2025 ESG Report

ESG REPORT 2025

DISCLAIMER: Certain statements in this report constitute forward-looking statements. Forward-looking statements are statements (other than statements of historical fact) relating to future events and the anticipated or planned financial and operational performance of Michael Hill International Limited and its related bodies corporate (the Group). The words "targets", "believes", "expects", "aims", "intends", "plans", "seeks", "will", "may", "might", "anticipates", "projects", "assumes", "forecast", "likely", "outlook", "would", "could", "should", "continues", "estimates" or similar expressions or the negatives thereof, generally identify these forward- looking statements. Other forward-looking statements can be identified in the context in which the statements are made.

Forward-looking statements include, among other things, statements addressing matters such as the Group's future results of operations; financial condition; working capital, cash flows and capital expenditures; and business strategy, plans and objectives for future operations and events, including those relating to ongoing operational and strategic reviews, sustainability targets, expansion into new markets, future product launches, points of sale and production facilities. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, they are not guarantees or predictions of future performance or statements of fact. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Group's actual results, performance, operations or achievements or industry results, to differ materially from any future results, performance, operations or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: global and local economic conditions; changes in market trends and end-consumer preferences; fluctuations in the prices of raw materials, currency exchange rates, and interest rates; the Group's plans or objectives for future operations or products, including the ability to introduce new jewellery and non-jewellery products; the ability to expand in existing and new markets and risks associated with doing business globally and, in particular, in emerging markets; competition from local, national and international companies in the markets in which the Group operates; the protection and strengthening of the Group's intellectual property rights, including patents and trademarks; the future adequacy of the Group's current warehousing, logistics and information technology operations; changes in laws and regulations or any interpretation thereof, applicable to the Group's business; increases to the Group's effective tax rate or other harm to the Group's business as a result of governmental review of the Group's transfer pricing policies, conflicting taxation claims or changes in tax laws; and other factors referenced to in this report. Should one or more of these risks or uncertainties materialise, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition, cash flows or results of operations could differ materially from that described herein as anticipated, believed, estimated or expected. Accordingly, you are cautioned not to place undue reliance on any forward-looking statements, as there can be no assurance

the actual outcomes will not differ materially from the forward-looking statements in this report. Except as required by applicable laws or regulations (including the ASX Listing Rules), the Group does not intend, and does not assume any obligation, to update any forward- looking statements contained herein. All subsequent written and oral forward-looking statements attributable to us or to persons acting on the Group's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this report.

TERMINOLOGY: In this report, unless otherwise specified or appropriate in the context, the term "Company" refers to Michael Hill International Limited, the term "Group" or "Michael Hill Group" refer to the Company and its subsidiaries (as appropriate), and the use of "Michael Hill", "Bevilles", "TenSevenSeven" and "Medley" is reference to the relevant brand within the Michael Hill Group.

CONTENTS

1. INTRODUCTION

2. GROUP 2030 SUSTAINABILITY STRATEGY

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INTRODUCTION

EXECUTIVE COMMENTARY

AT THE MICHAEL HILL GROUP, SUSTAINABILITY IS NOT JUST A COMMITMENT - IT'S A CORE PART OF WHO WE ARE AND HOW WE OPERATE. THIS YEAR'S ESG REPORT REFLECTS THE EVOLUTION OF OUR APPROACH AND THE IMPORTANCE OF TRANSPARENCY IN EVERYTHING WE DO.

You'll notice a change in the name of this report. As we prepare for Australia's first mandatory climate reporting period in FY26, we've renamed this publication our 'ESG Report' to distinguish this voluntary reporting from the mandatory Sustainability Report that will be included

in our FY26 Annual Report. Our continued commitment to voluntary reporting is essential for accountability of delivering our 2030 Sustainability Strategy goals.

We are also aligning the cadence of our ESG reporting with our goals, shifling to a calendar year cycle in future. This change will allow us to report more meaningful ESG updates to stakeholders on progress against our 2030 goals. Our next ESG Report will cover the period from July 2025 to December 2026 and will be published in early 2027.

This year, we refreshed our customer research and were heartened to see an 8% increase in support for our sustainability efforts. Our customers recognise the impact we're making - whether it's empowering women, reducing our carbon footprint or giving back to our communities. Their engagement validates our strategy and inspires us to keep pushing forward.

I am proud of the progress we've made this year and the passion our team brings to this work. From achieving a 79% reduction in scope 1 and 2 emissions to planting over 124,000 trees through the Michael Hill Foundation, our actions have demonstrated that our brands and our products are deeply connected to our people and planet.

Thank you for joining us on this journey.

