
76% full-time
24% part-time
Women
Age Gender employees
18% <30 years 59% women 52% full-time
52% 30 - 49 years 41% men employees
29% > or equal to 50 years are women
1% undisclosed
79% part-time
employees
are women
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Please refer to the ESG Data Summary for more data, including notes on defined terms and calculation methods.

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Equal Opportunities, Diversity and Inclusion – Measuring our progress
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43% 33% 37%
Share of women Share of women Share of women in
Board Members in senior other management
management positions
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Directly reporting to the CEO *excluding senior management, ‘management position’ is defined as those managers with direct reports.

Our People

Equal Opportunities, Diversity and Inclusion

In FY21, we implemented a series of new and refreshed workplace policies outlining our efforts to promote an inclusive workforce and providing our employees across EBOS with guidance on acceptable workplace behaviour. The new policies form the foundation of EBOS’ overarching Diversity and Inclusion Strategy, encompassing our management approaches to diversity and inclusion, recruitment and selection, and flexible working.

The intent of these policies is to ensure that EBOS continues to build a diverse and inclusive culture that is reflective of community expectations. With a workforce comprising nearly 60% women, we are already proud of our performance in this regard; nonetheless, we must continually strive to promote equal opportunities for people of all cultural, ethnic and religious backgrounds, and to increase diversity in our leadership teams.

Workplace Discrimination and Bullying Policy (UPDATED)

Updated to reflect current legislative requirements and clarify definitions including the definition of workplace participants
Outlines roles and responsibilities and a complaints procedure

Grievance and Complaints Procedure (UPDATED)

Updated to reflect current legislative requirements and clarify definitions including the definition of workplace participants
Procedures for making and investigating a grievance or complaint according to the circumstances

Recruitment and Selection Policy (NEW)

Outlines the principles and procedures for the attraction of talent and the recruitment and selection of employees
Designed to ensure that the recruitment process is consistent and offers equal opportunity in all circumstances

Flexible Working Policy (NEW)

Covers the requirements under the National Employment Standards in Australia and minimum obligations in New Zealand
Structured approach to requesting, reviewing and approving flexible work arrangements, including safety requirements

Workplace Gender Equality Policy (UPDATED)

Promotes gender equality (including equal remuneration) and removal of barriers to full and equal participation of women in the workforce (including in relation to family and caring responsibilities)

Diversity and Inclusion Policy (UPDATED)

Reflects our vision to create an environment that is safe, inclusive and is reflective of the communities in which we operate
Diversity in the workplace improves our ability to attract, retain, motivate and develop talent
Fosters workplace consultation between employers and employees

Health and Wellbeing Policy (UPDATED)

Updated to include Areas of Focus including providing Be Well From Anywhere program, access to annual flu vaccinations, access to wellness portal Life Matters, and providing mental health awareness training for leaders
Committed to building a diverse and inclusion culture that is free from bullying and harassment

Code of Ethics

Outlines standards of conduct and ethical behaviour, corporate compliance and good corporate governance
Includes a framework of standards by which the directors, employees and contractors of EBOS and its related companies are expected to conduct their professional lives

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EBOS Group Limited Sustainability Report 2021
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Worker Health & Safety

EBOS is committed to providing a safe and healthy work environment and also to actively promoting workplace health and wellbeing. This commitment extends to supporting a culture of healthy lifestyle choices.

Overview of workplace safety policies and procedures

Worker Health & Safety Policy

Ensures compliance with New Zealand and Australian health and safety laws, including measuring, monitoring and reporting on health and safety performance indicators.
Health and safety management systems sustain a culture of health and safety, ensuring management are responsible for the safety of their workers, delivering training based on identified needs, and promoting effective consultation and communication on health and safety matters.

Incident notification and investigation procedure

All work-related incidents resulting in (or with potential to result in) injury or ill-health of employees, contractors, visitors and members of the public must be logged and investigated via our dedicated Group-wide reporting system known as ‘Mango’.

