Building Back Ever Better Report 2020 Sustainability Report 2020 Setting the standards for a more sustainable future

COVID-19 has brought our future As a purpose-led organisation and world leader In this year’s report in sustainability services, not only can we make As a leading provider of sustainability services, and 01 Highlights forward. It is clearer than ever a positive impact on the world as a whole, but committed to Building Back Ever Better, we report our people are helping our clients Build Back Ever our sustainability through the framework 02 Introduction from our CEO that making the world a better, Better in a challenging landscape. Only of our ten Corporate Sustainability Certification 06 Customer stories safer and more sustainable place by operating in a truly sustainable way, can we standards with which we our clients. 12 Our ‘Ever Better’ Approach safeguard the legacy that will make the world a should be a priority for all of us. better and safer place for the next generation. Our commitment to sustainability Of course, it is vital that our own sustainability 15 Quality & Safety standards are as high as those we expect from our 18 People & Culture clients. This is why we apply our Total Sustainability 26 Communities 30 Governance Assurance framework to our own sustainability Watch our ‘Building Back Ever Better’ approach. This approach provides confidence by film, available from 30 March 2021. 33 Risk Management Find out more online: intertek.com/bbeb highlighting how important sustainability is to our 36 Compliance own purpose, vision and strategy. It also enables 38 Financial us to align our reporting, as well as constantly 39 Environment innovate and challenge ourselves to act in 45 Enterprise Security a way that demonstrates sustainability is 48 Communications & Disclosures at the heart of our thinking. Intertek Sustainability Report 2020

Through our actions to reduce Highlights carbon emissions, 2020 is our first carbon neutral year Intertek participates annually in CDP’s Climate Change Programme > Read more about our carbon reduction efforts and commitment 2020 to net zero on page 40 Highlights 43,800 employees across 100 countries Sustainability is central to everything we do and we are We were included in the FTSE4Good passionate about helping our Index for the fourth year running clients make a difference and 58% We launched our very own Group-wide bettering ourselves every day. reduction in lost time incidents ‘Kindness’ initiative that focuses on since 2019 employee wellbeing

> Read more about our health and safety on page 19 We are an accredited Living > Read more about our Kindness programme on page 20 Wage Employer in the UK

Through our vast reach across our An index of our sustainability targets and our disclosures – against SASB, GRI and our own more comprehensive TSA We have joined the Business Ambition for 1.5°C standards – is available at intertek.com/ campaign and have committed to set science- about/our-responsibility 300,000 based emissions reduction targets, across the entire value chain, that are consistent with customers and the industries which they keeping global warming to 1.5°C above occupy, our services help contribute to pre-industrial levels progress across all of the UN Sustainable Development Goals Read more about our > Read more about our alignment 6.3% > Read more about our customers on page 06 to the UN SDGs on page 14 strategic progress increase in women in senior and 2020 financial management roles since 2017 For the third consecutive year, Ernst & Young results in our Annual have independently assured our Greenhouse > Read more about diversity, inclusion and equality on page 23 Report at intertek. Gas emissions data com/investors/ 01 year-in-review-2020 Intertek Sustainability Report 2020 Introduction from our CEO

In last year’s version COVID-19 is forcing many people and to rethink how to operate and what it means to be of this report, I wrote: resilient and sustainable. The enormous difficulties “There is no doubt and the personal losses caused by COVID-19 have highlighted as never before that helping to make Building that sustainability is the the world a better, safer and more sustainable place movement of our time.” should be a priority. Former Bank of Governor Mark Carney has called the pandemic “a terrible situation”, adding that When I wrote that, it was still difficult for any of us there will be big opportunities at the end of it to to understand the ways in which COVID-19 would invest in a greener economic recovery. Back Ever change our lives and leave us feeling the problems our world faces more acutely than ever. I agree – and the role that Intertek can play in the global recovery from the pandemic is an incredibly The unprecedented challenges of COVID-19 have important focus for me and all our people. We know sharpened our collective focus on, and understanding we are ideally positioned to have a positive global of, the biggest global risks. The pandemic has impact on the challenges facing the world, and the amplified and accelerated the challenges facing people and organisations within it. Better humanity and our impact on our planet: from rising temperatures and shifting climates, to ethical, This is why we are launching our ‘Build Back Ever sustainable manufacturing; from personal health Better’ movement. It is simply living up to our Intertek and wellbeing to disappearing wildlife and polluted ‘Ever Better’ culture for the greater good of society. oceans. There is a growing realisation that these We don’t believe that corporations or societies should global issues are interconnected. settle for returning to a new normal. There is only one If we are serious about making global solution: Build Back Ever Better. the world better, safer and more sustainable, this must be our legacy and our future."

André Lacroix Chief Executive Officer

02 Intertek Sustainability Report 2020

Introduction from our CEO Continued

We at Intertek are taking up this challenge by We have a carbon-light earnings model. Our average operational areas of every company, covering to improve their sustainability which are real, accelerating progress both on our own sustainability carbon intensity over the last three years was 4.5 environmental management, products, processes, robust, measurable and can themselves be performance and the development of products tonnes of CO2 per employee, which is low compared facilities, assets and systems. sustained over time. and services to help our customers deliver their to the all-industry average of 12.3 tonnes of CO 2 Our operational sustainability solutions include: sustainability agendas faster. We are focusing on per employee1. three core priority areas: supporting sustainable • sustainability assurance including verifications Sustainability is core to our 5x5 differentiated supply chains; ensuring better personal safety and of ESG disclosures; strategy for growth and we strongly believe In 2020, we launched CarbonClearTM, the world’s for everybody; and helping the world transition that ‘Doing Business the Right Way’ with a • people assurance including training and first independent carbon-intensity certification to low-carbon economies. In the months and years systemic approach is the only way to deliver our performance management; programme. It gives oil and gas producers the ahead, we will aim to inspire people across the corporate goals and create sustainable value for ability both to evaluate emissions across every world to join our Build Back Ever Better movement. • supply chain assurance – end-to-end traceability all stakeholders. stage of exploration and production and to validate From governments, institutions and regulators to and compliance; the carbon impact of producing one barrel of oil companies and the consumer population as a whole. 1. Industry average obtained by Intertek research based on publicly available information for 2018/19. • quality and safety assurance; equivalent. This will drive consumer If we are serious about making the world better, and buying decisions and ultimately help in > Read more about our differentiated strategy • regulatory compliance; safer and more sustainable, this must be our legacy on page 18 within our 2020 Annual Report decarbonising oil and gas production – which is and our future. • environment – EHS services, carbon and water critical to achieving global carbon-reduction targets. Sustainability in what we do footprint, GHG services; and Our unrivalled expertise in Total Quality Assurance • product innovation. Sustainability (‘TQA’) – that is, providing assurance solutions across Our sustainability all points of our clients’ operations – means we are Our corporate sustainability solutions is in our DNA uniquely positioned to support the needs of our In 2019, we launched Total Sustainability Assurance progress in 2020 clients in operating sustainably. (‘TSA’) – the world’s first independently verified corporate sustainability audit and certification Sustainability in who we are Consistent with scientific reports, we recognise that Today, the expectations of all stakeholders – programme. Intertek has been a force for good for over employees, customers, consumers, investors, a failure to rapidly decarbonise our economies will 130 years, bringing quality and safety to life with suppliers, communities and wider society, Our TSA programme is based on the ten standards lead to increasingly volatile and severe weather- a pioneering spirit. Indeed, we believe that we are governments and regulators – continue to rise. that we believe define a truly sustainable related events with significant economic and social born to make the world ever better. All stakeholders are demanding that corporations organisation. They go beyond the criteria that consequences. While climate change affects nearly are commonly looked at by ESG rating agencies all economic sectors, the level and type of exposure Sustainability is central to everything we do at demonstrate their commitment to sustainability to include other factors that stakeholders and and the impact of climate-related risks differs by Intertek and as a purpose-led company it is anchored with clear goals, robust action plans and transparent investors should consider, including business sector, industry, geography and organisation. in our Purpose, Vision and Values. We are passionate reporting – and we continue to innovate with our resilience, risk appetite, enterprise security and about supporting our clients to make a difference sustainability solutions to help our clients to deliver We recognise we must do everything we can to sustainability of growth and earnings. every day, and we are passionate about making on this agenda. reduce our own impact. It is therefore important Intertek better every day. Our operational sustainability solutions Our TSA approach uses our ten standards to for us to show leadership in the worldwide effort to Over the years, we have extended our TQA evaluate our clients’ sustainability from a company mitigate the adverse effects of climate change, both proposition to offer a real depth and breadth of strategy and corporate governance perspective. by reducing our own emissions and by helping other industry-agnostic and industry-specific operational The objective of the TSA programme is not for our to do the same across our value chain. sustainability solutions that address the important clients to achieve certification or get a better score, but for us to help our clients to identify actions 03 Intertek Sustainability Report 2020

Introduction from our CEO Continued

Our own operations may not be as energy intensive committed to setting independently verified programme helps employers to protect parents Sustainability means more than net zero or resource depleting as some other industries, science-based GHG emission reduction targets. and carers – and particularly women, who are Using our Intertek Total Sustainability Assurance but as a multinational company we acknowledge disproportionately affected – who are struggling (‘TSA’) programme, we take a systemic approach to Our aim is for our science-based target to be aligned our exposure to various types and degrees of to balance their work and home lives. supporting our clients by helping them to look across to limiting global temperature rise to below 1.5°C local, regulatory, physical and socio-economic their entire sustainability footprint – from both a and reaching net zero emissions no later than 2050. Further examples of our innovative solutions risks associated with climate change. corporate and an operational perspective – so that are set out on pages 6 to 11 of this report. Addressing the impact of our operations they can deliver sustainable activities in each area Carbon neutral in 2020 In 2020, we have focused on driving our Sustainability Excellence: of their company. In line with our commitment to reducing the sustainability agenda deeper into the organisation empowering and inspiring our people carbon footprint of our direct operations, we We know there is a profusion of ESG standards by inspiring our people to create local sustainability We understand that driving significant continue to focus on improving our energy and ratings agencies and that makes it difficult initiatives and implement their own efficiency and reductions in our carbon emissions is not just efficiency, purchasing energy from clean sources for corporations to build clear, measurable, reduction programmes. about setting ‘top down’ targets. such as renewables and investing in on-site authenticated and actionable sustainability renewable energy generation at our locations. Our people have found ways to: To make real change happen, we believe all our objectives into their business models. people need to own their carbon footprint and be In addition, we have bought carbon credits to • reduce their environmental impact, including The ten TSA Corporate Sustainability standards empowered and inspired to take ambitious actions offset our direct operational Scope 1, 2 and 3 GHG by reducing our waste, increasing our energy on which our programme is based go beyond ESG to reduce it. emissions, making 2020 our first carbon neutral efficiency and investing in renewable energy and net zero and recognise that truly sustainable year. The credits we have bought help to fund sources; This is what we call our Sustainability Excellence solutions must address the important aspects of verified carbon off-setting projects that have a approach and it is based around giving all our people every company, to cover environment, products, • support our communities, including through meaningful benefit to communities in which we the insights they need and the freedom and processes, facilities, assets, systems, corporate charitable and educational activities; and operate, including a hydropower project in Pakistan, support to take real action. policies and engagement. an electricity generation project in Turkey, a wind • support the wellbeing of our own people. In 2020, we implemented emissions dashboards For the second year, we are reporting our own power project in and a forest conservation Some examples can be found on pages 27 to 29 that allow the teams at our sites to understand Intertek sustainability activities against our ten project in Brazil. and 44 and on our website. their total carbon emissions and what is causing Corporate Sustainability Certification standards. Further information on our approach to them, and to put in place initiatives at the site level Helping our clients to make The areas covered by these standards – and our to improve their metrics and manage their own environmental sustainability can be found sustainability progress definition of what it means to be sustainable – on pages 39 to 43 of this report. environmental impact. During the year, we have helped our clients are as follows: Our commitment to net zero emissions make progress on their own sustainability targets We are giving all of our teams their own • Quality & Safety • Communities In 2017, we set ourselves the target of reducing with our innovative solutions. sustainability digital space as a way of facilitating • Risk Management • Governance GHG emissions per employee by 5% year-on-year up ‘grass-roots’ initiatives that are not directly part Some of these were a direct response to COVID-19. to 2023, and we are well on track to achieve that. of our corporate agenda and can be authentic, • Enterprise Security • Financial For example, we launched Intertek ProtekTM at the individual and meaningful to our people and the In line with our ‘Ever Better’ approach, we are now beginning of May 2020 as the world’s first industry- • Compliance • Communications communities in which they live and work. This digital pursuing ambitious new GHG reduction targets agnostic, end-to-end health, safety and wellbeing & Disclosures space also promotes the sharing of trends, insights • Environment which will take us towards net zero emissions. assurance programme for people, workplaces and and initiatives across our sites and countries, using public spaces. • People & Culture We have signed up to the Science Based Targets the successes our people have achieved to inspire initiative which means that we are formally Others address issues that COVID-19 has simply others across the organisation. amplified. Our Work-Life Balance Certification

04 Intertek Sustainability Report 2020

Introduction from our CEO Continued

Living up to our own You will find details of our targets – around health Among our achievements at Intertek, I believe the sustainability standards and safety, customer satisfaction, employee creation of Build Back Ever Better may prove to be Our As a purpose-led organisation and a world leader in turnover & engagement, diversity & inclusion, a fundamental step towards a unified approach from sustainability services, our own standards must be compliance and, of course, carbon reductions – leaders and innovators everywhere to taming the as high as those we provide for our clients. We are in this report. complexity of our connected world and the risks Our shared purpose – to make the world a better, committed to leading by example by applying our An index of our sustainability targets and our it brings with it. Most importantly, I am optimistic it heroes safer and more sustainable place for all – shapes Corporate Sustainability Certification standards to disclosures – against SASB, GRI and our own more will create a better world for our young people, who comprehensive TSA standards – is available at everything we do and how we do it. ourselves at Intertek, and by using the principles intertek.com/about/our-responsibility might be just 20% of the population today but are of our TSA programme to guide and frame our own Safeguarding our future certainly 100% of the future. Our colleagues have gone above and beyond Sustainability Excellence approach. to support our customers during the pandemic, generations and #BBEB I believe the journey to net zero is an equivalent helping them to resolve the difficulties they You can read more about how we apply our own TSA During this challenging year, our people have challenge to that of landing a man on the moon face in an increasingly complex world. These Corporate Sustainability Certification standards on gone above and beyond their normal call of duty to more than 50 years ago. Humanity succeeded then, local activities have highlighted that collectively, pages 12 to 50 of this report. support our customers, helping them to resolve the and I believe with all the knowledge, wisdom and Intertek colleagues make a huge positive impact emerging risks they face in an increasingly complex ingenuity our connected world can bring together, Taking total for our for their customers, for their communities and world and to operate safely during the pandemic. we will collectively find a way to overcome the sustainability, with clear goals for the world. challenges we face today. In line with our TSA standard on Communications This is worthy of celebration and a timely reminder We think this is worth celebrating, and congratulate & Disclosures, we deeply believe that total of what our community of 43,800 Intertek heroes That journey is well under way. This is the moment 43,800 Intertek heroes across the globe who transparency with robust disclosures and relevant across the globe can achieve when they bring when, working with and for everyone, we will play bring our purpose to life every day with precision, targets aligned to corporate strategy is integral our purpose to life every day with precision, our role in building an ever-better, safer and more pace and passion. for corporations to demonstrate sustainability pace and passion. sustainable world. accountability to their stakeholders. Now, we must aim to inspire people across the Later in this report, you’ll read just a few of the heroic stories that have emerged during 2020. With that in mind, we have this year reviewed our world – governments and companies, institutions, regulators and consumers everywhere – to join Build Watch our ‘Building Back Ever Better’ sustainability disclosures and we have significantly film, available from 30 March 2021. Back Ever Better (#BBEB) and focus on three priority Find out more online: intertek.com/bbeb increased our disclosures in this report so we can > Read more about our hero stories on page 17 provide total and robust transparency. You can see areas: helping make supply chains more secure; how our latest sustainability disclosures map to our improving better personal safety for everyone; own TSA standards, GRI Standards and applicable and building a lower-carbon society. SASB Standards on our website. So for us, the next year is about more than This year, we have also reviewed the sustainability just recovering. It’s about being part of a global areas that are most material and relevant to movement in which we work together to create André Lacroix our stakeholders and we have set ourselves something bigger and better for everybody. Chief Executive Officer targets in those areas that are aligned to our corporate strategy.