Andrew Lowe

Interim CEO, Chief Financial and Supply Chain Officer

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GROUP 2030 SUSTAINABILITY STRATEGY

PRODUCT

100% OF OUR PRODUCTS WILL BE SUSTAINABLE, RESPONSIBLE OR CIRCULAR

PLANET

WE WILL NURTURE NATURE AND REDUCE OUR NEGATIVE IMPACTS TO NET ZERO

PEOPLE

WE WILL IMPROVE THE LIVES OF PEOPLE ACROSS OUR VALUE CHAIN

CONFLICT FREE

We will only use conflict free natural diamonds sourced in accordance with the Kimberly Process and precious metals sourced in accordance with the OECD Due Diligence Guidance in our jewellery products by 2027

CIRCULARITY

We will increase precious metals circularity by using recycled precious metals in our products and operating circularity programs by 2027

LOWER IMPACT GEMSTONES

We will increase our offering of jewellery products made with lower impact gemstones from sustainable

lab-grown or other responsible sources by 2027

ZERO CARBON OPERATIONS

We will achieve net

zero carbon operations (scopes 1 & 2) by 2025

NATURE POSITIVE

We will contribute to the restoration and

conservation of the natural environment from 2024

ELIMINATE WASTE

We will send zero waste to landfill and eliminate

single use plastic from our packaging by 2027

RESPONSIBLE SUPPLIERS

100% of all suppliers meet our expectations on their social and environmental impacts by 2030

EMPOWERING WOMEN

We will deliver initiatives and develop partnerships focused on empowering and supporting women from 2024

GREAT PLACE TO WORK

We will maintain a leading workforce engagement

score of greater than 80% from 2024

STRATEGY UPDATE

This year, we updated our 2030 goals to better align to our evolving strategy and replace those goals that we have now achieved.

We are committed to our overarching Product goal that 100% of our products will be sustainable, responsible or circular by 2030. We have reworked the three targets sitting beneath this goal to better align with emerging industry direction and our expanded Group approach to ESG strategy. It is also fundamental that our targets remain ambitious. We maintain metrics to ensure each of our targets is measurable and progress can be easily tracked for each brand.

Our original Product targets, published in 2022, were:

• Transparency: 100% use of certified sustainable or responsibly sourced natural diamonds, coloured gemstones and cultured pearls by 2030.

• Metal stewardship: 100% of Michael Hill's products will be made from certified recycled, local, artisanal or responsibly sourced metals by 2025.

• Innovation: We will pioneer an innovation hub to champion and integrate jewellery circularity, product innovation and lab-grown diamonds by 2024.

These targets were created with only Michael Hill in mind and this brand has now achieved 100% responsibly sourced precious metals, integrated jewellery circularity through our Re:Cycle program and commitment to offering only Certified Sustainable lab-grown diamonds.

To reflect our continuous improvement and Group approach, our updated Product goals are set out on the Group 2030 Sustainability Strategy page.

These refreshed goals for the Group mean our work is more ambitious, measurable and aligned with emerging industry and product developments. We are continuing to improve metrics for each brand and look forward to reporting meaningful progress against these new targets in our next ESG Report.

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SUSTAINABILITY HIGHLIGHTS

HIGHLIGHTS ACHIEVED THIS YEAR INCLUDE:

100%

OPERATIONAL PERFORMANCE

FUNDS FROM ALL MICHAEL HILL PEARL PRODUCTS

NOW HELP TO

EMPOWER WOMEN

79%

REDUCTION IN SCOPE 1 AND 2 EMISSIONS

3.76

KILOGRAMS

THE MICHAEL HILL FOUNDATION CELEBRATED ITS FIRST BIRTHDAY

OF GOLD PROCESSED THROUGH OUR RE:CYCLE PROGRAM

100%

RESPONSIBLY SOURCED PRECIOUS METALS FOR

MICHAEL HILL, TENSEVENSEVEN AND MEDLEY

BEVILLES

83%

OF JEWELLERY SUPPLIERS ARE RJC CERTIFIED OR HAVE AN APPLICATION UNDERWAY

ACHIEVED RJC CODE OF PRACTICES CERTIFICATION

WORKFORCE ENGAGEMENT SCORE INCREASED BY

4% TO 83%

OVER

27,500

ACHIEVED AN ADVANCED SCORE IN OUR SUSTAINABLE PACKAGING PERFORMANCE REPORT

PLANTED 124,673 TREES

VIA THE MICHAEL HILL FOUNDATION

PRODUCT & PLANET

• Re:Store

• Re:Cycle

PEOPLE

• Supporting local communities

PEOPLE

• Empowering our people

  PLANET

• Zero emissions goal

CIRCULARITY

CUSTOMERS

RETAIL STORES

PLANET

• Supporting zero waste

PEOPLE

• Hand crafled by our Brisbane-based artisans

PEOPLE

• In-house by our skilled inspection team

PACKAGING

JEWELLERY MANUFACTURING

QUALITY CONTROL

PRODUCT

• Kimberley process compliance

• World Diamond Council system of warranties

PRODUCT

• Rough natural diamonds

PRODUCT

• Rough natural diamonds

• Precious metals, including recycled metals

EXTERNAL CERTIFICATION

POLISHING AND CUTTING

RAW MATERIAL PRODUCTION

SUSTAINABILITY AND OUR GROUP VALUE CHAIN

VALUE CHAIN FOR MICHAEL HILL'S NATURAL DIAMOND SOLITAIRE RINGS, MADE IN AUSTRALIA

GOVERNANCE UPDATE

The Group's governance toolkit comprises a range of external certifications, self-published standards and internal accountability.

REPORTING STRUCTURE

Sustainability is a core pillar of the Group's broader corporate strategy. Our Sustainability Committee comprises a diverse cross-section of our brands with representatives from Merchandising, Marketing, Legal, HR, Finance, Compliance and Risk, including four Group Executive members.

Meeting on a quarterly basis, the Committee ensures the Group is accountable for progress towards its committed goals. The Committee reports to the Board at least twice a year, updating on goal progress and receiving endorsement for future strategic initiatives.