Health & Wellbeing Program

Strives to encourage a healthier, engaged workforce through our Be Well from Anywhere wellness program with elements including health activities and initiatives throughout the year as well as a customized portal that includes information on physical and mental health accessible to all employees.
All EBOS employees in New Zealand and Australia have access to the EBOS Employee Assistance Program (EAP). The program provides free and confidential counselling services to assist with personal or work related issues that may impact employee health and wellbeing.

Alcohol, drugs and workplace safety

Employees and contractors are not permitted to undertake work while under the influence of alcohol, illegal substances or other substances of abuse.
Workplace safety co-ordinators have been appointed to facilitate the implementation of policies, procedures and assist with risk assessment and determination of suitable control measures.

Our People

Measuring our progress

At EBOS, we strive for continuous improvement in workplace safety. In FY21, we achieved reductions in the frequency rates of workplace injuries*:

*Please refer to the ESG Data Summary for data notes on defined terms and calculation methods.

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lost medical total workplace
time treatment recordable fatalities
injuries injuries injuries
↓6% ↓16% ↓13% 0
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Caring for essential workers during the pandemic

FY20 and FY21 have been dominated by the COVID-19 pandemic, the effects of which will continue to be felt for some time to come. Throughout the pandemic, contributions made by the majority of our workforce have been considered essential services. This means that it is all the more important to take special care of our teams’ safety and wellbeing. The EBOS Pandemic Response Team, comprising the CEO and other key executives, is responsible for providing guidance and support to all employees. We have also provided information and encouragement around receiving the COVID-19 vaccine.

In accordance with the advice and direction of local health authorities, we implemented various measures as required to keep our people safe and well

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General Working from Home (WFH) Critical sites
• Strict travel restrictions • Resources and equipment for • Restrictions on access to critical sites
home office to essential staff and contractors only
• Additional hygiene, health
monitoring, social distancing, and • Support for managing daily • Operating split shifts where
cleaning practices working life at home appropriate
• Specific protocols for managing • Online wellness portal • Contact tracing technology used
confirmed cases across a number of critical sites
• Risk assessment of all sites prior
• Personal safety messages and to returning to workplaces
advice on mental health and
wellbeing
• Installation of QR code check-in
at sites
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Wearable technology

EBOS has partnered with insurer iCare and technology company Kinetic to partake in a trial designed to help identify and mitigate ‘high-risk postures’ that can lead to injuries in the workplace. The trial saw 80 volunteers from our Onelink, Healthcare Logistics and Symbion businesses in NSW equipped with wearable technology designed to monitor their physical movements and postures at work over a period of six months. Over the course of the trial, each of the sites experienced a significant reduction in the number of daily ‘high-risk postures’. The learnings from this trial will help to embed better working habits that will contribute to an overall reduction in the number of musculo-skeletal injuries in the workplace.

EBOS Group Limited Sustainability Report 2021

Our People

EBOS Reconciliation Action Plan

Reconciliation is a journey of understanding to forge deeper connections between First Nations peoples and non-Indigenous Australians.

EBOS acknowledges the Traditional Owners of Country throughout Australia and recognises their continuing connection to land, waters and culture. We pay our respects to their cultures and to their Elders past, present and emerging.

Our first Reflect Reconciliation Action Plan (RAP) was designed to facilitate reconciliation at EBOS by fostering deeper understanding and appreciation of Australia’s Aboriginal and Torres Strait Islander peoples and cultures. It underpins EBOS’ growing commitment to building a more diverse and inclusive culture throughout our business across New Zealand and Australia.

We have consulted closely with Reconciliation Australia to define our own unique principals and vision for reconciliation and within the first year, we are proud to have achieved a significant number of our objectives. Some highlights include:

The unique artwork commissioned from Australian Football League (AFL) legend and acclaimed contemporary Aboriginal artist Gavin Wanganeen
Implementation of Welcome to Country and Acknowledgement of Country protocols
Celebrating NAIDOC Week with special events, including an interview with keynote speaker Marlee Silva, proud Gamilaroi and Dunghutti woman, author and host of the podcast series Always was, always will be our stories.
Celebrating National Reconciliation Week and hosting Isaiah Dawe, Founder and CEO of ID Know Yourself, a company that delivers a culturally focussed, trauma-informed mentoring program for Aboriginal young people within Out of Home Care and in contact with the juvenile justice system.