05 Intertek Sustainability Report 2020 Customer stories

Case study EPD development achieves 100% satisfaction The Intertek team received an exceptional Supporting ’10 out of 10’ satisfaction rating from leading British polymer manufacturer Aquapak Polymers for their work on developing an Environmental Product Declaration (‘EPD’).

This independently verified and registered our The Ocean Cleanup document, providing transparent and comparable information on a product’s life cycle environmental performance, is the most stringent and robust environmental label possible to have. customers Case study Intertek is a proud supporter of this The Intertek team built the Aquapak EPD using effort. We are providing guidance Innovative sustainability services Helping to clean an in-depth life cycle assessment to gauge on The Ocean Cleanup’s Quality the oceans the environmental impacts of the company’s Management System and are carrying have been core to our global products at every stage, from sourcing and The Great Pacific Garbage Patch, out testing services on the materials manufacturing through to disposal and recycling. located between California and involved. In addition, we are helping business for more than 100 years. This approach has a very strong scientific basis, Hawaii, is essentially what it sounds to design compatible processes and leveraging many years of research to effectively like – home to the ocean’s largest documentation that will facilitate pinpoint a product’s main environmental risks, Through our leading-edge innovations accumulation of floating trash. But, the development of safe and durable enabling its impact to be reduced. and integrated Assurance, Testing, according to The Ocean Cleanup, a materials for making the products. non-profit organisation dedicated to We are not only in ongoing discussions According to Intertek’s Health, Inspection and Certification (‘ATIC’) solutions, ridding the world’s oceans of plastic with Aquapak Polymers about further Environmental and Regulatory we are uniquely placed to help our customers debris, micro-plastics and lost fishing sustainability-related work – as a result of Services (‘HERS’) Global Business gear, 50% of it can be removed every Aquapak Polymer's positive feedback we have understand, achieve and validate their Line Leader Ayush Dhital, we are five years. also won a number of other projects. existing and emerging sustainability goals. always looking for ways to protect Using a fleet of floater systems with the environment. As he says, “We are a massive screen underneath, the at a tipping point, and the pressure is first phase of this massive clean-up mounting for companies to embrace operation has already taken place. The sustainability. We’re delighted to focus now is on enabling the plastics be part of this movement, which recovered to be used again in other aims to solve one of the biggest products, for sale to the public. All the environmental problems of our time.” proceeds will be used to fund future ocean operations.

06 Intertek Sustainability Report 2020

Customer stories Continued

The route to approval has been unique. Our HERS Pharma team has supported several aspects of the development Reliable programme over a number of years, including study-monitoring services, study report reviews, toxicological risk assessments and preparing whitepapers. solutions Most recently, the team authored portions Case study of the regulatory submission that was The complex route reviewed and approved by the FDA, to drug approval Health and TGA ().

Case study For more than 25 years, the Once again, the Intertek team proved our Raising standards in Pharmaceutical & Healthcare Group within unique ability to provide bundled solutions the textile industry the Intertek HERS business line has been including our regulatory, safety and helping clients develop and gain regulatory compliance expertise. Our global laboratory With consumers becoming more Global Recycled Standard (‘GRS’), Recycled approval for new products. network, meanwhile, provides bioanalysis, sustainability conscious over the products Claim Standard (‘RCS’) and Content Claim formulation development, quality control And now our pharmaceutical consultants they buy, we are supporting the textile Standard (‘CCS’). and other services to support clinical have played a vital role in gaining US industry in several countries, through our development and manufacturing. We support our clients with process Food and Drug Administration (‘FDA’) Textile Exchange Standards Certifications. management and provide guidance and Health Canada approval for a new Our goal is to drive sustainability in throughout the entire certification life cycle drug combination, oral decitabine and the industry and encourage the use of – giving them the knowledge and tools they cedazuridine, for the treatment of recycled, organic or preferred materials need to make significant improvements intermediate and high-risk Myelodysplastic to reduce or eliminate the harm caused in three core areas: Fibre and Materials, Syndrome (‘MDS’) and Chronic in production. Integrity and Standards, and Supply Myelomonocytic Leukemia (‘CMML’). This Our global network of textile processing Network. Textile Exchange identifies and drug will improve the quality of life for experts conducts environmental, social shares best practices regarding farming, many patients, who for the first time and chemical management audits when materials, processing, traceability and will be able to take medication for these required, backed up by local knowledge product end-of-life to reduce the textile conditions at their own homes. from our experts in the countries industry’s impact on the world’s water, soil where our clients’ suppliers are located. and air, and on the people affected by or Intertek is globally accredited to provide directly involved in the industry. independent third-party certification of the following Textile Exchange standards:

07 Intertek Sustainability Report 2020

Customer stories Continued

These include the need to respect individuals, communities and the planet Case study as a whole. The new version of the Use of Remote Video Case study standard goes beyond industry norms Inspection increases Setting new standards and local regulations, with the aim of under COVID-19 for responsible sourcing transforming the sector’s sourcing and production activities. Intertek’s work on The unprecedented spread of COVID-19 has The expertise of Intertek’s HERS the project included extensive stakeholder had multiple impacts on business and industry colleagues in developing standards was consultation and a number of pilot – including the ability to undertake crucial behind the successful delivery of an projects covering different aspects of the inspection and audit services that help ensure updated version of the EcoReinforcement programme. It also involved creating an business continuity and, even more importantly, standard that supports responsible entirely new set of criteria reflecting the employee safety. sourcing for reinforced-steel mills and latest ethical practices and the science manufacturers. With governments and businesses around the covering responsible sourcing across world restricting third-party access to their sites, Developed for the EcoReinforcement various associated sectors, including the viability of such important quality inspections Council based in the UK, the standard aluminium and virgin steel. Many of our is under threat. defines the requirements and ways of team members have worked with the working companies need to apply. EcoReinforcement Council for more To help resolve the situation, Intertek is increasing than a decade, giving them the in-depth the availability of our innovative Remote Video knowledge required to develop and deliver Inspection (‘RVI’) service, originally developed a solution that now sets the standard for to help companies in the energy supply chain responsible sourcing. inspect their sites and equipment using remote live video streaming and smartphone technology. As a result, our technical specialist inspectors can remain off-site while leading inspection activities at our customers’ premises and at the premises of their suppliers. Critically, this is allowing Quality Assurance activities to continue, irrespective of location and without compromising safety.

In addition, because inspections are undertaken in real time, customers can take any required follow-up actions straight away if an issue is discovered, enabling faster resolution and important productivity gains.

08 Intertek Sustainability Report 2020

Customer stories Continued Case study Helping set standards in Case study The assessments undertaken have included: the global hotel industry

Protecting world heritage • Strategic Environment Assessment (‘SEA’), to Intertek has helped a hotel in Abu Dhabi A UNESCO World Heritage Site, Skellig assess whether the SMP will protect the to become one of the first in the world to Michael (Sceilg Mhichíl) is a twin-pinnacled crag environment and promote sustainable meet the requirements of ISO 21401:2018, of rock off the coast of Ireland’s County Kerry. development. the new international standard that Named after the Archangel Michael, the island certifies the sustainability management • Appropriate Assessment (‘AA’), to assess if was once home to a famous monastery. systems of accommodation establishments. the SMP will cause ecological impacts to the The island is designated by UNESCO as a World Skelligs Special Protection Area. Saadiyat Rotana Resort & Villas gained Heritage Site due to its Outstanding Universal this accreditation following Intertek’s As part of the process, the Intertek team has Value created by the historic relationship detailed assessment of its practices, It is one of 130 operational sustainability engaged with environmental stakeholders between monks of Skellig Michael (who founded a from its accommodation and laundry solutions Intertek offers as part of our and members of the public to ensure key monastery there that later became a special place services to contractor management, unique Total Sustainability Assurance environmental and ecological considerations of pilgrimage) and the island’s unique topography banquet & conference, housekeeping, (‘TSA’) programme. Fully aligned with are captured and included in the plan. and harsh environment. Additionally, the island kitchen management and food & beverage the UN’s 2030 Agenda for Sustainable is internationally renowned as one of the most Intertek’s reputation as a trusted sustainability across its 327 rooms and 13 villas. Development, the standard is designed to help the hospitality industry reduce its important sites for breeding seabirds in Ireland, partner and leader in sustainability assurance The standard, which has been developed environmental impact and achieve the UN with the island itself and adjacent waters forming played an important role in our appointment. to help businesses meet the demands of the Skelligs Special Protection Area for birds Sustainable Development Goals (‘SDGs’). According to Beth Monkman, Intertek Energy & sustainable tourism development, covers such as fulmar, puffin and guillemot. Water’s Environment Lead, “We were delighted aspects including biodiversity, energy The hotel hosted a special ceremony where Activities such as tourism have the potential NMS selected us for this unique assignment efficiency and waste management, water General Manager Fabrice Ducry received for negatively impacting the island’s unique to deliver an independent environmental usage and emissions, working conditions the certificate from Samir Ahmed, Intertek’s ecosystem and archaeological features. assessment of this iconic Irish island and World and accident prevention. Regional Director of Products & Marketing To help protect the island, Ireland’s National Heritage Site and have valued the opportunity (MENAP). Monuments Service (‘NMS’) contracted Intertek’s to work in partnership with AEGIS, a local Speaking at the event, Mr Ahmed said: Energy & Water team to carry out a number of archaeology consultancy, and in consultation “Adopting sustainability management environmental assessments, in line with European with ornithological experts from the University practices like ISO 21401 is key to success legislation, as it develops the Skellig Michael College Cork.” today, globally as well as here in the UAE. World Heritage Site Management Plan (‘SMP’) We are delighted that the hotel is now 2020–2030. positioned to reap the rewards from having an integrated sustainability management system in place for all its business processes, and we look forward to further supporting the needs of the tourism and hospitality industry, globally as well as across this region.”

09 Intertek Sustainability Report 2020

Customer stories Continued

Case study Case study The protocols range from ensuring an appropriate Strengthening Vegan Verification Mark declaration by an applicant, to screening for animal fibres, using advanced Fourier-transform infrared our presence in the With the popularity of vegan lifestyles rising fast Case study (‘FTIR’) spectroscopy to screen synthetic material, renewables sector across the world, Intertek Global Softlines has Getting the balance right and carrying out chemical tests. Intertek Taiwan is building on our global launched the Vegan Mark, along with all related Achieving work-life balance is still a major strength as a service provider to the certification and verification tests. We have Our laboratories in and Guangzhou challenge for many parents and carers. renewable energy sector by further developed an effective set of protocols that were the first to offer the service in early 2020, Recognising this, Intertek has launched a sharpening its competitive edge in the enables us to test whether products in sectors followed by those in Shanghai and Shenzhen later Work-Life Balance Certification programme, fast‑emerging field of energy-storage such as footwear, apparel and accessories are in the year. framed upon European Directive safety assessment. eligible to carry the Vegan Mark. 2019/1158, which is designed to reconcile the demands of work and family life. Now, with Taiwan upgrading its national grid and the use of renewable energy This is a particularly important step as growing fast, our new energy-efficiency changing work schedules continue to make testing services are enabling clients to it harder for women to balance conflicting ensure their products can compete in obligations, with the result that they remain this increasingly important area. And, under-represented in the labour market. with a new testing service for photo- While we generally offer this certification voltaic inverters, we’re also helping the alongside the Gender-Equality certification, Taiwan Power Company accelerate the we can also audit them individually. development of renewable energy.

Case study Protek™ Biosafety Standard We certified Decameron hotels, a leading hotel brand in Latin America, with the Protek™ Biosafety Standard. This includes more than 38 resorts in nine countries, strengthening the Innovating hotel group’s entire brand and communications, generating trust with all its stakeholders. for our > Read more about Intertek Protek™, our assurance programme that safeguards systems and processes, facilities, materials, surfaces, products and – above all – customers people, in our 2020 Annual Report on pages 21 and 43.

10 Intertek Sustainability Report 2020

Customer stories Continued

Case study Healthy drinking

Intertek is working in Mexico to deliver a Nikhil Kumar pilot project that aims to create a system Managing Director & that gives people across the country accurate Principal for Energy information about the quality of drinking water Consulting & Digital in their homes. We are working with the Rio Solutions Arronte , testing and reporting on the quality of water delivered to homes in the pilot cities of Monterrey and Saltillo.

Case study Rigorous analytical support and technical Better Helping India ‘Green the Grid’ assistance from Intertek in the US has been required to identify grid stability issues and Intertek is helping bring to life India’s plans to suggest options for improving efficiency and greatly reduce its economy’s carbon intensity and flexibility at three plants: Ramagundam (200MW), strengthen the country’s energy security. Funded Jhajjar (500MW) and Ukai TPS (200MW & 500MW). quality by the United States Agency for International Development (‘USAID’), the country’s five-year Nikhil Kumar, our Managing Director & Principal for ‘Greening the Grid’ (‘GTG’) programme is designed to Energy Consulting & Digital Solutions, also serves as enable India to integrate variable renewable energy a senior grid integration adviser to the programme. into the existing power grid on a vast scale. Key recommendations from the draft feasibility water reports have already been shared with plant We are supporting India’s GTG programme by operators, NTPC (formerly the National Thermal helping deliver technical assessments of individual Power ) and the Gujarat State Electricity power plants and their ability to increase Corporation Ltd (‘GSECL’). renewable generation.