CODE OF BUSINESS ETHICS AND CODE OF CONDUCT FOR SUPPLIERS

We uplifled our Code of Conduct that applies to Group suppliers this year. Incorporating higher standards of antislavery, responsible employment and human rights, we also clarified our environmental responsibility expectations for our suppliers. Our suppliers must aim to minimise consumption of natural resources, use renewable energy sources where available and demonstrate continuous improvement in their sustainable packaging and waste reduction initiatives.

RJC CODE OF PRACTICES AUDIT

We are a proud member of the Responsible Jewellery Council (RJC), the peak industry body established to advance responsible ethical, human rights, social and environmental practices throughout the jewellery supply chain. This year, we completed an audit as part of the RJC's 3-year review cycle.

The audit scope captured all brands, including Bevilles for the first time. Our certification has been issued through to February 2028 and we were proud to have existing and new provenance claims certified during this audit, including:

• Michael Hill products are crafled from 100% conflict free precious metals.

• Medley's recycled gold and silver products are from RJC or SCS certified sources.

• TenSevenSeven's natural and lab-grown diamonds are not of Russian origin.

  We also require our jewellery suppliers to be RJC certified, as set out in in the Responsible Suppliers section.

  RJC CODE OF PRACTICES STANDARD

  The 2024 RJC Code of Practices (COP) standard, published this year, introduced major changes including new and expanded provisions on human rights due diligence, supply chain management, diversity, equity, inclusivity, climate and environmental requirements. Having recently completed our audit against the previous 2019 standard, we will be

  reviewed against the new standard during our next RJC audit.

  RJC LABORATORY-GROWN MATERIALS STANDARD

  This year, the RJC launched its long-awaited Laboratory-Grown Materials Standard (LGMS), setting a comprehensive framework for members dealing in lab-grown diamonds, rubies, emeralds and sapphires. It complements the existing COP standard, ensuring that lab-grown materials meet the same rigorous benchmarks as natural stones. Certification is mandatory for RJC COP members using lab-grown materials and we will be reviewed against the new LGMS during our next audit.

  SCS-007

  We continued to play an active role in shaping industry standards this year. We were invited to represent retail stakeholders on the SCS Standards Committee so we can actively contribute to the development of sustainability certification frameworks such as the SCS-007 Certification Standard for Sustainability Rated Diamonds.

  APCO

  This year, Australian Packaging Covenant Organisation (APCO) acknowledged that its 2025 National Packaging Targets were unlikely to be met, prompting the introduction of a new 2030 Strategic Plan and government-led reforms to implement mandatory packaging regulations. We continue to monitor change in this space and its application to the Group's sustainable packaging initiatives.

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  INDUSTRY UPDATE

  This year, we continued to advocate for positive change in the jewellery industry by setting high standards, engaging actively with stakeholders and promoting sustainable practices. While the jewellery supply chain inevitably presents challenges, we are committed to using our influence to drive meaningful progress.

  RUSSIAN-ORIGIN DIAMOND SANCTIONS

  We continued to use our existing compliance framework to ask diamond suppliers to provide written warranties to confirm diamonds were of non-Russian origin. We are also monitoring developments on the proposed digital traceability system to support the G7's restrictions (with Canada being a G7 member).

  DEFINING CONFLICT DIAMONDS

  Our brands rely on the Kimberley Process (KP) Certification Scheme and the World Diamond Council System of Warranties to avoid buying or selling conflict diamonds.

  The KP defines conflict diamonds as 'rough diamonds used by rebel movements or their allies to finance armed conflicts against legitimate governments.'

  This year, the KP has not formally addressed pressure to expand this definition to include state-led violence. At the latest KP intersessional meeting, the African Diamond Producers Association proposed broadening the definition to cover armed groups, individuals and entities sanctioned by the United Nations Security Council (UNSC).

  While the proposal does not cover country-wide sanctions like those on Russian diamonds, it is progress towards aligning KP standards with international expectations.

  However, reliance on UNSC sanctions is not a perfect solution due to veto powers held by UNSC members, including Russia. In September 2025, the KP Chair (a role currently held by the UAE) will report to the UN as part of its review into 'the role of diamonds in fuelling conflict'. We continue to follow these geopolitical developments and support expanding the conflict diamond definition.

  LAB-GROWN DIAMOND GRADING

  This year, the Gemological Institute of America (GIA) announced it will discontinue the traditional 4Cs grading system - Cut, Colour, Clarity and Carat weight - for lab-grown diamonds. Instead, GIA will adopt a simplified classification system that categorises lab-grown diamonds as either Premium or Standard, with no detailed grades below certain quality thresholds. While we acknowledge the importance of distinguishing natural and lab-grown diamonds, we do not source GIA-certified lab-grown diamonds and continue to use the 4Cs system to describe all diamonds in our products.

  GOLD PRICES

  Gold prices surged this year, reaching multiple all-time highs. This price volatility reinforced the importance of gold circularity and Michael Hill used this opportunity to increase promotion of its Re:cycle program across

  Australia, New Zealand and Canada. The program enables customers to exchange old gold jewellery for a Michael Hill gifl voucher linked to the market gold rate, while supporting sustainable practices and reducing reliance on newly mined materials.