In our second Reflect RAP, EBOS will take the learnings from our first Reflect RAP and focus on outcomes that actively promote reconciliation in our business and our society. In particular, we will be focussed on how EBOS can better support career opportunities for First Nations peoples and work toward procuring more goods and services from Aboriginal and Torres Strait Islander suppliers.

Cultural Awareness Training for all leaders along with training on Behaviors of Inclusion for leaders

Founder and CEO of ID Know Yourself, Isaiah Dawe.

EBOS Group Limited Sustainability Report 2021

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Ensuring ethical and responsible behaviour and practices throughout our business.

Responsible business practices are implemented throughout our organisation in order to build and maintain trust with our stakeholders by ‘doing the right thing.’ We recognise the importance of legal compliance, ethical trading of products and services and upholding good corporate governance practices, including transparent corporate reporting.

Responsible business

Responsible business

Board of Directors

For corporate governance disclosures concerning the composition and workings of senior management and the Board of Directors, please refer to our Annual Report and Corporate Governance Statement which can be accessed online.

Business Ethics and our policies

The EBOS Code of Ethics (Code) guides the day-to-day work of our employees in order to consistently do the right thing.

Reporting ethical concerns

Willingness and ability to speak up when we feel something is wrong is integral to our culture of honesty and integrity and this is reflected in our Whistleblower Protection Policy. Anyone can report a concern in good faith without fear of retaliation. Our policy sets out how our people can make a report, including anonymously. We keep all reports confidential and if a whistleblower prefers to remain anonymous, we will respect their choice. Our leaders will act on reports made under the policy.

The Code is supplemented by more detailed policies addressing various policy areas.

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Policy areas EBOS policies and standard operating procedures
Rejecting Bribery and Corruption Code of Ethics
Anti-Bribery and Corruption Policy
Avoiding Conflicts of Interest Corporate Governance Code
Code of Ethics
Employment Recruitment and selection policy
• Our People Employee Assistance Program
Employment related privacy policy
Family domestic violence policy
Flexible working policy
Health and Wellbeing policy
Grievance and complaints procedure
Parental leave policy
Match Funding policy
Equal Opportunities, Diversity and Inclusion Diversity and inclusion policy
• Our People Workplace gender equality policy
Workplace discrimination, harassment and bullying policy
Reconciliation Action Plan
Information Security IT risk management policy
• Consumers & Patients
IT security management policy
Data centre management policy
Information security incident response plan
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EBOS Group Limited Sustainability Report 2021

Risk Management Framework

EBOS defines risk management as the identification, assessment and treatment of risks that have the potential to materially impact the Group’s operations, people, and reputation, the environment and communities in which the Group works, and the financial prospects of the Group.

EBOS’ risk management framework is tailored to its business, embedded largely within existing processes and aligned to our objectives, both short and longer term. Given the diversity of the Group’s operations, a wide range of risk factors have the potential to affect the achievement of business objectives.

EBOS has established the Audit and Risk Committee whose purpose is to, among other things, assist the Board in discharging its responsibility to exercise due care, diligence and skill in relation to identifying and monitoring material business risks. The functions of the Audit and Risk Committee are described in the Audit and Risk Committee Charter which is set out as Appendix B to the Corporate Governance Code which can be accessed online.

The management team reports to the Board and/or the Audit and Risk Committee on whether EBOS’ material business risks are being managed effectively and the Committee reviews EBOS’ risk management framework annually.

Board of Directors

1st line of defence

2nd line of defence

3rd line of defence

Front-line employees and Managers

Managers and front-line employees manage enterprise risks to our business on a daily basis.