11 Intertek Sustainability Report 2020 Our ‘Ever Better’ Approach

Our ten Corporate Sustainability Certification standards

Our Each one of the ten Corporate Sustainability Quality & Safety People & Culture Certification standards we have developed Provides assurance through Verifies that the systems is designed to verify a specific corporate management systems and processes are in place certification, risk assessment, to attract, train and retain approach sustainability topic, both for us and our internal audits and continual the right employees by clients, before certification is awarded. improvement of processes. demonstrating a supportive, transparent and fair company Our pioneering Total Sustainability culture. Assurance solution helps businesses, including our own, to Build Back Ever Better > Read more on page 15 > Read more on page 18 through comprehensive standards that address both corporate and operational sustainability topics. Communities Governance Risk Management Compliance Monitors commitment to Looks to build an accountable Verifies an organisation’s Seeks to verify principles making a positive impact on and diverse governance insurance coverage, risk with integrity. It also local communities as well as structure, in addition to more processes, controls and outlines senior management global activities. transparent stakeholder reporting, in addition to accountability, compliance Read more about our operational engagement. verifying a plan for business monitoring and whistleblower sustainability solutions at continuity and disaster policies. intertek.com/sustainability/operational recovery.

> Read more on page 26 > Read more on page 30 > Read more on page 33 > Read more on page 36

Financial Environment Enterprise Security Communications & Disclosures Helps organisations to create Guides and contributes Aims to manage and control Defines metrics, internal and long-term plans, forecasts towards efforts against IP assets and cyber risk, while external communications and strategic management of climate change, management protecting data, privacy and procedures for maintaining finances while still managing of resources, proactive physical assets. external transparency. monthly reporting and protection and restoration of budgetary control. ecosystems, waste reduction and compliance with current environmental regulations.

12 > Read more on page 38 > Read more on page 39 > Read more on page 45 > Read more on page 48 Intertek Sustainability Report 2020

Our ‘Ever Better’ Approach Continued

Our ‘Ever Better’ journey Meeting to Total Sustainability You will see in this report that we are our own using our ten TSA standards as our reporting framework, to demonstrate actionable, comparable, consistent standards and reliable disclosures. Our TSA definition of what it means to be a In 2019 we launched Total Sustainability sustainable company includes – and goes beyond – Assurance (‘TSA’) – an audit and certification ESG and net zero, and we believe that this approach programme based around our ten TSA demonstrates our ‘Ever Better’ commitment to total transparency and accountability to our Corporate Certification standards that we Providing transparency stakeholders. Sustainability is key to our 5x5 believe define what it means to be a truly to all stakeholders is a key strategy, underpinning our day-to-day activities sustainable corporation, end-to-end. and behaviours, and we know that Intertek is ideally focus on the journey to positioned globally to have a positive impact on Total Sustainability.” the challenges facing the world. As a purpose-led organisation we hold ourselves to the same high standards to which we certify our clients and have Ida Woodger committed to auditing ourselves against the TSA standards. Head of Sustainability As such, during 2020 our TSA experts have been conducting the TSA audit and certification process on our global business.

An index of our sustainability targets and our disclosures – against SASB, GRI and our own more comprehensive TSA standards – is available at intertek.com/about/our-responsibility

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Our ‘Ever Better’ Approach Continued Case study Partnership with Petroleum Making a contribution Development Oman to the UN SDGs As part of the first programme providing Quality Assurance training and employment, we have Case study Apprenticeships in Germany partnered with Petrol Development Oman, The primary contribution of any as part of the National Objectives scheme. business comes through providing jobs, To develop our people, we invest in a This scheme has so far provided training and sustaining livelihoods, paying taxes combination of on-the-job and classroom development opportunities for 124 male and Case study and supporting social and economic training. Supporting young people to build their female trainees between the ages of 18 and 27. Clean energy at Intertek Perth careers is important to us, especially against a Significant improvement in consumption development. Beyond this, we can backdrop of skills shortages in STEM sectors. achieve positive and lasting change Case study and production patterns are expected with by considering our impacts, targeting 31 apprentices started with Intertek in Germany Supporting education and the consolidation of multiple business lines last year in a number of administrative and gender diversity at Intertek into a high-performance facility at Intertek our response and collaborating across technical professions. Sweden Perth. With the application of sustainability sectors to scale positive contributions. through all parts of the project, significant Intertek Sweden focus on local community improvements in energy consumption, water engagement activities that encourage women As a Total Quality Assurance provider, we are management, harnessing solar energy and and girls to choose a career in engineering, now in a strong position to align with each of the emission reductions are all expected. The and in the future. They work with local high United Nations Sustainability Development 990kW solar system being installed will schools and universities to introduce them to Goals (‘UN SDGs’) both through the internal be more than a third of the daytime power Intertek, and host tours of the business for the activities we carry out for our people, in our requirements of the new laboratory when it students. The team also runs a course for the communities and for the environment, as well as becomes operational in 2021. Msc Medical Technology programme at the through the sustainability services we provide Royal Institute of Technology in Stockholm. to our customers. The following four UN SDGs have particular relevance to our activities.

Quality Education Gender Equality Affordable and Clean Energy Climate Action Ensure inclusive and equitable quality Achieve gender equality and empower Ensure access to affordable, reliable, Take urgent action to combat education and promote lifelong learning all women and girls sustainable and modern energy for all climate change and its impacts opportunities for all We are supporting the goal to increase the number Improving gender balance is a priority for us. We Increasing our energy self-sufficiency improves Climate change is one of the greatest threats facing of youths and adults who have relevant skills, continue to focus on gender diversity by attracting, profitability and energy security. We are assessing society but emissions continue to rise. Please see including technical and vocational skills, by building developing and retaining more talented women our operations for energy and process efficiencies our Environmental section for further details of more relationships with colleges and universities across the business. We have policies, procedures and are investing in solar energy systems, where what climate change means to us and the actions and providing opportunities for young people and initiatives in place to support gender diversity appropriate, to enable energy diversification. we are taking to minimise our impact. to engage with our engineers and scientists. throughout Intertek.

14 Intertek Sustainability Report 2020 Our TSA standards

Material topics We understand the importance of incorporating sustainability principles into our quality and safety ••Employee care management policies and systems: how we capture ••Customer and data to drive operational excellence; consistently product responsibility improving our services to our customers; adopting ••Working with the Intertek Sustainable Procurement policy; and customers ensuring the health and safety of our people. Continual improvement is part of ISO 9001, ISO 17025 and other quality-related certifications, accreditations and approvals held by most of our operations. Performance is measured, recorded and benchmarked against established objectives as part of our disciplined performance Quality management principles, supported by our Quality Management System. Business resilience Our global network in more than 100 countries keeps us close to our customers and allows us & Sa f ety to understand their challenges. As a large global organisation we also face risks that the business The principles of quality and safety, part will be affected by something that is outside of our control. Natural disasters, pandemics, terrorism, of Intertek’s purpose and operations, are political unrest, serious fires, cyber attacks and extreme weather are just some of the risks that cornerstones of sustainability and sit at the we have to consider as part of our business heart of the support Intertek has provided continuity strategy. to clients for over 100 years. Processes are in place at all levels of the business to mitigate disruption. Our response to the COVID-19 pandemic demonstrates how our business is At Intertek we bring quality, safety constantly adapting both its business environment as well as its service offerings to continue to offer and sustainability together through the necessary services to clients while protecting the management system requirements the health and safety of employees. of Operations, Products & Services, Supply Chain and Innovation.

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Our TSA standards Continued Quality & Safety

structures, potentially coupled with better pricing Customer focus Average NPS interviews per month Supply chains and improved margins. However, our supply chain is To become the most trusted partner for Quality Continued focus on suppliers quite diverse and geographically dispersed, and our Assurance, we have made a promise to our 5,500 6,000 7,000 7,000 6,000 We are deeply committed to operating with integrity procurement teams need to find regional and local customers: Intertek Total Quality Assurance by ‘Doing Business the Right Way’ and to pursuing suppliers. Through structured sourcing processes, expertise, delivered consistently with precision, our corporate activities we select the best option for us while continuing to pace and passion, enabling our customers to through living our strong values. Our suppliers have support local suppliers that meet our business and power ahead safely. an important part to play in contributing to our sustainability requirements. Over 50% of our annual sustainability. The Intertek Sustainable Procurement spend goes on regional and local suppliers, which Intertek has a strong focus on customers, at all levels policy sets out principles our own employees should demonstrates our commitment to supporting the of the organisation, and our customer relationship follow when managing supplier relationships, and communities in which we operate. management is integrated into our approach through 2016 2017 2018 2019 2020 our expectations of suppliers. a key account management structure and dedicated For our Sustainable Procurement policy, visit our website at intertek.com/about/ sales teams. Our Marketing & Sales Operations Our sourcing approach our-responsibility team works closely with business lines and country Capturing the right We work with thousands of suppliers around leadership to drive continued improvements across data to optimise operations the world. We expect all suppliers to meet the marketing, sales and digital tools to ensure that every Identifying and managing risks that can impact same internationally recognised human rights, aspect of customer engagement aligns with our TQA our service quality is key to ensuring customer environmental and quality standards that we expect Customer Promise. satisfaction. Our 5x5 metrics tool and processes of our own businesses. These include meeting enable the collection and review of performance local legislative requirements but also applicable Listening to our customers metrics across the areas of sales, customers, international requirements for workers’ welfare and Since 2015, we have used the Net Promoter Score people, finance and operational excellence that conditions of employment, such as those set by the (‘NPS’) process to listen to our customers. These are fundamental to disciplined performance International Labour Organization (‘ILO’) and the insights give us a deep understanding of what our management. The 5x5 metrics provide every Ethical Trading Initiative. customers need and want, fuelling our innovations. Intertek site and team leader with 360º insight into Our customer interviews keep us laser-focused on their business to guide their decision-making and Large global suppliers offer stability in terms of delivering an ‘Ever Better’ service. During 2020, ultimately lead to superior business performance. financial resilience, delivery capacity and pricing we continued to conduct 6,000+ interviews each month. Channels of customer interactions We will continue to aim to conduct at least 6,000 NPS interviews per month. Customer meetings Workshops and seminars

Emails and phone calls Social media communications

Web enquiry responses

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Our TSA standards Continued Kevin Espiritu Queenie Li Azer Sanili Quality & Safety Assistant Manager – GMAP Assistant, Regional IT Manager, Food Services, Intertek Electrical & Network Intertek Eastern Europe Our heroes Assurance, China and Central Asia

During the pandemic, our During the COVID-19 outbreak, many businesses An Intertek client urgently needed a certificate As a result of the COVID-19 pandemic, many colleagues went above in the Philippines’ capital of Metro Manila were to export their TV products. Previous attempts families in Azerbaijan were left without income and beyond to support our closed and public transport was suspended. with other providers had taken more than four or basic needs. Azer Sanili, with the help of customers. Here are just a The lockdown could have caused an interruption weeks, but Queenie successfully obtained colleagues, initiated a crowdfunding called ‘Bigane few of the heroic stories that to our business – but with a core of employees the certificate within one week, saying “I’m Qalma’ (Stay Tuned), an independent organisation have emerged during 2020. present in our Central Laboratory, including Kevin so glad that I was able to help our client.” open to any institution wishing to participate. Espiritu, we were able to continue the provision This resulted in a total of 45 families in desperate of Intertek’s highly valued services to customers. need of support receiving vital relief packages. Céline Margerie C&P Consulting Chirag Parikh Snow Yan & Training team, Francis Ampong Production Engineer, Huawei Project France and Paul Donkor Intertek Electrical Manager, and the Food Minerals Team, Ghana Testing Services Team, In light of COVID-19 restrictions, the team in During the year, Texas-based Chirag Parikh Intertek China Food France adapted fast in order to deliver daily With the COVID-related closure of borders was called upon to complete an urgent project on-the-job training to operators and production between Ghana, Côte d’Ivoire and Liberia, the on medical beds built for people with severe lung The Infection Control team at Huawei wrote technicians, to ensure the continuity of vital likelihood of our clients’ drill rigs having to congestion. Travelling from Plano to San Antonio to express their sincere gratitude to Intertek medicine manufacture. stop was only prevented due to the efforts two separate times – clocking up almost 1,200 for our professional food auditing service, of drivers Francis Ampong and Paul Donkor. miles – Chirag worked long hours and over the ensuring the food safety of 130,000 Huawei They covered 8,500km between 21 March weekend to complete the evaluation of two to 29 April to safely pick up samples from employees during the pandemic. Providing Trust Ntshangase sets of beds to be shipped out immediately PPE to minimise the risk of infection, 15 of clients in Côte d’Ivoire and Liberia, and take to medical facilities. our food auditors were deployed at Huawei CB Field Inspections, them to our laboratory in Tarkwa, Ghana. sites during lockdown and completed audits South Africa of 125 caterers in just six working days. Trust Ntshangase went beyond the call of duty to keep our laboratories in South Africa fully functional during lockdown. Not only did he use his own vehicle to transport operational staff to and from work in the early hours of the morning, but he also worked with the Regional Lab Manager to arrange company vehicles for colleagues at our Island View & Sasol Wax plant in Durban.

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Our TSA standards Continued

Material topics Our People Strategy is all about energising our colleagues to take our business to new heights. ••Employee care ••Human and labour Employee engagement, human rights and rights worker health and wellness are core to the long- term success of our business. We strive for a sustainable workforce that is stable, engaged and committed to the organisation, our goals and objectives. We respect and protect the rights of our people across operations and throughout Peop le our business relationships. Our Values & Culture Our values aim to drive how we live every day, supplementing our purpose, how we conduct our business, and underpinning our desire Intertek’s first corporate goal is to to make the world ‘Ever Better’. have fully engaged employees working We are a global family in a safe environment. 1 that values diversity.

We always do the right thing. We truly value our people. We embrace diversity, 2 With precision, pace and passion. inclusion and equality, and our success is based on a culture of trust among colleagues globally. We trust each other and 3 have fun winning together.

We own and shape 4 our future.

We create sustainable 5 growth. For All.