  DEFINING RECYCLED GOLD

  We have closely followed recent commentary around the 'recycled gold' definition. We understand some industry views that only post-consumer gold can truly be seen as 'recycled' because it is diverted from landfill afler use, unlike pre-consumer gold that re-enters the supply chain during the manufacturing process. The RJC published its updated Chain of Custody (COC) standard this year which distinguishes between pre-consumer, post-consumer and waste materials. With both TenSevenSeven and Medley holding provenance claims for COC-certified recycled gold, we support this clarification and continue to work with suppliers to improve traceability and product disclosure for our customers.

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  SUPPLIER SPOTLIGHT

  Our sustainability strategy cannot operate in isolation -lasting industry change needs collaboration. By embedding responsible practices into their operations, our suppliers are helping to drive meaningful impact across the entire jewellery value chain.

  This year, we conducted a sustainability outreach program with our jewellery suppliers. An impressive cohort of

  our trusted suppliers demonstrated how their strategies complemented our 2030 Sustainability Strategy and how their ambitious targets will help us achieve ours.

  Their commitments across energy, water, waste, biodiversity, packaging, social responsibility and community impact gives us reassurance that the industry is working together to make jewellery production and sourcing more sustainable.

  We are proud to showcase a selection of our suppliers' most impressive initiatives:

  • One supplier powers all diamond cutting and polishing operations with 100% renewable energy and has planted 3.5 million trees across 65 locations to support biodiversity restoration.

  • Another supplier has created a 9-acre biodiversity garden and uses biodegradable packaging for 81% of its products, with over half of its platinum being from recycled sources.

  • A supplier delivers over 70,000 hours of annual training focused on human rights and social performance, maintains 95% traceability of diamond origin and promotes inclusive hiring practices.

  • One supplier generates nearly half of its energy inhouse via wind and solar, uses sustainable packaging and is recognised among the top 100 workplaces for women in India.

  • Another supplier has eliminated hazardous waste, replaced 35% of its vehicle fleet with electric alternatives and engages in community clean-up and tree planting initiatives.

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PRODUCT

100% OF OUR PRODUCTS WILL BE SUSTAINABLE, RESPONSIBLE OR CIRCULAR

PRODUCT PILLAR

CONFLICT FREE

We will only use conflict free natural diamonds sourced in accordance with the Kimberly Process and precious metals sourced in accordance with the

OECD Due Diligence Guidance for Responsible Supply Chains by 2027.

NATURAL DIAMONDS

We are committed to using 100% conflict free natural diamonds sourced in accordance with the Kimberly Process. This is also embedded into our RJC COP certification, held by each of our brands.

The COP standard mandates compliance with the Kimberley Process (KP) Certification Scheme and the World Diamond Council System of Warranties. All diamond suppliers must provide written warranties confirming that their diamonds do not finance armed conflict or human rights abuses.

We support this work through regular team training and setting out our standards in our Supplier Code of Conduct which can be downloaded here.

We also continued to enforce our sanctions compliance framework to comply with the Canadian restrictions on Russian diamonds. This includes sourcing protocols, import/export controls and supplier warranties confirming non-Russian origin. Our robust framework enabled us to have two provenance claims certified during our latest RJC COP audit: that all diamonds in Medley and TenSevenSeven products were not of Russian origin or exported from Russia.

We aim to maintain 100% conflict free diamonds across the Group and will focus on improving our record keeping and implementation for new suppliers.

DIAMOND TRACEABILITY

We are committed to increasing the number of diamond products with provenance traceability. This year, all Certified Sustainable lab-grown diamonds were 100% traceable. You can read more about our Certified Sustainable lab-grown diamond products in the Lower Impact section.

This year, Michael Hill launched its Canadian diamonds collection. This collection celebrates ethical sourcing and design across our markets by partnering Canadian-sourced diamonds with expert craflsmanship from our Brisbane manufacturing facility.

The collection comprises 10 pieces, including solitaire diamond rings and earrings crafled in 18kt yellow and white gold. Each diamond is sourced from Canada's Northwest Territories and is accompanied by an IGI Diamond Report and a Diamond Origin Report to ensure transparency from rock to ring.

We also continued to offer our De Beers Code of Origin range this year. The Code of Origin program provides assurance that each diamond was sourced from Botswana, Canada, Namibia or South Africa, where it has helped provide jobs, healthcare and education, with a particular focus on programs supporting women and girls.

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PRODUCT PILLAR

RESPONSIBLE PRECIOUS METALS

We are committed to using precious metals that are responsibly sourced in accordance with the OECD Due Diligence Guidance for Responsible Supply Chains. This year, Michael Hill, Medley and TenSevenSeven achieved 100% responsibly sourced precious metals.

Michael Hill reached 98% conflict free gold in the last reporting period. This year, we worked closely with our suppliers to broaden this claim to achieve:

• "Responsibly sourced" which looks beyond conflict free

• 100% responsibly sourced gold, silver, platinum and palladium

We also began to apply our compliance framework to Bevilles. We are aiming to reach at least 50% responsibly sourced precious metals for Bevilles in the next reporting period.

For us, responsibly sourced precious metals - gold, silver, platinum and palladium - are those from suppliers certified to best practice standards, including the LBMA Responsible Gold and Silver Guidance and the LPPM Responsible Platinum and Palladium Guidance.

These standards are recognised under the OECD's cross-recognition policy and align with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Precious metals sourced through these frameworks are guaranteed to be conflict-free and ethically produced, complying with robust legal, social and environmental criteria from origin.

