ESG Report 2024 - Customs Support Group

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CUSTOMS SUPPORT GROUP

SUSTAINABILITY REPORT

A document created by Nicolas Collart, International Customs, Compliance and Sustainability Director.

Region: Period: Group 2023

WELCOME TO THE SUSTAINABILITY REPORT 2023

1.1

4.1

2.1

2.2

CUSTOMS SUPPORT GROUP

1.1 | ESG Annual Report

OUR COMMITMENT TO SUSTAINABILITY

OUR VISION 01.

Our transition from traditional paper-based customs declarations to digital solutions exemplifies our dedication to reducing environmental impact. By embracing digital customs processes, we minimise paper waste, streamline international trade, and lower greenhouse gas emissions associated with logistical inefficiencies.

Our values (accountability, quality, integrity, and teamwork) form the basis of our sustainability initiatives We hold ourselves accountable for our environmental footprint and are dedicated to improving Environment, Social, and Governance (ESG) data quality across all operations. Integrity drives our ethical stance, guiding decisions that align with our principles of possible and at the same time minimising Teamwork fosters collaboration both at our collective efforts drive meaningful OUR COMMITMENT 02.

WE MAKE CUSTOMS EASY FOR GLOBAL TRADE

As we reflect on 2023, it marks a transformative year in our journey towards sustainability and growth Throughout the year, CSG expanded its global footprint to 12 countries, adding numerous new locations. This growth underscores our dedication to facilitating global trade, while consistently upholding our commitment to sustainability and ethical practices.

ACHIEVEMENTS & INTEGRATION IN 2023

This expansion and the resulting rise in reported numbers highlight the comprehensive nature of our sustainability efforts across our growing network. Our commitment to continuous improvement in environmental and social sustainability ensures that our growth aligns with positive impact and responsible practices.

In 2023, an achievement was the expansion of our Environmental reporting framework to include new locations, enhancing both the scope and rigor of our reporting practices. As part of our integration programme, all acquisitions and new team members are now standardly onboarded within our Sustainability reporting, reinforcing our commitment to increasing engagement on sustainability within the company.

We also set the stage for the implementation of our sustainability policy, for further development of our ESG-target plan, the launch of a Green Ambassador programme within the company and preparation for compliance with the Corporate Sustainability Reporting Directive (CSRD). These initiatives align our operational goals with the UN Sustainable Development Goals, ensuring that as we grow, we do so in a manner that benefits both people and the planet.

1.3 | ESG Annual Report

OUR ALIGNMENT WITH THE UN SDG

CSG is committed to digital customs solutions, significantly reducing environmental and societal impacts With our 2024 sustainability plan, which is aligned with the United Nations’ Sustainable Development Goals (SDGs), we will continue to strive for excellence in sustainability and compliance.

ENVIRONMENTAL IMPACT

Digitaltransformation:Transitioningtodigitalcustomsdeclarationsstreamlinesinternational trade,reducesdelays,andfuelconsumption,andlowersgreenhousegasemissions Paperandwastereduction:Committedtodecreasingpaperuse,promotingrecycling,and eliminatingpapercupsandplasticbottlesinouroffices.

Travelfootprintreduction:Encouragingemployeestomakeenvironmentallyconscioustravel choicestoreducethecompany’soverallcarbonfootprint.

SOCIAL RESPONSIBILITY

Humanitarianefforts:Processingcustomsdeclarationsfreeofchargeforhumanitarianaidand NGOs.

Diversityandinclusion:Promotingdiversitywithinourworkforceandfosteringacultureof sustainabilitythroughtrainingprogrammesandemployeeengagement

Employeewell-being:Monitoringandenhancingemployeesatisfaction,promotingmental health,andcreatingasupportiveworkenvironment.

ETHICAL BUSINESS PRACTICES

Integrityandtransparency:ImplementingourCodeofConductandEthicstoensurehonest andtransparentbusinessoperations.

Healthandsafety:ProvidingasafeworkingenvironmentasoutlinedinourHealthandSafety policy

Whistleblowingservice:Ensuringethicalpracticesareupheldbyourwhistleblowingservicefor reportingmisconduct.