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Our TSA standards Continued People & Culture

Ensuring the health, safety disseminate safety information through training employees, business continuity planning for smart This new target will be part of the next phase of our and wellbeing of our employees and targeting continuous improvement. home working and policies on social distancing, health and safety cultural journey and support our At Intertek we consider the health, safety and hygiene and sanitation as well as personal continued aim to achieve zero lost time incidents. Our global network of H&S ‘Champions’ has wellbeing of our employees, clients and third protective equipment and temperature checks. continued to support continuous improvement. By This year we created a range of new health and parties connected with our business to be of improving our H&S communication network we not The 2020 decline in Hazard Observations principally wellbeing content to support our people. Local paramount importance. Only through having fully only have a known contact person in each country reflects the lower activity levels across some campaigns across the year have focused on further engaged employees working in a safe environment and location but also a means of channelling and of our sites due to COVID-19, with the second developing mental and physical health awareness. are we able to deliver our Customer Promise. disseminating information and programmes globally. quarter being the key driver of the year-on-year We also launched a new global wellbeing programme, Our aim is to encourage a culture of proactive Health change. The impact was also reflected in the The Intertek H&S agenda continues to be Kindness. Kindness is a personal experience that will and Safety ('H&S') awareness, industry best practice level of First Aid Incidents, which encouragingly, underpinned by our rigorous approach to reporting help each Intertek colleague to make sure that we do and continuous improvement to increase H&S and in line with Lost Time Incidents and Medical and analysis, with dedicated reporting each month the simple things that help build our own personal performance globally. Our Group-wide ‘General Safe Treatment Incidents, declined year-on-year for country and business lines supplemented by strength and resilience – to help us re-energise, Working Guidelines’ provide the basis for a common more than Hazard Observations. The decline in inclusion in the 5x5 analysis for every site. boost our wellbeing and unleash our potential. and aligned H&S standard for all Intertek sites. Lost Time and Medical Treatment Incidents was The Group reacted with precision and pace to broad based by geography and business line. This includes a dedicated fire warden, first the global pandemic and the implications for our The incident decrease year-on-year links through aider and H&S representative at each location. employees, forming a Group COVID-19 response to the Total Recordable Incident Rate (‘TRIR’) These representatives are empowered not team as well as regional teams with the ability to which was down 21bps on 2019 at 0.40. only to investigate incidents and implement escalate urgent questions and plans for review and preventative and corrective actions, but also to We are committed to the continuous review and approval. To support our employees further we improvement of our H&S performance and have now launched a new and enhanced Group-wide Health & set a new target for our TRIR to equal or be less Safety policy, including required actions for essential than 0.5, which is set at an industry-leading level.

Total Recordable Health and safety data Group 2020 2019 % change Incident Rate (‘TRIR’) Hazard Observation 13,279 14,610 –9% down Near Miss 2,852 2,491 14% 21bps First Aid 1,000 1,347 –26% on 2019 at 0.40 Lost Time Incidents 65 155 –58% Medical Treatment Incidents 108 125 –14% Fatalities – – – Total Recordable Incident Rate ('TRIR')1 0.40 0.61 –21bps

1. Rate refers to the number of lost time incidents, medical treatment incidents and fatalities occurring per 200,000 hours worked.

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Our TSA standards Continued People & Culture Brilliant programme, and very timely. Really positive as we close out 2020 and zoom into 2021. Enjoying the course!

Shelley Ashworth, Kindness – United Kingdom This is what we need not only in the office but also in our lives! Thanks our new global for the great inspiration! Ha Linh Nguyen,

wellbeing programme Attitudes that benefit the greatest number of people and not just Case study If 2020 has taught us anything, it is that we all yourself are the ones that make Kindness is a personal need to be kind. Kind to our planet, kind to others, a difference! Lovely message! experience that supports our and kind to our mind. At Intertek, our purpose is to Danielle Cordeiro, Brazil colleagues in doing the simple make the world a better, safer and more sustainable things that will help them build place; and, now more than ever, our colleagues are working to ensure that our clients, our communities, their own personal strength Great initiative! It is awesome that and indeed, the whole world, can navigate these and resilience, and unleash Intertek reminds us, that before times in the safest possible way. their potential. anything else, we should care In 2020, we took an important step in supporting about our wellbeing. our own wellbeing by introducing a new global programme, Kindness. It is based around six core Gilberto Triviño Vanegas, areas of wellbeing: making connections with others; Colombia energising and motivating ourselves; mindpower and self-confidence; staying positive; mindfulness An extraordinary and exciting and building resilience; and feeling supported. programme which means a lot Colleagues have access to e-learning modules on to each individual of this great each of these, and can use a personal Kindness company. Together, we are Journal to focus on their own wellbeing goals. making the world ever better.

Md. Riad Hasan Chowdhury, Bangladesh

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Our TSA standards Continued People & Culture

COVID-19 Talent management In employment-related decisions, we comply with In many ways, the COVID-19 pandemic has been a To seize the exciting growth opportunities arising all applicable anti-discrimination requirements Case study sustainability crisis. It has challenged the business from our Total Quality Assurance ('TQA') value in the relevant jurisdictions. We have zero Learning together – resilience and continuity plans of many corporations, proposition, we continually invest in the growth tolerance for discrimination and harassment. what great leadership looks like disrupted supply chains and had significant impacts of our people. We aim to hire, inspire, engage and Reward Late in 2019, we launched our 10X Leadership on people and communities around the world. retain the best people to power our 5x5 strategy, Reward plays a key role in attracting, motivating programme, to help leaders across our organisation providing the skills to grow our business. For us, the health, safety and wellbeing of our and retaining talent. Intertek is compliant with achieve their absolute best as we travel together people is a sustainability issue and indeed is We fully recognise the importance of employee minimum wage and mandatory social contributions on our shared and personal journeys from ‘good- always our first priority. We swiftly created a engagement in driving sustainable performance requirements in all jurisdictions where we operate. to-great’. The programme was launched by our comprehensive, global COVID-19 Employee Health for all stakeholders. In order to measure our CEO André Lacroix to the first 80 self-nominated At Intertek, remuneration for all employees follows & Wellbeing policy, which we have updated regularly employee engagement, we follow the Intertek participants. the same policy and principles as for the senior as the situation developed and we have learned TQA Engagement Index which is based on the executives. The Remuneration Committee has Following a week-long intensive course, more about best-practice in managing the virus. key drivers of sustainable value creation within oversight of this and you can find more information participants were given the opportunity to work our differentiated ATIC and which in the 2020 Annual Report on pages 107 to 114. with specially trained internal coaches, helping For an update, please visit our website measures engagement on a monthly basis in every at intertek.com/about/update-on-COVID-19 them to think through their leadership plans and operation with the following metrics: Net Promoter We depend on local management to define and create breakthrough-thinking that will help us all Score, Customer Retention, Quality, Voluntary maintain competitive compensation practices deliver a truly 10X performance together. A number of employees have become ill during the Permanent Employee Turnover and Total Recordable that appeal to both existing and future talent. pandemic and it is a matter of great sadness for the Incident Rate. For 2020, our Group Engagement The COVID-19 crisis prevented the programme All employees are remunerated in accordance with whole of the Intertek family that we lost colleagues Index score was 89% and our target is to achieve of leadership events extending throughout 2020. local policies and guidelines. The remuneration to the virus. Support was given to the families of an Engagement Index of 90% moving forward. However, we are fully committed to expanding comprises elements which are fixed, and in these colleagues and to their grieving colleagues it in 2021 and beyond, bringing opportunities During 2020 our Voluntary Permanent Employee some cases, variable. The fixed elements are and our thoughts are with them. and advantages to many more leaders in the Turnover improved from 13.8% in 2019 to 8.7% base salary and benefits including pensions, years ahead. Talent attraction, reward & recognition in 2020, which is well within acceptable industry where applicable. The variable elements include We reach out to prospective employees in a standards. As we progress our People Strategy incentives, both short and long-term. variety of ways, depending on location and role, in we will aim to keep this rate below 15%. Recognition Skills development compliance with local regulations for fair recruitment We take every opportunity to recognise great We believe in personal growth for every employee practices and equal opportunities. We post With an ‘Ever Better’ mindset we encourage our performance across the business through our and we know that when each of us is growing and vacancies on our website (intertek.com/careers) people to continuously learn new skills that help internal channels. developing, we move faster along our good-to- and employ various ways of sourcing talented advance their careers and deliver our TQA Customer great journey. Over the years we have made great people. These include recruitment agencies, social Promise. Our talent-planning process is critical to > Read more on the Board’s engagement with employees on progress with our Leadership Development agenda. media, printed advertisements, employee referrals, our future success in delivering our strategy and pages 85 to 88 in our 2020 Annual Report professional bodies and associations, schools, fostering our culture and values throughout Intertek. We now have in place many Group-wide programmes colleges and universities. We are committed to The Board as a whole is responsible for ensuring that to support this agenda including talent planning recruiting talent local to our operations where appropriate human resources are in place to achieve processes, the 10X Journey that provides structure possible. To offer career growth and progression our long-term strategy and deliver sustainable for individual growth planning, our 10X Energies within the Group, we seek wherever possible to performance. Global talent and succession planning that help define winning behaviours and ‘10X fill vacancies from within the business first. for the Leadership Team are discussed regularly. Way!’ training to help address key development

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Our TSA standards Continued People & Culture

and training needs. There are many more As we operate across a wide range of sectors, All employees receive adequate coaching, For our Modern Slavery Act Statement, visit our website programmes across the business, providing different types of technical training, education development and training to ensure they are fully at intertek.com/about/compliance-governance in-house and external learning opportunities. and support are required, including apprenticeships competent to carry out their role. and internship programmes, as well as college All Group employees have access to our ‘10X Way!’ Employee representation and consultation degrees and professional qualifications. Hours spent platform or an alternative Learning Management 100% We respect the rights of our employees to form completing this training is not currently tracked. System, enabling them to complete their onboarding, of our employees are offered, as a minimum, and join trade unions and take part in collective access our ‘10X Way!’ training, and complete At Intertek our leaders strive to be of the highest yearly discussions on growth and development bargaining where this is accepted by local law. mandatory Code of Ethics and compliance, quality in the industry and we believe in the spirit of We also take care that employee representatives CyberSecurity and Core Mandatory Controls training. ‘Ever Better’ and know that the ability our leaders Protecting human rights do not suffer discrimination and that they have have to develop and grow employees in their teams We are committed to ensuring that our open access to members in the workplace. We is one of the biggest factors that will influence the employees are subject to fair working practices strictly adhere to tariff structures and arrangements exciting growth journey we have ahead of us. and are treated with respect. Within our business, 216,000 negotiated with trade unions, while we also inform e-learning training hours completed through the rights of our employees are respected by our Learning Management Systems the implementation of our Labour and Human and consult employees on relevant business Rights policy and Code of Ethics. Intertek’s activities: for example, we respect statutory policies and codes are based on and fully respect minimum notice periods and give reasonable notice the International Bill of Human Rights and the of any significant operational changes in line with International Labour Organization’s declaration local practices and labour markets. Our affiliates’ Case study UK Sustainable Growth Agenda on Fundamental Principles and Rights at Work communication and consultation processes are A call to innovate and the Children’s Rights and Business Principles. tailored to local needs. with purpose We continually review our approach to human rights 33% of our employees were represented Intertek UK has held the first ever ‘10X Innothon’, to reflect legal developments, emerging issues and by independent trade unions or employee a unique event aiming to find the company’s to meet societal expectations. representative bodies in 2020. We do not report most innovative talent and the best ideas and information on employee union membership due inventions to contribute to the UK’s Sustainable Our Code of Ethics training aims to educate to differences in national legislation in countries Growth Agenda. all employees about potential integrity issues, where we operate. including human rights, bribery, corruption, Launched in April, it called on Intertek innovators non-discrimination and employee relations. from across the country to get together in The Code of Ethics contains clear guidance on teams to deliver brand new ideas for initiatives the grievance mechanisms and whistleblowing to solve the challenges faced by our colleagues, procedures that we have in place. Further customers, communities and the environment. information can be found on page 37. The core objective behind the initiatives was to create learning and development opportunities Our Modern Slavery Act Statement, outlining the for colleagues right across the UK, improving steps we are taking internally, in our supply chain communication and collaboration while building and through partnerships and advocacy to avert new networks and enabling the UK team to modern slavery and human trafficking is available share insights into creating a better, safer on our website. and more sustainable future for all. 22 Intertek Sustainability Report 2020

Our TSA standards Continued We recognise the importance of gender diversity, in management and across all levels of our business. Intertek TQA Experts by region

In line with the Hampton-Alexander Review, as well 11,209 20,716 11,844 People & Culture as supporting gender diversity on our Board, we 8,168 3,041 12,305 8,411 8,217 3,627 contributed our data on the gender balance across our senior executive team and their direct reports: Inclusion, diversity 2020* 2019* Male Female Male Female & gender equality Board 7 4 7 3 Executive Americas Asia EMEA Management (inc. Central) Team (‘Exec’)** 9 2 10 4 Male Female Embracing all talents We demonstrate that we are an inclusive and Direct reports diverse global family by applying all employment At Intertek, achieving ‘Ever Better’ (‘DR’) 83 26 88 21 policies and practices in a way that is informed, Combined: Revenue and headcount performance depends on being fair and objective. This covers all policies relating Exec + DR 92 28 98 25 constantly open to pioneering new to recruitment, promotion, reward, working 2,166 2,567 2,769 2,801 2,987 2,742 41,434 42,452 43,905 44,720 45,653 43,769 ideas that enable us to improve what conditions and performance management. * Data relating to the Board and the Exec and DR is as at 31 December we do and how we do it. For us, this and as at 31 October of each year, respectively. Our Inclusion and Diversity policy facilitates a ** As defined by the Hampton-Alexander Review. This comprises the means having an organisation that is culture of inclusiveness where people are able CEO, Heads of Global functions and EVPs. to perform at their best, where their views, truly diverse and inclusive in ways Senior management nationalities – countries of origin that extend far beyond the ‘standard’ opinions and talents are respected, harnessed and not discriminated against. We are committed Total 205 measurements of race, nationality to maintaining the highest standards of fairness, UK 40 and gender. respect and safety. US 39 2015 2016 2017 2018 2019 2020 As a business we want to ensure that we have Revenue (£m) Intertek has a history that goes back over 130 years, India 23 the right capabilities to deliver our strategy. Headcount evolving from the combined growth of a number 13 We recognise the value that individuals of Germany of innovative companies from around the globe. different backgrounds and capabilities bring to 11 Diversity has always been at the heart of who we China the business. Our diverse workforce helps us to TQA Experts by gender are and will continue to provide the power behind Hong Kong 8 understand, communicate and trade with our vast our success in the future. With team members from client base through their understanding of local Canada 7 28,982 15,738 28,974 16,679 28,690 15,079 over 100 countries, all with different backgrounds, issues and cultures. They add value in assuring 7 cultures and beliefs – our diverse workforce makes France our services are tailored to our customer needs, us the leading company we are today. Australia 7 which underpins sales growth, customer retention and satisfaction. Vietnam 7 Bangladesh 6 Ireland 4

Sweden 4 2018 2019 2020

Other nationalities 29 Male Female 23 Intertek Sustainability Report 2020

Our TSA standards Continued People & Culture 2020 update The technical expertise needed in many parts of We will continue to promote and endorse fair, Our ‘Embracing Diversity’ model our complex business is acquired over several years, which is reflected in a relatively high average age in consistent and thoughtful working practices that We promote diversity in all its forms, including parts of our Group. The overall average age is 40. are in accordance with our values. At Intertek we gender parity, sexual orientation and disability, are proud to be an equal opportunities employer. as well as having an ethnic and social We consider all qualified applicants for employment makeup that reflects broader society. Our goals regardless of gender, ethnicity, religion, age, We will continue to develop proactive disabilities and other protected characteristics. Diversity measured approaches to recruitment to ensure Talent across we have an age-diverse and balanced We also ensure that men and women are paid employee age profile. equally for doing equivalent roles and we are all generations committed to a number of measures to ensure we We value all of our provide an energising workplace, free of any gender colleagues, regardless of bias, where employees can flourish based on their age, and have practices in talent and effort. To strengthen this, we ensure place to develop and retain that our shortlists of external hire candidates workers of all ages. have a balance of gender diversity.

