2020 SUSTAINABILITY REPORT

Health and Happiness (H&H) International Holdings Limited

健合(H&H)國際控股有限公司 (Incorporated in the Cayman Islands with limited liability)

(於開曼群島註冊成立之有限公司) (Stock Code 1112) 股份代號： 2 2020 SUSTAINABILITY REPORT H&H GROUP IT'S IN EVERYTHING WEDO.IT'S INEVERYTHING HEALTH ANDHAPPINESS. IT'S INOUREVERY DAY. IT'S INOURNAME. H&H STANDS FOR PEOPLE AND CULTURE KIRIA

PACKAGING AND LABELLING MARCIA 4 2020 SUSTAINABILITY REPORT H&H GROUP ABOUT fairness, and supporting goodgovernance. honouringhuman rightsand on theplanet, of good health,reducingour footprint the story our foursustainabilityimpact areas:advancing performance throughoutthe valuechainagainst The content isorganisedto reportourrespective to as‘material topics’ throughoutthis Report. most importantto ourstakeholder group,referred The processidentified23 topics thatwerethe 2020 calendaryearandverified by theBoard. internal andexternal stakeholders duringthe sustainability issues,involving engagementwith the findingsofourassessmentmaterial 2020). Thereportingstructureisalignedto 2020to 31December calendar year(i.e.1January The datapresented inReportthisisforthe2020 processes. integrating thebusinessinto H&Hsystems and scope ofthisReportdueto thetimelinesfor however thisbrandhasnotbeenincluded inthe Care (PNC)brandSolidGoldinDecember2020, TheGroupacquiredPetBeast. Nutritionand providers suchascreative Noisy service agency facilities, corporate offices,andwholly-owned manufacturing, warehouseanddistribution Skincare, SwisseMeandCBII–associated AureliaSwisse, Dodie,GoodGoût, Probiotic operations, includingourbrands–Biostime, The content ofthisReportcovers H&H’sglobal concurrently to thisReporton8April2021. whichwasreleased in our2020AnnualReport, performance ofthesubsidiariescanbefound Reporting onothermatters specific to financial governance areasrelevantto ourstakeholders. performance intheenvironmental, socialand overview ofourvision,strategic approach,and This Reportprovides acomprehensive REPORTING CONTENT AND PERIOD Exchange since 2010. (HKEx) Group hasbeenlisted ontheHongKong Stock headquartered inHongKong China,the SAR, Cayman Islandswithlimited liability.Globally or the“Group”), anentityincorporated inthe International HoldingsLimited (“H&HGroup” This Reportcovers HealthandHappiness(H&H) THIS REPORT

our disclosures. provides additionalcredibility andconfidence to Restatements). We hopethisexternal assurance 2018 and2019reports(please seeAppendix5– have amendedtwo priordisclosures fromour we aresult, but robustreportingprocesses.As have inourreportingas wellasdevelop agile allowed usto strengthentheconfidence we statement here).Theprocessof assurancehas issued anassurancestatement (seeassurance Standardv3(2018) and 1000Assurance the AA assurance onthisReportinaccordance with appointed to performindependentlimited CECEP Company (HK)Advisory Limited was engagement andReportcontent andformat. stakeholderadvice onmateriality assessment, The H&HGroupsoughtexternal professional . please visitwww.globalreporting.org herein. For furtherinformationabouttheGRI, position onthereliabilityofinformationreported the contents nordoesittake ofthisReport, a TheGRIhasnotverifiedincluded inthisReport. Appendix foracomplete listingofGRIdisclosures Please referto ourDisclosureIndexlisted inthe HKEx. “Guide”) oftheMainBoardListing Rulesofthe Social andGovernance ReportingGuide(the ‘Core option’ andAppendix27:Environmental, the GlobalReportingInitiative (GRI) Standards: This Reporthasbeenpreparedinaccordance with STANDARDSEXTERNAL REPORTING PRINCIPLES AND Sustainability Reports,pleasevisithh.global. fifth Group-wideedition. To seeourprevious non-financial performancesince2016.Thisisthe The H&HGrouphasreported annuallyonour RECENT REPORT REPORTING CYCLE AND MOST material topic. 90 forthedefinitionsandboundarieseach ourtopics, andpage processes foridentifying See page24formoreinformationonour

GET INTOUCH Email: [email protected] United Kingdom W60LE, 100 CambridgeGrove, London, Suite 1.4,TheAircraft Factory, Ms JessieBroadway Sustainability team: practices. Please reach outto ourGroup journey to more sustainable business the contents ofthisReport andH&H’s We are happy to talk to you about AREAS OF FOCUS FOCUS OF AREAS Our product categories brands Our BOARD OUR FROM NOTE CEO OUR FROM NOTE Membership and associations Membership are we Who H&H OF WORLD THE TO WELCOME ABOUT THIS REPORT 6–Assurance Appendix 5 – Restatements Appendix Index 4–Disclosure Appendix 3–  Appendix topics 2– Material Appendix methodology our about 1– A note Appendix APPENDIX recovery Resource Marketing Distribution Packaging Management Quality Processing and manufacturing sourcing material Raw Innovation VALUE CHAIN OUR Tax Transparency Statement Governance fairness and rights human Honouring planet the on footprint Our health good of story The OUR SUSTAINABILITY IMPACT AREAS commitments Sustainability at H&H Sustainability CONTENTS 80 82

54 83

and standards regulators category Product

94 04 08 06 88 88 60 20 28 10 100 100 46 64 38 86 30 58 70 22 78 95 92 91 26 16 18 14 12 74

6 2020 SUSTAINABILITY REPORT H&H GROUP further aligned. further aligned. business units andproductcategories hasbecome and, importantly, theway inwhich we reviewour released together onthesame day (8April2021), for the2020reportingperiod, theReportswere business. Whilstthedocuments remainseparate as weshiftto astakeholder mindsetofdoing providing valuableinsightsto allourstakeholders aligning withourAnnualFinancialReporting, Our SustainabilityReportingisprogressively performance. and recognition ofourimproved sustainability pleasedandproudoftheseratings are very (HKQAA) ratingof‘A’ forESGperformance.We received aHongKong Agency QualityAssurance from ‘BBB’to ‘A’. Duringthesamemonth,wealso Social andGovernance (ESG) ratingwasupgraded In September 2020,ourMSCIEnvironmental, prioritisation ofhealthandhappiness. are well-placedto meetconsumers’ adapted We alsofeelcertainthatourproductcategories and create sharedvalueinamoreconscious way. is enablingusto make better businessdecisions am pleasedto say thatourincreasedawareness 2020 cemented thisnotionfurtherforus,andI reportofourbeliefinsharedvalue. last year’s progress onoursustainabilityagenda.Ispoke in ‘bottom-up’ forcesthathave facilitated stronger have beenconscious ofboththe‘top-down’ and way ofdoingbusiness, butover thepastyearwe H&H’s purposealignsnaturallywitharesponsible outcomes forthehealthofpeopleandplanet. working together to create andsupportpositive has highlighted theimportanceofadaptabilityand business andtheretailsector, itwould behow it learning –fromthepastyear, asitrelates to On reflection,ifIcanseea‘silver lining’–and to oursustainabilitytargetsandpractices. Throughout thisperiod,H&Hremainedcommitted future goalsandways ofworking andliving. to ourpriorities, re-thinkand,inmany casesmodify, individuals navigating unchartered waters; wehad saw governments, companies, communities and challenging year. TheglobalCOVID-19 pandemic and 2020wasanextraordinary Without adoubt, NOTE FROMOURCEO to improve ourresponsible businessmodel. putting inplace plansandoperationaladjustments completing businessimpact self-assessments and teams aroundtheworld madegreatprogressin to achieve BCorp certification.In2020,our Corp andareontrackforour2025commitment organisations ontheirjourney to becoming aB We have engaged the BLabteam thatsupports our brands,entities,andregions. policies andprocedures(wherepossible)across performance reviews,andharmonisestandards, Board level, incorporate ESGinto allexecutive also seenusincreasefemalerepresentationat Governance acrossourmaterial topics has shareholder engagementonthistopic. Elevating and Fairness) andhave increasedBoardand on thePlanetandHonouringHumanRights our existingareasofGoodHealth,OurFootprint include agreater focusonGovernance (alongside We have evolved oursustainabilityapproachto stakeholders, society,andtheplanet. long-term businessgrowth thatbenefitsallour 23 priorityareaswhichwillsupportusto achieve conjunction withourBoardofDirectors, identifying and aligningonourmaterial topics. We didthisin In 2020werevisited theprocessofidentifying analysis to examineotherindicationsofprogress. periods. Insuchcases,wehave completed further inconsistencies inmakingcomparisons to previous sustainability, however ithaspresented someminor reflection ofthebusiness’sunderstanding of ourown datacollection whichisapositive performance. We continue to improve theintegrity the topics anddetailonwhichweevaluate our From areportingperspective, wearebroadening Solid GoldPet. growth pillarwiththestrategic acquisitionof also ableto invest inourfutureandcreate anew moves alreadyinmotion,andthisway, wewere The pandemicaccelerated someofourstrategic to deliver positive revenue andnetprofitgrowth. in takingadvantageofopportunities,enablingus disciplined inprioritisingourinitiatives andagile through theturbulenceof2020wewere The AnnualFinancialReportillustrates that throughout year madeitunrealisticto compare data such members working fromtheirhomes forextended periods however the unprecedented scenarioofhaving many team decrease inwaste to landfillandwater consumption, supply operations,wewere ableto monitor asignificant our waste andemissions.For ourmanufacturingand A numberofourtargetsfor2020centered ondecreasing for over 80%ofourelectricityconsumption. renewable electricityforouroperationalsites thataccount now providing thebenchmarkandleadingway for and produces450,000kWhofenergyperyear. Itis on ourfacilityinGuangzhou,Chinawhichcovers 4,200m was theinstallationofaphotovoltaic solarpanelfarm energy. Oneoftheexciting energyprojectsfrom2019 our operationsin2020werepowered by renewable in 2019to commit to renewableenergy,over 85%of I ampleasedto say thatfollowing my announcement ingredients. the ecosystems associated withourmostcritical raw also doubledourcontribution to theprotection of and socialimpactofourproductsfrominitiation.We important processofunderstandingtheenvironmental our innovation processandwillcontinue to embedthe Raw Material SourcingPolicy (developed in2019)into reached someimportantmilestones. We integrated our From anenvironmental perspective, wehave also period forourlocalcharitypartners. walking challengeto collectively raisefundsina24-hour our World Community Day inNovember, united througha 2,000 team membersacrossourregionsparticipated in over US$500,000viatheH&HFoundation. Morethan initiatives andby thecloseof2020raisedandinvested we reachedmorethanonemillionpeoplewithhealth in theglobalCallto Action. Duringthepastfewyears, World HealthOrganization(WHO) Code andparticipated Marketing alignedto ofBreastMilkSubstitutes policy the health challenges.We alsolaunchedourResponsible the riskfactors associated withthelargestpreventable launch five newinitiatives that contribute to reducing consumer healthoutcomes andmetourcommitment to our R&Dfocusto developing productsthatdeliver strong suffering. Inlinewithourmaterial topics, wereturned made duringtheyearto supportthosemostat-risk and extended farbeyondourfinancialandproductdonations Our contribution to thehealthofcommunity 2

together in2021. to deliveringand lookforward furtherprogress We aregrateful forourteam andbusinesspartners GOAL OFCREATING SHAREDVALUE. ON OURSUSTAINABILITY ANDEND JOURNEY STAKEHOLDERS –ARECORE TO DELIVERING TEAM, STRATEGIC BUSINESS PARTNERS AND OUR ‘ONE BIGTEAM’ –ENCOMPASSING OUR had insuchayearas2020. the united effortthatistakes to achieve thesuccesses we Finally, Iwould like to take thisopportunityto reflecton boosting andhealth-related products. behaviour, particularlythegrowing appetite forimmunity- pandemic hastriggeredinconsumer demandand arising fromthepermanentchangesthatCOVID-19 Over thelongerterm, weseeincredibleopportunities decisions andprocesses. aspectofoursupply chainandfacilitatingbetter of every must remaincentralto better understandingtheimpacts society andtheenvironment. Ourfootprint ontheplanet nutrition andwellnesswhilstcontributing positively to to realisingourvisionto beagloballeaderinpremium wemove intoAs 2021,weremaincommitted forward reduce to maintainourcarbonneutralstatus. We continue to offsettheemissionswecan’t immediately reduction inwaste to landfillin2020, compared with2019. we hada5%reductioninwater consumption and20% to previousyears.Intheareasthatwecould measure, as water consumption, electricityuseandlandfillwaste CEO GARNIER LAETITIA

8 2020 SUSTAINABILITY REPORT H&H GROUP input ontheimplementationandmonitoring ofsustainabilityinitiatives. In 2021,wewillcontinue engagement andfocusacrossourfourimpactareasprovide even greater limited impactonoursupplychainthroughouttheCOVID-19 pandemic. the demonstrated by this was this and risks these to resilient be to ability in our confidence givesto Report identified topics material the of management believe We continuity. busines for ability our year of‘unprecedented times’andweseerisingsocialenvironmental risksgloballythatimpact One of the key values within H&H is to be brave, and our aspirations certainly reflect this. 2020 was the progress intheleadupto our2025goalofbecoming aBCorp. to thecontinuedgreat stridestheGrouphasmadeacrossallimpactareasin2020,andlookforward and werepresented anoverview ofperformancepriorto We thereleaseofthisReport. recognise the We received amonthlyupdate onperformanceacrossourmaterial topics fromtheSustainabilityteam refinement of topic scope anddefinitions,makingtheoutcomes clearer. most material topics and their accompanying definitions. We then provided feedback on categorisation, Throughout 2020 we reviewed the results of our stakeholder interviews and analysis that identified the doing whatwedowellnow, butalsohoneinonareaswhichcan bringsustainablegrowth. their interconnectedness allows usto determine key areasoffocus–to ensureourabilityto continue as interconnected andassuch,welookattheseintotality. Evaluating thesefourimpactareasand We seeourfourimpactareasofgoodhealth,humanrights,environmental andgovernance footprint, also contribute to aprosperoussocietyinwhichwearecorporate citizen. value. We understandthiswillnotonlyprotect thelongevityofcompany foryearsto come, but have been important foundations from which to build – to the identification of opportunities of shared The Board supports the transition from sustainability governance and aligned philanthropy – which of progress. sustainability strategy to withclearimpactmilestones nourishpeopleandtheplanet, andmonitoring proven to scientifically probiotic, achildren's elevate immunity.We areproudto championthatheritageandexpanditthroughacomprehensive product, first our through infants of wellbeing and The H&HGroupwasfoundedwithasocialpurpose–anambitionto make animpactonthehealth NOTE FROMOURBOARD CHAIRMAN LUO FEI

• • • • • In 2020we: FOR SUSTAINABILITY GOVERNANCE. THE BOARD ULTIMATE HAS RESPONSIBILITY communicate to theirteams onsustainability matters. can improve. Theyalsoraiseconcerns, drive initiatives and sustainability challengesand develop ideasonhow we Team membersdedicate timeto learnaboutour SUSTAINABILITY STORY ANDIMPACT AREAS. CONTRIBUTEALL TEAMMEMBERSARERESPONSIBLEFOR TO THINKINGABOUTHOWCAN THEY OUR • • In 2020we: MONITORS PROGRESS ONOURSUSTAINABILITY PERFORMANCE. THE SUSTAINABILITY TEAMCONDUCTS MATERIALITY SETSTHESUSTAINABILITY ASSESSMENTS, STRATEGY AND • • • SOCIAL ANDGOVERNANCE GOALS ANDOBJECTIVES. ENVIRONMENTAL, TEAMMANAGESTHE EXECUTIVE BUSINESSPERFORMANCE INLINEWITHOURFINANCIAL, conflict ofinterest questionnaire. all Boardmemberscomplete anannual and governance inallBoardmeetings dedicated timeto sustainabilityperformance increased oversight ofsustainabilitystrategy validation oftopics increased engagementonmateriality and Board maintained monthlysustainabilityupdates to conducted atleastoneself-assessment inallfour ofourregions. usingtheBImpactAssessment identified opportunitiesforsharedvalueacrossthegroup, known asournourishingpeopleandtheplanetstrategy meet atleastquarterly withtheSustainabilityteam. In 2021thisperformancewillbetiedto theirfinancialincentive plansandeachseniorleaderwillberequired to Each seniorleaderalsohasperiodicmeetingswiththeSustainabilityteam to monitor progressthroughouttheyear. reviewed aspartoftheirannualperformancereviews. All seniorleadershave specificsustainability key performanceindicators (KPIs)setatthebeginningofyearand SUSTAINABILITY SUSTAINABILITY TEAM EXECUTIVE TEAM EXECUTIVE ALL TEAM BOARD • • • In 2020we: CFO Executive Director Mr. Wang Yidong(Jason) Non-executive Director Independent YinChing Mrs. LokLau Chairman Executive Director Mr. LuoFei Non-executive Director Independent Mr. Tan Wee Seng have setregionalKPIsand targets. held five sustainability workshops andtrainingsessions had morethan179Sustainability Champions GOVERNANCE

Director Non-executive Dr. ZhangWenhui Director Non-executive Mr. LuoYun Non-executive Director Independent Mr. Wang Can CEO Executive Director Garnier Mrs. Laetitia

10 2020 SUSTAINABILITY REPORT H&H GROUP QUOTE TO POTENTIAL GOHERE. QUOTE TO GO POTENTIAL QUOTE TO POTENTIAL GOHERE. HERE. POTENTIALHERE. QUOTE TO GOHERE COMMUNICATIONS MOON