Datasecurity:Ensuringthedatasecurityofstakeholdersandemployeestoprotect againstpotentialharmfromillegalandunsafetradeactivities.

CUSTOMS SUPPORT GROUP

CARBON MANAGEMENT

CARBON MANAGEMENT

While obtaining data was our main challenge in 2022, 2023 proved to show some more complexities specifically with respect to the fact that we added a significant number of locations. The results in exponential increases in most of Environmental KPIs. The figures should in principle and compared to last year better reflect the reality of our Environmental footprint.

That being said, our measurement of Carbon Emissions does provide us with a clear insight into the areas of business-related environmental impact such as carbon footprint Here are some of our top-line initiatives so far:

TRANSPORT

A travel policy has been implemented within the organisation promoting eco-cautious choices of travelling; E-bike plans have been made available for our employees; Electrical cars are made available and financially encouraged within our leasing company car pools;

Depending on the country and function, employees have the option to work from home when conducive.

ENERGY

Where possible and in accordance with labour standards, heating temperatures of the offices have been lowered; Switching to LED and other energy-efficient light bulbs; Increasing the use of electricity from renewable sources (vs non-renewable)

WASTE

Promoting our digital way of working impacts our paper consumption and reduces paper waste; We recycle waste in accordance with country standards.

ENVIRONMENTAL COMPLIANCE

2.2.1. POLICY, CERTIFICATION & INITIATIVES

2022 2023

Sites with ISO 14001 certificates

Sites with environmental policies

Sites compliant with the local environmental regulations

Sites near an area of high biodiversity value outside protected areas

Sites that had significant direct or indirect impacts on biodiversity

Sites with a presence of environmental incidents within the last year

In all our locations we comply with environmental requirements, and we ensure that each entity is continuously considering how to maintain and predict compliance requirements within local environmental laws and regulations

At this stage, one of our group companies has implemented an environmental policy, while another has achieved ISO 14001 certification for environmental management. Additionally, four of our companies are ISO 9001 certified for quality management Notably, Customs Support Belgium Holding has been awarded the 'FORWARD Goals for Sustainable Development' label by FORWARD Belgium

There were no environmental incidents at any of our locations.

RESOURCE EFFICIENCY

2.3.1. RESOURCE INITIATIVES

Sites with paper and packaging reduction initiatives

Sites with water-efficiency initiatives

Sites with waste reduction initiatives Sites with energy-efficiency initiatives

2022 2023

So far, several of our locations have introduced initiatives mainly tackling paper reduction This goes hand in hand with our company strategy to drive efficiency by the digitalisation of the process and with this reduce our paper consumption

Additionally, initiatives have been taken to improve waste reduction by installing water diffusers and removing plastic bottles from our offices

Other initiatives regarding waste and energy have been described in the commentary section of our carbon management In 2024, Customs Support will continue its waste reduction efforts.

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000

2,000 0 4,000 6,000 8,000 10,000 12,000 14,000 13,277 4,250

Dieselusedincompany ownedvehicles

Biodieselusedonallcompany sites,foralluses

Dieselusedonallcompanysites foranyuseexceptvehicles

Heatingoilusedonallcompany sites,foralluses

PurchasedElectricity

Gasoline/petrolusedincompany ownedvehicles

Bioethanolusedonallcompany sites,foralluses

FuelOilusedonallcompanysites, foranyuseexceptvehicles

NaturalGasusedonallcompany sites,foralluses

PurchasedHeat

LPGusedincompanyowned vehicles

Biogasusedonallcompanysites foralluses

Gas(LPG)usedonallcompany sites,foralluses

Petrolusedonallcompanysites foranyuseexceptvehicles

PurchasedSteam

Aviationturbinefuelusedonall companysites,foralluses

Coalusedonallcompanysites for alluses

Gasoilusedonallcompanysites foralluses

PurchasedCooling

Totalenergyconsumptionper revenue

2.3.4. TOTAL ENERGY CONSUMPTION BREAKDOWN

CUSTOMS SUPPORT GROUP

3.1.1. EMPLOYMENT BY GENDER (OVERALL)

3.1.2. MANAGEMENT BY GENDER

3.1.3. BOARD OF DIRECTORS BY GENDER

3.1.4. GENDER PAY GAP

OVERVIEW:

On average, more than one in three manager functions are held by women.