We remain committed to equality, and provide flexible working where possible and provide mentorship to women to address the gap in gender numbers at senior levels. It is vital that our workforce represents the best available talent, reflects the communities in which we Diversity measured 2020 update operate and is free of gender or other biases. Gender diversity • 6.3% increase in women in senior management roles since 2017. We are determined to • Our Board hired an additional female director develop and retain more in 2020, giving us a total of four, or 36%. Our UK gender pay gap report is published on our website at intertek. women in senior roles. Diversity measured 2020 update com/about/our-responsibility Our goals Cultural diversity Our global workforce is representative of Improving gender balance is critical for us. (arising from country of origin) the countries in which we operate and our senior leadership is representing 34 different We continue to focus on gender diversity Cultural diversity supports by attracting, developing and retaining nationalities. more talented women, particularly at senior our global business and is levels. The percentage of women in senior key to our success. Our goals management roles has continually increased We are committed to cultural diversity over the last four years and we have now and will ensure that Intertek’s colleagues set a goal to increase this to 30% by 2025. are representative of the countries where we do business.

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Our TSA standards Continued

Case study Case study Prioritising community Odd socks for engagement better inclusivity At all of Intertek’s Australia locations, as Colleagues at Intertek China supported well as engaging proactively with traditional ‘Different Socks Day’ to help build a more inclusive owners, native title holders and elders, we world by spreading a message of care to people aim to improve every aspect of community with intellectual disabilities. engagement, including in the areas of In doing so, they joined individuals from companies recruitment and procurement. and countries across the world, who have As a result, around 4% of our employees participated in a campaign organised by World nationally identify as aboriginal or Torres Strait of Art Brut Culture (‘WABC’). This non-profit Island people, up from 1% in previous years. organisation provides arts therapy services and Case study Case study We also aim, whenever possible, to resource public advocacy for people with mental health Celebrating women’s ‘Mommy’s cabin’ projects with people from local communities. issues or learning difficulties. It aims to use the act role in Intertek’s success Intertek China has always ensured that the We have projects in Townsville, Charters of wearing non-matching socks to promote social Towers, Alice Springs, Kalgoorlie and Darwin inclusion, eliminate prejudice, create empathy and Intertek marked International Women’s Day rights and interests of female colleagues are that are entirely locally resourced, while one in help create a more inclusive and diverse world. on 8 March at many of the company’s locations fully protected and respected. It has now set up Port Hedland is 80% locally resourced. We are across the world, including our offices in India a room at one of our locations, called ‘Mommy’s To date, the lives of millions of people have now electing to take the same localised and Bangladesh. In keeping with the global cabin’, for use by pregnant and breast-feeding been influenced for the better by the ‘Different approach for all ongoing contracts. theme – #EachforEqual – Intertek celebrated all employees. The space is also available for use Socks’ initiative. the outstanding women who are so critical to by the female employees of other companies the company’s success. The extended team also in the building, entirely free of charge. held celebrations and activities to help shape the debate and accelerate change. Case study In our Bangladesh offices, there was a The Valuable 500 pledge celebration of womanhood and a collective Intertek is proud to have signed up for pledge to help create a gender-equal world. The Valuable 500. It is a business-to-business Events included competitions, inspiring videos, initiative that aims to unlock the social and and a colleague’s moving description of how economic value of people living with disabilities she overcame tremendous personal adversity. across the world. As part of our pledge, we will table disability on our Board agenda, make a firm commitment to action, and share this internally and externally.

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Material topics As a business we contribute to our communities in many ways. We provide ••Environment employment opportunities, volunteer, fund ••Societal impact education programmes and support charities to benefit local communities and neighbourhoods.

Each of our countries and business lines define their own sustainability agendas, which are tied to the Group’s priorities, aligned to the UN Sustainable Development Goals and focus on their local operations and communities. Our Sustainability Operating Committee oversees community investments at a global level.

In this section we provide a small selection of Communities highlights from the many community activities that our colleagues are taking part in around the world.

Our global business spans more than 100 countries and, as such, we understand the huge opportunity and responsibility we have to make a positive and lasting impact on our local communities where we work.

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Case study Case study Communities Hygiene checks keep Intertek Bangladesh Case study disability charity on the move creates a virtual hospital Keeping a promise Intertek Hong Kong has issued the ProtekTM Even before hospitals in Bangladesh became that really matters COVID-19 Hygiene Check Certification to Rehab overwhelmed by patients showing respiratory When the COVID-19 outbreak threatened a planned Life, a charity supporting people with disabilities, distress during the COVID-19 crisis, the Facilities community project in Abu Dhabi, Intertek’s HR particularly those who are wheelchair-bound. team at Intertek was well prepared. Recognising Business Partner for Industry Services in the Gulf, the potential troubles ahead, they had already The charity uses specially designed and equipped Sally Khalaf, was determined to keep the promise stocked up with oxygen cylinders in our labs vans to help more than 60 people travel between of helping to renovate the Emirates Autism Centre. across the country, creating virtual hospitals for their homes and hospital every day, and it’s vital So she organised talks between the centre and the employees and their families should anybody the vans achieve the highest possible standards local Intertek management team. who needed oxygen be unable to gain admission of safety and hygiene. to hospital. Together, they agreed to proceed with the Intertek tested samples taken by swab from several project using a minimum number of volunteers and Since starting the service, the team has ‘high-risk’ areas, including back seats, handles and ensuring all necessary health and safety measures delivered cylinders to several homes, much windows, which then underwent rapid biomolecular were in place. to the appreciation of everybody involved analysis at our laboratory. These showed within with the company. According to Sandeep Sally and her team carried out the refurbishment in 24 hours that good levels of hygiene were in place. Das, Regional Managing Director of Intertek two days, including painting murals. As Sally said, According to Alexander Mui, who founded Rehab South Asia, “It’s wonderful to see our team in “I want to thank everyone at Intertek UAE, across Life in 2017, “We are delighted to entrust our Bangladesh being so thoughtful about the crisis nine locations, for making the project happen by Case study entire service team to Intertek. Their efficiency and taking practical measures to support one donating money, toys, books and furniture. The Colleagues in Taiwan and comprehensive capabilities deliver strong another in times of need.” centre’s management and employees asked me donate blood support in our drive to offer the very best voluntary to thank everybody involved – they’re very happy The virtual hospitals also transport employees with the result as the centre now looks far more A total of 116 Intertek Taiwan team members service to people in need.” who are feeling unwell back to their homes, even child-friendly.” donated blood during the months of February Our Hong Kong team has also helped Rehab Life helping them get to doctors’ appointments and and August, working with the philanthropic and other charities, including VCycle, to work with arranging hospital admissions when needed. Farglory Foundation to help reduce the pressure more than 20 of our customers to donate Intertek- on donation centres that built up as a result tested PPE products and other vital supplies to of the COVID-19 pandemic. more than 500 people on low incomes, including street cleaners and cardboard collectors.

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Case study Communities Supporting students

Intertek has helped to fund 28 students from Case study Shanghai’s Chongming Island over the last 13 years. Food conservation in China We continued this support in 2020, with five graduating from university and starting jobs, Food conservation is an urgent issue across while another five joined the programme. China – so much so that Xi Jinping, President of the People’s Republic of China, has called upon According to Fred Bai, CEO of Intertek Greater families and organisations across the nation to China, “This is really important work for us, and avoid wasting food. it’s very satisfying to watch these young people overcome early hardship and grow into talents with Intertek is committed to the cause, working with real benefits to bring to society. We are committed the Food Bank Network and Food Hub charities to continuing the programme for many years into to collect food and other household essentials the future.” for distribution to people in need. In Hong Kong, our team also provides free testing and inspection services to the Feeding Hong Kong charity, which collects donations of food from caterers and distributes them to homeless people. We are now also the charity’s quality-control Case study Case study partner, ensuring the food is always safe to eat. COVID-19 care packs in Hong Kong Creative Day for Social Good In Hong Kong, colleagues have created special As an organisation that is rooted in STEM- COVID-19 care packs, including masks and hand- based knowledge, we work with local sanitisers. These have been distributed to more colleges and universities for internships than 10,000 elderly people and 70 care homes and career placement within Intertek. across Hong Kong. With our expansion into Connected World & People Assurance, we continue to Also in Hong Kong, our people are involved in several grow our network and partnerships with initiatives to help reduce the impact of poverty on local academic partners and programmes. young and old. We work in partnership with Kelly Services and charities such as the Fruit Garden Colleagues at Intertek Catalyst in , and visit children and older people Canada founded ‘Creative Day for Social in their homes. We identify their needs, and often Good’ (‘CD4SG’). This initiative brings approach our customers for help – for example, together students with teams of creative asking smart-toy manufacturers to make toys professionals who donate their time for available as gifts for underprivileged children. two days to create professional marketing materials for charities. The event helps design and public relations students prepare for their professional careers.

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Case study Case study Communities Vital relief packages in Community solar at Kinderhook Azerbaijan Intertek has partnered with East Light Partners as As a result of the COVID-19 pandemic, many an anchor customer of its 5MW ground-mounted families in Azerbaijan were left without income community solar project, Kinderhook Solar. Located in or basic needs. Azer Sanili, Regional IT Manager, Kinderhook, New York State, the project includes more Intertek Eastern Europe and Central Asia, with than 19,000 solar panels and is expected to generate the help of colleagues, initiated a crowdfunding over 9,000MWh annually. That is enough clean, green initiative called ‘Bigane Qalma’ (Stay Tuned), Case study electricity to power around 1,000 homes. open to any institution wishing to participate. Empowering small and medium- Community solar allows any and all members of a This resulted in a total of 45 families sized enterprises in South Africa community to share the economic and environmental in desperate need of support receiving vital benefits of solar power, particularly if they cannot or relief packages. We recognise the crucial role that small and prefer not to install solar panels. It even allows people medium-sized enterprises (‘SMEs’) play in South to go solar if they do not own a property or have a roof Africa in terms of employment, job creation and Case study of their own, making it an attractive option for renters economic growth. That’s why our Enterprise and Supporting children or those who live in shared buildings. with disabilities Supplier Development programme works to create sustainable growth by empowering black-owned Kinderhook Solar is sited on what was previously Colleagues at Intertek Spain support Fondacion SMEs within both our own supply chain and in the vacant land along a state highway, and construction Seur, an organisation that supports children living wider economy. was completed in October 2020. Intertek has with disabilities. The charity collects plastic caps committed to purchase up to 40% of the energy The programme is supported by Intertek colleagues, for recycling and with the income generated produced by the facility in the form of utility credits. who have worked with organisations for a long purchases special equipment, for example The remaining credits are being sold to local residential Case study time. This includes a 15-year relationship with the wheelchairs and other medical devices. The team customers that subscribe to the project. Free PPE training Bevies Care Centre and Masisizane Service Centre. in Spain has been supporting the initiative since The social work done by these centres has made a Intertek Softlines joined efforts with Business 2017, and will continue to do so in the future. significant impact on the lives of underprivileged Assurance to set up a free training programme children in the KwaZulu-Natal area. There have also for external audiences, teaching the correct Case study been several new beneficiaries this year, including use of face masks and protective gowns. This ‘First-In-Queue Priority’ for Zazele Training and Development, a company that addressed selecting the right face mask for works with entrepreneurs from disadvantaged each task, and the quality factors needed to critical care medical devices backgrounds, to train, equip and support them in choose personal protective equipment were Our North America Medical team is helping to setting up their businesses. addressed. The workshops were delivered to fight back against the impact of COVID-19 with more than 2,500 attendees from all countries our newly launched ‘First-In-Queue Priority’ for in the Americas. critical care medical devices. The passion, urgency and expertise shown by our Medical team has been nothing short of inspirational – ensuring that electrical/medical devices receive immediate attention, so they can be tested, certified and rushed out to healthcare workers.

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Material topics Our Board of Directors is responsible for the overall stewardship of the Group and delivery against ••Governance strategy, through our Group Leadership Team. ••Compliance and This includes setting our values and standards, legislation and overseeing sustainability and corporate responsibility. They have regular discussions about the risks and opportunities sustainability presents for the Group and they conduct a formal review at least once a year.

Our Annual Report sets out our full Corporate Governance Report and statement. In embedding responsibility throughout Intertek, we focus on the areas where we are deeply committed to Governance supporting our customers and having a positive impact on our people and communities, minimising our environmental impacts, operating with integrity by ‘Doing Business the Right Way’, and pursuing our socially responsible activities through living our strong values every day, everywhere. These areas are linked to and support our 5x5 strategy for growth.

Our Annual Report and Accounts 2020 As a sustainable organisation, Intertek embeds is available to download at intertek.com/ responsibility across the entire organisation to build investors/year-in-review-2020 an accountable and diverse governance structure, in addition to transparent .

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Governance BOARD

Regular oversight of sustainability is led by The Board has ultimate responsibility in the Sustainability Operating Committee, whose promoting the long-term sustainable success of the Company. purpose is to advance our initiatives, both internally and in our external sustainability services for our clients. The Committee meets monthly to review our progress against our sustainability strategy GROUP CEO GROUP LEADERSHIP TEAM and is chaired by the CEO, who has accountability for sustainability performance at executive level.