H&H FAMILY LUNA TO THEWORLD WELCOME OF H&H 01

12 2020 SUSTAINABILITY REPORT H&H GROUP 68% 66% 34% 31% 1% INNER CIRCLE BREAKS DOWN OUR TEAM MEMBERS BY GENDER BY MEMBERS TEAM OUR DOWN BREAKS CIRCLE INNER GROUP AGE BY MEMBERS TEAM OUR DOWN BREAKS CIRCLE OUTER contributing positively to theneedsofsocietyandplanet. and make millionsofpeoplehealthierandhappier, while We aredynamicandambitiousinourmissionto inspirewellness OF H&H TO THEWORLD WELCOME Male Aged under30 NUTRITION AND WELLNESS PROVIDER. WELLNESS AND NUTRITION FAMILY PREMIUM AGLOBAL IS GROUP H&H MANAGEMENT Female NON- 63% 71% 71% 68% 63% Aged 30-50 TOTAL TEAM EXECUTIVE 3,431 MEMBERS Aged over 50 MANAGEMENT 4% 27% 37% 37% 2% 3% 94% 49% 51% 3% France. Our majorH&HGroupResearchandDevelopment (R&D) Centres arelocated inSwitzerland, Ireland,Chinaand Indonesia, Switzerland, France, Italy,theNetherlands,Ireland,United KingdomandtheUnited States. plus team membersarelocated across13countries –Australia, NewZealand, Greater China,Singapore,India, Globally headquartered inHongKong Chinaandlisted ontheHongKong SAR, Stock Exchange our3,400- (HKEx), ARE WE WHERE 12.02% 11.24% AUSTRALIA AND NEW ZEALAND Note: China’sthree yearstandard employment contract system isincluded aspermanent forthepurposesofreporting giventhisisthestandard system. 5 SITES #258 Permanent employment USA North America 88.76% 87.98%

7.58% (EXL. MAINLAND CHINA) MAINLAND (EXL. Europe 3 SITES #60 IA SI A Temporary/contract Netherl Ireland

F 92.42% 100% r anc Asia (exl.MainlandChina)Asia UK ands e EMPLOYMENT TYPE EMPLOYMENT 2.87% 7.79% It S witz al EUROPE 8 SITES #244 y erl and 92.21% 97.13% India Full timeemployment Mainland China 12.50% NORTH AMERICA Mainl Thailand Hong K Singapor 1 SITE #16 and China Malaysia ong SAR,China Australia andNewZealand 87.50% 100% e Indonesia Part timeemployment 0.21% MAINLAND CHINA MAINLAND 81 SITES #2847 New Z Austr eal 99.79% 100% alia and 14 2020 SUSTAINABILITY REPORT H&H GROUP INITIATIVES AND EXTERNAL ASSOCIATIONS CLIMATE IN WHICH WE OPERATE. WE WHICH IN CLIMATE ECONOMIC AND SOCIAL THE TO ENHANCE ABILITY THE HAS MULTINATIONAL COMPANY THAT A AS RESPONSIBILITY OUR OF AWARENESS AN WITH THIS DO WE ADVOCACY. BROADER OR OPERATIONS INNOVATION, SCIENCE, IN BE IT –WHETHER COLLABORATION FOR OPPORTUNITIES SEE OR REQUIRE CERTIFICATION, ORCERTAIN TOPICS, VALUE WITHIN SHARED SEE WHEREMEMBERSHIPS WE ASSOCIATIONS HOLD AND VARIOUS WITH ENGAGE WE 16 2020 SUSTAINABILITY REPORT H&H GROUP in areasofpoverty inChina. particularly supporting withhealthscreening andtreatment Mother andChildworks to reduceinequalities inhealthcare healthier communities. BiostimeChinaFoundation for three pillarsofmind,movement andnutritionto promote charity organisationsto runprogramsfocusingonthe The H&HFoundation works withlocalandinternational engaging to external consumers, clients. andalsoservices and advertising keeps agency, ourbrandsfreshand communications ourintegrated,Noisy Beast, full-service society andtheenvironment. for opportunitiesto innovate andcontribute positively to team. Inlinewithourmission,we areconstantly looking digital technology. Impactinvesting istop-of-mind forour personalised nutrition,women/pregnancy nutritionand lifestylenutrition, minerals andsupplements(VHMS), care, probiotics,skinhairvitamins,herbals, growth. Key areasincludeinfantformula,baby industry that arestrivingto disruptandoutperformindustry health andwellnesssector by partnering withbusinesses focuses onuniqueanddifferentiated businessesacrossthe accelerating newideasforahealthierfuture.Thefund worldwide inhealthandwellnessisdedicated to businesses to gainaccessto emergingtechnologies Our NewH advice fromqualifiedhealthprofessionals. and retailersto accessproductinformationandgeneral Our Mama100platformprovides achannelforconsumers advancements ininfantandmaternal nutritionandhealth. Switzerland andChinacampuses)strives forscientific Nutrition andCare(throughthework performedatits Beyond ourconsumer brandR&D, BiostimeInstitute for various ages,theelderlyandeven extends to ourpets. health, to babiesandinfants,children,teenagers, adultsof across alllifestages,frompreconception andpregnancy Our productrangewithinthesebrandsreachconsumers BRANDS OUR WELLNESS SOLUTIONS WELLNESS BACKED BY SCIENCE. AND NUTRITION –PROVIDE GOLD PROBIOTIC CBII AND SOLID SKINCARE, GOÛT, GOOD AURELIA DODIE, BIOSTIME, –SWISSE, BRANDS PREMIUM SEVEN OUR 2 corporate venture fundinvests ininnovative

COMMUNICATIONS ADVERTISING AND AGENCY COMMUNITY SUPPORTCOMMUNITY FOUNDATIONS

ADULT BRANDS NUTRITIONANDCARE BABY BRANDS NUTRITIONANDCARE PET NUTRITION AND CARE BRANDS PET NUTRITIONANDCARE NEWH 2 CORPORATE VENTURES SCIENCE ANDINNOVATION PARTNERS ENGAGEMENT CONSUMER

18 2020 SUSTAINABILITY REPORT H&H GROUP each product category represented in2020. each product category reported thepercentage ofrevenue that stock keeping units(SKUs). We have also design orformulationas opposedto categories indicate differentproduct The numbersofproducts listed inthe this type. across allbrandsthatcontain products of andneedtoproduct category bemanaged sustainability hotspotsareuniqueto each with thetypeofproductitself. The known sustainabilityhotspotsassociated products slightlydifferentlyto alignwith For wehave thisReport, categorised our CATEGORIES PRODUCT OUR PURPOSES. REPORTING FINANCIAL – FOR (PNC) CARE AND NUTRITION PET AND (BNC) CARE AND NUTRITION BABY (ANC), CARE AND ADULT NUTRITION – CATEGORIES PRODUCT THREE INTO DIVIDED OFTEN ARE PRODUCTS OUR

Note: 0.2% ofrevenue wasalsocontributed by ournewbrand BABY ACCESSORY PRODUCTS PACKAGED FOOD PRODUCTS Solid Gold whichwill beanew product category in2021. PRODUCTS PRODUCTS PRODUCTS PRODUCTS PRODUCTS SUPPLEMENT PRODUCTS SUPPLEMENT SKINCARE PRODUCTS SKINCARE FORMULA PRODUCTS FORMULA 265 106 155 311 42

REVENUE REVENUE REVENUE REVENUE REVENUE 46.8% 45.4% 4.2% 1.4% 2%

20 2020 SUSTAINABILITY REPORT H&H GROUP CUSTOMS AFFAIRS JORANNA FOCUS AREAS OUR 02

22 2020 SUSTAINABILITY REPORT H&H GROUP Agency (HKQAA) in2020.We continue to work ESG ratingfrom HongKong QualityAssurance been rated by MSCI.We alsoreceived an‘A’ 26% ofallfoodproduct businesses thathave MSCI Indexwhichmeans weareinthetop with anupgradeto an‘A’ ESGratingfromthe factors. In2020,ourwork wasrecognised environmental, socialandgovernance (ESG) and theindustriesinwhichweoperate across we aremeetingtheexpectationsofinvestors stakeholders onour performanceto ensure frameworks andembeddedfeedbackfrom We have examined andincorporated external across allbrands,regionsandsites. and focusthatistranslatinginto progress and weareseeinganincreasedunderstanding remained centralto businessdecision-making said, ourfoursustainabilityimpactareashave wide alignmentremainsachallenge.That acquisition ororganisationalchanges,Group- means, particularlywherewehave engagedin Our businessisfastmoving andagile,which 20% to 2021. commitment to reducewaste to landfillby theGrouphasrevisedouras aresult, this hasresulted inunder-reporting and, site-based environmental data.We believe impact onourabilityto accurately report changes andrestrictions,hadasignificant including travelpandemic, andworkplace over theworld asaresult oftheCOVID-19 The abnormalconditions thatresulted all CHANGES SUSTAINABILITY IMPLEMENTING RELEVANT KPIS AT MIDDLE MANAGEMENT LEVEL. BY THIS ON TO BUILD 2021, IN IMPORTANT. CONTINUE IS WILL WE MATERIAL AS WHAT ON IDENTIFY FOCUS WE UNITED AND TEAM ENGAGED AN PLAN, ACOMPREHENSIVE WHY OF REMINDERS COVID-19, OF WERE REPERCUSSIONS THE PARTICULAR IN FACTORS, EXTERNAL UNFORESEEN YEAR. CHALLENGING ENVIRONMENTALLY,SOCIALLY AND 2020 INCREDIBLY AN WAS IN 2020 IN B Corp certifiedacross theGroupby 2025. across targetmarkets. We areontrackto be have begunimplementingimprovement plans us visibilityonourcurrentperformance,and self-assessments inourmajorregionsto give proactively completed thebusinessimpact assessments andverification in2021.We have which shouldgive isaclearroadmapforentity pre-screening phaseandthescoping phase phase, arecurrentlyworking throughthe phases.We have completed theDiscovery Certification approach whichhasseven In 2020webegantheBCorp Multinational in thisReport. future withafocusonthetopics highlighted towards receivinganeven higherratinginthe TRADEMARKS ORSERVICE MARKSOFMSCI. TRADEMARKS PROVIDED ‘AS-IS’ ANDWITHOUTWARRANTY. MSCINAMESANDLOGOS ARE OFMSCIORITSINFORMATIONARE THEPROPERTY PROVIDERS, ANDARE INTERNATIONAL HOLDINGSLIMITEDBY MSCI.MSCISERVICES ANDDATA RECOMMENDATION, ORPROMOTION OFHEALTH ANDHAPPINESS (H&H) NAMES HEREIN,DONOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT, AND THEUSEOFMSCILOGOS, SERVICE MARKSORINDEX TRADEMARKS, LLCLIMITED OFANYMSCIESGRESEARCH ORITSAFFILIATES (“MSCI”)DATA, THE USEBY HEALTH ANDHAPPINESS(H&H) INTERNATIONAL HOLDINGS statement:Disclaimer AT H&H 2019-2020 SEHK:1112

information viaourInvestor Relationsteam regarding channels. For example,ourinvestors regularlyrequest environmental andsocialmatters throughanumberof Our stakeholders proactively contact usabout internal andexternal stakeholders. our stakeholders aswellconducting with interviews incorporating anumberofdifferentresourcesfrom future. We have refreshedourmateriality in2020, core principleofbecoming acertifiedB Corp inthe We alsorecognise stakeholder engagementasthe growth andprogressacrosstheGroup. our stakeholders isessentialinsustainingresponsible Regular, openandtransparentcommunication with TODATE UP MATERIALITY OUR KEEPING INDUSTRY BODIES 12 FINANCIERS 11 SUPPLIERS AMBASSADORS 5 AND INVESTORS SHAREHOLDERS 6 4 COMPETITORS MEMBERS TEAM 10 1 AND RETAILERS DISTRIBUTORS LOCAL COMMUNITIESLOCAL 3 point of(online)purchase. customer platforms,soit’sthereandavailable atthe sustainability informationisbuiltinto ourweb-based stored onourH&Hwebsite. Specificproduct-related a varietyofforms.OurSustainabilityReportsare and practicesisavailable andeasilyaccessible in that informationaboutoursustainabilityapproach considered inourmateriality. We alsoactively ensure understanding oftheirexpectationsandconcerns are to talkthroughthesetopics andensureclear often conduct one-on-onebriefingswithinvestors channels.Wesuppliers throughourcustomer service regarding formulations,packagingsustainabilityand marketing; andourcustomers canmake enquiries specific topics, suchasclimate riskandresponsible 7 CONSUMERS

2 MEDIA 9 GOVERNMENT 8 Secondary StakeholdersSecondary Primary StakeholdersPrimary 24 2020 SUSTAINABILITY REPORT H&H GROUP MATERIALITY PROCESS 3 2 1 strategy. The Boardand Executive team madeissuesadeclared managementpriority andalignedon Review andsign-off: • • • • • A total of46topics identified Output: • • • Internal workshop: Board-ledvalidation workshop. reviewed andincorporated. Financial Disclosures(TCFD) frameworks (SASB) andTask Force onClimate-related Sustainability Accounting StandardsBoard Sustainability Index(DJSI), MSCI, ESG investor benchmarks:Dow Jones impacts thebusinesshascontrol over. Issue boundaries:Understandingthe brand andmarket-specific priorities. Brand-specific priorities:Cross-checking against existingpriorities. Priority criteria andweighting:Review publicly listed international peers. Peer review:Benchmarkingagainstsix assessments, policiesandstandards. assessments, previousmateriality Document review:Corporate risk functions andlocations. stakeholders acrossH&HGroupbrands, NinekeyInternal interviews: internal ISSUE VALIDATION ISSUE PRIORITISATION ISSUE IDENTIFICATION • • • • • • • Exchange. the requirementsofHongKong Stock Compliance Review:Cross-checkagainst bodies). suppliers andindustry stakeholders (customers, investors, External Review:Key topics raisedby brands, andindustry. Media review:Coverage of H&HGroup,its of Breast-milk Substitutes. and WHOInternational Code ofMarketing Development Goals(SDG) Matrix Industry Initiative (GRI) Framework, Sustainable Impact indicators: GlobalReporting stage ofthevaluechain. into what’sthemostimportantatwhat hotspotsprovide insight thesis industry Consortium’s independentresearch-based Research contribution: TheSustainability Definitions: Providing clarity on topic scope. Goals. H&H Group’s SixPillarsandSustainability Strategic alignment:Referenceagainst

IMPORTANCE TO STAKEHOLDERS AREA OFIMPACTAREA SUSTAINABLE GROWTH OF H&H: LONG-TERM TOTHE IMPORTANT AS TOPICS FOLLOWING THE IDENTIFIED OUR ISSUE IDENTIFICATION, PRIORITISATION AND ISSUE VALIDATION PROCESS is required. quality, where nochangeto ourmanagementapproach business operations,forexample, productsafetyand well, andsustainableactions arealreadypartofnormal In someofthesetopics, wearealreadyperforming localisation, andconsumer engagement. – theseareaccessandaffordabilityofproducts, topics thatareimportantto bringinto ourconsideration 2020 throughto 2025. Therearethreeemergingnew initiatives, withsome tailoringofourcommitments for reinforce ourexistingsustainabilitystrategy and Overall, theresultsofourmateriality assessment Waste management Governance Honouring humanrightsandfairness Our footprintontheplanet ofgoodhealth The story Water stewardship MODERATE Access andaffordabilityofproducts Localisation Animal welfare Data andsecurity privacy Climate risk Land management and biodiversity Labour rightsand modern slavery SIGNIFIANCE OFIMPACT Low Community impact IMPORTANCE TO H&H and investment and wellbeing Health, safety GHG emissionsandenergy line withour four areasofimpact. We have realignedandrefreshed ourcommitments in impact. opportunities forpositive shiftandenvironmental Our supplychainholdsrisks butalsothegreatest governance andproductaccess. for many topics, particularlyconsumer engagement, proposition. Digitisationwasrecognised asakey enabler in ourbroaderbusinessstrategy asourcore value health outcomes for consumers, needsto becentral Consumer engagementandspecifically,delivering Diversity andinclusion government relations Compliance and relationships andcontinuity Supply chaingovernance, (and labelling) Responsible marketing High HIGH

and development Talent attraction,retention Strategy andvision health outcomes Innovation forconsumer Consumer engagement Sustainable packaging Ethics, integrity andtrust

and quality Product safety VERY HIGH 26 2020 SUSTAINABILITY REPORT H&H GROUP *Commitments have beendelayed by 12months dueto limitations asaresult ofCOVID in2020 COMMITMENTS 2025 2024 2023 2022 2021 (COMPLETE) 2020      H&H GroupBCorp certified with ahealthcarepractitioner group. product designedincollaboration toEach productcategory launcha Foundation) inallmarkets. value programs(includingH&H Implementation ofshared product opportunities. research into aminimumoftwo Translate H&H Scienceand/orBINC on theirbroaderwellnessjourney. research) thatsupportsconsumers engagement model(informedby Build adirectto consumer (DTC) for non-communicable disease. contribute to reducingriskfactors based healthbenefitsthat opportunities thathave science- two plant-basedIdentify product innovation andproducts. Launch astrategy forplant-based into theH&HFoundation. Raise andinvested US$500,000 H&H Foundation. health initiatives throughthe Reach 1millionpeoplewith health challenges. factors ofthelargepreventable contribute to reducingtherisk Launch five newinitiatives that to WHO‘Call to Action’. Policy, alignwithChinaandrespond Marketing ofBreastmilkSubstitutes Review ofourResponsible GOOD HEALTH THE STORY OF

(COMPLETE) 2020 2024 2023 2022 2021 REDUCING OURFOOTPRINT

 

ON THEPLANET scenario analysisinlinewithTCFD.* climate risksandcompleteIdentify Material Sourcing Policy. the standardssetoutinRaw 100% ofnewproductswillmeet innovation process. Integrate RMSPolicy into for ourowned operations. Maintain ourcarbonneutralstatus biodegradable orcompostable. All packagingto berecyclable, regenerative agriculturefarms. will besourcedfromorganicor  Top 10(by volume) botanicals 100% renewableelectricity. set areductiontarget.* our DTC transportandlogistics Calculate the carbon footprintof 7–10%. Reduce electricityconsumption by Reduce water consumption by 5%. 20%.* Reduce ourwaste to landfill by our mostcriticalraw ingredients the protection oftheecosystems for We willdoubleourcontributions to emissions plandeveloped. Science-based targetsnetzero 2021 (COMPLETE) 2020 2023 2022 HONOURING HUMANRIGHTS   AND FAIRNESS audit completed. manufacturers willhave asocial 100% ofourcontract with morethan30people. breastfeeding spacesinalloffices We willhave dedicated amongst team members. understanding andacceptance 80% ofourworkforce, promoting and inclusionprogramto over Design anddeliver a diversity Leave Policy. We willdevelop aGlobalParental Statement. Produce aModernSlavery wellbeing initiatives. access to internal healthand 100% ofourworkforce willhave implementation atallsites. Global HealthandSafetyPolicy Conduct. Launch ofinternal Code of 2023 2021 (COMPLETE) 2020        GOVERNANCE reporting. Full assuranceandintegrated reduce carbonemissions. Further localisesupplychainsto and managementsystem. incorporated insupplierreview targets setandsustainability sustainability Supplier category on BoardofDirectors. Increased femalerepresentation by 88%ofoursuppliers(by spend). Supplier Code ofConduct signed Sustainability Report. (limited) on2020Assurance software withtier1suppliers. andresponsibility transparency Implementation ofsupplychain Executive team rewardmechanism. Incorporate ESGKPIsinto reviews. into Executive team performance Incorporate sustainabilityKPIs 28 2020 SUSTAINABILITY REPORT H&H GROUP SUSTAINABILITY IMPACT AREAS OUR 03 30 2020 SUSTAINABILITY REPORT H&H GROUP US$1,451,627 COMMUNITY PROGRAMSCOMMUNITY FOR FUNDINGTHROUGH BIOSTIME INSTITUTEOF PROPOSALS SELECTED NUTRITION ANDCARE ACROSS THEGROUP PROGRAMS IN2020 PROGRAMS PEOPLE REACHED CONTRIBUTED TO (BINC) PROGRAM 781,886 THROUGH H&H FOUNDATION 10