At a group level, one woman is part of the board.

STATEMENT:

CSG is committed to having equal pay between women and men for similar functions

ACTION:

At this stage, just two of our group companies have a diversity policy. However, in 2024 a group Code of Conduct will be implemented including CSG’s position on diversity

ETHICAL BEHAVIOUR

3.2.1. STRUCTURE, POLICY AND EVENTS

Sites that have a policy in place to monitor compliance with the UNGC principles for Multinational Enterprises

Sites with an approved anti-corruption procedure

Sites with an anti-corruption procedure or policy for suppliers

Sites with a Code of Ethics

Sites investigated for anti-corruption within the last year

Sites involved in UN Global Compact violations

Sites involved in manufacturing or selling of controversial weapons

Sites exposed to operations at significant risk of incidents of forced or compulsory labour in terms of geographic areas

3.2.2. HEALTH AND SAFETY

Sites with a health and safety policy

Sites with work-related accidents Sites

ETHICAL BEHAVIOUR

Our Ethical behaviour is essential to our business We pride ourselves in being the biggest neutral customs and trade solutions provider in Europe At the same time, we do not serve any customers dealing with weapons or tobacco.

Less than half of our companies have introduced anti-corruption policies and a Code of Ethics and hence these areas have been identified as some of the key priorities for 2023.

With the introduction of our group Code of Conduct in 2024 and group Anti-Corruption Policy, we will ensure that we have a stronger framework for both our people and business in the future

In the previous year, the Management Team hasn’t been informed of any anti-corruption investigations.

Organisations cannot be sustainable without protecting the safety, and health of the employees. Unfortunately, in 2023, we had three work-related accidents across the group (> 110 locations and >1600 people)

The group aims to achieve zero work-related accidents by ensuring that all our locations have a health and safety policy, and people are properly informed about the safety measures.

WORKFORCE ENGAGEMENT

3.3.1. ENGAGEMENT

ACTIVITES

Sites compliant with local labour regulations

Employees engaging in training /professional development

Employees covered by collective bargaining agreements

OVERVIEW:

In 2023 all our company locations were compliant with local labour regulations.

STATEMENT:

CSG is providing several trainings to the employees by different initiatives already in place (technical trainings given both in-house and/or outhouse, onboarding trainings, etc). So far these initiatives are organised locally.

ACTION:

The company is working on providing a standard set of trainings coming from the group to increase the sense of community and knowledge of our people

To increase engagement with sustainability in the company, the Green Ambassador programme has been launched. In 2024, the first initiatives will be discussed during the first meetings.

OUR GREEN AMBASSADOR PROGRAMME

THE KEY INITIATIVE

In addition to the choices we make in our business operations, we also support projects and events impacting society. We enable our employees with hands-on support with their activities for sustainable innovations and charity. In order to make an impact we strongly believe in the principle of internal collaboration and external partnership and therefore work together towards a more sustainable business.

GOALS

Engage employees:

Foster a culture of sustainability by encouraging employees to participate in sustainability initiatives and become advocates for environmental responsibility.

Innovate practices:

Identify and implement innovative sustainability practices across our operations, from reducing paper use to promoting recycling.

Drive change:

Inspire positive change and continuous improvement in our sustainability efforts through the collective efforts of our Green Ambassadors.

The Green Ambassador programme is a key initiative in our commitment to sustainability, empowering employees to lead and promote sustainable practices within CSG

In 2024, we will further develop the programme and start the first meetings and initiatives of our green ambassadors from different countries.

HIGHLIGHTS

Leadership opportunities:

Green Ambassadors play a crucial role in shaping the company's sustainability future by leading projects and initiatives that promote sustainable practices.