Business Executives supported by corporate finance and legal

Our finance function coordinates an annual review of the Group’s risk exposure. This line of defence reports directly to the Board.

Board Audit & Risk Committee

Our Audit & Risk Committee independently assess the effectiveness of our overall risk management, including reviewing specific areas of the business under an internal audit program.

Responsible business

We have not identified any instances of material noncompliance with laws and/or regulations in the social and economic area and/or environmental laws and/or regulations during the reporting period.

Supply Chain Management

EBOS sources significant quantities of goods from thirdparty suppliers for distribution through our wholesale and distribution networks as well as our “own brand” retail businesses. Our supply chains are extensive and sometimes complex. In our Healthcare segment, we primarily source products from multinational pharmaceutical companies with manufacturing operations in Europe, the United States, India and other parts of Asia.

In general, risks of modern slavery in our supply chain are relatively low due to the highly regulated nature of the pharmaceutical and medical supplies industry. Nonetheless, we are aware of rare instances of human rights concerns involving suppliers with operations in developing markets. For example, in FY21, we became aware of credible allegations regarding labour rights violations by a third-party manufacturer from whom we purchased product through one of our suppliers. In accordance with our risk-based approach, we moved immediately to terminate supply of this product and ceased our relationship with this third-party manufacturer.

We also work with a wide range of service suppliers supporting our business operations, such as logistics and freight carriers, IT companies and contractors for construction, cleaning and other property management services.

Mitigating risks of Modern Slavery in our supply chain In October 2020, we released our first Group-wide Modern Slavery Statement, which refers to situations of exploitation including forced labour and child labour, in compliance with the Modern Slavery Act 2018. Although formulated in response to the Australian legislation, our statement applies to EBOS as a whole, including our operations in New Zealand. We have adopted a risk-based approach to guide us in developing our strategy to establishing appropriate due diligence and remediation processes, such as obtaining warranties from suppliers that the production and supply of their products does not contravene modern slavery laws and updating our standard form contracts to incorporate modern slavery clauses.

110,000+ 6,000+ product lines suppliers

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EBOS Group Limited Sustainability Report 2021

About this report

This report outlines EBOS’ ESG priorities, management approaches and performance for the financial year ended 30 June 2021.

Who is it for?

This report has been prepared with all stakeholders in mind including employees, customers, suppliers, investors, governments, regulators, charity partners and anyone else interested in EBOS’ ESG policies, practices and performance.

What does it cover?

This report provides information about EBOS’ operations, products and services in New Zealand and Australia. For a list of these corporate entities please refer to page 108-110 of our 2021 Annual Report.

References to FY20 and FY21 are for the financials years ending 30 June, unless otherwise stated.

Global Reporting Initiative

We have prepared this report with reference to GRI Standards. The Global Reporting Initiative (GRI) is a non-profit organisation that provides a comprehensive sustainability reporting framework, setting out principles and indicators by which organisations can measure and report on economic, environmental and social performance.

Please refer to our GRI content index on pages 46-47 for more information.

The content of this report also references other leading ESG standards and benchmarks, including:

Sustainability Accounting Standards Board (SASB)
The Task Force on Climate-related Financial Disclosures (TCFD)

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About this Report
43
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EBOS Group Limited Sustainability Report 2021

ESG Data summary

The scope of employment data in this report includes employees who are in a direct employment relationship with the Group or whose employment terms and conditions are under our direct management control. We report on environmental performance data for our sites in New Zealand and Australia over which we exercise operational control.