LOCAL PRECIOUS METALS

This year, Michael Hill launched a number of "Made in Australia with 100% Australian Gold" products. The gold in these products was sourced from Australian-only sources before being manufactured in our Brisbane facility.

This was certified as a provenance claim during our recent RJC audit process. Due to a supplier change later this year, we are no longer making this claim but are working with our new

supplier on sourcing gold that is exclusively from New Zealand sources (mined and recycled).

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PRODUCT PILLAR

CIRCULARITY

We will increase precious metals circularity by using recycled precious metals in our products and operating circularity programs by 2027.

This year, we:

• Recycled 3.76 kilograms of gold

• Saved 11,252 tonnes of mining ore*

  PERFORMANCE SNAPSHOT

  • Returned 3.76kg of gold to the supply chain through Re:Cycle

  • Repaired 343,809 pieces of customer jewellery

  • Offered 67 products made from certified recycled gold and silver

• Avoided 60,010 kilograms of carbon emissions^

* This is an estimate only, and is based on a global production-weighted mean average (Nassar, Lederer, Brainard, Padila and Lessard, 2022) Operational and extraction efficiencies vary greatly between individual mines.

^ Estimating carbon emissions avoided is difficult. Our estimate is based on available information which is limited and is based on the aqua regia method - the most commonly used high-value gold scrap recycling process - from several state-of-the-art German refineries (Fritz, Aichele and Schmidt, 2020).

Circularity is fundamental to protect our planet's precious natural resources and to ensure the longevity of our industry. We are looking to expand Re:Cycle to other precious metals and expand accessibility to our other brands.

RE:CYCLE

We are committed to increasing the volume of customer pieces and material returned to precious metals supply chain. Gold is the ultimate circular material as it can be repeatedly refined and repurposed without losing value or purity.

This year, our Re:Cycle program was available in Australia, New Zealand and Canada and encourages customers to recycle gold jewellery products in exchange for a Michael Hill gifl card.

RE:STORE

We are committed to increasing the volume of products we repair for our customers. Afler a successful launch in New Zealand last year, we expanded our repair services for non-Group jewellery products across Australia and Canada.

This gives our Michael Hill and Bevilles instore customers the opportunity to extend their products' lifespans

and prevent waste. We repaired a total of 343,809 jewellery items throughout the year. Supporting jewellery craflsmanship and quality remains a priority for the Group and we are proud to offer this service for customers.

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PRODUCT PILLAR

RECYCLED PRECIOUS METALS

We are committed to increasing the number of products made from recycled precious metals. To promote circularity, we're proud to offer a number of products made from recycled gold and silver through the Michael Hill, Medley and TenSevenSeven brands. We only use recycled metals that have been certified under either the RJC COC standard or SCS Recycled Content Certification.

Medley offered the largest range of recycled gold and silver products this year, comprising 57 products across 10kt gold, 18kt plated gold and sterling silver. Michael Hill continued to offer its capsule recycled silver collection with Australian music icons, INXS, with silver refined and recycled under the RJC COC standard.

This year, we also conducted a refinery site visit to understand the chain of custody for the precious metals used to crafl products in our Brisbane manufacturing facility. We are exploring opportunities to incorporate recycled materials into this process, including batch refining post-consumer items processed through our Re:Cycle program.

We are committed to working with our suppliers to bring more certified recycled materials into the Group's supply chain and provide our customers with more circular product options.

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PRODUCT PILLAR

LOWER IMPACT

We will increase our offering of jewellery products made with lower impact materials from responsible sources by 2027.

This year, we increased our mix of certified sustainable lab-grown diamonds across the Group and took steps to verify sources of our lab-grown coloured gemstones.

LAB-GROWN DIAMONDS

Across the Group, we are committed to increasing the mix of our lab-grown diamonds that are certified to the highest level of sustainability assurance for diamonds. The SCS-007 standard is implemented by SCS Global Services and applies to natural and lab-grown diamonds across 5 pillars: origin traceability, ethical stewardship, sustainable production, net zero carbon footprint and sustainable investments. All certified products come with

a SCS Certificate of Sustainability describing the diamond's ethical and environmental performance.

Michael Hill, Medley and TenSevenSeven are some of the few accredited retailers of Certified Sustainable diamonds under the SCS-007 standard. At the date of this ESG Report, Certified Sustainable diamonds are only available to purchase from four other retailers in Canada and Australia, and two in New Zealand.

SUPPORTING OUR NET ZERO GOAL

We are committed to reducing our carbon impact to net zero. Supporting this, the original SCS-007 standard required producers to offset their greenhouse gas emissions and other climate-related pollutants to achieve a climate neutral diamond production process. Under the latest standard, producers must measure, reduce and balance their CO2 emissions to zero through verified actions. This new approach focuses on minimising CO2 emissions before balancing those remaining, rather than simply offsetting.

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PRODUCT PILLAR

LAB-GROWN COLOURED GEMSTONES

Both Michael Hill and Bevilles offer a range of lab-grown coloured gemstones as an alternative to natural coloured gemstones. As part of our commitment to using lower impact materials, we are increasing the mix of our lab-grown coloured gemstones.

This year, we had a number of coloured gemstone products verified as lab-grown. This exercise helped us to verify the upstream production of lab-grown materials, as well as the cost involved in obtaining verification. We continue

to collaborate with industry to consider the value of a responsible sourcing standard for natural and lab-grown coloured gemstones at a product level.