Our governance practices demonstrate our values UPDATES UPDATES UPDATES and our progress against policies and sustainability MONTHLY ANNUALLY QUARTERLY objectives to both internal and external stakeholders. SUSTAINABILITY OPERATING COMMITTEE

Case study The purpose of the Sustainability Operating Committee is to advance our Celebrating initiatives for our clients, our external sustainability service offering, and excellence in the UAE internally progress our own activities including tracking and reporting on our environmental footprint, GHG emissions and contributions to the UN SDGs. Former Intertek Chairman Sir David Reid visited our Centre of Excellence in Sharjah, UAE in early 2020 to recognise and celebrate the great achievements of its highly energised and customer-centric team. COMMUNITIES SOCIAL GOVERNANCE Following a tour of the 38,000 sq ft facility, including INNOVATIONS ENVIRONMENTAL the Fuel, Oil Conditioning Monitoring, Scanning & UN SDGS & HR & REPORTING Electron Microscopy, Food & Water and P&IA Analysis labs, Sir David commented on how good it was to see such innovation, professionalism and expertise in action. He went on to hold a townhall meeting to award top-performers and long-term employees as well as discussing multiple activities that are SUSTAINABILITY CHAMPIONS REGIONAL SUSTAINABILITY COMMITTEES of particular interest to the workforce. Cross-functional contributors across our countries Formal and informal committees led by regional carry out sustainability-related initiatives both for our management driving our regional strategies for our people, clients and on internal programmes which are aligned community, environment and customers. to the UN SDGs.

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Material topics Importance of material topics during 2020 Stakeholder engagement We recognise the importance of determining and prioritising Working with customers Human and labour rights the key sustainability topics relevant to the business and We listen to our customers to continually improve our We are committed to ‘Doing Business the Right Way’, our stakeholders. In 2019 we conducted an independent service and ensure customer satisfaction. and that includes eradicating modern slavery. materiality assessment to ensure that current views and emerging trends are being addressed by Intertek. This year, we considered the material topics identified against Employee care Customer and the external trends shaping our operating environment and We continually promote fair, consistent and thoughtful product responsibility concluded that there were no significant changes from the working practices that are in accordance with our values. previous reporting period in the list of material topics and We offer the highest quality of service to our customers topic boundaries, although some matters have been given This ensures that our strategy and culture gives our so that they are able to have a positive impact through more prominence to reflect their increasing importance people the right platform to grow and develop their their own products. to stakeholders. careers and be involved in socially responsible activities that support our purpose to make the world ‘Ever Better’, The materiality assessment specifically considered topics by bringing quality, safety and sustainability to life. Compliance and legislation that are consistent with areas typically under the umbrella of sustainability, corporate responsibility and ESG, and the As an industry leader, we understand the assessment analysed data and information from a variety of Diversity and inclusion interrelationship between compliance requirements internal and external sources to ensure that all potential topics and the sustainability of the business. This means were considered and captured. The methodology was aligned It is important that we provide a work environment living our values, having the highest standards of ethics to AccountAbility’s AA1000 Principles, the GRI Standards, IIRC, where employees feel valued and able to be themselves. and integrity in how we conduct ourselves every day, CDP, UN SDGs, DJSI and SASB guidelines. The process ensured Intertek’s Inclusion and Diversity policy eliminates everywhere and in every situation. that all relevant topics have been considered appropriately discrimination to ensure that employees are treated within the scope of the study. fairly and feel respected and included in the workplace. Privacy and security Our materiality assessment was carried out in steps: Environment We adhere to all privacy and data security legislation 1. We analysed insights and information and commitments and ensure that business assets, from a range of external and internal sources We are committed to minimising our environmental confidential information and stakeholders are protected. to identify the issues relevant to our business. impact, which includes managing our waste, resources, water and energy consumption, and raising awareness 2. This research formed the basis of a long list Governance of material topics. of environmental issues amongst our stakeholders. The principles of quality and safety, part of Intertek’s 3. A group of internal stakeholders, representing purpose and operations, are cornerstones of sustainability a broad range of business areas, were asked to label Societal impact the list of issues either as higher or lower importance. and sit at the heart of what Intertek has been supporting We support social and economic development and local clients with for over a hundred years. 4. In 2020, material issues were reviewed to see community engagement activities. which had increased, decreased or stayed the same in level of importance over the past year.

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Material topics Managing risk is key to our organisation being sustainable. Being able to identify and prioritise both ••Employee care opportunities and threats impacting our business, ••Governance we are able to achieve our objectives over the long ••Compliance and legislation term in order to sustain success. Intertek has implemented an end-to-end integrated approach to risk, control and compliance which: embeds risk management throughout our business; allows us to dynamically adapt our controls, policies and assurance activities as our risk environment changes; and creates responsibility and oversight of our risk identification and risk mitigation actions to ensure they are effective, relevant and robust. Risk Our integrated risk management framework Risk management is embedded throughout our organisation using a framework of divisional, regional Management and functional risk committees. These committees meet quarterly to identify, monitor and assess the risks within their area of responsibility using tools which include a dashboard of leading and lagging We build resilience through systemic risk management. risk indicators and risk mitigation action plans. This helps assure a strong culture of risk-based It is the responsibility of each committee to assess whether its risk environment is changing, whether business management guided by sustainability it has the right mitigation action plans and whether objectives, including understanding and managing new or different plans are required in response to our supply chain partner risks. new or changing risks. The risk committees report to our Group Risk Committee which in turn provides a report on risk and mitigation actions at each meeting of the Board.

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Our integrated approach to Evidence that this assurance is robust is primarily Risks and opportunities identifying and mitigating risks validated by our Internal Audit function (which audits associated with climate change At Intertek, we view our risk environment as our financial controls and risks), by our Compliance The business landscape has evolved significantly consisting of emerging risks (risks that are potential function (which audits our non-financial, operational over the past few years as attitudes shift and new or future-looking) and systemic risks (risks which controls and risks), and by our CyberSecurity team legislation is introduced to reflect the changing are concrete and actually present or inherent in (which audits our IT controls and risks). times. Consistent with scientific reports, we our operations). Emerging risks are assessed by recognise that a failure to rapidly decarbonise our Our integrated approach perceived likelihood and impact and addressed using economies will lead to increasingly volatile and to risk governance and oversight mitigation action plans on a ‘three lines of defence’ severe weather-related events with significant The Board ultimately reviews the Group’s risks, model. Systemic risks are addressed using our economic consequences. While climate change controls and compliance and mitigation actions. internal controls, policies and procedures. affects nearly all economic sectors, the level and The Audit Committee is responsible for reviewing type of exposure and the impact of climate-related Our risk identification and mitigation approach is the adequacy and effectiveness of that risk risks differs by sector, industry, geography and integrated and dynamic as our risk committees framework. If this governance and oversight organisation. Our own operations may not be as continually review their emerging risks and, to the identifies new risks or the need for new controls, energy intensive or resource depleting as some extent those risks start to become systemic (or ‘real’ policies or procedures, those changes are made and other industries, but as a multinational company rather than ‘potential’ risks), identify new controls, fed back to the framework of risk committees so we acknowledge our exposure to various types and policies or procedures so that we can put new that governance and oversight results in a dynamic degrees of local, regulatory, physical and socio- systemic mitigations in place. change to our risk identification and mitigation economic risks associated with climate change. action plans. Our integrated approach to risk assurance Task Force on Climate-related We have an integrated approach to getting Business continuity and disaster recovery Financial Disclosures assurance that our risks are being appropriately Considering the spread of our operations, we The Task Force on Climate-related Financial and effectively identified and addressed. We use acknowledge that each business line and each Disclosures (‘TCFD’) is a market-driven initiative an integrated assurance map, which takes each function has its own specific business continuity shaping the increased response measures to of our emerging and systemic risks and maps an and disaster recovery needs, including scope of climate-related financial risks. Mitigating and assurance framework onto them by identifying content, information, depth and coverage. Therefore, managing the risks and opportunities associated the roles or functions which are responsible for the we provide general guidelines based on both the with climate change is fundamental for Intertek, management, control and oversight of those risks. requirements defined in the Business Continuity to enable us to deliver our purpose. Management System (ISO 22301:2012) and our experience and view of good practice.

Further information on our risk framework’s > effectiveness can be found in our 2020 Annual Report on pages 80 and 103.

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Risk and opportunity assessment Case study The disclosures made in this report and within Independent carbon our CDP disclosure cover some of the TCFD intensity certification recommendations. This year we have focused on CarbonClear™ is our breakthrough global programme identifying the gaps and setting a timetable for that provides companies with independent carbon full implementation during 2021. More details are intensity certification across their entire oil and gas included in the Environment section on page 40. production portfolio. For Intertek, climate-related risks (e.g. extreme The CarbonClear™ certification is designed to drive weather patterns, water shortages, floods or transparency, precision and assurance of carbon other natural disasters) could give rise to business emissions performance. We were delighted to award interruptions in our operations or in our supply chain our first certification in July 2020 to Lundin Energy, one and impact our customers. of Europe’s leading independent oil and gas companies, To analyse our Group-level climate-related risks for its Edvard Grieg field in the central North Sea. Along considering countries, business lines and functions, with providing businesses with credibility and assurance, we use our integrated risk management framework. we also see CarbonClear™ as a catalyst for accelerating This has resulted in us including climate-related investment and performance in carbon footprint risks (the risk associated with a failure to respond to reduction across the energy sector, helping our clients climate events or climate-related regulation) within to Build Back Ever Better, and reducing emissions for our ‘Industry and competitive landscape’ principal current and future generations. risk (see page 59 of the 2020 Annual Report) and reflecting it within our longer-term viability assessment on that basis.

Climate-related opportunities for us relate mainly to the development of services that support our customers in tackling climate-related risks. As these opportunities are identified, they are analysed by our relevant business lines and innovation teams, which in turn develop appropriate strategies.

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Material topics Our vision is to be the world’s most trusted partner for Quality Assurance. We can only ••Employee care deliver that vision if we operate with integrity ••Customer and to maintain the trust and confidence of all of product our stakeholders, including our shareholders, responsibility customers, people and the communities ••Working with and environment in which we operate. customers ‘Doing Business the Right Way’ ••Human and We are committed to maintaining the total labour rights confidence of our stakeholders. One of the ••Compliance and Group’s primary business objectives is to help legislation our customers meet quality standards for ••Governance virtually any market in the world and protect them against risk by ensuring compliance with local, national and international laws. Compliance The accuracy and validity of reports and certificates that we provide and maintaining the trust and confidence of our customers, their clients and others impacted by our work, are therefore important factors which contribute to our success. Integral to this is ‘Doing Business the Right Way’; our internal risk, control, compliance and quality programme. We continue to develop a best practice This means living our values, the highest standards of ethics and integrity, in how we conduct ourselves compliance programme to ensure Intertek every day, everywhere and in every situation. operates with the highest standards of compliance and ethical business practices, including through our supply chain partners.

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Our Compliance programme ensures: Ethics, integrity and professional conduct this area, all of our people are required to complete If a report is made to the hotline, it is followed up by Our commitment to the highest standards of our comprehensive training course. Over 85% of Intertek’s Compliance officers. Our Group Compliance • that our people have the processes, tools and integrity and professional ethics is embedded in our workforce can complete their training online. function, which is independent of our operational training they need, and work to ensure a safe the Group’s culture through the integrity principles For those without IT access, a process is in place to businesses and reports directly to our Group General and inclusive environment; set out in our Code of Ethics (‘Code’). It sets clear ensure their access to the information. Regional/ Counsel, fully investigates all reports received. • the services we provide and the contracts expectations that people working for our business Country HR representatives are given updates Provided there is no , all reports we enter into are delivered with integrity and must act at all times with integrity and in an open, throughout the training window, and on closure are also notified immediately to our Group Ethics & in line with our commitment to Total Quality; honest, ethical and socially responsible manner. follow up locally to ensure full completion. Compliance Committee, which consists of our CEO, The Code also covers health and safety, anti-bribery, CFO, EVP for HR and Group General Counsel. This • every colleague commits to the highest This training covers the Code and other important anti-competitive practices, labour and human rights. ensures the effective resolution both of individual standards of professional conduct; and professional conduct areas, such as data security The Board, as a whole, oversees the implementation issues and of any systemic or process improvements and operational controls. When completing the • we deliver sustainable growth by managing of human rights commitments and supports human that can be made to address them. training, all employees are required to sign a our risks and doing the right thing for the rights as defined in the Code. certificate confirming their understanding that During 2020, 97 reports of non-compliance with longer term. We have a culture in which all issues relevant to our any breaches of the Code will result in disciplinary the Code were made to our hotline. Of those reports, Internal Audit is responsible for reviewing and professional conduct and the Code can be raised and action that may include summary dismissal of the 27 were substantiated and required remedial action. assessing Intertek’s business processes and discussed openly without recrimination. We operate employee concerned. Of those substantiated claims: provides independent and objective assurance a strict zero-tolerance policy regarding any breach We are investigating the need for formal human and advice that adds value and improves our of our Code and any behaviour that fails to meet our • there were no substantiated grievances rights training beyond the areas covered by our internal control systems and operations. expected standards of integrity as a trusted leader relating to human rights, labour Code of Ethics training based on risk, and are in the Quality Assurance industry. practices or societal impact breaches; Public policy developing tools and guidance. Our Government & Public Affairs function interacts To support this policy in action, all people working • there were no environmental incidents; Whistleblowing hotline with trade associations and governmental for, or on behalf of, Intertek are required to sign the To empower our people and stakeholders to voice • there were no anti-trust incidents reported; authorities to provide input into industry and Code upon joining the Group or before commencing any concerns about breaches of the Code or any regulatory improvements in product safety, work on our behalf. This confirms their acceptance • there were no reported violations of of our policies (including our Labour and Human quality and risk assurance. Any interactions of the high standards expected of them in all the rights of indigenous people; and Rights Policy and Modern Slavery Policy), we have with governments, governmental authorities or business dealings. a well-publicised hotline which can be used by all • there were no cases of discrimination. regulators are reviewed by our Group Legal & Risk Our Code of Ethics is available on our website at intertek. employees, contractors and others representing functions to ensure that we comply fully with com/about/compliance-governance Six confirmed incidents were identified through Intertek, or by third parties such as our customers all laws and regulations. our hotline where employees were disciplined or or people who are affected by our operations. dismissed due to non-compliance with our anti- We do not provide any financial or in-kind support, This whistleblowing hotline is run by an corruption policy. given directly or indirectly, to political parties, their 100% of our colleagues are required to complete our independent, external provider. It is multi-language elected representatives or persons seeking political Code of Ethics training and is accessible by phone and by email 24 hours a office. We support some industry associations, day. Those concerned are encouraged to report any including the International Federation of Inspection Intertek employees or people acting on Intertek’s conduct, compliance, integrity or ethical concerns Agencies, but the sum is not material. behalf are responsible for applying the Code in their using the hotline. Information posters are present own job role, their part of the business and location. in all of our sites. Every year, to support continuing understanding in

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Material topics Our five-year strategic plan, as outlined in the Annual Report and Accounts, is underpinned ••Compliance by a bottom-up budgeting and planning process. and legislation During the year, forecast financial performance is monitored on a weekly basis and actual performance is reported and reviewed on a monthly basis. This regular reporting and monitoring cycle is critical to the delivery of disciplined performance management.