Profile of our People

#Employees1 Headcount	Permanent2 3,533	Temporary2 Total 213 3,746
Female	2,056	144 2,200
Male	1,477	69 1,546
Headcount	<30 years 667	30-49 years > or equal to 50 years 1,947 1,104	Undisclosed Total 28 3,746
Female	399	1,165 614	22 2,200
Male	268	782 490	6 1,546
	Full-time3	Part-time
Headcount	2,677	856
Female	1,379	677
Male	1,298	179

Health & Safety metrics*

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Reduction in frequency rate [4]
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Lost time injuries5	↓6%
Medical treatment injuries5	↓16%
Total recordable injuries5	↓13%

*FY21 metrics compared to FY20 metrics

Data notes

Employees are workers in an employment relationship with the Group.
Permanent employees include: Full time and part time employees. Temporary employees include: Casual and Max Term Contract employees.
Full-time employees work, on average, 38 hours per week. Part time employees receive the same entitlements as full-time employees on a pro rata basis, including paid leave entitlements.
Frequency rates measure the number of injuries per 1 million hours worked.
Lost time injuries are defined as workplace injuries that result in a loss of productive work time. Medical treatment injuries require prescribed medical treatment from a registered medical practitioner beyond the scope of normal first aid but giving rise to less than a full shift being lost from work. Total recordable injuries include lost time injuries, medical treatment injuries and restricted work injuries.

ESG Data summary

Environment

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Unit Group New Zealand Australia
NSW NT QLD SA TAS VIC WA
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Sites1	# sites 63 18 45 14 1 11 4 3 9 3
	GFA 000 sqm 256 75 181 90 2 27 14 7 29 13
Energy
Sites reporting this data	# sites 63 18 45 14 1 11 4 3 9 3
	GFA 000 sqm 256 75 181 90 2 27 14 7 29 13
Grid purchased electricity2	000 GJ 74.7 18.6 56.0 23.8 0.8 11.8 5.3 1.4 8.3 4.7
Solar power generation	# sites 3 0 3 1 0 1 1 0 0 0
	GFA 000 sqm 47 0 47 27 0 10 10 0 0 0
	000 GJ 2.5 0 2.5 0.4 0 1.4 0.6 0 0 0
Total energy	000 GJ 77.1 18.6 58.5 24.2 0.8 13.2 5.9 1.4 8.3 4.7
Grid purchased electricity per GFA	GJ/sqm 0.29 0.25 0.31 0.26 0.51 0.44 0.37 0.21 0.29 0.36
Greenhouse gas emissions
Scope 23	’000 TCO2e 12.6 0.6 12.0 5.3 0.1 2.7 0.6 0.1 2.3 0.9
Water
Sites reporting this data	# sites 12 6 6 1 0 1 1 0 1 2
	GFA 000 sqm 68 42 27 1 0 2 10 0 3 11
Water consumption	Mega litres 17 11 6 0.02 0 0.2 1 0 0.5 4

Data notes

The scope of this data includes all offices and warehouses in New Zealand and Australia.
Calculated with reference to electricity metering and billing data or monthly average estimates when this data is unavailable (<5%).
Scope 2 covers indirect emissions from purchased electricity calculated using the following location based emissions factors:

	New Zealand	NSW	NT	QLD	Australia SA TAS	VIC	WA
Grid emissions factor (kgCO2e/kWh)	0.11	0.81	0.62	0.81	0.43 0.17	0.98	0.68
Source	Ministry of Business, Innovation and			National Greenhouse		and
	Employment			Energy	Reporting (NGER)

National Greenhouse and Energy Reporting (NGER)

EBOS Group Limited Sustainability Report 2021

GRI Content Index 2021

This report references Global Reporting Initiative (GRI) Standards as identified in the following table. GRI is an independent, international organisation offering the world’s most widely used standards for sustainability reporting.

Energy Disclosures	Energy Disclosures
GRI 103: Management Approach 2016
103-1 Disclosure of management approach	Our ESG Program p.8 ESG Governance p.12 Community & Environment – Energy Road Map p.26
103-2 The management approach and its components
103-3 Evaluation of the management approach
GRI 302: Energy 2016
302-1 Energy consumption within the organization	Community & Environment – Energy Road Map p.26 ESG Data Summary p.44
302-3 Energy intensity
Emissions Disclosures
GRI 103: Management Approach 2016
103-1 Disclosure of management approach	Our ESG Program p.8 ESG Governance p.12 Community & Environment – Taking action on Climate Change p.25; Energy Road Map p.26
103-2 The management approach and its components
103-3 Evaluation of the management approach
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions	Community & Environment – Energy Road Map p.26 ESG Data Summary p.44
305-2 Indirect (Scope 2) GHG emissions