HEALTH OF GOOD THE STORY sustainability. that shareourvaluesregarding peopleand cooperating withpartnersandsuppliers We buildahealthierandhappierworld by health andwellbeingofconsumers worldwide. We create productsthatcontribute to the and nutrition. ages throughthepillarsofmind,movement healthy lives andpromote wellbeingfor all We invest inactivitiesthathelppeople to live LIKE-MINDED PARTNERS. WITH UP TEAM AND WELLNESS, SPREAD LIFESTYLE, HEALTHY A OF BENEFITS THE TO SHARE EDUCATE ADVOCATEWE AND 32 THE STORY OF GOOD HEALTH H&H GROUP for clinicalresearch. and upto €100,000perproject project forpre-clinicalresearch The grantsareupto €50,000per preconception andpregnancy. and women’s healthduring nutrition andobesity;allergy; infant braindevelopment; child areas ofexpertise:microbiota; were alignedwithourfive the world. Theapplications institutions andhospitalsaround reputed universities, academic from scientistsbasedat 112 high-qualitysubmissions process inwhichwereceived following anapplication The selectionwasmade Boardin2020. Advisory selected by theBINCScientific program, five projectswere of NutritionandCare(BINC) partoftheBiostimeInstitute As BINC 2020 arelisted below. The five successfulprojectapplicationschosen by BINC (China) in RMB 1millionforscientificresearchintheseareas. mothers andchildreninChina.BINCChinaannuallycontributes and careproviders, focusingonproviding optimalprotection for research team ofnutritionscientistsandmaternal andchildfood It draws onresourcesfromacrosstheglobeto formaworld-class FOR MOTHERS AND CHILDREN IN CHINA. IN CHILDREN AND MOTHERS FOR CARE AND NUTRITION IN UNDERSTANDING AND TECHNICALSCIENTIFIC RESEARCH TO BOLSTER AIMS CHINA IN BASED BINC THE BINC CHINASUCCESSFUL PROJECTS CHINA maternal health. microbiota andtheircorrelation with sIgA coated bacteria ininfant gut Jiangnan University. Development of diabetes. reuteri inpreventing gestational lactobacilluseffect andmechanismof Qingdao University. Astudy onthe discharge from hospital. development ofpremature infants after metabolite levels andneurobehavioral intake, serumcholineandits choline association between dietary Children’s Center. Study onthe Guangzhou Women’s Medicaland effect. factors ofprobioticsiIntervention spectrum disorder andtheinfluencing characteristics ofchildren withautism on theintestinal microecological Peking University FirstHospital.Study cognitive development. stress onoffspringgutmicrobiome and Effects ofpre-pregnant psychosocial Technology ChineseAcademy ofSciences. Shenzhen Institutes ofAdvanced BINC project forclinicalresearch. pre-clinical researchandupto €100,000per The grantsareupto €50,000perprojectfor by BINC(Geneva) in2020arelisted below. The five successfulprojectapplicationschosen and postpartumdepression. development, skinmicrobiota, infantobesity infant gutmicrobiotaandallergy,brain for innovative research projectsinthefieldsof The researchgrantsprovide financialsupport of preterm microbiota onthe (Université deParis). Impact . E P O R U E ACROSS INSTITUTIONS ACADEMIC OTHER AND HOSPITALS UNIVERSITIES, IN WORKING SCIENTISTS RESEARCH FOR GRANTS OFFERS BINC GENEVA-BASED gut-lung axisandhealth. Waligora-Dupriet, A.J. Waligora-Dupriet, A.J. MICROBIOTA GENEVA mononucleotide to treat early- Sandi, C. (EPFL, Lausanne, CH). (EPFL, Sandi, C. life stress induced emotional Therapeutic potential ofthe Geneva, CH).Lactoferrin for neonatal Hypoxic-Ischemic nutraceutical nicotinamide and metabolicalterations. Sizonenko, S.(University of neuroprotection interm DEVELOPMENT INFANT BRAIN Encephalopathy. BINC GENEVA SUCCESSFUL PROJECTS OTHER 11% OTHER FRANCE 7% FRANCE SWITZERLAND 11%SWITZERLAND ITALY 5% ITALY UK 4% UK and associationsofchildhood Philipps, C. (UniversityPhilipps, C. College Dublin, Ireland).Predictors dietary inflammation with inflammation dietary CHILD NUTRITION AND OBESITY obesity. USA 11% USA BINC APPLICATIONSBINC BY GEOGRAPHICAL REGION

susceptibility offemales to University ofCork, Ireland). stress-related psychiatric O’Leary (APCMicrobiome, maternal gutmicrobiota Sex matters! Therole of WOMEN’S HEATH in shapingincreased AUSTRALIA 20% AUSTRALIA disorders. PORTUGAL 13% 18%IRELAND 34 THE STORY OF GOOD HEALTH H&H GROUP Day, held in November. hours wasspent onourthirdWorld Community partners. Alargeproportion ofthevoluntary year andfundraisedover US$66,230forcharity within theirlocalcommunities throughoutthe globe dedicated 6,168 hours to volunteering US$1,292,722. Ourteam membersacrossthe product andmedicalsupplies,to thevalueof We alsocontributed in-kind donations, suchas 1 millionpeoplethroughtheFoundation. us reachourtargetsetin2017ofreaching we managedto reach 781,886people–seeing US$1 million.Throughtheseprogramsin2020 the Group–exceeding our2020targetof US$1,451,627 to community programsacross Across theGroupin2020,wecontributed conduct ournormalprogramsin2020. regions provided significantchallenges to imposed by COVID -19acrossmany ofour volunteering forourteams buttherestrictions programs usuallyinvolve alotofcommunity that arealignedwithourvalues.Ourcommunity team membersto volunteer withorganisations The Foundation alsoprovides opportunities for COMMUNITY FOR THE FORCES H&H JOINS MOVEMENT AND NUTRITION. AND WELLBEING OF MIND, PILLARS SUSTAINABILITY GOALS AND HEALTH OUR WITH FIT HAVE ASTRONG THAT PROJECTS COMMUNITY IN FOUNDATION INVESTS H&H THE US$39,000. racking up13millionsteps andraising A total of2,040participated intheevent, charity partners. watches, to raisefundsfortheirchosen local tracked viaappsontheirsmartphonesand setting outto eachreach10,000-plussteps, The Worldwide Walk involved team members DAY COMMUNITY WORLD DAY 19 ON NOVEMBER. COMMUNITY WORLD OUR FOR ENERGY AND TIME THEIR VOLUNTEEREDHAPPIER, HEALTHIERPLANET AND THE AND PEOPLE MAKING OF MISSION BY THE UNITED MEMBERS, TEAM GROUP H&H 13 MILLION OF STEPSTAKEN AVERAGE NUMBER OF STEPS TOTAL NUMBER OF PARTICIPANTS TOTAL NUMBER 2,040 6,372.5

US$15,573 US$1,201 US$2,523 US$360 US$841 CHINA CHINA 1% O G O L O G O L 2% 40% 3% 6% US$1,682 US$8,650 US$1,081 US$721 US$39,000 22% 4% 2% 3% TOTAL DONATED US$3,724 US$1,322 US$841 US$481 10% 2% 3% 1% 36 2020 SUSTAINABILITY REPORT H&H GROUP IN 2020 RECEIVED AWARDS COMMUNITY RED CROSS FOUNDATION ANGEL AWARD, FROM CHINA HUMANITARIAN DEDICATION CONSUMER DAILY INDUSTRY FROM CHINA IN NUTRITIONANDHEALTHY OUTSTANDING ENTERPRISE ASSOCIATION NUTRITION ANDHEALTH FOOD THE PANDEMIC BY CHINA WELFARE DONATION TO FIGHT FOR PUBLICAMBASSADOR YANGCHENG EVENINGNEWS DEDICATION AWARD, FROM THE ANNUAL RESPONSIBLE FESTIVALCHINA CHARITY AWARDPRACTICE AT THE 2019 PUBLICWELFARE FESTIVALTHE CHINACHARITY AWARDRESPONSIBILITY AT 2019 LISTEDCOMPANY SOCIAL INDUSTRY ASSOCIATION CHINA DAIRY PRODUCTS FROMSOCIAL RESPONSIBILITY MODEL ENTERPRISEFOR

RESPONSE COVID-19 CASE STUDYCASE • • • • JANUARY: Huanggang RedCross. donation valuedRMB300,000to Biostime Probioticsin-kindproduct Huanggang nearWuhan. and Control Temporary Hospitalin building ofPandemic Prevention Donation ofRMB300,000to the Technology. Wuhan University ofScienceand to Tianyou HospitalAffiliated to donation valuedatRMB1,000,000 Biostime Probioticsin-kindproduct of medicalsupplies. Red Crossto supportthe purchase Donation ofRMB1millionto Wuhan OFFICES ARE LOCATED. ARE OFFICES OUR WHERE COMMUNITIES PANDEMIC ACROSS THE CORONAVIRUS TO THE RESPONSE 2020 IN IN WAS CONTRIBUTION COMMUNITY OUR PART OF A BIG • • • • • FEBRUARY: I in NanjingCityandHefeiCity. guards, cleanersandsocialworkers valued atRMB200,000to security productsandmasks,Effervescent In-kind donationofSwisse Hospital inZhejiang. 100,000 to theSirRunShaw Powder withIron,valuedatRMB In-kind donationofSwisseProbiotic the valueofRMB1million. powder to theHubeiProvince, to In-kind donationofSwisseProtein other citiesinHubeiProvince. Xiaogan, Huangshi,Jingzhouand supplies for12hospitalsinWuhan, In-kind donationof200medical province residents. to Wuhan cityandbroaderHubei Red CrossChina,to bedistributed of RMB2.6millionto ourpartner Biostime productsto thevalue donationof n-kind andmonetary • • • • • • MARCH: in London. the healthcare staffat10hospitals smoothies to helpboostandfuel In-kind donationof1,000Swisse Me French Red Cross. products worth RMB220,000to the In-kind donation of Biostime probiotic nurses. masks to French frontlinedoctors and In-kind donationof150,000medical doctors, nursesandpatients. to theItalianRedCross,supporting to thevalueofover 224,000euros In-kind donationofSwisseproducts, medical equipment. to Rometo purchaseemergency international medical team traveling Donation ofRMB1millionforan been voluntarily supporting Wuhan. to femalemedicalstaff whohave and Dodieof71cartons ofproducts In-kind donationfromHealthy Times • APRIL: their immunesystems. workers inAustralia to support products to frontlinehealthcare In-kind donationof10,000Swisse 38 OUR FOOTPRINT ON THE PLANET H&H GROUP AND FAMILIES, ABOUT WE CARE HEALTHY FOR FUTURE PLANET SERVING MOTHERS, BABIES AS AGLOBALAS CORPORATE THE PRESERVATION OFA CITIZEN DEDICATED TO GENERATIONS. REDUCTION INWATERREDUCTION ELECTRICITY ACROSSELECTRICITY RECYCLING RATE BY OVERALL WASTE OVERALL CO CONSUMPTION REDUCTION INREDUCTION INREDUCTION RENEWABLE THE GROUP INCREASED 2 14% 15% 84% EMISSIONS 9% 6%

PLANET ON THE FOOTPRINT OUR reduce andoffsetouremissions. footprint andmake conscious decisionsto more efficiently,bemindful ofourcarbon We continuously strive to useresources traceability andtransparency. through standardsandlabelsto ensure We provide consumers withinformation on whichwerelyforraw ingredients. practices andprotecting theecosystems engaging insustainableprocurement We aimto achieve economic growth whilst FUTURE GENERATIONS FUTURE FOR ENVIRONMENT OUR TO PRESERVE CHANGE CLIMATE ON ACT EFFICIENTLY AND RESOURCES USE WE

40 OUR FOOTPRINT ON THE PLANET H&H GROUP CHANGES THE PLANET FOOTPRINT ON REDUCING OUR environmental footprintacross energy,waste, the operational sites account forover 90% ofour offices; only five areoperational sites. Unsurprisingly, Most ofoursites acrosstheworld arecorporate Financial Disclosure(TCFD) framework in 2021. accordance withtheTaskforce onClimate-related and providing fulldisclosureofourclimate risksin We arecommitted to completing scenarioanalysis • • • • in 2020include: challenging circumstances.Someoftherisksidentified risks lieandhow wecanlimitourcontribution to these starting to gainabetter understandingofwhereour facilities withrenewablesourcesofenergy,we’re becomes anincreasingchallenge,to powering our premium botanicalingredientsaswater scarcity challenges inrelationto climate change.From sourcing the processofproductsupplychainhasunique comes risksacrossourvaluechain.Eachpartof recognise thattheworld ischangingandwiththat and thesubsequentimpactsofclimate change.We challenges wefaceasaplanetisglobalwarming environment inatimewhereoneofthebiggest requires usto demonstrate ourcommitment to the Compact –thebusiness platformfortheUN– Our participationintheUnited Nations(UN) Global market. risksimpactingourabilitytopolicy tradeand suppliers facingtransitionalandphysical risks production water scarcityparticularlyrelating to ingredient upstream Scope 3emissions GENERATIONS. FOR FUTURE PLANET HEALTHY PRESERVATION THE ABOUT A OF CARE WE FAMILIES, AND BABIES MOTHERS, TO SERVING DEDICATED CORPORATE CITIZEN AGLOBAL AS IN 2020 pure water machine andfromwashingclothing. dishwashing sewage,concentrated water produced by from qualitytesting, officedomesticsewage,canteen wastewater comes from equipmentcleaning,wash-off produces amaterial streamofwastewater. The isouronlyfacilitythatOur Guangzhoufactory pollinate ideas. matters acrossalllocations,celebrate wins,andcross- us to communicate aboutenvironmental andsocial each region.Thenetwork isanimportantplatformfor regularly viaWeChat sixmonthsin andmeetevery how wecanbebetter. Thechampionscommunicate who shareinsightsandideasonhow weoperate and across arangeofbusinessfunctionsandlocations network ofSustainabilityChampions–team members In 2020,wecontinued engagingwithourglobal regulation in2020. of non-compliance relatingto environmental law or operating procedures(SOPs). We hadnoincidents through theirown environmental policiesandstandard and regulationsetoperationalexpectations Each ofoursites fullycomply withallrelevantlaws reduction inwaste headedto landfill to 2021. this periodanddecidedto extend ourtargetfora20% team memberswhowereworking fromhomeduring In lightofthis,wehave extrapolated thesefactors for electricity, andwater consumption forthelong-term. not reflecttheresultsofinitiatives to reducewaste, long-term andwenoticedanaturalreductionthatdid make changesthatwillimpactourfootprintinthe health andsafetyofourteam. It’simportantthatwe the typicallevels dueto officeclosures toprotect the particularly forourofficeswherewaste wasnot at were closed,andwethereforehave anoutlierindata result oftheCOVID-19 many pandemic, ofoursites waste andelectricityconsumption. In2020,asa requirements andboldtargetsregardingreducing our footprintandwehave someexistingandnew Our corporate officesstillplay animportantrole in for apackingsites –unitspacked. manufacturing sites thisisperunitofproduction,and targets thatcanfluctuate withourgrowth. For our effective measureofintensity andallows us to make operational sites, perunitofproductionisamore per personthatisbasedattheoffice, however atour each site, forexample,ourofficesuseanintensity amount ofresourcesusedforaparticularunit- of thesesites, addingmorerelevantintensity -the environmental efforts. We have extended ouranalysis water andemissions,sotheyarethefocusofour regions forourdirectoperations. We donotsourcewater fromany water-stressed Sewage Treatment Plant. sewage pipenetwork andtreated by theDashadi wastewater willbedischargedinto themunicipal concentration asspecifiedinthelocalstandard, pollutants beyondthemaximumallowable discharge Province. After weensurethewater doesnotcontain Discharge Limits”(DB44/26-2001)inGuangdong Province (Peoples RepublicofChina) “Water Pollutant We comply withtheLocal StandardofGuangdong by anundergroundsewagetreatmentsystem. pre-treated, andthentreated withotherwastewater testing andcanteen dishwashing oilwastewater are sewagestation. Domesticsewage,qualitylaboratory wastewater usedforqualitytesting ispre-treated by passing throughtheoilseparationslagpool.Washing pre-treated by sewagestationafter thelaboratory septic tank.Canteen dishwashing oilwastewater is Office domesticsewagepassesthroughathree-level obtain reliable datain2020. Zealand asthis istheonlyregionwecould maintenance arelimited to Australia andNew consumables, catering, andrepairs from accommodation, cleaning,office Scope 1emissions.Scope 3emissions utilised onsite have beenincludedin Scope 3emissionsfromenergyproduction TABLE –SEEPAGE 42of2020REPORT UPDATED EMISSIONSBOUNDARY 42 OUR FOOTPRINT ON THE PLANET H&H GROUP Green highlighted are only included fortheAustralia and NewZealand region. EMISSIONS BOUNDARY TONNES OF CO2 EQUIVALENT Diesel combustion for transport do nothave measurementinplaceforthisdata.We willlookto measurethisin2021. We areaware thatsomesulphuroxides (SOx) wereemitted fromoneofourfacilitiesheatingsystems however wecurrently the emissionsmeet"BoilerAirPollutant EmissionStandardinChina" (GB 13271-2014). information ontheemissionofNOxamonthlybasisfrom2021onwards. Themonitoring reportsin2020allshow that a yearto estimate thetotal yearlyamountproducedwhichwasestimated at725.3kg in2020.Athirdpartywillcollect A steam generator atone ofourfactories inChinaproduceasmallamountofNOx.We currentlytake asamplethreetimes E10 combustion for transport EMISSIONS 10,000 15,000 20,000 25,000 30,000 5,000 Diesel generators ULP fortransport 0 Refrigerants Natural gas 1,757t CO Scope 1 LPG CY2018 2 -e CY2019 1,216t CO Electricity CY2020 Scope 2 2 -e REDUCTION 6% Scope 3 Scope 2 Scope 1 Procured transport ofproducts Repairs and maintenance Taxis andotherhire cars Employee commuting 198g MANUFACTURING SITES: PER UNITPRODUCED AT PER UNIT 2.75t OUR OFFICES: MEMBERFORPER TEAM PER PERSON 338g PACKING SITES: PER UNITPACKED AT PER UNIT Office consumables Accommodation TOTAL CO 15,933t EMISSIONS: 12,960t CO CO CO CO Cleaning Catering Scope 3 Flights Waste 2 2 2 EQUIVALENT EQUIVALENT EQUIVALENT 2 -e 2

