Sustainability Statement

Sustainability Statement – Greenhous Group Holdings Limited (GGHL)

At Greenhous Group, we are dedicated to advancing our sustainability goals and achieving net zero emissions by 2050 (SMART target). Our commitment to environmental stewardship is evident through our comprehensive action plans and ongoing initiatives aimed at reducing our carbon footprint via energy and fuel efficiency, investing in renewable energy, and transitioning to greener technologies.

Our Plansin Working Towards Net Zero

We are committed to achieving net zero emissions by setting ambitious carbon reduction targets for Scope 1 and Scope 2 emissions. We are working towards scope 3 reporting.

- Setting Carbon Reduction Targets:

We are establishing clear and SMART targetsfor reducing our greenhouse gas emissions, supported by detailed action plans to ensure we meet these goals.

- Tracking and Reporting Progress:

Our progress will be monitored through regular updates and performance reviews, ensuring transparency and accountability.

Solar Energy – Plans

Our renewable energy strategy focuses on scaling up investments in solar energy:

- Renewable Energy Investment:

We are increasing our investment in solar energy across suitable sites, particularly within our Fleet and Retail divisions. This initiative is spearheaded by our dedicated sustainability team, aiming to harness solar power to meet a significant portion of our energy needs

. - Infrastructure Development:

We are committed to developing the necessary infrastructure to support our solar energy projects, ensuring they are efficient and sustainable in the long term.

Reducing Carbon Footprint – Plans

Reducing our carbon footprint is a critical component of our sustainability strategy:

-Energy Efficiency:

We are implementing energy-efficient practices across all operations, including optimizing heating, ventilation, and lighting systems. For example, we are investing in energy-efficient HVAC systems and natural ventilation designs to reduce energy consumption.

- Employee Training:

We are conducting comprehensive training programsto educate our workforce on sustainable and energy efficient practices and the importance of reducing energy consumption.

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Electric Vehicles - Plans

Transitioning to electric delivery vehicles is a key part of our strategy to reduce emissions from our logistics operations:

Company Vehicles:

We are committed to the target that all of our company cars will be fully electric or appropriate hybrid options by 2030

- Fleet Electrification:

We are gradually replacing our conventional delivery vehicles with electric or Hybrid options. Thistransition is planned to be completed by 2035.

- Supporting Infrastructure:

To support our electric fleet, we are investing in the necessary charging infrastructure for all our facilities. This includes fast-charging stations to ensure efficient vehicle turnaround times.

- Parts Management Plan:

We are also developing a comprehensive parts management plan to ensure the availability and maintenance of electric vehicle components, minimizing downtime and ensuring smooth operations.

Paperless Environment – Plans

 We are committed to creating a paperless environment to furtherreduce our environmental impact:

- Digital Documentation:

Our Proof of Delivery (POD), Customer Return Note (CRN), and Warehouse Return Note (WRN) processes have been digitised, significantly reducing the use of paper documentation.

- Automated Systems:

We are implementing automated systemsfor document management and record-keeping, enhancing efficiency and reducing paper waste. - DMS System – We are in the process of building a DMS system which will include a fully digitalised workshop loading and unified CRM system. Bringing alignment within departments, efficiency in the operation and support our goal of being 100% paperless.

Climate Risk Management

In response to the identified climate risks, we have implemented comprehensive mitigation strategies to ensure resilience and sustainability in our operations:

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Adaptation

Physical Risks

- Extreme Weather:

We recognize the impact of extreme weather on our operations and supply chain. To mitigate these risks, we are investing in (solar PV) canopy covers for outdoor vehicle storage and reviewing our insurance arrangements to cover potential damage.

- Heat Stress:

To protect our employees, we offer contingent work arrangements during heat waves and invest in HVAC systems and natural ventilation solutions to maintain a safe and comfortable working environment

. - Precipitation:

Increased rainfall poses risks such as flooding and landslides. We are increasing the frequency of maintenance checks on vehicles, investing in canopy covers, and considering rainwater harvesting systems to enhance our resilience.

- Flood and Wildfire Risks:

We are evaluating the relocation of operations from high-risk zones, investing in sump pumps and drainage systems, and creating fire-resistant landscaping to minimize these risks.

Transition Risks

- Carbon Pricing:

We are developing an internal carbon pricing strategy to drive emissions reductions and account for future government-imposed carbon pricing.

- Technology and Supply Chain:

To mitigate risks related to technology and supply chain, we are diversifying our product portfolio to include electric and hybrid vehicles and ensuring our supply chain is resilient by reducing dependencies on high-carbon materials.

Opportunities

- Energy Savings:

Implementing new technologies to reduce energy costs and greenhouse gas emissions.

- New Business: Developing products and services that support sustainable transport.

- Reputation: Building partnerships with customers who prioritize ESG performance.

- Renewable Energy Generation: Generating renewable electricity on-site.

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- Resilience:

Strengthening the resilience of our sites and supply chain to adapt to climate change Impacts by:

• Site Flood risk surveys

• Raised / protected electrical Systems

• Improved drainage

• Improved ventilation & insulation

Thorough Due Diligence for the onboarding of suppliers to include Environmental management systems & Assessment of Business Continuity in addition to normal due diligence – these are reviewed annually and ratings given.

Look to introduce climate-related questions at contract renewals and for tender evaluations.