RJC Laboratory-Grown Material Standard

Supporting our commitment to sustainable lab-grown diamonds and coloured gemstones, all RJC-certified suppliers handling lab-grown materials must also comply with the new RJC LGMS, published this year. The LGMS covers lab-grown diamonds, rubies, emeralds and sapphires. It sets stringent standards for human and labour rights, environmental stewardship and ethical business practices for those involved throughout the lab-grown material supply chain. This means our RJC-certified suppliers of lab-grown gemstones are certified sustainable at a business level.

NATURAL COLOURED GEMSTONES AND PEARLS

Given the lack of industry infrastructure supporting responsibly sourced and traceable coloured gemstones, we cannot guarantee the provenance of our coloured gemstones and pearls at a product level.

In the absence of a widely-recognised sustainability standard, our Responsible Suppliers goal supports our commitment to using lower impact natural coloured gemstones and pearls. We aim for all Group suppliers of these products to be certified under the RJC COP standard. This helps us gain comfort that the natural gemstones and pearls in our products are sourced and manufactured in accordance with high responsible sourcing standards.

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PLANET

WE WILL NURTURE NATURE AND REDUCE OUR NEGATIVE IMPACTS TO NET ZERO

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PLANET PILLAR

ZERO CARBON OPERATIONS

We will achieve net zero carbon operations (scope 1 and 2) by 2025.

REDUCE, REPLACE, OFFSET STRATEGY

Emissions from electricity use across our store network and head office locations make up the largest part of emissions from our own operations. As a result, we followed a 'Reduce, Replace, Offset' strategy to support our net zero goal.

This year, we introduced LED lighting across an additional 8% of our store network, with 89% of our stores now running on LED lighting. We have committed to installing LED lighting in the remaining stores as part of our regular refit works.

To further reduce energy consumption, our instore digital display screens have been programmed to automatically power down outside of trading hours, eliminating unnecessary electricity use across the store network.

The Global Support Centre building operates a 99KW rooflop solar panel system. This year, we generated 131mWh through solar, covering 18% of our electricity requirements.

For our other sites across Australia and New Zealand, we procured green energy solutions that directly support local renewable energy generation.

This year, we transitioned the energy supply for 87 stores in Australia and the remaining 2 stores in New Zealand to zero emission sources that support 100% renewable energy generation. This meant all electricity consumed by our stores and support office locations in Australia and New Zealand was matched with accredited renewable electricity.

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PLANET PILLAR

AUSTRALIAN RENEWABLES

To achieve our goal in Australia, we voluntarily purchase GreenPower and surrender renewable energy generation certificates (LGCs) to match our electricity use above Australia's Renewable Power Percentage (RPP). The RPP is the portion of electricity that the Clean Energy Regulator (CER) requires to be from renewable sources under the Renewable Energy Target. The RPP was 18.48% for 2024 and 17.91% for 2025. This ensures that, in addition to the national renewable baseline, we are supporting extra renewable energy generation in Australia.

GreenPower is a government-accredited product designed to support renewable energy generation. LGCs are created through projects such as wind and solar farms and are surrendered on our behalf to the CER.

NEW ZEALAND RENEWABLES

To achieve our goal in New Zealand, we voluntarily purchase and redeem New Zealand Energy Certificates (NZ-ECs) via the New Zealand Energy Certificate System. These NZ-ECs are equivalent to 100% of our electricity use, ensuring

that our consumption is matched with certified renewable energy generated in New Zealand. This year, our purchases directly supported renewables at a wind farm in the South Island and a solar farm in the North Island.

These products mean the amount of electricity used from the grid in Australia and New Zealand is matched with electricity produced from certified renewable sources.

This allows the Group to report our market-based scope 2 electricity emissions as zero, using the market-based methodology as per the GHG Protocol Scope 2 Guidance.

CANADIAN RENEWABLES

This year, we developed plans to purchase renewable energy for our Canadian store network. We identified a renewable energy certificate (REC) provider in Canada and intend to purchase Ecologo certified RECs that meet strict environmental standards to match our electricity usage to reach our net zero goal.

While our Replace initiatives address electricity-related emissions, some operational emissions remain. These represent a small portion of our total footprint and will be offset through certified carbon credits aligned with our nature restoration goals.

We plan to procure these offsets in January 2026, once our 2025 consumption data is reconciled.

This year, the base building of our Global Support Centre achieved a 5-star Energy rating and 4.5-star Water rating from National Australian Built Environment Rating System (NABERS).

The combination of our onsite renewable electricity generation, purchase of renewable electricity products and rainwater tanks enabled us to retain these NABERS scores for the 2024/25 period.

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OUR EMISSIONS PROFILE

Our emissions identification and calculations are in

TOTAL CARBON EMISSIONS (t CO 2e) SCOPE 1 AND 2 (1)

accordance with the Greenhouse Gas (GHG) Protocol, as required by the Australian Sustainability Reporting Standards (ASRS).

We have used the operational control approach to determine the organisational boundary for the Group's emissions inventory. All sites and assets under our direct operational control are included within our reporting boundary.