CASE STUDYCASE commitment to reduce ourfootprintonthe planet. water consumption, itwascrucial forusto investigate ways to decreasewater usage, inlinewithoursustainability expecting to reduceourwater usageby 10% over time.Given thatScienceCityaccounts foralargeamountofour levels of hygienenecessary andcleanliness.We have alsoupgradedourcleaningsystem, whichmeansoverall we're It works by significantlyreducingdustpollution levels, whichmitigates theneed to cleanasoften to maintain WATER CONSUMPTION SYSTEM MATERIAL HANDLING NEW PNEUMATIC WATER (kL) REDUCE OUR WATER OUR REDUCE CONSUMPTION. TO US HELPING IS SYSTEM HANDLING MATERIAL RECENTLY OUR PNEUMATIC ACQUIRED GUANGZHOU, CITY, SCIENCE IN FACILITY MANUFACTURING AND CENTRE RESEARCH OUR LOCATED IN 10,000 20,000 30,000 40,000 50,000 60,000 0 CY2018 CY2019 CY2020 REDUCTION 9% 847m MANUFACTURING SITES: PER UNITPRODUCED AT 1.4k FOR OUROFFICES: MEMBERPER TEAM 41m AT PACKING SITES: PER UNITPACKED 49,665k CONSUMPTION: TOTAL WATER L PERUNIT L PERPERSON L PERUNIT L

44 OUR FOOTPRINT ON THE PLANET H&H GROUP 1,000 1,500 2,000 2,500 3,000 (MWh 500 ENERGY CONSUMPTION Manufacturing sites LPG 0 ) 2%

15 Diesel ELECTRICITY CONSUMPTION OVERVIEW ELECTRICITY CY2019 19% 732

643

1828 Laboratories Gasoline 3%

17 CY2020 638

2899 Offices 76% Natural gas 2342 Packing facilities 10,000 15,000 20,000 (MWh 5000 0 ) CY2018 Electricity CY2019 h 25KW MANUFACTURING SITES: PER UNITPRODUCED AT h 1.8KW FOR OUROFFICES: MEMBERPER TEAM h 0.05KW AT PACKING SITES: PER UNITPACKED 19,729MWh CONSUMPTION: TOTAL ENERGY Renewable electricity CY2020 PERUNIT PERPERSON PERUNIT GROUP ACROSS THE ELECTRICITY RENEWABLE 84%

TONNES WASTE 1,500 2,000 1,000 2,500 3,000 3,500 500 0 1 tonne HAZARDOUS 1 tonne TO LANDFILL REDUCING WASTE 14% RATE BY RECYCLING INCREASED RECYCLING Landfill Recycling ORGANIC 7 tonnes 2020 Recycling increasepercentage 2020 Recycling LANDFILL CY 2020 CY 2019 CY 34G PERUNIT MANUFACTURING SITES: PER UNITPRODUCED AT 800KG PERPERSON FOR OUROFFICES: MEMBERPER TEAM 20G PERUNIT AT PACKING SITES: PER UNITPACKED 4,950t TOTAL WASTE: 46 HONOURING HUMAN RIGHTS AND FAIRNESS H&H GROUP AND SYSTEMS GROUP OPERATION DAVID H&H FAMILY NALA AND WELLBEINGINITIATIVES CODE OFCONDUCT ROLLED AND HEALTHY WORKPLACE MEMBERS GLOBALLY HAVE ACCESS TO HEALTH LAUNCHED WITHROLLLAUNCHED US$2,726,900 WEEKLY WORKOUTS LEARNING PLATFORMLEARNING CODE OF CONDUCT EMPLOYER OFCHOICE AWARDS WON IN2020 MEMBER WELLBEING OUT INALLREGIONS OUT EXPECTED BY LAUNCHED IN2020 LAUNCHED SPENT ONTEAM WORLDWIDE AND BENEFITS END OF2021 ALL TEAM H&H HUB 5 AND FAIRNESS HUMAN RIGHTS HONOURING eliminate discrimination. structures to reduceinequalities and We putinplaceformal andinformal workplaces. We respectandenhancehumanlifeinour are entitled. fundamental freedomsto whichallhumans by ourbusinessaregranted basicrightsand We work to ensure thatindividualstouched HEALTH AND HAPPINESS FOUNDATION OF THE AS RIGHTS HUMAN PROTECT WE

HONOURING THE DIAGRAM BELOW THE CYCLE OF HOW WE AID TALENT AT H&H GROUP: HUMAN RIGHTS

H&H GROUP AND FAIRNESS

Drawing on our internal talent pool to fill High Performance Teams; filling vacant and upcoming roles OUR PHILOSOPHY OF HEALTH • Talent mapping AND HAPPINESS BEGINS WITH TALENT OUR PEOPLE – ENCOMPASSING, ATTRACTION Competitive rewards: BOTH OUR TEAM MEMBERS • Annual remuneration review and half-yearly EMPLOYED BY THE ENTITIES CAREER Short-Term Incentive Plan (STIP) WITHIN THE GROUP AND THE PROGRESSION • Recognition of Actions Speak Loud nominees TALENT • Recognition of H&H Heroes PEOPLE WITHIN OUR SUPPLY ACQUISITION CHAIN. WE RECOGNISE OUR H&H Developing individuals to drive performance PEOPLE ARE ONE OF OUR and engagement: GREATEST ASSETS AND PROTECT TALENT • 360 performance reviews • Ability + Influence x Drive (AID) THEIR BASIC HUMAN RIGHTS AS CYCLE assessment tool THE FOUNDATION OF HEALTH REWARD AND RECOGNITION AND HAPPINESS. ONBOARDING Finding the GaBa talent needed now AND and for the future ORIENTATION • Talent attraction process In 2020 we launched Our H&H Code of Conduct • Talent attraction tools across all markets. The Code sets out our global PERFORMANCE • Employer Branding standards which are supported by our values, driven DEVELOPMENT by our behaviours and which each team member Setting our team members to understand AID and must follow every day. Having a collective Code how they are performing : of Conduct unites us as One Big Team and helps to • Orientation reviews • Values competencies 2020 SUSTAINABILITY REPORT 2020 SUSTAINABILITY ensure cultural consistency across all our regions • Team member handbook • Drive descriptors • Learning (China) whilst still allowing for localised information to • Learning Hub be laid out in regional employee handbooks and contracts. DEVELOPMENT MODEL AND TURNOVER: Our People and Culture teams across the business units manage employee working conditions, • Our team are a younger • Our key focuses to address º cross-functional project demographic and global trends these challenges are: and secondment remuneration and wellbeing as well as compliance are showing shorter tenure opportunitites with relevant regulations. They are committed to º investment into leadership than older generations and they promoting diversity, inclusiveness, fair recruitment, and emerging leaders º reward and recognition of also value organisations that employee retention and development. At all stages programs to support performance are purpose led and align with leadership development of talent development, we assess, give feedback, their values º strengthening our develop, reward and promote our talent based on º targeted development credentials as a purpose- • Key reasons given for leaving the following three factors: opportunitites in technical led organisation the organisation is career and critical skill areas • Ability – technical skills and experience growth and progression. We º sustainability are quite a flat structure – not º talent mapping and • Influence – how the team member behaves, as structured and hierarchial as development plans in line with our five key values more traditional organisations º mentoring and internship • Drive – mindset and how the individual thinks with clear career pathways. programs and encourages other team members to think TING TING PRODUCT MANAGEMENT like a disruptor and an owner.

48 All of our team members received performance reviews in 2020 at a minimum of annually. 50 HONOURING HUMAN RIGHTS AND FAIRNESS H&H GROUP DEVELOPMENT PRODUCT JOAO THE GROUP. MEMBERWELLBEINGACROSSTEAM IN 2020WESPENTUS$2,726,900 financially secure. to keep ourteam membershealthy, happy and and disabilityinvalidity coverage, allhelping retirement provision, stock ownership, healthcare We alsoofferlifeinsurance,parentalleave, team membersineachlocation. best health-related benefitsthatarerelevantfor regional People andCulture teams determine the to ourteam membersacrosstheregions.Our checks, healthy team lunchesandguidedmeditation, fitness classes,gymallowances, vaccinations,skin We offermany additionalbenefits,including team our 2020ModernSlavery Statement particularly inrelationto modernslavery pleasesee how weprotect individualstouched by ourbusiness practices in2020.To seeadetailedstatement of five awards received related to ouremployment our peopleatH&HGroup,asdemonstrated by the We have highlyreputablesystems forlookingafter employment agreements. set by bodiesandclearlystated localregulatory in working hoursarereasonableto thestandards age; allwork isconducted basisand onavoluntary All ofourteam membersareofanappropriate BENEFITS WORKING CONDITIONS ADDITIONAL AND not taken into account inprevious years'reporting. Note: This figure includesalunchtime subsidythat was 2020 . 0 US$500,000 US$1,000,000 US$1,500,000 US$2,000,000 US$2,500,000 US$3,000,000 ON ON 2020 RECRUITMENT AND TURNOVER AND RECRUITMENT 2020 responsibilities andperformance. with consideration given to theindividual’srole, Salaries arereviewedatleastonceperannum, OVER 97% and targets. salaries andbonusesformeetingorexceeding goals benchmarkedreward ourteam memberswithindustry career orlevels We ofmanagement. incentiviseand stagesintheir benefits for team membersatvarying banding structureto ensureweareproviding attractive We monitor market rates inmostregionsutilisingour teamat aminimumevery memberispaidafairwage. the minimumrequirements,however, wedoensure Our benchmarkforrenumerationisoften setfarabove FINANCIAL SECURITY MEMBERS RECEIVED ABONUS Note: Thehigh turnover figure forUSAreflects therelocationour officefrom SanDiego to Los Angelesin2020. TURNOVER RECRUITMENT 39% 23% 35% 65% 12% 61% AUSTRALIA AND EMPLOYEES NEW ZEALAND 44% 62 62

OF NON-EXECUTIVE TEAM 65%

35% 41% 59% 65% 19% (EXL. MAINLAND CHINA) MAINLAND (EXL. 6% EMPLOYEES 47% IA SI A 29 29

74% Aged under30 35% 31% 69% 65% 49% 3% EMPLOYEES EUROPE 110 110 39% for targetrates. functional teams, to draw insightsandsetbenchmarks with morefrequentreporting,includingabreakdown of from 2019levels. We willcontinue to monitor turnover led to aturnover rate of25%–a6%increaseinturnover restructuring inmany ofourregionsin2020whichhas We experiencedhighbusinessvolatility alongwith why ouremployees sometimeschooseto leave. We monitor employee retention, seekingto understand RETENTION we recruited 999newteam members. and Australia In2020 wearetrialling'blindinterviews'. may beunconscious bias.To avoid thisinNorthAmerica toconsciously avoid trying this,weknow thatthere treatment ordiscriminationandwhilstourteam is religion andabilitycanresultinunfavourable candidates. We understandthatage,race,gender, adiversethat foreachrole,weinterview mixof team members,ourTalent Acquisition team ensures To ensureweofferequalopportunity to prospective RECRUITMENT

Aged 30-50 48% 36% 31% 69% 64% 86% 7% NORTH AMERICA EMPLOYEES Aged over 50 88%

13 13 7% 39% MAINLAND CHINA MAINLAND 54% 61% 46% 39% 61% EMPLOYEES Male Male 785 785 22% Female Female 52 HONOURING HUMAN RIGHTS AND FAIRNESS H&H GROUP operations. a way ofsupportinggender equalityacrossour whilst onunpaidleave. We alsorecognise thisis leave andupto 10paid‘keeping intouch’ days leave, superannuationpayments whilstonunpaid two ofourfive regions,providing additionalpaid parentalleavebeyond regulatory requirements in available variesfromregionto region.We go although theeligibilitycriteria andamount members areentitledto paidparentalleave, impacting theircareerprogression.Allourteam time off work andreturn to theirjobswithout mums anddadsinourteams thechanceto take important thatwe‘walkthetalk’andgive the baby nutritionandcare,wethinkit’sparticularly lifestage,andhaveat every ahugefocuson Given weareinthebusinessofinspiringwellness supporting parentsastheygrow theirfamilies. work rate asameansofmeasuringhow weare We reportonparentalleave andreturnto PARENTAL LEAVE unfair dismissal, with threeresulting inpenalties. and standards. However, wehadfourcases of benefits and welfareandnationallabour laws opportunity, diversity, anti-discrimination,other promotion, working hours,restperiods,equal relating to compensation, recruitmentand In 2020wehadnoincidents ofnon-compliance reporting, since2017. No fatalitiesatH&Hforaslongwehave been injuries compared with2019. work.' Thisisa75%reductioninthenumberof four injurieswhichresulted in73 lostdays of work. Inthepreviousyear(2019),werecorded sites in2020whichresulted intwo lostdays of atoneofour Unfortunately, wehadoneinjury in 2020. protecting employees fromoccupationalhazards to providing asafeworking environment and with relevantlaws andregulationsrelating we have hadnoincidentsofnon-compliance We areproudto reportthatacross theGroup well asmany othercomponents. or safetyrisksandlogmanageincidentsas The Policy covers how to manageandraisehealth covering 100%ofourteam members,in2020. implemented atallsites acrosstheworld, Our GlobalHealthandSafetyPolicy hasbeen HEALTH, AND WELLBEING SAFETY Number of team members % thatreturnedto work after theirleave period Number ofteam membersthattook parentalleave 100 150 200 50 0 FEMALE 97% MALE 100% MANAGEMENT MANAGEMENT TRAINING ANDDEVELOPMENTTRAINING IN2020BY CATEGORY: diet andnutritioninlinewithourwellnessphilosophy. We alsoofferinformationandtrainingonhealthy living, induction, productivity,andtechnical training. leadership, diversity, performance,workplace culture, of traininganddevelopment opportunities,covering We provide ourteam memberswithawidevariety AND DEVELOPMENT TRAINING WORKFORCE EXECUTIVE FEMALES training anddevelopment Percentage andnumberofteam membersthatundertook Average number of hourstraininganddevelopment MALES TOTAL NON- THAT UNDERTOOK FORMAL TRAINING TRAINING FORMAL THAT UNDERTOOK TOTAL NUMBER OF TEAM MEMBERS TEAM OF TOTAL NUMBER 0 0 56% OFTEAMMEMBERSINTHEGROUP 89% (41) 14.57 100% (375) 28.69 41% (1,222) 6.66 55% (1,207) 9.09 57% (711) 9.35 9.19 AND DEVELOPMENT IN 2020 IN DEVELOPMENT AND 5hr 20% 10hr 1,918 40% 15hr 60% 20hr 80% 25hr 100% 30hr 15,000 20,000 25,000 30,000 35,000 10,000 5,000 UNDERTAKEN ACROSS THEGROUP ANDDEVELOPMENTTRAINING TOTAL NUMBEROFHOURS 0 TRAINING AND DEVELOPMENTTRAINING MEMBERS IN RELATION TO RATING FROM TEAM SATISFACTIONOVERALL 85.67% HOURS 31,524 GROUP ACROSS THE UNDERTAKEN HOURS DEVELOPMENT ANDTRAINING ININCREASE 209%

2019 2020 increase We have a Group-wide Anti-Corruption and Whistle INTELLECTUAL PROPERTY (IP) Blowing Policy and system, called HH Speak Up. This We maintain a central, Group-wide Intellectual Property applies and is available to all team members across