The Intertek Core Mandatory Controls (‘CMCs’) are an integral element in our Group compliance framework, providing the mechanism by which we define, monitor and achieve consistently Financial high standards in our control environment throughout the whole organisation. 34% of the framework is dedicated to financial controls.

Since the launch of the CMC framework in 2016, we have reflected on the development of our control environment each year and have At Intertek we have a holistic approach to refined and enhanced existing controls to ensure they remain appropriate and up-to-date. financial planning and execution, supported All new Finance colleagues receive training on by rigorous internal policies and procedures the CMCs and are required to complete all Finance modules. Existing Finance staff are required to which are reviewed and updated regularly. undertake a module on any changes year-on-year. Our global process documents are applicable The CMC framework provides the bedrock against which our Internal Audit function assesses the to all Finance functions across the Group. business for control compliance.

Our Annual Report and Accounts 2020 is available to download at intertek.com/ investors/year-in-review-2020

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Material topics Our stakeholders are increasingly concerned about the consequences of the climate crisis and are ••Environment looking to us for more sustainable solutions. Intertek plays an important role in raising awareness of climate change and national resource constraints among our employees, suppliers and customers. As such, our aim is to improve operational and natural resource efficiency in a consistent manner across all our sites. Governance Environmental governance flows from the Board to every Intertek site. We monitor site-level activities across a range of environmental metrics and work Environment with our sites to reduce energy consumption and limit Greenhouse Gas (‘GHG’) emissions. Governance for managing climate-related risks and opportunities All of us have a responsibility to protect across the Group is incorporated into our existing governance framework as shown on page 31. the future of the planet. At Intertek, we look to understand our organisation’s impacts on the environment and mitigate them in regard to climate change, use of resources, ecosystems, and waste management and reduction.

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Our TSA standards Continued Environment

Task Force on Climate-related Our carbon emissions reduction targets We first set an emissions reduction target in renewable energy, where possible and economic

Financial Disclosures (‘TCFD’) Intertek clients depend on our safety, quality and 2017 to reduce our CO2 emissions per employee to do so. Intertek is committed to implementing the environmental expertise to ensure their products by 5% year-on-year up to 2023, and we are well Our UK business has transitioned 95% of utility recommendations of the TCFD. During 2020 we meet global market expectations. Intertek will on track to achieve that. suppliers to renewable energy. conducted a review of our position against the continue to strive for emissions reductions Recognising the importance of bold ambitions, 11 recommendations of the TCFD and established internally as the world’s leading Total Quality Global energy use1 we are setting targets to improve environmental by source (MWh) 2020 2019 a cross-functional working group to implement Assurance ('TQA') provider. performance across our operations, and to clearly the required governance and strategy for climate- Standard electricity 253,849 263,676 demonstrate our commitment we are aligning our related risks and opportunities, and the metrics 7,4 87 – business with the most ambitious aim of the Paris Renewable electricity and targets used to assess and manage these. Agreement, to limit global temperature rise to 1.5°C Vehicle fuels energy 40,146 – above pre-industrial levels and reach net zero by 2020 update 2021 priorities Non-transport fuels energy 66,518 69,871 2050 for the best chance of avoiding the worst (natural gas) Governance Governance for managing climate- Continue to enhance reporting impacts of climate change. Our governance around related risks and opportunities across to the Board and the Leadership 1. UK portion of total energy use was 6.8% (2019: 5.5%). climate-related risk and the Group is incorporated into our Team. Intertek’s part in a low-carbon economy existing governance framework as We recognise that we need to play our part within opportunities. Environmental management shown on page 31. the move to a low-carbon economy. To make real The delivery of our Sustainability strategy is We have identified climate-related Identify any inherent climate- change happen, we believe all our people need to Strategy supported by our Group-wide Quality Management opportunities as part of sustainability related risks with the potential have ownership of their carbon footprint and be The process used to identify, System – which is aligned with internationally services innovations. Our Sustainability to have a substantive financial or empowered and inspired to take ambitious actions assess and manage climate- recognised standards on health, safety and the related risks. Operating Committee oversees the strategic impact on the business in to reduce it – our Sustainability Excellence approach. development of our climate-related the short, medium and long-term. environment. We operate this across 80% of our strategy. 1 2 3 4 operations and, in 2020, 65 sites achieved or Use climate-related scenario maintained one or both ISO 14001 and ISO 45001 analysis to inform our strategy. Identify Evaluate Establish Develop (OSHAS 18001) certifications. Sustainability baseline target 10X action Risk management To analyse our Group-level climate- Update and expand climate risk champion performance setting plans At Intertek we take an ‘Ever Better’ approach to or team The actual and potential related risks considering countries, assessments. ensure our data is wholly accurate and consistent impacts of climate-related business lines and functions, we use our 5 6 7 year-on-year. Data collection continues to improve, integrated risk management framework Investigate reporting challenges on risks and opportunities with over 130 users adding site-level data every (see page 34). Environmental and additional Scope 3 GHG reporting. Implementation Performance Reporting and on our business, strategy month to our Global Sustainability Environmental climate-related risks are also tracked as tracking recognition and financial planning. part of our insurance process. software platform. At some of our sites, we have carried out energy Metrics and targets GHG metrics can be found on this page Prepare future targets. audits, which have already led to energy efficiency In 2020, we implemented emissions dashboards The metrics and targets and page 41. improvements, including the roll-out of LED lighting which allow the regional teams at our sites to used to assess and manage at numerous sites and trials of new technologies. understand their total carbon emissions and what is relevant climate-related risks We are well on track to achieve our causing them, and to put in place initiatives at site 2017 carbon intensity reduction target. We are exploring on-site energy generation through and opportunities. level to improve their metrics and manage their own various projects. In addition, we will source certified environmental impact.

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Our Environmental and Climate Change policy 1 Scope Emissions Tonnes CO2e 2020 2019 has been updated and is implemented by country Scope 1 Direct GHG emissions Emissions from activities for operations which Intertek owns or controls Global (excl. UK) 60,686 62,520 management to ensure compliance with local including the combustion of fuel and operation of facilities. guidelines and regulations. UK 2,439 2,431 119,679 125,213 Our activities across the world are diversified, Scope 2 Indirect GHG emissions Emissions from the purchase of electricity, heat and steam Global (excl. UK) purchased for our use (location-based) with a spread of both laboratories and offices. Our UK 3,188 3,480 carbon emissions intensity is higher in businesses Emissions from the purchase of electricity, heat and steam Global (excl. UK) 123,200 128,841 that are more capital intensive, such as our global purchased for our use (market-based) laboratory network, while our audit and office-based UK 2,151 5,329 operations have much lower capital intensity. Scope 3 Employee Business Travel (Air travel only)2 Global (excl. UK) 11,289 – This year we have seen a drop in our UK market- UK 956 – based Scope 2 emissions due to the transition Employee Commuting Global (excl. UK) 56,670 64,140 3 to renewable electricity. As we continued to UK 2,475 2,956 operate throughout the pandemic (with most of our operations classed as essential services) the Fuel- and Energy-Related Activities not included in Scope 1 or Scope 2 Global (excl. UK) 6,974 7,392 impact of COVID-19 on emissions from Employee UK 271 296 Commuting was limited. Absolute CO2e (market-based) 267,111 273,764 We continued our efforts to expand our disclosures Carbon off-setting4 267,111 – for material Scope 3 emissions and have disclosed Business Travel for the first time. As a result of lockdowns and travel restrictions due to COVID-19 Intensity ratios – Scope 1, 2 and 3 emissions in the second half of the reporting period, emissions Operational emissions5 disclosed are approximately half of what Intertek would normally expect. CO2 per employee (location-based) 4.29 4.50 4.34 4.62 Our annual environmental reporting cycle ran from CO2 per employee (market-based)

1 October 2019 to 30 September 2020. CO2 per £m revenue6 (market-based) 71.39 –

Further details on our methodology for reporting and the criteria > used can be found within our Basis of Reporting, available on our website at intertek.com/about/our-responsibility Employee commuting

CO2 per employee commuting 1.31 1.50 Average number of employees during the reporting period 45,092 44,775

1. CO2e – Carbon dioxide equivalent. 4. Carbon off-setting through the acquisition and surrender of emissions units on the voluntary markets. 2. Please refer to our Basis of Preparation document for full details of scope. Business travel data was 5. Intensity ratios are based on the total of Scope 1, Scope 2 and Scope 3 Fuel- and Energy-Related Activities. collected for the first time in 2020. 6. Revenue for the FY 2020 as included in the Annual Report 2020. 3. The prior year total Employee Commuting emissions were 74,332 (reported) vs. 67,096 (restated). This is a result of increased attention to detail and diligence in the collection of data.

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Waste management Voluntary Tropical Forest Landfill Gas Extraction Intertek produces relatively small amounts of Conservation Project, Brazil and Electricity Generation hazardous and non-hazardous waste compared off-setting projects Project, Turkey to other industries. This includes chemicals, test The project protects tropical rainforest in the Acre samples, paper, plastic and organic waste from our As well as cutting our emissions, we have used region of Brazil from logging and encroaching cattle This project captures and converts waste gas, offices and laboratories. The waste is produced in carbon credits to offset our direct operational ranches, with the objective of generating net positive methane, and uses it to power turbines that feed varying proportions, determined by the industry Scope 1, 2 and 3 GHG emissions, making 2020 climate, community and biodiversity benefits. electricity into Turkey’s grid. our first carbon neutral year. We have chosen or industries served by each site. We operate The project fosters economic opportunities for local credible and verified carbon off-setting projects In addition to reducing GHG emissions the project a number of waste management programmes communities through sustainable farming and the that provide social benefits in communities improves air quality, local groundwater and has across our regions. In the US, this covers 75 sites sale of acai berries and medicinal plants, promotes where we have an impact in addition to generated local and regional employment with to date and a further roll-out is planned to extend environmental stewardship, and provides health carbon abatement. much of the investment spent locally. the programme across an additional 65 sites. The services and educational courses. Combined, these Contribution to UN SDGs: programmes are focused on connecting our sites to Hydropower Project, Pakistan activities help discourage deforestation in the local opportunities for minimising how much waste wider region. we send to landfill and to increase recycling. We are The project is a run-of-river hydropower scheme currently working on improving reporting tools to without any dam, new storage, displacement/ Contribution to UN SDGs: tailor actions. resettlement of human habitation, change in the hydrological regime or any other adverse environmental impact. Contribution to UN SDGs: Case study Asset recycling pilot

During 2020, IT identified an opportunity for a single global asset management disposal process. A pilot Wind Power Project, India was carried out covering a few sites across different This project involves the bundling of 396 jurisdictions. During this pilot 82% of equipment was Wind Turbine Generators sponsored by 201 repurposed, with some of the repurposed equipment individual investors with a total installed capacity going onto COVID-19 front line teams. In addition, the of 236,050MW. The energy produced displaces pilot provided central visibility of disposal practices. fossil fuel generated grid power or, when supply We intend to roll this out further during 2021. is intermittent, power supplied by diesel back-up generator sets. In addition to the Greenhouse Gas emission saving, the project generates employment through direct labour and by enabling economic development in the region.

Contribution to UN SDGs:

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organisation. Any reliance any such third party may 2. Reviewed a selection of management all such material misstatements, frauds, errors or Independent Assurance place on the Report is entirely at its own risk. documentation and reporting tools including instances of non-compliance that may exist. guidance documents. Statement to Intertek Our assurance engagement has been planned and We have only sought evidence to support the 2020 Group plc Management performed in accordance with the International 3. Performed a review of the online data collection performance data. We do not provide conclusions Standard for Assurance Engagements (ISAE) 3000 tool, including testing outputs and selected on any other data from prior years. We have not We have performed a limited assurance engagement Revised, Assurance Engagements Other Than conversions made within the tool. sought any supporting evidence for data beyond on selected performance data presented on pages Audits or Reviews of Historical Financial Information. 4. Reviewed underlying documentation for a the ‘Subject Matter Information’ for which we 35 to 37 of the Intertek Group plc (‘Intertek Group’) The Annual Report and the Sustainability Report sample of site-level data points. are providing assurance. We have not provided Annual Report 2020 (‘the Annual Report’) and pages have been evaluated against the following criteria 5. Reviewed and challenged the validation and assurance over claims made by Intertek that are 40 and 41 of the Intertek Group plc (‘Intertek Group’) (collectively ‘the Criteria’): collation processes undertaken by Intertek Group statements of belief or forward looking in nature. Sustainability Report 2020 (‘the Sustainability management in relation to the Subject Matter Report’). Completeness Conclusion Information. • Whether all material data sources have been Based on the procedures we have performed and Respective responsibilities 6. Reviewed the Report for the appropriate included and that boundary definitions, (outlined the evidence we have obtained, nothing has come Intertek Group management is responsible for the presentation of the Subject Matter Information, in pages 35 and 37 of the Annual Report and to our attention that causes us to believe that the collection and presentation of the information within including the discussion of limitations and 40 and 41 of the Sustainability Report), have Subject Matter Information was not prepared, in all the Annual Report and the Sustainability Report. assumptions relating to the data presented. material respects, in accordance with the Criteria. Intertek Group management is also responsible for been appropriately interpreted and applied. the design, implementation and maintenance of Consistency Limitations of our review Our independence internal controls relevant to the preparation of the • Whether the Intertek Group scope and Our evidence gathering procedures were designed We have implemented measures to comply with Annual Report and the Sustainability Report, so that definitions, (outlined in pages 35–37 of the to obtain a ‘limited level’ of assurance (as set the applicable independence and professional they are free from material misstatement, whether Annual Report and 40–41 of the Sustainability out in ISAE3000 (Revised)) on which to base our competence rules as articulated by the IFAC Code of 1 due to fraud or error. Report), for the Subject Matter Information have conclusions. The extent of evidence gathering Ethics for Professional Accountants and ISQC1 . EY’s been consistently applied to the data. procedures performed is less than that of a independence policies apply to the firm, partners Our responsibility, in accordance with our engagement reasonable assurance engagement (such as a and professional staff. These policies prohibit any Accuracy terms with Intertek Group management, is to carry financial audit) and therefore a lower level of financial interests in our clients that would or might • Whether site and business-level data have out a ‘limited level’ assurance engagement on the assurance is provided. be seen to impair independence. Each year, partners been accurately collated by Intertek Group selected data (‘the Subject Matter Information’) and staff are required to confirm their compliance management at a Global level. Completion of our testing activities has involved outlined in the tables on pages 37 of the Annual with the firm’s policies. Report and 41 of the Sustainability Report: • Whether there is supporting information for the placing reliance on Intertek Group’s controls for data reported by sites and businesses to Intertek managing and reporting sustainability information, Our assurance team has been drawn from our global • Greenhouse gas emissions – scope 1; Group management at a Global level. with the degree of reliance informed by the results of Climate Change and Sustainability Services Practice, • Greenhouse gas emissions – scope 2; and our review of the effectiveness of these controls. We which undertakes engagements similar to this Summary of work performed • Greenhouse gas emissions – Scope 3 have not sought to review systems and controls at with a number of significant UK and international – Fuel and energy related activities The procedures we performed were based on our Intertek Group beyond those used for selected data businesses. – Employee commuting professional judgement and included the steps (defined as the Subject Matter Information above). Ernst & Young LLP – Business travel outlined below: The responsibility for the prevention and detection London • Greenhouse gas emissions – intensity ratio. 1. Interviewed a selection of management to of fraud, error and non-compliance with laws or 01 March 2021 We do not accept or assume any responsibility understand the management of greenhouse regulations rests with Intertek Group management. 1. Parts A and B of the IESBA Code, and the International Standard on for any other purpose or to any other person or gas data within the organisation. Our work should not be relied upon to disclose Quality Control 1 (ISQC1)

