Part B: Sustainability and Resilience

LEVEL 1

PART B: SUSTAINABILITY AND RESILIENCE

SCORECARD ITEM

GUIDING REFERENCE

RESPONSE

(Yes/No)

COMPANY REMARKS

B.1

Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision

Material Sustainability-related information should be specified

LEVEL 1

PART B: SUSTAINABILITY AND RESILIENCE

SCORECARD ITEM

GUIDING REFERENCE

RESPONSE

(Yes/No)

COMPANY REMARKS

B.1.1

Does the company identify/report ESG topics that are material to the organization's strategy?

G20/OECD Principles of Corporate Governance (2023):

VI.A.1. Sustainability-related information could be considered material if it can reasonably be expected to influence an investor's assessment of a company's value, investment or voting decisions.

ICGN (2021) PRINCIPLE 7:

7.7 Materiality and sustainability Sustainability disclosures should focus on materially relevant factors, with many environmental and social factors being sector specific, linked to the company's management of its natural and human capital. Where possible, sustainability related reporting should also seek to address "double materiality", for reporting on the company's external impacts on society and the environment, as well as internal impacts on the company's own financial performance. Moreover, boards should build an awareness of "dynamic materiality", recognizing that materiality evolves over time alongside factors including emerging technology, product innovation and regulatory developments.

Yes

The Exchange discloses the data pertaining only to topics material to the organization. Likewise, the Exchange provides an explanation for non-disclosure of data pertaining to non-material topics.

Reference:

Sustainability Report 2024

LEVEL 1

PART B: SUSTAINABILITY AND RESILIENCE

SCORECARD ITEM

GUIDING REFERENCE

RESPONSE

(Yes/No)

COMPANY REMARKS

B.1. 2

Does the company identify climate change as an issue?

G20/OECD Principles of Corporate Governance (2023):

VI …Investors are increasingly considering disclosures about how companies assess, identify and manage material climate change and other sustainability risks and opportunities, including for human capital management...

ICGN (2021) PRINCIPLE 7:

7.5 Climate change

The board should assess the impact of climate change on the company business model and how it will be adapted to meet the needs of a net zero economy as part of a long-term strategy. This includes setting and disclosing targets to reduce carbon emissions and a period for achievement. Where climate change risks, whether physical or transitional, are identified as material and relevant, reporting should include discussion of the diligence process, strategy, metrics, targets and initiatives used to manage the risks. Disclosure around these actions would help investors understand the resilience of companies facing climate change risks and to assess progress towards achieving net

zero targets.

Yes

The Exchange identifies climate change as an issue. The Exchange discloses data on its contribution to climate change (i.e. air emissions including data on Scope 1 and 2, renewable and non-renewable energy consumption, reduction of energy consumption). We also disclose our climate-related risks and opportunities.

Additionally, in line with the requirements of membership in the Glasgow Financial Alliance for Net Zero (GFANZ) and the Net Zero Financial Service Providers Alliance (NZFSPA), the PSE published its first NZFSPA Progress Report which outlines the Exchange's science-based targets for Scope 1 and Scope 2 greenhouse gas emissions. The target is to reduce the Exchange's greenhouse gas emissions by 54.6% by 2033 from a 2023 baseline year.

Reference:

Sustainability Report 2024

Pages 6-7, 15-18

LEVEL 1

PART B: SUSTAINABILITY AND RESILIENCE

SCORECARD ITEM

GUIDING REFERENCE

RESPONSE

(Yes/No)

COMPANY REMARKS

B.1. 3

Does the company adopt an internationally recognized reporting framework or standard for sustainability (i.e. GRI, Integrated Reporting, SASB, and IFRS Sustainability Disclosure Standards)?

G20/OECD Principles of Corporate Governance (2023):

VI.A.3. Disclosure of sustainability matters, financial reporting and other information should be connected.

Corporate disclosure frameworks, including financial reporting standards and regulatory filing requirements (e.g. public offering prospectuses), should have the same goal of providing information that a reasonable investor would consider important in making an investment and voting decision. It follows that information understood as material in a sustainability-related report should also be considered and assessed in the preparation and presentation of the financial statements. The same level of rigour applied to the measurement and reporting of financial information should be applied to the measurement and reporting of sustainability-related information.

Yes

The Company's Sustainability Report is written in accordance to the SEC Reporting Guidelines, which is aligned with four globally recognized standards and frameworks such as the Global Reporting Initiative's (GRI) Sustainability Reporting Standards, the International Integrated Reporting Council's (IIRC) Integrated Reporting (IR) Framework, the Sustainability Accounting Standard Board's (SASB) Sustainability Accounting Standards, and the recommendations of the Task-Force on Climate-related Financial Disclosure (TCFD).

Reference:

Sustainability Report 2024