H&H GROUP and Trademark Register, which is administered by the regions, suppliers, and retailers. Group’s Legal department with support from external We regularly communicate with our team members on law firms. This process manages disputes alongside any appropriate conduct in our business and the broader other IP challenge. marketplace. This was emphasized in the launch of our Each brand also monitors the market for local Group-wide Code of Conduct in 2020 that references HH infringements on IP rights and trademarks, and Speak Up several times as a channel for raising concerns. JACKY escalates issues to the Legal department for their H&H FAMILY The Code of Conduct covers the Group’s approach to region. We had no incidents of non-compliance related preventing corruption, bribery, money-laundering, and to IP in 2020. We also maintained the Group product fraud, as well as our approach to whistleblowing and information database, where confidential product information on the HH Speak Up system. information on our brands and product categories can be safely stored and used. At induction all team members, including directors and managers, are required to complete training on GOVERNMENT RELATIONS AND COMPLIANCE​ anti-corruption and bribery in the on boarding process. There is content specific training annually for the supply Our risk analysis in 2020 identified that political tensions chain department where the risk is higher due to more pose a risk to our ability to market globally, making frequent engagement with external parties. There is our government relations topic even more critical. Our quarterly communication on HH Speak Up and within engagement with policymakers is managed by our China there are also case studies shared via WeChat to Government Affairs team, which works to strengthen raise awareness of what bribery and corruption looks the Group‘s relationship with governments in all of our like and resulting action taken. We also have a formal markets, positioning the company as an industry leader communication plan for suppliers ensuring they are also and a trusted advocate on a range of important industry aware of our policies and expectations and where to development issues. GOVERNANCE raise any concerns. We do this through long-term relationship building and Our Risk Management team conducts an annual risk advocating pragmatic, evidence-based policy solutions GOVERNANCE evaluation that covers every region and function within through one-on-one meetings with politicians and their the Group, and the results are reported to the Board, advisors, as well as participating in key forums and Audit Committee and Senior Leadership team. No events. risks were identified in 2020 relating to bribery and corruption. 16 distinctive cases were reported via HH In 2020, our engagement activity looked to promote public policy settings that deliver legislative frameworks WE MAKE DECISIONS TAKING Speak Up in 2020. All cases were appropriately followed that reward responsible, and restrict irresponsible, ALL STAKEHOLDERS INTO and investigated by responsible departments, for two of which, external professional resources were introduced business behaviours, with relevant enforcement. We ACCOUNT, ULTIMATELY SERVING to facilitate the thorough investigation. We had no legal supported standards-based systems. Engaged in global OUR PURPOSE TO MAKE PEOPLE cases regarding corruption practices against any of our public policy discussions regarding trade agreements on HEALTHIER AND HAPPIER. brands during 2020. IP and market access; and seeking government support for key business expansion (AU, UK, HK and CN) and We believe the whistle blowing system continued We act with strong principles and put in place industry development. The team also continued to build working well as we were always striving to increase our four sustainability impact areas into government structures, processes and monitoring systems its visibility and awareness. Through regular communications and engagement strategy in 2020. that work towards a sustainable future. communication, more partners (i.e. suppliers, We monitor and mitigate risks and capture distributors and customers) and employees are willing We do not have any government entity in our opportunities that support our mission. to report via HH Speak Up. We will continue to carry shareholding structure. The H&H Group did not make out relevant anti-fraud and compliance training, any financial or in-kind political contributions in 2020. We transparently share information relating to demonstrating the Group’s adherence to compliance, company performance. transparency and integrity culture and values. 54 56 2020 SUSTAINABILITY REPORT H&H GROUP opportunities, wehave always positionedH&H When facedwithbothchallengesand technology, andsolutionssuchaspersonalisation. innovation inproductdevelopment andnew our holisticwellnessofferingthroughtargeted build fromourstrongcore business,expanding partnerships. We believe wecancontinue to through strategic mergersandacquisitions new markets andnewproductcategories, and growth inourexistingmarkets, expandinginto growth contributorsOur primary remainorganic making considered choicesintheway weexpand. approach whichdrives agreater emphasison Our consumer focusunderpinsan‘outsidein’ H&H STRATEGY ANDVISION profitable growth FOR ALL OUR STAKEHOLDERS, INCLUDING SHAREHOLDERS. INCLUDING STAKEHOLDERS, OUR FOR ALL TO CREATE LONG-TERM VALUE DESIRE OUR IN ANCHORED IS STRATEGY GROUP OUR VISION, OUR FOR ENABLER AN AS    in their market(s) stronghold brands core for leadership Clear core in Winning Continued Swisse ANZ domestic domestic ANZ Swisse China Swisse China Biostime healthier and happier is to make people people tomake is around the world world the around Our Mission ANC right choices Making through superior products and aspirational brands in premium nutrition and wellness     win to right with category new fast-growing and brands core - markets new into Expansion diversification and Globalisation through superior products To become a global leader leader aglobal To become and aspirational brands Consumer nutrition and wellness nutrition  scale-up PNC globalization Biostime globalization Swisse food, baby care, skincare) skincare) care, baby food, (baby Adjacent sub-category is to become a global aglobal tobecome is centric leader in premium Our Vision BNC share inallmajorcategories. sustainable profitgrowth andgrowing market our traditionalfast-growing pathofachieving next threeyearswhichoutlinesareturnto We have arobustdevelopment planfor the BNCandPNC businesses. of ANC, present roleinourglobalstrategy acrosseach The concept ofsharedvalueplays anincreasingly development isanecessityandnotchoice. We alsostronglybelieve thatsustainable growth. the futureandcreatingplatformforprofitable company thatiscommitted to investing for Group asamission-driven, andsustainable Sustainability as success driver success

+    horizon time alonger with Seeding and new business model future the for Investing

growth benefiting our our benefiting growth stakeholders, society stakeholders, society   Digitization NewH incl. innovation, Breakthrough based, packaging including plant-Sustainability, is based on long- on based is term profitable profitable term and the planet Our Strategy 2

Effective capital capital Effective management PNC MEANS FOR H&H MEANS WHAT THIS right categories on winning on

We need to shift our our shift to We need shared value, shared we need to focus focus to we need positioned in the sustainability as a as sustainability mindset towards towards mindset business success success business We are well well We are categories. driver. in these seeing . Now . Now

increased demandincreased for and holistic wellness preventative health health preventative consumer consumer experience. will will communication We need to focus not not focus to We need help us respond to to respond us help create omni-channel create omni-channel acquisition R&D and science science and R&D consumer consumer on only on strengthening strengthening retention, and retention, but also also but data driven approach, driven data accelerate our digital our digital accelerate right the with online content, experience experience content, capabilities with a with capabilities to be more visible visible more be to and fulfillment. We need to to We need .

58 2020 SUSTAINABILITY REPORT H&H GROUP IN WHICH THE H&H GROUP OPERATES ARE: OPERATES GROUP H&H THE WHICH IN COMPANIES THE OF RATES TAX INCOME CORPORATE 2020 THE Pricing Policy. Risk ManagementPolicy, andtheGroupTransfer by theGroupDelegationofAuthority, Group This Policy isreviewedannuallyandsupported • • • • H&H Groupandcovers: “Policy”). ThisPolicy isapproved by theBoardof by theGroupTax RiskManagementPolicy (the and regulations.Theseprinciplesaregoverned whilst having fullregardto allrelevanttaxlaws enhance sustainabilityandshareholdervalue tax strategy. Long-term taxplanningseeksto H&H Grouppursuesaproactive approachto TAX tax riskmanagement. tax riskappetite tax governance principles tax strategy WE OPERATE. WHICH IN TAX JURISDICTIONS MANY THE IN TRUST OF BUILDING THE TO ENSURE TAX TRANSPARENCY SUPPORTS GROUP H&H TRANSPARENCY STATEMENT (including statetaxes) UNITED STATES 29% IRELAND 12.5% IRELAND UNITED KINGDOM18% FRANCE 28% FRANCE ITALY 24% NETHERLANDS 21.7% NETHERLANDS SWITZERLAND 14% SWITZERLAND INDIA 25% businesses. reflects thegeographicalspreadofGroup’s The distributionoftaxes paidby theH&HGroup economies oftheregionsinwhichweoperate. and asacorporate taxpayer contributes to the H&H Groupoperates innumerouscountries OUR TAX CONTRIBUTION MAINLAND CHINA 25%/15% MAINLAND THAILAND 20% THAILAND HONG KONG CHINA16.5% SAR, MALAYSIA 24% SINGAPORE 17% AUSTRALIA 30% AUSTRALIA NEW ZEALAND 28% NEW ZEALAND • • • • reflects: FY2020 and the profitbeforetax)was29.2%in income taxexpenseexpressedasapercentageof H&H Group’s effective taxrate (i.e.itsaccounting tax purposes. expense recognition differsforaccounting and differences, wherethetimingofincome and income taxpayable inthatyeardueto timing for aparticularyear. Itdiffersfromtheactual and reflectstheincome taxaccruedontheprofit The effective taxrate isanaccounting concept EFFECTIVE TAX RATE related to salesoftangiblegoods. between related entitiesoftheH&HGroup thekeyDuring FY2020, businessdealings with globaltransferpricinglaws. on normalcommercial terms, andinaccordance Development, bothatnormalmarket pricesand the OrganisationofEconomic Cooperation and under arm’s lengthmethodologiesprescribedby All related partytransactionsareconducted Report. Annualsubsidiaries aredisclosedintheFY2020 which isaHongKong Theprincipal taxresident. Happiness (H&H)International HoldingsLimited, The parententityoftheH&HGroupisHealthand tax concessions. regional taxrate differential tax lossesnotbeingrecognised non-deductible expenses 60 VALUE CHAIN H&H GROUP VALUE development Research and INNOVATION CHAIN DIAPERS ANDBABY ACCESSORIES PACKAGING PACKAGED SKINCARE FOODS VHMS IMF cultivation RAW MATERIAL SOURCING Feed production and Raw material Raw material production production extraction extraction Resource Milk PROCESSING ANDMANUFACTURING resource processing Material and Manufacturing PACKAGING Packaging RESOURCE RECOVERY DISTRIBUTION Transport MARKETING Retail RESOURCE RECOVERY Consumption End oflife CASE STUDY H&H GROUP

HOW GOOD GOÛT IS NOURISHING (LITTLE) PEOPLE AND THE PLANET ACROSS THE VALUE CHAIN

IN LINE WITH OUR STRATEGY The products are then packed into convenient, TO NOURISH PEOPLE AND THE lightweight packs and shipped to our consumers. PLANET, GOOD GOÛT LAUNCHED Once finished, the packaging can be recycled through our partnership with TerraCycle (see A SHARED VALUE PARTNERSHIP Resource Recovery chapter for more information). WITH FOUNDATION GOODPLANET IN FRANCE TO DRIVE IMPACT Through the partnerships with Foundation GoodPlanet which is a French NGO that works in NUTRITIONAL EDUCATION FOR favor of sustainable food and biodiversity we have YOUNG FAMILIES, AND ALSO funded 20 free workshops for kids and parents on FUND THE PRESERVATION OF how to balance everyday diet. A VULNERABLE SPECIES AND We have also funded two biodiversity programs ECOSYSTEM. THE PARTNERSHIP through this partnership: FEATURES ON BOTH THE KIDS • Preservation of the elephants in Botswana: AND BABY RANGES. º This project has three objectives; to improve Our Good Goût products start to protect conservation knowledge on elephants within 2020 SUSTAINABILITY REPORT 2020 SUSTAINABILITY ecosystems at the very beginning of their the community of Khumaga, improve human- production – where our natural ingredients are elephant conflict mitigation techniques and grown 100% organically - all Good Goût products increase the economic viability of farmers' carry the Agriculture Biologique certification by fields Bureau Veritas SAS (FR-BIO-10). This certification • Conservation of marine and coastal ecosystems guarantees that the production methods used in Mauritius: meet strict non-polluting environmentally friendly º This project also has three objectives; to specifications, respecting our soils, biodiversity, protect coastal ecosystems in the regions the preservation of natural resources and the of Roches Noires and Anse la Raie and assurance of a high level of animal welfare. reduce vulnerability to climate change, The ingredients then get converted to our to ensure the sustainability of “Marine delicious, healthy baby & kids range recipes Voluntary Conservation Areas ” (AMCV) and designed by a Michelin star Chef. Not only are to expand and consolidate collaboration and there no additives, but 30% less sugar than the partnerships with government and local and average equivalent products in the market. The international institutions recipes are short with no weird ingredients, so On-pack we feature information about biodiversity parents know exactly what their children are to educate children on the importance of this eating. Only with ingredients parents have in issue. their kitchen! 62 64 2020 SUSTAINABILITY REPORT H&H GROUP INNOVATION personalisation. have packageand beenidentifiedasproduct, key enablersto innovation inthesecategories Thethree performandperfect. needs: protect, strategy thatalignsto threesuccinctconsumer In 2020,wefinalisedourglobalinnovation TO ADULT NUTRITION AND CARE. AND TO ADULT NUTRITION BABY FROM RANGING PORTFOLIO, ACROSS-FUNCTIONAL THROUGH TECHNOLOGIES DISRUPTIVE AND INNOVATIVE FORMULATIONS INGREDIENTS, NEW WITH PRODUCTS EVIDENCE-BASED PROVIDE WE JOURNEY. WELLNESS THEIR SUPPORT TO CUSTOMERS TO OUR PRODUCTS SUPERIOR DELIVERING ON FOCUS WE AS VISION, THIS OF ATIS HEART THE PRODUCT INNOVATIONNUTRITION. AND WELLNESS PREMIUM IN LEADERBECOME AGLOBAL TO IS AMBITION GROUP’S H&H • • • • • • research thatsupportstheseneedsincluding: Our R&Dteam hasworked onsomeground-breaking challenges andneurocognitive functions andmood. cholesterol, osteoarthritis, gutmicrobiota tractinfections,high who experienceurinary could supporthealthoutcomes forconsumers ifsuccessful, clinical trialsonformulationsthat, quality standards that provide functionalhealthbenefitsandraise patented packagingorproductformatinnovations quality forinfants optimisation ininfantformulaprotein nutritional investigative trialsandoverall formulation composition breastmilk microbiomeandskin gene sequencingprofilinggutmicrobiome, gut healthfunctionandmicrobialinteractions Oligosaccharide (HMO) combinations withproven development ofdifferentHumanMilk anti-aging, mobilitysupportandbeautybenefits generation productsforimmunity,digestion, combinations forthedevelopment ofnext identification ofingredientsandingredient advanced pre-clinicalmodelsthatfacilitate the 10 18 77 6 SCIENTIFIC JOURNALS IN PEERREVIEWED PUBLICATIONSTEAM PATENTS FILED APPROVED TRIALS CLINICAL PROJECTS RESEARCH

infographics. educationalvideosand animations, expertinterviews, and created several digitalassets,suchasscientific community withseven healthcareprofessionals and maternal health.We alsobuiltoutourscientific global events onpaediatricnutrition,microbiome but stillmanagedto attend threehighlyacclaimed conferences asaresultofthepandemicin2020, were limited inourabilityto hold,attend andhost conferences aroundtheworld We areimportant. attendance andcontribution athighprofilescientific ofgoodhealth,research andspreadthestory To helpengagethescientific community inthis sustainable futurerightfromproductinception. and productopportunitiesthatleadto amore projects andhow theyinformourplant-based strategy or animal-basedingredients.We’re excited by these versus geneticallymodified,enzymaticallymodified plant-based ornaturalingredientsperformance environmental impacts.For example,analysis of to examineandassessthepossibilityofreduced We have alsoconducted anumberofresearchprojects SPENT ONR&DIN2020 OUR KEY STRATEGICOUR KEY COLLABORATIONS US$20.1 MILLION

66 2020 SUSTAINABILITY REPORT H&H GROUP DEVELOPMENT ANDRESEARCH decision-making pointsreferredto asgates. The processisalsoseparated by five strategic distinct stages,fromideationto productlaunch. approach dividesprojectmanagementinto five being rolledoutinallregions.Thestage-gate to adigitalbestinclasssystem andiscurrently Considering this,our stage-gate processmoved facilitate moresuccessfulproductlaunches. thatwill utilisation andglobaltransparency achieve optimised resource maximum efficiency, system isthegloballyaccepted bestpracticeto A streamlinedandautomated innovation LAUNCHED ACROSSLAUNCHED THEGROUP IN2020 151 PRODUCTS NEW NEW PRODUCTS BYNEW PRODUCTS CATEGORY: SCIENTISTS. QUALIFIED MOST OUR OF SOME OF RESIDENCE THE IS FIELD, THIS IN ALONGSIDE SCIENTISTS LEADING WORLD-RENOWNED INSTITUTES MOST THE OF ONE IN BASED PARK, AT MOORE LABORATORY R&D OUR BABY ACCESSORY PRODUCTS PACKAGED FOOD PRODUCTS SUPPLEMENT PRODUCTS PRODUCTS FORMULA PRODUCTS SKINCARE

41 21 65 21 3 fight illness. system functionandto help C to supportahealthy immune bone health,aswellvitamin and development andmaintain D to supporthealthy growth mothers' breastmilk,vitamin is naturallyabundantin Contains lactoferrin, which CONTAINING LACTOFERRIN DEFENCEIMMUNE BIOSTIME in pharmacies. available behindthecounter range inAustralia only evidence, practitioneronly on scientificandtraditional formulas developed based ofthepremiumExpansion PREGNANCY CARE) C+D, ADVANCED VIT STRENGTH PRO (MAGNESIUM, COLLAGEN REPAIR, + NUTRA SWISSE Supporting ourlittle ones’ healthy immunesystems Supplements mayonly beofassistanceifdietaryintake isinadequate. ^ContainsVitaminDtosupport healthygrowth &development. This medicine maynotberightforyou. Readthewarnings before purchase. Always read thelabel.Follow thedirections foruse.

NEW PRODUCT HIGHLIGHTS NEW PRODUCT

antioxidants. acids, vitamins,probioticsand with allnineessentialamino Plant-based protein range VEGAN PROTEIN RANGE ME SWISSE symptoms forbabies. allergies andrelieves allergic M-16, whichbetter prevents bifidobacterium brevis Probiotics with Upgraded formula: PROBIOTICS WITH M-16V BIOSTIME

herbs inaconvenient tablet. paired withkey nutrientsand formulas: aprobioticcapsule combining two premuim Innovative dualfunctionformat +) +, CALM +, CLEANSE +, DEFENCE (ENERGY wrinkles. sebum productionandreduce increase hydration, moderate suspended inhyaluronic acidto highly concentrated formulais fast-absorbing,lightweight, CBDisolate. The crystallised serum contains uniquepure Scientifically advancedsuper CBD SUPER SERUM AURELIA ULTIBIOTICS RANGE SWISSE

68 2020 SUSTAINABILITY REPORT H&H GROUP NEWH In 2020wereachedthetwo-year markofNewH technologies. potentially disruptive products,science,trendsand opportunities andallowing itto keep abreastofnew, acquisitions, by expandingtheGroup’s innovation alternativecomplementary to R&Dandmergers The fundprovides theoverall H&HGroupwitha leader inpremiumfamilynutritionandwellness. thus aligningwithH&H’sambitionto become aglobal business modelsinthefieldsofhealthandwellness, cutting-edge brands,products,technologies or entrepreneurial businesseswhicharedeveloping NewH diagnosis, sales andsupport. behaviour alongthespectrum ofengagement, applications, tappinginto the shiftinconsumer since itslaunchutilize globaldigitalplatformsand primary brandsthatNewH primary (via Metaflow Israel),andBodAustralia. The Proven Skincare(USA), Lumenmetabolismdevice from aroundtheworld withgrowing potential – and have asolidportfolio ofwellnessinnovations H&H GROUP LAUNCHED NEWH LAUNCHED GROUP H&H ADVANCED NUTRITION SOLUTIONS. INNOVATIVE TO DEVELOP SCIENCE AND TECHNOLOGY IN ADVANCES USING ARE WHO ENTREPRENEURS INNOVATION TO SUPPORT ARM 2018 IN AN US$60M) OF AS (WITH INITIAL FUNDING 2 invests inearlyandgrowth stage 2 2 hascollaborated with 2

