Modern Slavery Statement FY20 Downer Group Modern Slavery Statement FY20 Chief Executive Officer Introduction Downer is committed to operating However, Downer has designed and implemented a risk-based approach and is committed to continuously improving our processes. responsibly and establishing and adhering This includes engaging with our direct suppliers to educate, assess to high ethical and social standards. and encourage improvement in their own capacity to manage modern slavery risks within their broader supply chains. We reject any activities which may cause We will continue to collaborate with our internal and external or contribute to modern slavery, including stakeholders to address our own modern slavery risks and continue forced or bonded labour, child labour, to improve our processes. This statement was approved by the Board of Downer EDI Limited human trafficking, slavery, servitude, forced on 10 February, 2021. marriage or deceptive recruiting for labour or services. Downer welcomes the opportunity to release this, our first Modern Slavery Statement, which outlines our approach to address and minimise the risk of modern slavery in our business operations and supply chains. Downer’s Standards of Business Conduct, which is supported by extensive policies, procedures and processes, has been put in place to help minimise this risk. This is further underpinned Grant Fenn by a robust governance process and Downer’s Business Downer Group Chief Executive Officer Integrity policy. Ensuring that modern slavery is not taking place in Downer’s workforce, which includes our supply chain beyond our direct suppliers, is challenging given the diversity of our service offerings and locations. 2 Section 1: Mandatory reporting criterion This Modern Slavery Statement covers the activities of Downer EDI Limited ABN 97 003 872 848 and its controlled entities, as informed by the Commonwealth Modern Slavery Act 2018, for the period 1 July 2019 to 30 June 2020 (FY20). A complete list of the controlled entities can be found in Downer’s latest Annual Report, which is available on our website www.downergroup.com. To meet our seven mandatory reporting criteria, our statement is structured across eight sections. Australian Modern Slavery Act mandatory Reference in reporting criterion this statement Identify the reporting entity Section 1 1. Mandatory reporting criterion Page 3 Describe the reporting entity’s structure, operations and supply chains Section 2 About Downer, our structure, operations 2. and supply chain Pages 4-17 Describe the risks of modern slavery practices in the operations and supply Section 3 3. chains of the reporting entity and any entities it owns or controls Risk assessment Pages 18-21 Describe the actions taken by the reporting entity and any entities that the Section 4 4. reporting entity owns or controls to assess and address risks, including due Risk mitigation and approach to deal diligence and remediation processes with risk Pages 22-25 Describe how the reporting entity assesses the effectiveness of such actions Section 5 5. Assessment of effectivenessPage 26 Describe the process of consultation with any entities the reporting entity owns Section 6 6. or controls; and, for a reporting entity covered by a joint statement, the entity Consultation Pages 27-29 giving the statement Section 7 Training and capacity building Page 30 Include any other information that the reporting entity, or the entity giving the Section 8 7. statement, considers relevant Looking forward Page 31 Downer Group 3 Modern Slavery Statement FY20 Section 2: About Downer, our structure, operations and supply chain At Downer, our customers are at the heart of everything we do. Our Purpose is to create and sustain the modern environment by building trusted relationships with our customers. Our Promise is to work closely with our customers to help them succeed, using world-leading insights and solutions. Downer designs, builds and sustains assets, infrastructure and facilities and we are the leading provider of integrated services in Australia and New Zealand. With a history dating back over 150 years, Downer is listed on the Australian Securities Exchange and New Zealand Stock Exchange as Downer EDI Limited (DOW). Downer supports our customers through the full life of their assets – from initial feasibility and design through to production and operations and eventual decommissioning. We build strong relationships of trust with our customers, truly understanding and predicting their needs and bringing them world-leading insights and solutions. We aim to employ the best people and bring thought leadership to each stage of the asset lifecycle as we support our customers to plan, create and sustain Downer employs more than 52,000 people across more than 300 sites 52,000 300 primarily in Australia and New Zealand but also in the Asia-Pacific region, South America and Africa. Our business is founded on four Pillars: Thought Safety Delivery Relationships leadership Zero Harm is We build trust by We collaborate We remain at the embedded in delivering on our to build and forefront of our Downer’s culture promises with sustain enduring industry by employing and is fundamental excellence while relationships the best people and to the company’s focusing on safety, based on trust having the courage future success value for money and integrity to challenge the and eiciency status quo 4 Downer Group Modern Slavery Statement FY20 Downer Group Modern Slavery Statement FY20 We rely on our suppliers and subcontractors to help us deliver outstanding services for our customers and maintain our reputation as an industry leader. We expect our suppliers and contractors to comply with our standards and expectations on modern slavery. In the 12 months ending 30 June 2020, Downer spent $8 billion with more than 30,000 suppliers and subcontractors across our operations. Percentage of spend by supplier category Subcontractors 40.17% Downer’s supply chain is extensive and Consumables 10.31% varies depending on which lifecycle area we Facilities 8.24% are supporting. Raw materials 7.99% Professional services 4.83% For example, our Road Services Business Unit Fleet & fuels 4.25% purchases raw materials to manufacture and Rail 3.58% supply bituminous products, while other areas of Labour hire & recruitment services 3.41% the company, such as our Telecommunications HME 3.36% business, obtains finished goods either from ICT 3.36% purchase or customer free issue, then installs for Equipment 3.00% Logistics 2.75% customers either in-house or through managed Food & beverage 2.33% third party subcontractors. Travel 0.75% A breakdown of Downer’s FY20 supply chain Other 0.55% spend appears on the left. An overview of Tyres 0.55% Laundry 0.50% Downer’s operating structure is below and a full Building products 0.07% listing of Downer’s solutions are on Pages 6-17. Downer Group Transport UtilitiesFacilitiesAsset Services Core Road Services Telecommunications Government Oil & Gas Rollingstock Services Water Health & Education Power Generation Projects Power & Gas Defence Industrial Building 5 Downer Group Modern Slavery Statement FY20 Transport Downer delivers multi-disciplined solutions to customers in the transport sector. Road services We have formed a number of strategic Downer’s Reconomy business innovates to Downer manages and maintains road networks partnerships to meet the changing needs of create best-practice solutions that maximise the across Australia and New Zealand and our customers and markets. We have long value of our customers’ assets and support the manufactures and supplies products and term asset stewardship and road management sustainability of their communities. services to create safe, efficient and reliable contracts through DM Roads in Australia, and a We deliver solutions in landfill avoidance that journeys. We offer one of the largest number of alliances in New Zealand such as the recycle and repurpose domestic, commercial, non-government owned road services Infrastructure Alliance in Hamilton, Whanganui road and construction waste materials into quality businesses in Australia and New Zealand. Alliance, Tararua Alliance, Waikato District Alliance construction and organic products. We also and the Milford Road Alliance. operate in landfill management. These efforts We create and deliver solutions to our customers’ help drive the circular economy through practical challenges through strategic asset management applications, while reducing the reliance upon and a leading portfolio of products and services. increasingly scarce virgin materials. We are a leading manufacturer and supplier Reconomy offers a detritus processing solution of bitumen-based products and an innovator that turns a stream of mixed waste into valuable in the sustainable asphalt industry and circular products and materials. We process, separate and economy, using recycled products and clean waste streams such as street sweepings environmentally sustainable methods to We work for all of Australia’s State road authorities, the New Zealand Transport into individual components that can be readily produce asphalt. Agency and a large number of local reused, and Downer has a use for those materials, Our road network solutions are underpinned government councils and authorities including asphalt for road construction. by industry-leading research, development and in both countries. Our pavement solutions use soft plastics, expired innovation, unique asset management tools and Our customers include