GRI Content Index 2021

Diversity and Equal Opportunity Disclosures	Diversity and Equal Opportunity Disclosures
GRI 103: Management Approach 2016
103-1 Disclosure of management approach	Our ESG Program p.8 ESG Governance p.12 Our People – Equal Opportunities, Diversity & Inclusion p.33
103-2 The management approach and its components
103-3 Evaluation of the management approach
GRI 405: Diversity & Equal Opportunity 2016
405-1 Percentage of individuals on the board an employees, by diversity categories	Profle of our People p.32 ESG Data Summary p.44 The board comprises three women and four men. All board members are aged over 50 years.
Customer Health and Safety Disclosures
GRI 103: Management Approach 2016
103-1 Disclosure of management approach	Our ESG Program p.8 ESG Governance p.12 Consumers & Patients – Upholding our Quality Promise p.21
103-2 The management approach and its components
103-3 Evaluation of the management approach
GRI 416: Customer Health and Safety 2016
416-1 Assessment of the health and safety impacts of product and service categories	There were zero incidents of non-compliance with regulations resulting in a fne or penalty or warning during the reporting period. Non-compliance with our internal voluntary codes for quality and safety does occur occasionally. Our management approach to such incidents has been outlined in the report.

Sustainability Report Version 1. This report was last updated on 17 August 2021.

EBOS Group Limited Sustainability Report 2021

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www.ebosgroup.com

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EBOS GROUP LIMITED — Environmental & Social Information 2021

64813_rns_2021-08-17_36a0671f-75e5-4fee-9c75-e4726f0eac81.pdf

Sustainability Report 2021

Contents

Introduction

CEO and Chair Message

It is with great pleasure that we present EBOS’ inaugural Sustainability Report.

Core values and value creation

Lessons from the pandemic

Our vision for the future

About EBOS

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

FY21 Highlights

Our business

Healthcare

Community Pharmacy

Institutional Healthcare

Contract Logistics

Our ESG Program

Supporting Global Goals

The result

• Core business offering

• Social and environmental role

• Firm foundations

As a market leading healthcare and animal care company, we know that our stakeholders and the communities we serve rely on us.

ESG Governance

The mandate for delivery on our ESG Program comes from the very top.

Health & Animal Care Partners

Delivering essential infrastructure for health

Community Service Obligation

National Immunisation Program

FY21 Highlights: EBOS partnerships for essential care

Partnership for National COVID-19 response in New Zealand

Responding to medicine supply shortages as they arise

Setting the benchmark for pharmacist education

Implementing robust systems

Business continuity and risk management

Resilient by design

Information management systems

EBOS partnerships for enhancing resilience

Responding to crisis

No pet should suffer

Improving our reach into remote areas

Consumers & Patients

Upholding our quality promise

Exceptional service and consumer loyalty

Transparency and accountability

Elements of our management approach to quality

Compliance

Preventative Action

Traceability

Security

Logistics

Recall

Good for people, pets and the environment

Managing social and environmental impacts of our products

Software solutions: HPS ClinPod® mobile clinical pharmacy application

TerryWhite Chemmart snapshot

HPS medication management services in correctional centres

Shared responsibility and circular economy

Masterpet progress on packaging

Community & Environment

Taking action on Climate Change

Moving towards Carbon Neutrality

Working to enhance climate resilience through direct and indirect action

Measuring our progress

EBOS Energy Road Map

Key sites

Investments in roof-top solar systems

Partnerships to restore native forests

Atiu Creek, NZ

Whitehurst, Victoria

Reaching out to make a difference

Ovarian Cancer Australia

Humanitarian assistance after the Beirut port explosion

BackTrack

LandSAR

EBOS Match Funding Program

MALPA Young Doctors

EBOS GROUP LIMITED Environmental & Social Information 2021