2

new markets. marketing activitiesintheUSAandother (production andsupplycapabilities) product development operations with theproceedsbeingmarked for additional investment million, ofCAD$4 As astrategic partnerforNewH As within thisniche–butgrowing –market. important foodalternative thatsits toddlers. ElseNutritionprovides an nutritional productsforbabiesand on developing innovative, plant-based Israel-based nutritioncompany focused In 2020weinvested inElseNutrition,an NewH offline andonlinechannels. continue to buildpresencebothinthe announced itslaunchintheUSAandwill options forchildren.Thebrandrecently have accessto plant-based nutritional audience, onethatmay notalready trending productto aneven greater Group markets, enablingitto bringits distribution inanumberofexistingH&H Nutrition isinapositionto explore ELSE NUTRITION ELSE INVESTMENTS 2020 2 andElsehave justannounced 2 , Else 70 2020 SUSTAINABILITY REPORT H&H GROUP plants. outcomes forconsumers andaresourcedfrom ingredients andformulationsthatprovide health global plant-based strategy, whichpreferences In lightofthis,in2020wesignedoffour better. for avoiding isthatitmakes dairy themfeel The highestoverall reasonthatconsumers report • • • • including: PLANT-BASED PRODUCTS BY CATEGORY: PRODUCTS PLANT-BASED dairy Currently 4.5%oftheworld’s populationdon’t eat preference forplant-based naturalingredients. community organisationsandinvestors –fora stakeholder groups–consumers, suppliers,local We have seenasignificantshiftacrossmultiple SOURCING MATERIALRAW ENVIRONMENTAL OR SOCIAL IMPACTS. SOCIAL OR ENVIRONMENTAL TO NEGATIVE AVOID ANY HOTSPOTS THOSE ON SUPPLIERS POTENTIAL FROM INFORMATION TO COLLECT THEM TO ALLOW TEAM DEVELOPMENT PRODUCT TO THE GROUP. THE 2020 TRAINING IN PROVIDED WE ACROSS PRODUCTS FOR THAT SOURCE WE INGREDIENTS OF TYPES DIFFERENT THE FOR HOTSPOTS SUSTAINABILITY KNOWN THE OUTLINES WHICH POLICY SOURCING MATERIAL 2019IN ARAW DEVELOPED WE general health. animal rightsandethics environmental concerns digestive health 1 . We areseeingmany motivationsforthis PACKAGED FOOD PRODUCTS SUPPLEMENT PRODUCTS PRODUCTS FORMULA PRODUCTS SKINCARE oils andotherfats. botanicals,minerals,krillandfish include dairy, identified ascriticalforSwisseandBiostime the analysisfocusesonthem.Theingredients represent alargepercentageofourvolume, two ofourbrands–SwisseandBiostime existing ingredientsacrossthebusiness.Given conducted ourmostcritical analysisto identify In additionto changes,wehave Grouppolicy to thepolicy. follows asourapproachto monitoring adherence the Innovation chapter formoreinformation). This this informationinourstage-gate process(see In 2020,weimplemented asystem forcapturing biodiversity risk,andhumanrightsviolationrisks. to chemicalsusedintheproductionprocess, ingredients, suchashealthandsafetyinrelation sustainability hotspotsfordifferenttypesof Sourcing Policy whichcovers known industry to meetthecriteria setoutintheRaw Material newproductIn 2021,wearetargetingevery 1. Euromonitor International’s Health andNutritionSurvey, 2019 100% 43% 70% 0%

• BOTANICALS • FAT SOLUTIONS AND OIL • • • OIL KRILL AND FISH DAIRY • • º  end of2023. 10 botanicalsby spendorganicallyorregeneratively by the We areworking towards ourcommitment to sourceourtop º  vegetable ormilkfats. milk aspossible.We currentlysource thesefromeither ensure thenutritionalprofileisasclose to humanbreast Fat acidprofilesarecriticalforourinfantmilkformulas to algae capsulesin2020. and launchedtheSwissehempseedoilrangeBiostime We areexploringplant-based alternatives forOmega3DHA, facilitates andpromotes researchontheAntarcticecosystem. We alsosupporttheAntarcticWildlifeResearchFund which º asustainablysourcedcertificationfromeither: carry 100% ofproductsthatcontain fishandkrilloilingredients to ensuresustainablesupplyinto thefuture. support localfarmersinkeeping thecows withintheregion Sainte-Mere to protect theNormandebreedofcow and H&H Groupcontinues to invest inapartnershipwithIsigny environmental targetsandKPIsinplace. standards forEnvironmental ManagementSystems andhave suppliersfollow ISO14001 All ourdirectlyprocureddairy comprehensive sustainabilitystrategies andplans. Our milkfatscurrentlycome fromfarmsthatmaintain will carry asustainablesourcingcertification. will carry By theendof2021,allouroilforBiostime’score range MSC

º Friends oftheSea

º MarinTrust 72 2020 SUSTAINABILITY REPORT H&H GROUP monitoring: measures asaresultoftheseprogramsand and wastewater productionin2020acrosstwo Isigny successfullyreducedwater consumption ISIGNY STUDY E S A C TOPICS WATER ENERGY.TOPICS AND THE THAT INCLUDE GUIDELINES COOPERATIVEENVIRONMENTAL CLOSELY HAVING IMPLEMENTED CONSUMPTION AND TREATMENT MONITORS THE WATER ITS MANUFACTURING FACILITY FORMULA. MILK INFANT BIOSTIME MANUFACTURES AND SUPPLIER DAIRY LARGEST OUR IS ISIGNY WASTEWATER PRODUCEDBY 14.5% REDUCED WATER CONSUMED AND REDUCED WATER CONSUMED AND WASTEWATER PRODUCEDBY 10% PER KG OFMILKPOWDERIN2020 SAINTE MERE SAINTE N 2020 PER LITREOFMILKIN

rules ofwater wastage. usage andrequiresfarmersto fitwithits The CBPEraisesawareness aboutwater Isigny’s certification“Agri Confiance”. for SustainableAgriculture according to Practices (CBPE) whichisthereference follow theCharter of GoodBreeding is alsoforpersonaluse),thefarmers to concerns privacy (asthefarmwater water consumption oneachfarmdue Isigny Cooperative don’t monitor the water captureandstorage. Whilst reducing thestressplacedonregional farmers have theirown water borehole, More thanhalfofIsigny Cooperative FARM ON OWN WATER BOREHOLE, REDUCING THESTRESS FARMERS HAVE THEIR PLACED ONREGIONALPLACED WATER AND CAPTURE COOPERATIVE 61.6% OF ISIGNY STORAGE.

74 2020 SUSTAINABILITY REPORT H&H GROUP any ofourproductgeneratingbrandsand supply baseacrossallour directsuppliersfor outduediligencewithinourexisting carrying We have implemented a formalprocessfor out intheCode. and areaimingto exceed ourexpectations set they aregladto partnerwithusonthisjourney Many ofoursuppliershave communicated that manufacturers have signedupto theCode. and 100%ofourSwisseBiostimecontract roll-out planwithexistingsuppliersin2020 We successfullyimplemented phasetwo of our requirements equivalentto ourCode. due diligenceontheirsupplybaseto implement suppliers to communicate, educate andexercise in theCode, itisthen theresponsibilityofdirect whom wehave outlined directrelationships.As manufacturing andpackagingsupplierswith upstream supplychainaswellraw material, prior to TheCode engagement. appliesto our arrange fornewsuppliersto signtheCode related purchasesfollow theCode and engaged iningredientsourcingandproduct- We ensurethatalltheGroup’s businessunits • • • • • values regarding: and goalsaswellspecificexpectations The Code outlinesoursustainabilitystrategy MANUFACTURING PROCESSING AND global citizenship. health, safetyandquality responsible sourcing research andtraining business practices RUDORSSANBLT ORE. JOURNEY. SUSTAINABILITY OUR AROUND SUPPLIERS WITH DISCUSSIONS IN BLOCK BUILDING FIRST THE 2018, BEEN DECEMBER HAS SINCE WEBSITE H&H’S ON AVAILABLE PUBLICLY BEEN HAS CONDUCT, CODE WHICH OF SUPPLIER OUR products, including: our complex supplychainacrossourportfolioof step to andgovernance fulltransparency over commitments wesetoutto achieve asafirst In 2020wehave metalltargetsand • • diapers • • • dairy • following productcategories: Consortium’s hotspotsforthe ThesisIndustry in, largelyfocusedonTheSustainability as material fortheindustriesweoperate is tailoredto thetopics specificallyidentified Thesurvey Sustainability Essentialssurvey. entities throughthedevelopment ofourH&H baby accessories. soup andconvenience meals personal care vitamins andsupplements    social auditcarriedoutby athirdparty. andhadanethicalorEssentials survey) sustainability assessment (Sustainability 46% ofoursupplierscompleted our high-risk directsuppliersidentified management platformimplemented  supplier sustainabilityperformance Assessment training onrolloutofSustainability supply team memberengagement and manufacturers  roll outwithourmajorcontract TYPE OFTYPE ENVIRONMENTAL TARGETS OUR MANUFACTURERS HAVE IN PLACE this stage. commitments ortargetsrelatingto these projectsat inthisregard,but donothaveunderway formal inequalities. We have anumberofprojectscurrently and unemployment intheirjourneyto reducing communities thatmay bestrugglingwithpoverty within oursupplychain,butalsoenhanceandsupport We arealsolookingto notonlyrespecthumanrights º  º  º º  To combat this,weareplanning to: carries riskofinaccurate ormisleadingreporting. performance hasbeenself-reported and,therefore, the informationaboutoursupplychain’s sustainability sustainability to benchmarkandbuildon.Currently, of informationonoursupplychainandprogressin supply chainsustainabilityby creatingadatabase These actionshave laidgoodfoundationsfor 22.2% recycling Waste minimisation/ Renewable energy6.9% management process. integrate key supplychaintargetsinto thesupplier requirements inourRaw Material SourcingPolicy ensure 100%ofnewproductsmeetthe tiers ofthesupplychain continue Code ofConduct roll-outplanto further auditing scheduleandprocess incorporate sustainabilitykey metricsinthequality Water use18.1% WITHIN OUR SUPPLY CHAIN Emissions (GHG) 9.7% HAVE OF MANUFACTURERS TARGETS PLACE IN 22.2% Energy efficiency ENVIRONMENTAL sourcing 6.9% Raw material minimisation 13.9% Hazardous waste *That have completed our our completed have *That sustainability assessment sustainability 56.8% No Yes 76 2020 SUSTAINABILITY REPORT H&H GROUP ASSESSMENT SUSTAINABILITY HAVE COMPLETED CHAIN (BYCHAIN SPEND) SUPPLY OUR WITHIN OF MAUNFACTURERS 89% MANUFACTURERS (BYMANUFACTURERS BY COUNT) REGION No Yes North America–11suppliers Europe –86suppliers –19suppliers Asia Australia andNewZealand –17suppliers 58% 8%

27% 7% KEY CONTRACT MANUFACTURERS KEY CONTRACT AMERICA NORTH Note: this listofmanufacturersrepresent over 90%ofour manufacturingoffinishedgoods. EUROPE ASIA CHINA AUSTRALIA AND NEW ZEALAND 78 2020 SUSTAINABILITY REPORT H&H GROUP on our product category regulatorson ourproduct category andstandards. categories. PleaseseeAppendix3formoreinformation products areregulated asfoods,medicines,orother processes applyto ourbrands, dependingonwhether Market- and product-specific qualityrequirementsand identified intheinvestigation process. investigated andremediated quicklywithnohealthrisk to manufacturing challengesbothofwhichwere We hadtwo partial-withdrawals of productsdue THERE WERE through mockrecalls. recall proceduresinplace,whichareperiodicallytested We have productqualityassuranceprocessesand appreciation oftheirfeedback. another productordiscount voucher to demonstrate our regulators. Customers whoplaceacomplaint areoffered in reactionto customer enquiriesorfeedbackfrom market, aswell throughout theproductlifecycle, development phasepriorto our productreachingthe We complete reviewsduringtheresearch and determine prioritiesforfurtherinvestigation. complianceregulatory andarisk-based approachto subject to brand-specificproductqualityreviews, testing and safetyimpactsofourproducts.Ourproductsare All ourbrandsactively managethepotential health MANAGEMENT QUALITY PRODUCT VENDOR SPECIFICATIONS. VENDOR PRODUCT AND APPROVINGREVIEWING FINISHED AND SPECIFICATIONS VENDOR BULK MANAGEMENT, AND QUALIFICATION 2019,IN SUPPLIER INCLUDES WHICH LAUNCHED MANUAL, QUALITY GLOBAL OUR IN EXPRESSED ARE ACTIVITIES THESE SAFETY. AND TO QUALITY APPROACH A SOPHISTICATED AND HAVE TRADITIONS LONG BRANDS OUR RECALLS 0 PRODUCT

IN 2020 128,055,205 PRODUCT UNITSSOLDPRODUCT PRODUCT ENQUIRIES PRODUCT TOTAL NUMBER OF 3,754,955 IN 2020 WERE RESOLVED OF COMPLAINTS 99% WERE RESPONDEDTO OF COMPLAINTS 100% COMPLAINTS ENQUIRIES WERE OF THE <2% WERE RESOLVED OF ENQUIRIES 99.9% RESPONDED TO OF ENQUIRIESWERE 100% Spend onqualitymanagement 2018 US$6,385,764 MANAGEMENT: SPEND ONQUALITY 2019 2020 US$6M US$7M 0 US$1M US$2M US$3M US$4M US$5M PACKAGING

H&H GROUP SELECTING SUSTAINABLE PRODUCT PACKAGING REQUIRES CAREFUL CONSIDERATION OF SEVERAL FACTORS, INCLUDING:

• selecting materials that are renewable or have been recycled 11,660,954 UNITS • ensuring safety of materials used • optimising material efficiency PRODUCED WITH • designing for material recovery, litter minimisation, consumer accessibility, transport RECYCLED CONTENT efficiency and reduced product waste. RESCUING OVER 300,954KG Finding the right balance of the above-listed the same environmental impact as petro-based OF MATERIAL AND HELPING factors can be challenging, particularly where raw ingredients) is the third preference. We are TO FUEL THE CIRCULAR technology does not currently allow us to use also exploring some options that meet all three ECONOMY. materials or formats that would be preferable of these categories, that is, recyclable packaging from a sustainability perspective. The three that is made from a biobased waste material and materials most commonly used in our packaging is also biodegradable, however there are many are paper, tin and plastics. Consumer recycling quality checks we need to complete before we availability and frequency for paper and tin are can safely use this type of packaging with our high, however, we recognise that currently we products. are heavily reliant on petroleum-based virgin plastic packaging and that with plastic recycling For more information about how we are working rates globally sitting at around 20% there is a towards a more environmentally friendly end of 1KG lot of work still to do to circulate the lifecycle life for our packaging, please see the section of of plastic. Further, over 11% of our plastic this Report titled ‘Resource Recovery’ on page 86. FOR EVERY US$68 packaging contains mixed types of plastic, 25,977t IN REVENUE WE adding further complexities to their suitability TOTAL MATERIAL TYPE PACKAGING PRODUCED 1KG OF for recycling. MATERIALS PACKAGING Mixed Tin 2020 SUSTAINABILITY REPORT 2020 SUSTAINABILITY In our two biggest product categories of infant Plastic Aluminium formula and supplements, we must prioritise Glass Paper and cardboard quality and safety, including active ingredient stability. At this point in time, we haven’t been <1% 2% able to find alternatives to plastic for the core supplements range. We are working with 107,828,831 PACKAGING research partners and suppliers to develop 12% solutions and have set ourselves the target that COMPONENTS all product packaging will be either recyclable, 9% PRODUCED WITH compostable or biodegradable by 2023. RENEWABLE MATERIALS To progress towards this in 2020, we created a 58% packaging charter that identifies the priorities INCLUDING: to move towards the goal of a closed loop 19% system. To make incremental changes, the first • OYSTERLEAN (or ideal) choice for packaging is recyclability. • BIOPLASTIC LIDS The second priority is to use recycled content, • SUGARCANE BIOPLASTIC but if that isn’t possible, then use of biobased materials (such as sugarcane, which doesn’t have • PAPER • CARDBOARD The data relating to packaging only covers Swisse, Biostime and Good Goût products in Australia, New Zealand,

80 China, the United Kingdom, France, Italy and the Netherlands which covers over 90% of our packaging. • GLASS 82 2020 SUSTAINABILITY REPORT H&H GROUP VISIBILITY OFTHEENVIRONMENTALVISIBILITY FOOTPRINT OFDISTRIBUTINGOUR PRODUCTS TOPRODUCTS OURCONSUMERS. DTC ALLOW CHANNELS BETTER 45% performance inthefuture. work withourtransportandlogistics partnersto increase environmental COVID implicationsmeantweneedto pushthis targetinto 2022.We will to measure the environmental footprint of these channels in 2020, however, proportion ofourbusiness relyingonthismodel.We werehopingto beable our supplychainhasbeen identifiedasamorematerial areawithalarger footprint ofdistributingour productsto ourconsumers andthispartof such channels.DTC channels allow better visibilityoftheenvironmental SwisseMeandCBIImakeSkincare, GoodGoût, mostoftheirsalesthrough consumer (DTC) channelsacrossalloftheGroup’s brands.Aurelia Probiotic distribution partnerswhilstalsolaunchingandgrowing ourdirect-to- In 2020wemaintainedstrongrelationshipswithretailers andother an impactonreducingourupstreamemissionsinthefuture. USA fromAustralia to NorthAmerica.We areworking onhow wecanhave we localisedapproximately the 30%oftheSwissesupplychainthatservices environmental In2020, footprintofourproductsupplychainsissignificant. to allcorners oftheworld. We recognise thatcurrentlythismeansthe consumers. For thisreason,ingredientsourcingisoften nicheandstretches systemsof theindustriesandregulatory thatprotect thesafetyof the moststringentofqualityandsafetystandardsdueto thenature the productissold.Ourinfantformulaandsupplementproductsrequire Currently 55%ofourmanufacturingisconducted intheregionwhich ANDLOGISTICSTRANSPORT DISTRIBUTION IN A RELATIVELY SHORT AMOUNT OF TIME. OF AMOUNT ARELATIVELYIN SHORT WORLD THE ACROSS MULTIPLE MARKETS SERVICING TO MARKET ONE SERVICING FROM TRANSITIONED HAVE SUPPLY OUR CHAINS MEANT HAS BUSINESS ENTREPRENEURIAL AND EVER-EVOLVING OUR 55% Europe, Australia andNewZealand) Note: Byregion (Asia, Americas, MARKET SERVICING LOCAL MANUFACTURING LOCALOF PERCENTAGE No Yes 84 2020 SUSTAINABILITY REPORT H&H GROUP • months andhasbeenset upto: The BNCCouncil six willmeetevery the scope ofourBMSPolicy aresold. and regioninwhichproductswithin representatives brand from every up ofmarketing and regulatory Council. TheBNCCouncil ismade of aBaby NutritionandCare(BNC) monitoring withthedevelopment our approachto implementationand In 2020wereviewedandupdated anticipate itwillnotbeinbreach. case (currentlybeinginvestigated) but our Policy. OutsideChinawehadone where regulationislessstringentthan of conducting businessinthisregion our teams to adjustto thenewway market. Theseadjustments willallow the articlesspecificallyinChina approach to implementingthreeof the Policy to allow timeforaphased on ourwebsite. In2020,werevised Policy (BMSPolicy) thatisavailable Marketing ofBreastMilkSubstitutes In 2018,wepublishedourResponsible MARKETING and changes developmentsglobal industry keep up-to-date withlocal and WELLBEING OF BOTH MOTHERS AND NEWBORNS. AND MOTHERS BOTH OF WELLBEING THE ON IMPACT THEIR ABOUT CLAIMS PRODUCT TO OUR RELATING COMMUNICATIONS AND MARKETING ANY OF IMPLICATIONS TO THE SENSITIVE TO BE NEED WE FORMULA, INFANT THAT PRODUCES ORGANISATION AN AS SO LIFE, START IN NUTRITIONAL BEST THE AS MILK BREAST HUMAN FOR SUBSTITUTE REAL NO IS THAT THERE UNDERSTAND WE

