AUB Group Limited Annual Report 2023

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT YEAR ENDED 30 JUNE 2023

4. ENVIRONMENT Environmental sustainability is integral to a strong, secure future. AUB Group is committed to being a responsible and sustainable organisation. 4.1 RISKS AND OPPORTUNITIES Climate change presents a number of risks and opportunities for all sectors, including the insurance industry. These include direct damage to assets or property from climate related events, pricing and demand changes flowing from the transition to a low-carbon economy, and business disruption from a changing regulatory environment. Increasing frequency and severity of climate-related events pose increased risk to some customers and as these events become more regular, the cost of insurance may become prohibitive and certain risks may become uninsurable. This has direct impact on AUB Group Limited as a broking and underwriting group. AUB Group believes that we must take climate risks seriously to ensure the viability of our business as well as identify opportunities to change and grow in a changing world. We acknowledge the science and are supportive of global efforts to decarbonize the economy. We are committed to net zero emissions by 2050 for wholly owned Group entities. We are working to align practices with the goals set in the Paris Agreement, including to limit global warming to well below 1.5 degrees. We are also committed to further developing our climate risk reporting, with a view to aligning our reporting practices to the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). We have made an initial assessment of our risks and opportunities against the TCFD, and will comply with a globally accepted ESG reporting standard by FY25. We are committed to reducing the environmental impact of our direct operations, including reduced emissions and carbon offsetting, reducing energy and water/waste consumption. Our specific climate goals are set out in our ESG scorecard. AUB Group’s environmental objectives and how we are achieving them are summarised below.

OUR OBJECTIVE

HOW WE ACHIEVE IT

Reduce water and energy consumption

– Reducing and consolidating office space. – 4/1 work from home program for Sydney-based agency and head office staff, where employees work from home 4 days a week.

– Measuring Scope 1, 2 and 3 emissions across the AUB Group. – Monitoring and reducing water consumption year-on-year.

– Monitoring and encouraging carbon offsets purchase and use of renewable energy. Head office and a number of other businesses’ energy supply switched to fully renewable sources. – Choosing green buildings for our office, including our North Sydney head office, which boasts a 5.5 Star NABERS energy rating and a 4.0 Star NABERS water rating. – Use of energy efficient lighting in our office buildings. – 5 buildings in the target emissions group have an average energy rating of 4.5. – 4 buildings in the target emissions group have an average water rating or 4.5 – Actively encouraging recycling of paper, glass and aluminium. We also provide printer toner cartridge recycling stations in each office. – Encouraging our employees to use reusable water bottles, cups, and mugs while in the office to reduce waste. – 2 buildings in the target emissions group have an average waste rating of 2.8. – Providing office space in central locations near public transport hubs. Most employees travel to and from work via public transport (train, bus, ferry) or active transport (walking and cycling). – Encouraging video and audio communication to reduce air and road travel. – Carbon offset purchase for corporate travel. – Procuring environmentally friendly office supplies. – Adopting digital solutions to reduce our use of paper and our need for business travel. – Reducing our paper usage by setting printers to print double-sided output. – Equipping our employees with knowledge and training to minimise their own environmental footprint. – Actively engaging with our network partners on good ESG practices.

Minimise waste, and encourage the reuse and recycling of waste items

Promote sustainable transport to employees, clients, and suppliers

Support sustainable procurement and other sustainable work practices

AUB GROUP ANNUAL REPORT 2023

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