Collaborative environment:

Ambassadors work together with ESG contributors to develop and monitor sustainability initiatives, fostering a community of like-minded colleagues.

Personal growth:

Participants gain valuable experience in sustainability practices, project management, and leadership, enhancing their professional and personal development.

Community engagement:

Lead community-based sustainability projects such as local clean-up drives, tree planting events or a step challenge within the company.

CUSTOMS SUPPORT GROUP

ENVIRONMENTAL COMPLIANCE

4.1.1. ACCOUNTABILITY TO CSR INVESTMENTS

8%

So far, we do not have a formalised group approach to Philanthropy and/or Community Investment instead local initiatives have been taken to provide community support OVERVIEW:

At the group level, one of our executives within the board is responsible and accountable for CSR.

For 2024, we are looking to partner with a

ROBUST GOVERNANCE

4.2.1. POLICY

7 Board of Directors members

OVERVIEW:

Our group Compliance organisation monitors compliance with policies and procedures. An Internal audit programme has been rolled out in 2023.

There is a groupwide whistleblowing programme in place as part of the group compliance programme

Additionally, a company sustainability policy has been implemented

A corporate governance policy for the group is still in the process of being rolled out and implemented within all companies. ACTION:

SUPPLY CHAIN

4.3.1. PROCEDURE

As CSG is a service company, our focus with respect to supply chain resilience is to have procedures in place to respond and pre-empt operational disruption which can primarily occur in case of failing IT systems In such cases, emergency procedures are followed as per the drafted procedures.

CUSTOMS SUPPORT GROUP

LOOKING AHEAD

2023 has been a transformative year for CSG in terms of growth and sustainability. Our company expansion has led to a rise in reported numbers, but it has also laid the groundwork for our new sustainability efforts by enhancing our ESG reporting and setting the stage for new initiatives.

2024 has already begun with an increased commitment to sustainability within our company

We have finalised the CSG sustainability policy.

We raised employee awareness with dedicated sustainability newsletters.

We updated our ESG target plan to align with the UN SDGs

Our Green Ambassador programme brings more hands on deck to drive our sustainability initiatives

ogresses, we will continue our compliance, further improving rting With the support of our sadors, we aim to implement bility ideas and initiatives and it organisation to partner with.

ard to achieving our next goals. Together, we will build a ble future, ensuring that our ts both people and the planet.

CSRD COMPLIANCE

As part of our ongoing commitment to sustainability and in preparation for the EU’s Corporate Sustainability Reporting Directive (CSRD), Customs Support Group has started enhancing our ESG reporting.

By FY2025, we will report in line with the CSRD directive and the European Sustainability Reporting Standards (ESRS), ensuring that our sustainability information is disclosed accurately and transparently

STAKEHOLDER ENGAGEMENT AND MATERIAL TOPICS

We have conducted stakeholder engagement to gain insight into the material topics that are most important to our business and our stakeholders. This engagement has provided us with valuable feedback, improving our understanding of the key ESG topics that we need to address

These insights will also help us further shape our sustainability strategy and reporting, ensuring we focus on areas that have the most significant impact

To support these efforts, we have established an internal CSRD task force comprising representatives from compliance, finance and sustainability teams. This task force is dedicated to identifying and closing data gaps and developing governance structures.

ADVANCING OUR CSRD EFFORTS IN 2024

As we move forward into 2024, our focus will be on finalising the double materiality assessment This assessment will help us prioritise the sustainability efforts that are most relevant to our business and stakeholders, considering both their impact on the company and the company’s impact on the environment and society.

We will assess our main impacts, risks and opportunities according to the CSRD guidelines. These will help us improve our operations and our relationships with customers, business partners and other stakeholders

Eventually, we will take the steps towards applying the ESRS standards as part of our reporting process. We recognize that there are gaps to be filled and we are committed to improving these.

Published By: Customs Support Group

Author: Nicolas Collart, International Customs, Compliance and Sustainability Director. THANK YOU!

Publish Date: 10.04.2023

ESG2023-7322-Final

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