penalties, or fines. any consumer complaints, legalaction, were rectifiedanddidnot resultin with labellingregulations allofwhich minor incidentsofnon-compliance claims wemake. In2020,wehadthree documentation to supportthespecific and ensurewehave accompanying reviewprocessthrough aregulatory We alsomonitor allproductclaims • • • • • responsibilities). accordingly (assigningrolesand Non-Compliance form’ andrespond the ‘H&HResponsibleMarketing non-compliance raisedthrough discuss any concerns andcasesof Board Policy to GlobalRiskteam andthe report oncompliance withtheBMS BMS Policy raise anddiscussconcerns withthe BMS Policy report onregionaltrainingofthe (including breastmilksubstitutes) baby nutritionandcarematters and positioninginrelationto oversee theGroup’s approach individual’s health andwellbeing. soul –included whenassessingan the wholeperson–mind, bodyand holistic approachto healthaddressing lifestyle, whilstournutritionists applya nutritional medicine,aswell asdietand provide generaladviceonherbal and team members.Ournaturopaths qualified naturopathandnutritionist wellness chatsviaphonewithour In 2020Swisselaunchedfree-of-charge FREE WELLNESSCHATS NEW: SWISSELAUNCHES matters in2020. We hadnoincidentsofnon-compliance relatingto privacy conditions atthepointofdatacollection. and ensureourcustomers firstagree to clear terms and Australian market, wecomply withAustralian law, privacy processes andsystems againstsecuritybreaches.Inthe risk assessmentsandtests theresilienceofkey business team periodicallypromotes securityawareness, global and resolve incidents.OurGlobalInformationSecurity Management Systems orequivalentsto prevent breaches policies inplaceanddeploy InformationSecurity We have specific consumer dataprotection andprivacy for globalmarkets to better respondto challenges. privacy ImpactAnalysisProcedure’ Procedure’ and‘H&HPrivacy We continued to usethe‘Personal Data BreachResponse Hong Kong, related laws andotherprivacy innewmarkets. in Chinamainland,Personal Data Ordinancein (Privacy) ActPrivacy inAustralia, theCybersecurity Law ofthePRC Protection Regulation(GDPR) intheEuropean Union,The In 2020,weremainedcompliant withtheGeneralData requirements inthemarkets inwhichtheyoperate. All H&HGroupbrandsfullycomply legal withprivacy PRIVACY AND MARKETING. PRODUCT INFORMATION PROVIDINGBEYOND CONSUMERSENGAGE WAYS THAT CAN WE NEW EXPLORING ARE WE

86 2020 SUSTAINABILITY REPORT H&H GROUP packaging. and theNetherlands whichcovers over 90%of our Zealand, China,theUnited Kingdom,France, Italy inAustralia,Biostime andGoodGoûtproducts New The data relating to packaging only covers Swisse, resource recovery inthefuture. in themarkets weoperate to supportmore investments infrastructure inbetter recycling We alsoadvocate and forstrongpolicy elements. to informusonthefourabove-mentioned Australian Packaging Covenant Organisation, groups, suchasthe packaging industry particular area,weconnect withregional To helpguideourdecision-makinginthis • • • • to rates: increasingrecycling Essentiallytherearefourelements recycled. local government’s facilitiesto actuallybe availability ofcertain infrastructureinthe willdependonthe the recyclability manufactured into itsfinalformoccasionally whena certainmaterial isrecyclable, We recognise, however, thatjustbecause RECOVERY RESOURCE PACKAGING RECYCLABILITY. TO ASSURE SUPPLIERS PACKAGING OUR ENGAGED HAVE WE HISTORICALLY, MIND. IN AT LIFE OF END THE RECOVERY MATERIAL WITH PRODUCTS OUR TO DESIGN HARD WORKING ARE WE communities. infrastructureintheconsumer'srecycling consumer willingnessto recycle clear communication on-pack ofrecyclability materials designing thepackagingwithrecyclable

IS RECYCLABLE PACKAGING OFTONNES 4 6 8 , 2 2 14%

86% MATERIALS EXAMPLE OF THE ARL ON PACK: ON ARL THE OF EXAMPLE alternatives, we’reutilisingthisspecialprogramto reducetheamountsentto landfill. packaging thematerial). orwefindamorerecyclable Therefore,untilthatmaterialrecycle isreadilyrecyclable, packaging orproductisnotatamarket theprocessingrequiredto facilities(to valueforlocalrecycling justify back any packaging or productsto This is particularly relevantwhere the value of thematerials be recycled. in the TerraCycle connects facilitiesintherelevantmarket withrecycling andorganisesvolunteers to collect andsend In 2020wehadtwo partnershipswithTerraCycle acrosstheGroup,covering productsfromDodieandGoodGoût. infrastructure, suchaslocalcouncil collections, we’ve partneredwithTerraCycle. For ourpackagingorproductsthatcan’t throughexistingconsumer currentlyberecycled recycling DISPOSAL LOGOS AND INSTRUCTIONS FOR EACH COMPONENT. EACH FOR INSTRUCTIONS AND LOGOS DISPOSAL OR RECYCLING LOCALLY RECOGNISED AND CLEAR TO INCLUDE BRANDS BIGGEST OUR ACROSS LABELLING PRODUCT FOR TARGETS HAVE SET WE THROUGH THE TERRACYCLE PROGRAM IN2020. PROGRAM THROUGH THETERRACYCLE 131,895 UNITS WERERECYCLED RECOVERY PROGRAMS

88 2020 SUSTAINABILITY REPORT H&H GROUP H&H FAMILY CHINO PRODUCTION SUPPLY CHAINAND BABAK APPENDIX

APPENDIX 04 90 2020 SUSTAINABILITY REPORT H&H GROUP SHOPPER MARKETING VICTORIA H&H FAMILY BROCCOLI METHODOLOGY A NOTE ABOUTOUR publication for each country representedpublication for eachcountry inthesample Emission factors weresourcedfromacredible extrapolation methodasoutlined below forthesesites. limitedis very however an wewere able to identify therefore accessto accurate dataonH&H activity majority ofourofficesaresharedofficespaces and similar sites andextrapolated asrequired.The vast factor orrate wascalculated usingdatafromother weights ofwaste disposedofintheyear, anappropriate for exampleifanorganisationdidnothave accessto emission factors. In thecasethattherewasadatagap, to carbondioxide equivalentsby usingappropriate into individualsourcesofemissionsandconverted of waste beingproduced.Thedatawasseparated electricity, naturalgasandwater aswellthetonnage the organisationattheirplaceofbusiness,including captured theamountofresourcesbeingusedby data to ensurecompleteness. results Thesurvey cross-checked withfinancialgeneralledgerandinvoice Environmental datacollected were throughsurveys way to captureenvironmental data. entities acrosstheGroupsothisismostefficient sites have team membersfromdifferentbrandsand site oroffice.Mostofour types,e.g.warehouse,factory countries inwhichtheGroupoperates andthedifferent coveringsurvey 17sites thatrepresentthedifferent Environmental datawascollected throughasite-based other platformsthatareusedto monitor key topics. documentation suchasinvoices, generalledgerdataor mistakesdata entry andcross-checksaremadeagainst to pickuptrends,captureany bigoutliersorpossible our material topics, oncecollected analysisisconducted captureinformationrelatingtoEach ofthesesurveys APPENDIX 1 LOCATIONS ACROSS THE H&H GROUP. H&H THE ACROSS LOCATIONS AND FUNCTIONS DIFFERENT FROM MEMBERS BY TEAM COMPLETED WERE ATOTAL 79 SURVEYS OF FUNCTION. OR LOCATION BYUP TOPIC, BROKEN SURVEYS ONLINE OF DATA ASERIES THROUGH COLLECTED WAS

through extrapolation. emissions inventory with15%ofemissionsestimated information accounted for 85%oftheextrapolated Emissions calculated resultsandfinancial from survey and organisationtype. from aculturallysimilarcountry factor forextrapolation,substitute factors werederived had insufficientinformation tocalculate anappropriate Where dataforaspecificorganisationtypeand country warehouses, packingfacilitiesandoffices. types represented includefactories, laboratories, Organisation Netherlands, Singapore,USAandtheUK. China, HongKong (China), France, Switzerland, Italy,the H&H GroupincludeAustralia, NewZealand, Mainland the organisationtype.Thecountries represented inthe oforigintherespondingorganisationand country consideredthe entireH&HGroup.Extrapolation the to basis, thenextrapolatingthisacross aperFTE was doneby dividingdown key datasuchasemissions then extrapolated acrosstheentireorganisation.This of H&Hsites represented thedatawas inthesurvey, After acomplete inventory wascreated forthesample include CO The gassesincludedinthecalculationofemissions assumed to beMunicipalSolidWaste sentto landfill. all otherwaste emissioncategories wereconservatively wereassumedtorecycling have anemissionfactor of0, (UK). Emissionsfrommaterial reuse,composting and GHGConversion(New Zealand); andDEFRA Factors Environment GuidanceforVoluntary Greenhouse Determination 2008(Australia); forthe Ministry Greenhouse andEnergyReporting(Measurement) factor setsusedintheanalysisinclude:National and appliedto activitydata.Emission thesurvey 2 , CH 4 andN 2 O. 92 2020 SUSTAINABILITY REPORT H&H GROUP APPENDIX 2 geo-political, social orenvironmental disruption,anduseofdigital ingredients, thenutritionalprofileandsourcinginformation to be easily understandableforconsumers andempower themto make MATERIAL for communities acrossourvaluechain,fromupstreamsuppliers investment insocialsolutionsandinclusive growth. Thisincludes Investing intheresearchanddevelopment ofnewproducts,and the continuous improvement ofour ofthenutritionandefficacy Considering whetherourproductsareaccessibleand affordable products areaccurately andtransparently labelledwithproduct existing products. Focusing on serving thehealthand wellbeing existing products.Focusing onserving Connecting withourconsumers to engageandeducate them manufacturing, andsustainablepracticesthatsupportthelocal on H&H’sbrands,products(andbenefits),andhow theymay INNOVATION FOR CONSUMER HEALTH OUTCOMES Transparently communicating theeffects,benefits,limitations includes enablingtraceabilitythroughoutthesupplychainto Ensuring ourproducts,andallingredientsprocesses,are address inequality andpotential foodscarcityresultingfrom developing trustingandlastingrelationshipsbetweenour to meet communities’ healthandnutritionneeds.Helpingto international markets. Afocusondigitisationwillbeakey health needsoflocalconsumers. Usinglocalingredientsand brands andconsumers, to supportbusinessgrowth across and alternatives forH&H’s products.Thisincludesensuring tested, safeforconsumers, andofthehighestquality.This embark ontheirbroaderwellnessjourney.Thisincludes needs ofourconsumers, andutilisingthepower ofdigital Tailoring ourproductportfolioforthespecifictastes and RESPONSIBLE MARKETING(ANDLABELLING) ACCESS OFPRODUCTS ANDAFFORDABILITY H&H’s contribution to community engagement, impact, prevent counterfeiting andprotect consumers’ safety. COMMUNITY IMPACTCOMMUNITY ANDINVESTMENT environment, suchasregenerative agriculture. THE STORY OF GOOD HEALTH GOOD OF STORY THE to consumers andend-of-life management. PRODUCT SAFETY ANDQUALITY SAFETY PRODUCT CONSUMER ENGAGEMENT means forH&Hto doso. better healthdecisions. technology to doso. platforms to do so. LOCALISATION TOPICS are scarce,drawn fromvulnerableecosystems and/orecosystems chain onland,soilsandbiodiversity, especiallywhereingredients recovery. Thisincludesafocusonmanagingwaste outputsinour risks andopportunitiesthroughoutourvaluechain.Thisincludes Understanding andworking to reducetheimpactsofoursupply recycling. Partneringrecycling. withsuppliersandresearchinstitutionsto supply chainandoperations,withbothpartnerssuppliers. Both ourwater consumption andwastewater practices.Water Our aimto reducewaste sentto landfillandincreaseresource Understanding andmanagingourexposureto climate-related waste water aimsto ensurethatwater usedinourproduction consumption focusesonouroperationsandsupplychain, agriculture practicesthatwillinturn,ensurelong-term, high- including fromraw ingredientsandtransportationaswell working withoursupplychainto reduceusage.Ourfocuson manufacturing. Increasingouruseoflow-impact, renewable which supportendangeredspecies.Supportingsustainable and energyconsumption ofouroperationsandvalue chain, to water pollution,oradversely affectlocal communities or production andtransportation,reducewaste andfacilitate environments. Plus,designingourproductsto avoid water Designing ourpackagingto reduceenergyconsumption in operations istreated responsiblyanddoes notcontribute considering theimpactsoftransitionto azero-carbon Actively working to reducethegreenhousegasemissions economy andthephysical impactsofclimate change. LAND MANAGEMENT ANDBIODIVERSITY LAND OUR FOOTPRINT ON THE PLANET THE ON FOOTPRINT OUR understand and manage lifecycle impacts. understand andmanagelifecycle GHG EMISSIONSANDENERGY SUSTAINABLE PACKAGING pollution fromuseordisposal. WASTE MANAGEMENT WATER STEWARDSHIP sources ofenergy. CLIMATE RISK quality supply. innovate, grow andnavigate theglobalconsumer goodsmarkets. This Embracing andbeinginclusive ofthediversity ofstaffatalllevels and Attracting, developing andretainingaskilledworkforce asastrategic includes training,andinvesting inthelong-run,sustainablesuccessof TALENT ATTRACTION, RETENTIONANDDEVELOPMENT production ofanimal-derived ingredients,researchanddevelopment own employees andinoursupplychain.Creatingsupportive policies, Actively managingandmonitoring thehealthandsafetyrisksforour to ourorganisation.Supportingdiversity andinclusioninoursupply in allregionsofourorganisation.Recognising thevaluethisbrings Ensuring consistent, fairandattractive remunerationandworking the value of H&H’s business. This includes actively identifying and the valueofH&H’sbusiness.Thisincludesactively identifying conditions forown employees intheworkplace andinoursupply priority; ensuringthatwehave anddevelop thehumancapitalto procedures andanenvironment thatsupportshealth,safetyand chain. Respectingandprotecting therights ofallcontributing to HONOURING HUMAN RIGHTS AND FAIRNESS AND RIGHTS HUMAN HONOURING Actively managinganimals’qualityoflifeandwelfareinthe managing modernslavery riskswithinoursupplychain. LABOUR RIGHTSANDMODERNSLAVERYLABOUR HEALTH, ANDWELLBEING SAFETY and testing ofproductsinH&H’sbrands. DIVERSITY ANDINCLUSION DIVERSITY chain andlocalcommunities. ANIMAL WELFARE our teams. wellbeing. compliance, thisisafocusontherobustnessofoursystems to protect customers. Includeshaving policiesandproceduresinplaceto combat managing H&H’sstrategy acrossmultiple brands,countries andvaried Increasingly, positive relationshipswithgovernments arepertinentto levels on behalf of the industry andtolevels compliance. ensureregulatory onbehalfoftheindustry cultures. Managingtherisksandchallengesofafast-paced strategy integrating ourways ofworking andcommunication andleveraging in ayoungcompany assimilatingmultipleacquisitions.Thisincludes environmental impacts(especiallythosehighlighted inourmaterial Actively andengagingwithgovernment participatinginpolicy atall Ensuring oursupplierpartnershipsandrelationshipsaregoverned Global integration ofstrategy andvisionincludingintegrating and and moralstandards,bothinternally andwhenmanagingexternal topics). Thisincludesnotonlyraw material sourcing,butalsoR&D data protection, cyber securitylawsdata protection, cyber andinternal policies.Beyond relationships withoursuppliers,partners,andengagement to ensurehigh-quality,reliablesupply;andto managesocialand Ensuring thecompliance ofH&H’spartnersandemployees with enable thelong-term securityoftradeandthebusinessfuture. Ensuring ourbusinessoperates to clearandhighethical,legal COMPLIANCE ANDGOVERNMENT RELATIONS relationships, manufacturingandpackagingprocesses. RELATIONSHIPS ANDCONTINUITY ETHICS, INTEGRITY ANDTRUST INTEGRITY ETHICS, customer, employee andpartnerdata. DATA PRIVACY ANDSECURITY SUPPLY CHAINGOVERNANCE, our diversity forbusinesssuccess. STRATEGY ANDVISION bribery andcorruption. bribery GOVERNANCE

94 2020 SUSTAINABILITY REPORT H&H GROUP REGULATORS ANDSTANDARDS CATEGORYPRODUCT APPENDIX 3 INFANT FORMULA FOODS HEALTH FOODS MEDICINES OR TRADITIONAL COMPLEMENTARY CATEGORY PRODUCT WE COMPLY.WE WHICH IN BY AND GOVERNED ARE THATSTANDARDS INDUSTRIES OUR AND BODIES REGULATORY MAIN THE TABLE OUTLINES FOLLOWING THE

NEW ZEALAND* Infant Formula in Australia (MAIF) Food Standards Administration AUSTRALIA & Australia and New Zealand Marketing of Therapeutic (FSANZ) Goods (TGA)

Administration standards, and standards, and China customs Regulation Regulation for Market Guobiao Guobiao (SAMR) CHINA State

Safety Authority and/or national European Food WHO Code authorities EUROPE (EFSA) UNITED STATES Administration in thiscategory USA Food and No products No products (FDA) Drug Centre forFood Health Sciences Singapore Food Safety (Hong Agency (SFA) EXC. CHINA EXC. (Singapore) Authority Kong) ASIA