This includes all Michael Hill and Bevilles stores across

2,500

2,000

1,500

1,000

500

0

2,217

1,466

307

Australia, New Zealand and Canada, Michael Hill and Bevilles support office locations (including the

manufacturing and distribution centre and repairs site) in

FY23

FY24 FY25

• SCOPE 1 •SCOPE 2 TOTAL

  Brisbane, and the Michael Hill support office in Auckland. The emissions boundary is aligned with the Group for financial reporting purposes.

  1. Scope 2 emissions shown in this graph are market-based.

263 tonnes of CO2e have been included as an estimate for the Bevilles pre-ownership period in FY23 (11 months to 1 June 2023)

(market-based)

The location-based method estimates emissions using an average emissions intensity for grids where the electricity consumption occurs. The market-based method estimates emissions in the context of a company's investments in different electricity products, such as voluntary purchases of renewable energy certificates.

This year, our emissions inventory includes:

Scope 1: Direct emissions from refrigerants used in air conditioning units and fridges and gas used in manufacturing and repairs facilities.

Scope 2: Indirect emissions from purchased electricity and heating, calculated using both location-based and market-based methodologies. Our total location-based emissions have increased 6% on last year due to a higher electricity usage mix in Australia over the past year (with a higher average grid emissions intensity) compared with New Zealand and Canada.

In addition, we have included further store heating data this year as we continue to work with Canadian landlords to improve data integrity.

ACHIEVING OUR 2025 TARGET

In preparation for mandatory reporting under ASRS and to align with the GHG Protocol preferred approach, we have made minor revisions to our emissions calculation methodologies. Prior year emissions have been restated as a result (the changes between previously reported emissions and restated emissions are not material).

We have also included store-based refrigeration and air conditioning units in our emissions inventory if the units are under our direct operational control.

Very occasionally, actual usage of electricity and heating was not available from supplier invoice data. Where necessary, we have estimated consumption based on average consumption for sites of a similar size and location to ensure completeness, accuracy and comparability.

OUR TARGET:

NET ZERO SCOPE 1 & 2

EMISSIONS BY END OF 2025

2,500

2,000

1,500

1,000

500

0

JUN23 JUN24 JUN25 DEC25

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Scope 3 emissions are indirect emissions from our value chain. They occur outside of the Group's organisational boundary but as a result of our actions. This year, we conducted an initial assessment of the scope 3 emissions categories most relevant to the Group through a review of our value chain. The preliminary assessment, supported by industry benchmarking analysis, identified the specific upstream and downstream activities where our indirect emissions are likely to be most significant. We expect purchased goods and services (category 1) and upstream transportation and distribution (category 4) to comprise most of our scope 3 emissions inventory.

Additional relevant categories include capital goods,

fuel- and energy-related activities not included in scope 1 or 2, waste generated in operations, business travel and employee commuting. This initial identification provides the foundation for more detailed analysis, quantification and proactive supplier engagement over the coming year.

BEYOND 2025

We are on track to achieve our net zero carbon operations (scope 1 and 2) goal by the end of the calendar year.

We will publish an updated Zero Carbon Emissions goal in early 2026.

This year, we have taken steps to ensure the Group's successful transition under the ASRS.

We have developed a climate reporting roadmap and remain on track to meet our reporting obligations for FY26. We have identified key climate-related risks and opportunities, integrated climate risk into our broader risk management processes, confirmed climate scenarios and started scenario analysis.

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WASTE

We will send zero waste to landfill and eliminate single use plastic from our packaging by 2027.

This year, we continued to embed our commitment to eliminate waste across our operations and packaging. With a focus on governance and data integrity, we made progress in understanding our operational waste and packaging footprint.

• Established a dedicated Waste Working Group that met monthly to oversee new and current initiatives, report progress and allocate accountability across the Group

• Improved the data integrity of our Global Support Centre waste by collaborating with our third-party waste management service provider

• Integrated Waste goals into our Supplier Code of Conduct and procurement processes

  WASTE MANAGEMENT

  This year, we developed an internal waste management dashboard to track our Global Support Centre waste volumes. On a monthly basis, we monitor our waste that has been diverted for recycling, landfill, paper and food composting and bioreactor landfill as well as diversion and recovery rates.

  Landfill diversion data

  In last year's Sustainability Report, we reported reduced Global Support Centre waste volumes. This year, we identified some issues in the data shared by our waste management service provider. We conducted an audit and found discrepancies between the volumes reported to us and actual volumes disposed, including overreported volumes and contamination. We continue to work to improve the data integrity of our Global Support Centre waste volumes and aim to confidently report this data in our next ESG Report.

  E-waste

  We diverted a number of faulty electronic appliances from landfill by donating these to a local e-waste recycling facility. We also started to work with our IT suppliers on hardware end-of-life waste management.

  Containers for Change

  Containers for Change is a Queensland recycling initiative designed to reduce litter and increase recycling rates

  by offering a 10c refund for eligible drink containers. We introduced Containers for Change bins to our Global

  Support Centre this year to support our Zero Waste goal. Our team diverted 1,354 containers from landfill with all funds directed to The Michael Hill Foundation.

  Team education

  We launched several internal initiatives to promote Zero Waste, including a waste management quiz for our Global Support Centre team, improved signage and established a network of waste champions across the Group.

  SUSTAINABLE PACKAGING DECISIONS

  Group packaging tender

  This year, we conducted a global tender for a new Group packaging supplier. Sustainability considerations were fundamental in the supplier selection process. Each potential supplier was asked a range of Zero Waste questions, including the ability to supply packaging that is 100% recyclable and made of at least 50% recycled materials.

