Communication on Progress (CoP) — UN Global Compact

Staycold Export Ltd.

From: May 2022 To: May 2023

Statement of continued support by Edward Jonas, Managing Director

To our stakeholders:

I am pleased to affirm that Staycold Export Ltd supports the Ten Principles of the United Nations Global Compact under the pillars of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe how we continue to integrate these principles into our business operations, our culture and our strategy. We are also committed to communicating this information with our stakeholders.

Yours faithfully,

Edward Jonas

Managing Director

26th May 2022

1. Description of Actions

Human Rights

Assessment, Policy and Goals

Staycold Export Ltd. requires team members, clients, suppliers, and shareholders to adhere to the principles of the Universal Declaration of Human Rights. Suppliers are expected to conduct themselves in a manner that is fair and ethical, and in compliance with the Company's core principles of sustainability. These principles apply to both suppliers' activities and, where appropriate, to their downstream supply chain.

Implementation

Company policy states that there will be no association with companies, persons or organisations that violate the principles of the Universal Declaration of Human Rights. When using, handling, transporting, or disposing of hazardous materials or electronic equipment, suppliers must understand their health, safety, and sustainability obligations. They must also confirm that they have appropriate management processes and controls in place, and where applicable, maintain responsibility for any liability resulting from their actions. The Company ensures compliance with legislation with respect to discriminatory working relations and promotes diversity in the workplace. Employees must be treated with respect and dignity, and neither physical nor verbal abuse are tolerated. Harassment and threats of any kind, or other forms of intimidation are prohibited. The Company engages external Human Resource Consultants to stay abreast of legislation and best practices regarding human rights and labour matters.

Measurement of Outcomes

Supplier compliance is monitored through in-person visits. These visits have been on hold during the during the COVID-19 pandemic but our plan is to resume as soon as it is safe to do so. We have also in the last year carried out the following: -

• Updated and re-issued our Health and Safety Policy (Mar-22)
• Updated and re-issued our Modern Slavery Act statement (Mar-22)
• Conducted the annual Eco-Vadis questionnaire which resulted in the company being awarded a Platinum medal in recognition of sustainability achievement (Apr-22)
• As a business we have registered with Sedex and are currently in the process of undertaking the Self-Assessment Questionnaire (May-22)

Labour

Assessment, Policy and Goals

Suppliers are expected to comply with local, national, and international laws. These include, but are not limited to, all environmental, health and safety, and labour laws. They are also expected to support the International Labour Organisation core conventions on labour standards. Suppliers must not use forced, bonded or compulsory labour, and employees must be free to leave their employment after reasonable notice. Employees must have a healthy and safe working environment in accordance with international standards and laws, ensuring adequate facilities, training, and access to safety information. Employees must not be required to lodge deposits, money or papers with their employer. Respect is given to freedom of association in line with local laws.

Implementation

The Company ensures that no child labour is used in the supply chain, and employees must be the legal minimum age for employment. The employee handbook outlines equal opportunities and bullying and harassment policies which includes clear standards of conduct for a healthy, safe, and equitable work environment. Suppliers should not discriminate in hiring, compensation, access to training, promotion, and termination of employment or retirement. Where applicable, suppliers should give consideration to flexible working conditions to promote work/life balance, the promotion of training and personal development of team members. Our employee handbook sets out the key procedures, rules, and policies designed to ensure a safe and supportive environment for all. The Company engages external Human Resource Consultants to stay abreast of legislation and best practices regarding labour matters.

Measurement of Outcomes

Supplier compliance is monitored through in-person visits. These plant visits have been on hold during the during the COVID-19 pandemic but our plan is to resume as soon as it is safe to do so. We have also in the last year carried out the following: -

• Employee turnover and absenteeism are monitored and continue to be low.
• Updated and re-issued our External Suppliers Policy (Mar-22)
• Re-issued our Employee Handbook to all existing and new employees (Apr-22)
• Started implementing process of conducting supplier corporate social responsibility audits to have completed by end of 2022

Environment

Assessment, Policy and Goals

Staycold's environmental goals are centred on the key environmental impacts of the organization including office facilities, operations, and procurement. The goals are specifically focused on the reduction of carbon dioxide emissions of their products during their lifetime in service. The environmental policy sets specific actions that must be taken to achieve sustainability, and the policy is updated on a yearly basis in collaboration with stakeholders. The Company also ensures that environmental stewardship is integrated into the culture of the organization by incorporating it into business decision-making processes.

Implementation

All business units are responsible for implementing the environmental policy in their respective locations. They must comply with all relevant regulatory requirements; continually improve and monitor environmental performance; improve and reduce environmental impacts; incorporate environmental factors into business decisions; and increase employee awareness and training. Areas covered in the environmental and sustainable procurement policy include:

• Protecting biodiversity
• CO₂, methane and other gases, as well as other relevant factors impacting climate change
• Environmental impacts such as noise, water and ground pollution
• Management, operational and technical controls to minimise the release of harmful emissions into the environment

Staycold's environmental policy is reviewed regularly with staff on a quarterly basis to ensure that environmental goals remain a focus and are achieved. The Company also works with suppliers, contractors, and subcontractors to improve environmental performance. The company's new office and warehouse is equipped with efficient heating systems listed on the "UK Energy Technology List," a scheme set up by the Carbon Trust to showcase the most efficient technologies. Office lighting is 100% LED and controlled by motion sensors. The ventilation system also incorporates a heat recovery system.

Measurement of Outcomes

Our environmental achievements this year include: -

• The new European Energy Labelling Scheme has been finalised this year, and the Company is running a development project with a leading global customer to further reduce energy consumption in the products that they purchase.
• The first EV charging station and three air source heat pumps are now in full operation.
• Updated and re-issued our Environmental Policy (Mar-22)
• Introduced scorecard of environmental key performance indicators which is reviewed at the monthly management meeting (Apr-22)
• Adopted a process of Science Based Targets with the target of achieving net zero by 2030
• Company moved to 100% renewable energy supply to reduce GHF emissions.
• Re-activated end-of-life recycling (postponed due to UK COVID-19 restrictions) and achieved two record quarters of kg recycled.
• Energy efficiency improvements have been made for certain products, and several new models have been introduced this year that use substantially less energy than competitor models in the market.

Anti-Corruption

Assessment, Policy and Goals

Staycold does not tolerate, permit or engage in bribery or unethical behaviour across any business units globally. The Company will only conduct business with those who comply with the highest standards of ethical behaviour in line with the core principles. The conduct of individual employees is expected to reflect these standards, and specific codes of conduct are outlined in the employee handbook.

Implementation

Employees must act with integrity and expect the same from those with whom they interact. A whistle blowing policy is in force to enable employees to raise issues in the event a problem has gone unobserved. Employees are required to read and sign the employee handbook that outlines the codes of conduct for ethical behaviour. The employee handbook is kept up-to-date with current needs and circumstances and any changes require all employees to be notified and provided with updated copies.

Measurement of Outcomes

Our Anti-Corruption achievements this year include: -

• Updated and re-issued our Code of Conduct (Mar-22)
• Re-issued our Employee Handbook to all existing and new employees (Apr-22)
• Updated and re-issued our External Suppliers Policy (Mar-22)