DISCLOSURE APPENDIX 4 102-12, 102-13 102-56 102-9 102-55 102-7 102-4, 102-6, 102-48 102-32 15, 102-31, 102-14, 102- 102-7, 102-10, Other 102-47 102-2, 103-3 103-1, 103-2, Community impactandinvestment 103-3 103-1, 103-2, Innovation for consumer healthoutcomes 102-44 42, 102-43, 102-40, 102- Sustainability atH&H 102-53, 102-54 51, 102-52, 102-50, 102- 46, 102-49, 102-45, 102- 102-5, 102-10, 102-1, 102-3, disclosure GRI 413-1 Membership ofassociations External assurance Supply Chain GRI Index workers Information onemployees andother Location ofOperations,Markets Served, Restataments senior decision-maker Scale ofOrganization,Statement from partnerships number ofpatents, spendonR&D, Number ofnewproductslaunched, Material Topics Activities, BrandsandProducts Management Approach Management Approach Stakeholder Engagement General Disclosures: development programs impactassessments,and engagement, Operations with localcommunity Material topics ofH&H INDEX Developing theIndustry Appendix 6 Value Chain Appendix 4 H&H Welcome to theworld of Appendix 5 A note fromourBoard A note fromourCEO development Innovation >Researchand Material Topics Our productcategories Our brands The story ofgoodhealth The story Innovation Sustainability atH&H About thisreport The story ofgoodhealth The story Chapter 14-15 98 60-61 93-96 12-13 96 6-9 64 90 16-19 Page 30 62-65 23 4 30-38 B8, B8.1 B8.2 Reporting Guide ESG HKEx 96 2020 SUSTAINABILITY REPORT H&H GROUP Other Other 306-2 103-3 103-1, 103-2, Waste management 305-7 103-3 103-1, 103-2, GHG emissionsandenergy anewtopicAs wearecurrentlyworking onamanagementapproach,appropriate disclosuresforfuturereporting. Access andaffordability 103-3 103-1, 103-2, Localisation 417-2, 417-3 103-3 103-1, 103-2, Responsible marketing andlabelling 103-3 103-1, 103-2, Consumer engagement 416-2 416-1 103-3 103-1, 103-2, Product andquality safety 307-1 302-1, 302-3 305-5 305-3, 305-4, 305-1, 305-2, Local manufacturing consumers New engagementplatformswith Waste by typeanddisposalmethod Management Approach Nitrogen oxides (NO Management Approach Management Approach labeling informationand product andservice Incidents ofnon-compliance concerning Management Approach Management Approach and services the healthandsafetyimpactsofproducts Incidents ofnon-compliance concerning categories impacts ofproductandservice ofthehealthandsafety Assessment Management Approach and regulations Non-compliance withenvironmental laws Energy consumption andintensity Direct GHGemissions and othersignificantairemissions X ), sulfuroxides (SO X ), Distribution Marketing planet >Waste Our footprinton the planet Our footprintonthe planet Our footprintonthe Distribution Marketing Marketing Our brands Quality Management Quality Management Quality Management planet >Changesin2020 Our footprintonthe Consumption the planet>Energy Our footprinton planet >Emissions Our footprintonthe planet >Emissions Our footprintonthe 81 83 45 38-42 38-42 81 82-83 82-83 16 76-77 76-77 76-77 41 44 42 42 A1.3, A1.4 A1, A1.6,A2 A1, A1.5,A2.3,A3.1,A4 B6 B6 B6.1, B6.2 B6, B6.4 A1 A2.1 A1.1, A1.2 A1.1 102-16 403-8, 403-9 403-4, 403-5, 403-1, 403-2, other other 103-3 103-1, 103-2, rightsandmodernslavery Labour 103-3 103-1, 103-2, Diversity andinclusion 103-3 103-1, 103-2, andwellbeingHealth, safety 103-3 103-1, 103-2, Climate risk 103-3 103-1, 103-2, Water stewardship 103-3 103-1, 103-2, Sustainable Packaging 102-8, 405-1 303-1 301-3 301-1, 301-2, Wellbeing Initiatives fatalities lost days, and numberofwork-related Types andrates ofinjury, ofinjury Climate risksidentified Parental leave Management Approach Management Approach Management Approach Management Approach Management Approach Management Approach employees Diversity ofgovernance bodiesand Water withdrawal by source Materials benefits conditions andadditional and fairness>Working Honouring humanrights safety andwellbeing and fairness>Health, Honouring humanrights planet Our footprintonthe leave and fairness>Parental Honouring humanrights Manufacturing Processing and benefits conditions andadditional and fairness>working Honouring humanrights Recruitment rights andfairness> Honouring human safety andwellbeing and fairness>Health, Honouring humanrights benefits conditions andadditional and fairness>Working Honouring humanrights planet Our footprintonthe planet Our footprintonthe Packaging H&H Welcome to theworld of Sustainability governance Consumption the planet>Water Our footprinton Resource recovery Packaging 50 52 38-42 52 73 50 48 52 50 38-42 38-42 78-79 12 9 43 84-85 78-79 B2.3 B2.1, B2.2 B1.1 B4 B1 B2, B2.3 A2, A2.4 A1, A1.6,A2,B5.4 B1.1 A2.2 A2.5, B5.4 98 2020 SUSTAINABILITY REPORT H&H GROUP 102-17 205-3 Other Other 102-30 103-3, 102-15, 103-1, 103-2, Compliance andgovernment relations 405-1 25, 102-31, 102-23, 102- 20, 102-22, 102-18, 102- 102-30 103-3, 102-15, 103-1, 103-2, Ethics, integrity andtrust 103-3 103-1, 103-2, Strategy andvision 103-3 103-1, 103-2, Animal welfare 102-35 401-1 404-1, 404-3 401-1 103-3 103-1, 103-2, Talent attraction, retention anddevelopment 409-1 407-1, 408-1, about ethics Mechanisms foradviceandconcerns actions taken Confirmed incidentsof corruption and initiatives Qualitative disclosureonstrategic portfolio Plant-based strategy andpercentageof Management Approach Governance Structure Management Approach Management Approach Management Approach Team memberbonuses New team members employee Average hoursoftrainingperyear Turnover Management Approach workforce andinoursupplychain laborinour and forcedorcompulsory Freedom ofassociation,childlabor Governance Governance H&H strategy andvision Raw material sourcing Governance Sustainability governance Governance H&H strategy andvision Raw material sourcing Security and fairness>Financial Honouring humanrights Recruitment rights andfairness> Honouring human development and fairness>Training & Honouring humanrights and fairness>Retention Honouring humanrights cycle and fairness>H&HTalent Honouring humanrights Manufacturing Processing and benefits conditions andadditional and fairness>working Honouring humanrights 55 55 56-57 68 55 9 55 56-57 68 51 51 53 51 49 73 50 B7.1 B7, B7.2,B6.3,B6.5 B7, B7.2,B6.3,B6.5 B1.2 B3.1, B3.2 B1.2 B1 B4, B4.1,B4.2 415-1 103-3 103-1, 103-2, Data privacy andsecurity 103-3 103-1, 103-2, Supply chaingovernance, andcontinuity relationships 201-4 418-1 308-2 102-4, 102-9 414-1, 308-1 Political contributions Management Approach Management Approach government Financial assistancereceived from Data privacy supply chainandactionstaken Negative environmental impactsinthe Supply ChainManagement social andEnvironmental criteria New suppliersthatwerescreenedusing relations &compliance Governance >Government Marketing >Privacy manufacturing Processing and relations &compliance Governance >Government Marketing >Privacy Raw material sourcing manufacturing Processing and manufacturing Processing and 55 82 70-75 55 82 68-69 70-75 70-75 B6 B5 B6.5 A3.1 B5.1 B5.1, B5.2 100 2020 SUSTAINABILITY REPORT H&H GROUP our sustainability performancereporting. andconstanttransparency improvement in H&H Groupisgenuinelycommitted to previous disclosureswere inaccurate, the Whilst weregretthatanumber ofour • • • correct relate to: The threereportingerrorsthatwewishto points. uncover someerrorsinourpreviousdata assurance process,hasallowed usto This,inadditiontoand frequency. the our datagapsandreducingassumptions points interms ofcompleteness, closing scrutiny appliedto ourdisclosuredata In 2020,wehave increasedthelevel of RESTATEMENTS APPENDIX 5 within theGroup. to movement of products across entities was aduplicationinouraccounting due when infactitwas121,407,155.There was incorrectly reported as571,409,913, products producedreportingin2018 2018. was 54,515klin2019and50,497kl reports. Ouroverall water consumption consumption inthe2018and2019 in anunderstatement ofwater for two consecutive years,resulting water consumption attwo ofoursites conversion fromlitresto kilolitresof in thecollection ofactivitydata. data(i.e.emissions)andnot secondary only occurredinthesummarisationof certified carbonneutral.Theerror and, therefore,H&HGroupremained reported to actualwasoffsetregardless total from to Thediscrepancy 16,587t. portfolio in2019by takingthe 1,010t, an understatement ofouremissions in oneofourregionsthatresulted in our conversion factors forelectricity AA1000AS v3.Moreover,AA1000AS Engagementrelated theAssurance understanding andcapabilitiesofimplementation of in conducting Engagement andhassufficient theAssurance The assuranceteam ofCECEPAC (HK)hasextensive experience ISO14064,9001, etc.by SEHK, v3,ESGReporting Guideissued Reporting Initiative, AA1000AS development, includingGRIStandards issuedby Global professional trainingofstandardsrelated to sustainable whohaveexperienced consultants intheindustry had The assuranceteam ofCECEPAC (HK)iscomposed of Engagement. Assurance Group beyondthecontractual agreementforproviding this There isnorelationshipbetweenCECEPAC (HK)andH&H CECEPAC (HK)’sactivities areindependentfromH&HGroup. data orinthedevelopment ofthe Sustainability Report. CECEPAC (HK)wasnotinvolved incollecting andcalculating I. shall prevail. discrepancies betweentheseversions, theEnglishversion in ChineseandEnglishversions. Shouldtherebeany This independentassurancestatement hasbeenprepared Kong Limited (“SEHK”). Reporting Guide”) publishedby theStock Exchange ofHong of Environmental, SocialandGovernance Reporting Guide(“ESG the Sustainability Report inaccordance withthe2020version ofspecifiedperformanceinformationdisclosedin accuracy conduct Engagementonthereliabilityand limited Assurance v3"). Moreover, CECEPAC (HK)hasalsobeenengagedto Assurance Standardin theAA1000 v3(2018)("AA1000AS (Inclusivity, Materiality, Responsiveness andImpact)setout Accountabilityadherence to Principles thefourAA1000 CECEPAC (HK)hasbeenengagedto assureH&HGroup’s through theassurancestatement. assurance conclusions to usersofSustainabilityReport (the “SustainabilityReport”) ofH&HGroup,providing sustainable development inthe2020SustainabilityReport Engagement”) ontheinformationanddatarelated to independent limited assuranceengagement(“Assurance (H&H) International Holdings(“H&HGroup”)to conduct an or “We”) hasbeenengagedby HealthandHappiness CECEP Company (HK)Advisory Limited (“CECEPAC (HK)” APPENDIX 6 STATEMENT ASSURANCE INDEPENDENT Independence andCompetence • • • IV. process aresufficientlystringentandtransparent. by seniorstaff to ensurethatmethodologiesusedinthe engagements. Allresultsofassuranceareinternally reviewed involved intheassurancework canconduct assurance competent. CECEPAC (HK)alsoensuresthatpersonnel relevant work experiencerequirements,andaredemonstrably assurance work meetprofessionalqualification,training,and CECEPAC (HK)ensuresthatallpersonnelinvolved inthe other intents orpurposes. a conclusion ontheassurancework, any anddoesnotserve to theSustainability Report inthespecifiedscope, expresses Group. Thisindependentassurancestatement appliessolely Reporting Guideby SEHKto theBoardofDirectors ofH&H v3andtheESG assurance statement according to AA1000AS CECEPAC (HK)isresponsibleforissuinganindependent III. fraud orerror. Report arefreefrommaterial whetherdueto misstatement, procedures to ensurethatthecontents oftheSustainability also responsibleforimplementingrelevantinternal control the ESGReporting H&HGroupis Guidepublishedby SEHK. presentation oftheSustainability Report inaccordance with H&H Groupisresponsibleforthepreparationand II. CECEPAC (HK)’sinternal assuranceprotocol. to sustainabledevelopment issuesiscarried outinlinewith

• specified performanceinformationisasfollows: between H&HGroupandCECEPAC (HK) forassurance.The Sustainability Reportwasagreeduponandselected Specified performanceinformationdisclosedinthe v3. Impact) inaccordance with AA1000AS Principles (Inclusivity,Materiality, Responsiveness and Group’s Accountability adherenceto thefourAA1000 CECEPAC (HK)to evaluate thenatureandextent ofH&H A Type 2Moderate Level wasadopted by ofAssurance provided by otherthirdparties. H&H Group's suppliers,contractors, andinformationordata to H&HGroupandits subsidiariesonlyanddoesnotinclude information anddataintheSustainability Report thatrelate The scopeEngagementislimited to oftheAssurance • • • • Total water consumption Total naturalgasconsumption Number ofproductqualityrecalls Number ofcontract manufacturersinAsia development permaleemployee Average numberof hoursspentintrainingand Scope oftheAssurance Engagement Assurance Provider’s Responsibilities H&H Group’s Responsibilities between entities. and measurement techniques andcanaffect comparability information allows butacceptable, measures fordifferent, on whichto draw to evaluate andmeasurenon-financial The absenceofasignificant body ofestablishedpractice VI. Limitations information provided wascomplete andaccurate. Group to CECEPAC (HK),andonassumptions thatthe were baseduponinformationanddataprovided by H&H work wasperformedandtheconclusionsAssurance within • • • • • • • work included: locatedand factory inGuangzhou,China,andtheassurance the scope ofH&HGroup’s headquarters aswellitsoffice CECEPAC (HK)conducted Engagementonlywithin Assurance V. • • Other procedures we deemed necessary. Other procedureswedeemednecessary. Sustainability Report withthe ESG Reporting Guide;and An assessmentonthedegreeofconformity ofthe information. Recalculation ofselected specifiedperformance selected specified performanceinformation. of evidencepertainingto datareliability andqualityfor specified performanceinformation.Randomsampling onthesupportingevidence forselected An Assessment v3. AA1000AS and Impactasdefinedinthe to theprinciplesof Inclusivity, Materiality, Responsiveness approach disclosedintheSustainability Report responded An assessmentonwhetherthereportingandmanagement the Sustainability Report. preparation andprovision ofthe content andinformationin management andrelevantoperationsites involved inthe withsustainability Online andon-site interviews stakeholder engagementparticipation process. An assessmentonthesuitabilityofH&HGroup's only. assurance statement shouldbeaddressedto H&HGroup queries regardingthecontent orrelated matters withinthis information anddataprovided by H&HGrouponly.Any The scopeEngagementisconfined oftheAssurance to the constitute apartofourconclusions. in theSustainability Report, andtherefore,thesedonot respect to earlierperiodsorany otherelementsincluded 2020 only.We have notperformedany procedureswith 2020to 31December information disclosedfrom1January CECEPAC (HK)’sassurancework waswithrespectto Methodology oftheAssurance Engagement 102 2020 SUSTAINABILITY REPORT H&H GROUP assurance statement. assurance statement. or respondedby H&HGroupbeforethe issuanceofthis for theSustainability Report have beeneither adopted data arecalculated anddisclosed.Ourrecommendations objectively disclosed;relevantenvironmental andsocial materiality assessment;impactscausedby businessare disclosed theassessmentprocess andtheresultof ESG Reporting H&HGrouphas Guideissuedby SEHK. provision, inallmaterial aspects,inalignmentwiththe been provided inaccordance withthe"Comply orExplain" social subjectareasandkey performanceindicators have Disclosures forgeneraldisclosuresofenvironmental and SEHK’s ESG Reporting Guide to thePrincipleofImpact. its business.Inourprofessionalopinion,H&HGroupadheres group hasalsotaken suchresultsto furtherplanandmanage into Moreover, theresultsofits materiality assessment. H&H standards, andhasincorporated thesignificanceofimpact to sustainabledevelopment throughanalysisofinternational H&H Grouphasidentifiedandevaluated itsimpactinrelation Impact H&H Groupadheresto thePrinciple ofResponsiveness. respond to key stakeholders. Inourprofessionalopinion, expectations andhasrelevantmechanismsinplaceto for itsstakeholders to understandtheirconcerns and Also,H&HGrouphasestablishedchannels assessment. Sustainability Report basedontheresultsofmateriality stakeholders inatimelyandopenmanner inthe H&H Grouphasrespondedto the concerns ofkey Responsiveness Principle ofMateriality. In ourprofessionalopinion,H&HGroupadheresto the assessment hasbeenstated intheSustainability Report. material issuesandtheoutcome ofthemateriality stakeholders. Propermethodswereusedto identify the Sustainability Report andcollected opinionsofkey H&H Grouphasconducted materiality assessmentfor Materiality Principle ofInclusivity. In ourprofessionalopinion,H&HGroupadheresto the various way to understandtheirexpectationsandconcerns. communication withthekey stakeholders iscarriedoutin H&H Grouphasidentified key stakeholders. Regular Inclusivity ourconclusionsGuide publishedby areasfollows: SEHK, specified performanceinformationandtheESGReporting v3,the Responsiveness, andImpactintheAA1000AS In accordance withtheprinciplesofInclusivity,Materiality, VII. Conclusions • the below items inthefuture: We recommend thatH&HGroupconsiders strengthening VIII. Recommendations inaccurate. information intheSustainability Report areunreliableor that thedisclosuresofselected specifiedperformance issue hascome to ourattention thatcausesusto believe performed andtheevidencewehave obtained,nospecific Based ontheassuranceproceduresthatCECEPAC (HK)has Specified Performance Information • I sustainable development commitments ortargets. mechanism to promote thetop-down implementationof level’s governance structureorestablishamonitoring Extend theincorporation ofESGfactor to thefactory incorporating roleofstakeholders. and related decision-makingprocessby further sustainable development governance, strategy mprove internal policiesregardingH&HGroup’s 中國節能皓信(香港)咨詢有限公司 Hong Kong China SAR, 31 March2021 H&H FAMILY EMILY 104 2020 SUSTAINABILITY REPORT H&H GROUP HH.GLOBAL