  PREP assessment

  To substantiate our on-packaging disposal directions, we utilised the Product Recyclability Evaluation Portal (PREP) to verify whether our packaging is recyclable via

  kerbside collection in Australia and New Zealand. Our team completed training and reviewed several packaging items to confirm these were fully recyclable.

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  PLANET PILLAR

  MANDATORY PACKAGING OBLIGATIONS

  Australia: APCO

  For the first time, Bevilles was included in our 2024 Australian Packaging Covenant Organisation (APCO) Annual Report. For the 2024 calendar year:

• 45% of our packaging was fully recyclable

• 38% of our packaging is made with recycled materials

• 57% of our packaging was reviewed against APCO's Sustainable Packaging Guidelines

Our performance in Australia was marked as Advanced (41%), a notable improvement on last year's Good Progress (33%) performance. Advanced means we have taken tangible action on our packaging sustainability journey.

Some Canadian provinces have implemented mandatory extended producer responsibility (EPR) programs. This means we are accountable for the packaging and paper that is provided to Canadian consumers, and we are responsible for improving recycling rates and using more sustainable materials in our packaging. We met all EPR reporting obligations across Ontario, British Columbia, Manitoba

and Alberta this year.

Some Canadian jurisdictions have also implemented bylaws to reduce single-use plastic and disposable shopping bags. This requires some stores to charge customers for our shopping bags, which must be made with recycled materials. This year, we collected almost CA$700 to comply with these requirements which was allocated to the Michael Hill Foundation.

MANUFACTURING WASTE

We continued to send our manufacturing waste to a precious metal refiner. Manufacturing waste included alloy scrap

and other small sweepings that occur during our jewellery manufacturing and repairs process. You can read more about our product recycling initiatives in the Circularity section.

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To support our commitment to nature restoration, we launched the Michael Hill Foundation in February 2024. Through sales-based

donations, we have committed to planting 1,000,000 trees

in Australia, New Zealand and Canada by 2030. We planted 124,673 trees this year

with the help of our planting partner, One Tree Planted.

NATURE RESTORATION

We will contribute to the restoration and conservation of the natural environment in our key markets from 2024.

Since the launch of the Foundation, a portion of sales from each Michael Hill LAB. product is directed to our planting projects in Australia, New Zealand and Canada and we have committed to planting up to 10 trees for every purchase.

All LAB. products are Certified Sustainable under the SCS-007 standard and have a net zero carbon footprint.

By purchasing our most sustainable product, customers help us give back to their local environment. An increase in our lab-grown diamond product mix meant even more products were helping us to reach our goal by 2030, with more than double LAB. units sold this year compared with last year.

We have continued to support the same planting projects this year. This allowed us to strengthen our connection with our projects and gain deeper insights into their impact, with a focus on community in Australia and New Zealand and on wildlife in Canada.

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We support the Rejuvenation Trees project on the WA southern coast near Esperance. The project is owned and operated by the Esperance-Tjaltraak Native Title Aboriginal Corporation (ETNTAC) from the Wudjari community, providing income pathways, employment opportunities and skill development for 53 First Nations team members.

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We support Waingake Native Restoration Program on the North Island. The project is operated by Maraetaha Incorporated and supported by Ngai Tāmanuhiri. The

project is located near the headwaters of the primary water supply for Tairāwhiti (Gisborne) and has been fundamental in restoring native forest cover to stabilise soil and reduce sediment in local waterways.

12 Māori team members help to manage the project. This provides meaningful employment and skill-building opportunities, fostering intergenerational pride and connection for local iwi.

Through active participation in environmental restoration, the project strengthens Māori social cohesion, cultural identity and kaitiakitanga (guardianship) of ancestral lands.

We support Nazko Wildfire Restoration Project near Nazko Lake in Cariboo, British Columbia. This project aims to restore landscapes scarred by the 2017 Plateau Wildlife which destroyed around 35% of this area. With a strong emphasis on species diversity and climate resilience, the project selects native trees such as hybrid spruce and Douglas-fir to bring balance to the ecosystem and foster long-term biodiversity.

This project returns the landscape much faster than if lefl to natural processes, ensuring the area benefits from tree planting sooner. Beyond carbon sequestration, this project also provides vital habitat and food sources for native wildlife species including black and grizzly bears, moose, grey wolves, snowshoe hares, sandhill cranes and bald eagles.

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OUR PARTNERSHIP WITH ONE TREE PLANTED

One Tree Planted is a non-profit organisation focused on global reforestation. They aim to help restore forests, create habitats for biodiversity and make a positive social impact around the world. One Tree Planted selects planting projects based on their potential for long-term environmental and biodiversity impact, focusing on community well-being and watershed health.

CELEBRATING NATURE RESTORATION

This year, the Group celebrated World Environment Day and Earth Day by reflecting on the work of our planting partners across our communities. With a 'Restore Our Earth' theme, we marked these dates by reaffirming our commitment to creating a healthier planet, together with our customers, teams and communities. To drive engagement and promote our Nature Restoration goal, teams were encouraged to share small actions they make each day to benefit the environment.

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PEOPLE

WE WILL IMPROVE THE LIVES

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OF PEOPLE ACROSS OUR VALUE CHAIN