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Our global environmental activities 2020 Our environmental mission is to provide a better quality of life today and a more environmentally responsible world tomorrow. As we operate a decentralised business model, China it’s our local teams who look for ways to become more Creating a recycling environmentally efficient and reduce the impact of our culture operations on the environment. Germany No more paper Intertek Hong Kong is promoting recycling at Our Food Services the office all through the business in Bremen has year. We continued our moved away from paper strong partnership with invoices and customer local organisation VCycle. USA Spain reporting to reduce waste. We also extended the Green Team initiatives Raising funds with This involves more than recycling programme to plastic waste The Intertek Green 1,000 reports every day – our client English School Team meets monthly Our long-term partnership and even more invoices. Foundations, where junior South East Asia to plan events such with waste-collection schools are also adopting Pledging to go green as ‘Trash Talks’ where organisation SEUR not the recycling culture with team members join a only increases recycling, The Singapore Products the children. virtual meeting while it also raises funds for group adopted a new they walk through their investment in wheelchairs Green policy, committing South East Asia neighbourhoods collecting and other equipment to being environmentally Employees lead trash and sharing stories. for children. Since 2011, aware, actively support energy savings Australasia One of its proudest we’ve collected 6,799 programmes that reduce Peru UAE Reducing waste across moments was the removal tonnes of caps and our environmental impact The region launched a a continent of the single-use coffee Employee bicycle given families close to Helping customers cut and continually improve Save Energy programme machine in the office in programme €1.24 million. During energy use our environmental in 2020 with various sites Digital documentation is reducing or eliminating the Austin, Texas, saving over Our office in Lima 2020, we’ve shared Our Business Assurance performance as an taking part to support need for printing across 28,000 k-cups per year has implemented nearly €64,000 among business in Abu Dhabi has integral part of business and promote sustainable many operations, including from landfill. the ‘Intertek Safe on 175 beneficiaries. significantly increased strategy and operating energy consumption our Asbestos division and Wheels’ programme, the number of customers procedures. 76 employees within our operations. our labs and offices across providing employees with ISO 50001 Energy pledged their support and Actions taken by staff New Zealand and the Pacific with bicycles and parking Management certification. have started to implement led to energy savings of Islands. In addition, our New spaces at affordable This reflects our initiatives to drive a 1.1 million kWh for 2020 Plymouth operation is using prices, supporting our growing role in helping green office. compared to 2019. biodegradable bin liners to employees’ health and strategic clients achieve reduce the impact of plastic. the environment. their sustainability commitments.

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Material topics On our good-to-great journey we have developed our IT vision and strategy to systematically focus on ••Customer and security and reducing security risks. We proactively product invest in advanced protection capabilities as hackers responsibility are sophisticated and become smarter. Effective ••Working with detection and response capabilities ensure quick customers notification and we have robust processes in place ••Compliance and to minimise any disruption to the business. legislation ••Privacy and Through this programme, we support our operations security and customers, facilitating growth and change with scalable, flexible IT solutions and services, as well as streamlining operations and improving processes and productivity to reduce costs of IT infrastructure and applications. Enterprise At Intertek we have adopted a risk-based security framework, based on international best practice, NIST CyberSecurity Framework. Our framework guides clear policies, standards and supporting guidelines, controls and hiring. We continue Security to innovate, enhancing service delivery and strengthening internal and external customer The importance of ensuring the security of our data relationships to protect customer, employee and Intertek data. and IT systems is paramount, as are the continual There is regular reporting on progress of the actions required to protect against ongoing threats. security programmes to governance and oversight committees by our dedicated Head of Security, Intertek has robust measures in place to protect its who leads a global team. people, processes and data. Awareness training The Intertek CyberSecurity awareness training module was launched to all colleagues globally via our ‘10X Way!’ learning platform. This training course, which is relevant to all employees, whether they collect and process personal data or not, was designed to provide useful information and tips to prevent cyber attacks when using Intertek technology at work or at home. Our training is available in nine languages and has been rolled out across the Group. In 2020 awareness training was completed by 98% of employees (2019: 85%). In 2020, we also made reporting email security issues even easier by introducing a link button on employee email systems. Employees can use this button to 45 make a report directly to our CyberSecurity Hub. Intertek Sustainability Report 2020

Our TSA standards Continued Enterprise Security Data protection IT Security framework IDENTIFY At Intertek, we believe all our people and all our With increasingly connected businesses and large supply chains We develop a clear organisational customers have the right to data privacy. We have it is imperative for businesses to approach Enterprise Security understanding of risks to our systems, people adopted the best practices and standards set out holistically; protecting our business from known threats, and and data, which enables us to prioritise efforts in the General Data Protection Regulation (‘GDPR’) strategically planning for emerging risks. that are consistent with our risk management across all of our markets and operations, and in strategy and business needs. relation to all individuals whose personal data we obtain and use (not just individuals in the EEA). PROTECT Our Group Data Protection Policy is aligned with We put in place appropriate safeguards to IDENTIFY PROTECT the GDPR requirements to set out the minimum ensure delivery of critical services, including data protection standards we apply throughout access control, staff awareness and training, our operations so that we use all personal data and data security. These safeguards support transparently, fairly and securely. our ability to limit or contain the impact of potential events. To ensure implementation, and to remain uncompromising on Quality and Compliance, DETECT our Core Mandatory Controls framework forms We define the appropriate activities for the the mechanism to define, monitor and achieve Our risk-based timely discovery of the occurrence of security consistently high standards. events. We monitor continuously and verify the effectiveness of protective measures including Control and oversight is provided through our security network and physical activities. CyberSecurity Team, Group Legal & Compliance and the Internal Audit team. We have mandatory training framework RESPOND on data privacy for all employees and global data RECOVER DETECT We ensure response planning processes are breach response processes. executed during and after an incident, so that we take appropriate action regarding situations and contain their impact. We also implement improvements, by incorporating lessons learned from current and previous detection/response Zero activities. Number of complaints received from outside parties and substantiated by the organisation* RECOVER RESPOND We undertake appropriate activities to maintain plans for resilience and to restore any capabilities or services that were impaired due Zero to an incident. Our recovery function ensures timely recovery to normal operations to reduce Substantiated complaints concerning breaches the impact from an incident. of customer data policy*

* As reported through our centralised system. 46 Intertek Sustainability Report 2020

Our TSA standards Continued Enterprise Security

Physical assets Case study We place significant emphasis on the prevention, Catching phishers detection, management and response to security In the very earliest days of the COVID-19 pandemic, risks. We recognise that any breach would affect Intertek’s corporate CyberSecurity team was our ability to operate as normal and the integrity quick to identify and respond to a sudden increase of our customers’ information. in illicit phishing emails claiming to be from We have a framework and team in place to trusted authorities including the World Health protect intellectual property, business services, Organization, national health bodies, government personal information and customer data. Our Risk institutions and product vendors. & Compliance team reviews the adoption and While our corporate online protection tools delivery of our Code of Ethics, including completion prevent most such malicious messages from of training on the Code, and monitoring of activity being delivered, the team rapidly issued advice including data privacy in all markets and functions. and guidance asking recipients to consider who Our global CyberSecurity team is trained to might have sent a mystery email, not to click on investigate and contain any personal data security attachments or links, and to forward it to them incident and, together with the Legal & Compliance for analysis. team, ensures any breach is reported within the timeframe required by local law.

Issues may also be raised through our Compliance hotline, via line managers, Legal representatives, Human Resources or the Compliance team. Audits and issues are reviewed, with remedial action being instigated as appropriate, including via the Audit Committee.

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Material topics We are committed to providing stakeholders with accurate and timely updates on our sustainability ••Working with activities and performance and make every effort customers to produce a report that is balanced and transparent ••Societal impact ••Governance and meets their needs. Reporting on our sustainability performance indicators in a consistent and accurate manner is essential for transparent reporting. We follow our own framework of the ten Total Sustainability Assurance Corporate Certification standards as well as GRI and SASB as a basis of preparation for the majority of our sustainability performance indicators.

We recognise that corporate disclosure and Communications transparency are key catalysts for driving change. We are committed to reporting against voluntary external indices to increase transparency, motivate stakeholders and drive change within our business & Disclosures and the value chain. We are working hard to improve our CDP Disclosures, having maintained our Engagement with our shareholders and wider C Score in 2020. Completing external assessments demonstrates our commitment to continuous stakeholder groups plays a key role throughout improvement and helps us to prioritise focus areas our global business, including at Board level. It helps for the next year. External assurance us to understand the impact of our decisions on In 2018 we appointed Ernst & Young to provide stakeholders, and provides insight into their needs independent assurance of our environmental performance. Their Assurance Statement for 2020 and concerns. It underpins good governance, describes the work undertaken and their conclusion which is embedded throughout our business. for the reporting period (see page 43).

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Communications & Disclosures This three-day event, attended by more than 150 participants from 15 countries across five continents, reflected the passion of our Details of how we have engaged with, and taken into Internal communications people to carry on communicating live in the consideration, the interests of those stakeholders As part of the HR network’s efforts to continually face of the pandemic’s impact on the ability who are material to the long-term success of our improve our development and retention of the to travel. business can be found on page 13 as part of our best people, our focus is to share the mission, Business model and in the section 172 statement on values and success of the Group with our people Thanks to the energy of our people and their desire to continue meeting colleagues from pages 64 to 70 in the 2020 Annual Report. and develop a supportive and inspiring workplace Case study culture worldwide. An important part of this is across the world, the event started each Communication guidance and policies A virtual conference regular and consistent engagement with our people day at 5:00 US Eastern time and ended at Our Corporate Communications & Public Relations uniting global time zones through employee communications. The Intertek 22:00 Hong Kong time, enabling everybody team look after the Group’s communications to Group intranet is an internal communication hub. Intertek’s Global Softlines and Hardlines to actively participate, no matter where they the Group’s corporate stakeholders. This includes It enables colleagues to stay connected and to business lines recorded another milestone were based. communications to the Group’s investors, the share knowledge across the Group in more than late in a year of firsts, when it held London Stock Exchange, financial media and the 100 countries. its inaugural Annual Conference in a financial analysts that track and analyse the virtual environment. Group’s financial performance. Internally, the team helps to support local country marketing teams with corporate data and advice where corporate communications to local stakeholders, such as financial media or government partners, are needed.

The media plays an important role in defining the Case study way Intertek is perceived by its stakeholders. Our Regular communications media policy sets out policies with respect to the public release of information by employees to the and recognition media, and how these requests are managed. During a time of crisis, clear communication colleagues who have delivered an and leadership from the top is vital to exceptional performance. During the maintain energy levels, positivity and first half of the year, he also issued engagement. Recognising this, during a weekly personal bulletin on our the pandemic, Intertek CEO André Lacroix approach to the pandemic, providing further stepped up the regularity of his encouragement, policy updates, communications with Intertek teams news from all regions and continuous across the world. recognition for Intertek’s heroes.

Unable to travel, he has remained These were exceptionally well received, closely connected through virtual providing everybody with a constant communications, including townhalls reminder of just what it takes to make featuring news from across the Group, the world an ever-better, safer and more progress reports and recognition for sustainable place for all.

49 Intertek Sustainability Report 2020

Our TSA standards Continued Case study Intertek India ‘InWakens’ to unleash the full power of its IndiaNess Innovation and unstoppable energy. Winning through adversity, and sales excellence. Diversity and inclusion, agility, pace, technology expertise, and a pioneering spirit. Pride and humility. And, above all, limitless ambition. These are just some of the incredible qualities that have seen India rise from its roots in ancient civilisations to become an emerging global superpower with the potential to become the world’s largest economy.

And they are the same Intertek ‘properties’ that have given our business in India the energy required to grow from just 25 employees in 1993, when the Indian economy was undergoing a paradigm shift, to the operation we have today. More than 2,200 Case study employees work from 21 laboratories and 20 Precious prizes reward creativity offices across the immensity of the entire country, driving us forward to be market leader in many of Courseware, created by Intertek Alchemy, has Today, in fact, more than 1.5 million workers at our business lines. won Platinum and Gold MarCom Awards, in one of over 15,000 locations use Intertek Alchemy’s the world’s largest and most prestigious creative So it was exciting in January 2020 for 170 integrated programmes to reduce workplace competitions in the world. Indian colleagues to attend the first inspirational injuries and improve operational efficiency. ‘InWaken’ event, held in New Delhi, to awaken more Recognising outstanding creativity while than ever their ‘IndiaNess’ and unleash their full communicating important information, the award potential. The event’s overriding message was reflects the immense quality of Intertek Alchemy’s that Intertek’s success in the country has only just Courseware content. begun and there is plenty of fuel in the tank for This content is used across the world to ensure further growth. manufacturing workforces everywhere have the right knowledge and confidence not only to perform their jobs correctly and efficiently but also to build a strong culture of safety and quality.

50 At Intertek, we are a global force for good. Build Back Ever Better is simply living up to our Intertek ‘Ever Better’ culture for the greater good of society.”

André Lacroix Chief Executive Officer

Intertek Group plc 33 Cavendish Square, London, W1G 0PS, United Kingdom

Tel +44 20 7396 3400 [email protected] intertek.com