Objectives
To develop and operate an environmental management system to prevent pollution, preserve resources and fulfil compliance obligations.

Measures
We expect every employee and contractor to adhere to this policy and help reach our goals by:

• continually and effectively improving our environmental performance;
• complying with and surpassing standards required by the applicable environmental ordinances;
• fulfilling all environmental requirements prescribed by the Company;
• promoting sound environmental policies and practices within the Company;
• setting and reviewing environmental objectives;
• conserving resources and maximising energy efficiency;
• minimising waste wherever practicable;
• reusing or recycling waste where appropriate and regulating the treatment and disposal of residual waste;
• reducing and preventing pollution where possible;
• minimising vehicular emission of pollutants;
• minimising adverse environmental impacts of asset decommissioning and disposal;
• enhancing environmental awareness of colleagues and contractors;
• advocating good environmental practices on both departmental and individual levels; and
• effectively communicating our environmental performance to stakeholders.

Objectives
To provide a safe and healthy workplace across all Kerry Logistics Network’s operations in accordance with ISO 45001:2018.

Measures
We ask every employee, contractor and guest to help achieve our goals by:

• providing safe and healthy working conditions for preventing work-related injury and ill health;
• identifying opportunities for continually improving our occupational health and safety system;
• eliminating hazards and reduce occupational health and safety risks;
• complying with and surpassing standards required by all applicable Occupational Safety and Health regulations;
• fulfilling all occupational health and safety requirements prescribed by the Company and stakeholders;
• setting and reviewing occupational health and safety objectives;
• documenting, implementing and maintaining the Occupational Health and Safety Management System that meets the requirements of ISO 45001:2018;
• constantly reviewing the management system within defined scopes to ensure its relevancy and appropriateness;
• establishing a positive health and safety culture and implementing processes for consultation and participation of employees;
• providing necessary occupational health and safety information, instructions and training to enable all colleagues to carry out their jobs competently and safely;
• selecting competent contractors and monitoring their performance to ensure related standards of occupational health and safety are secured; and
• effectively communicating with people employed by contractors to make them aware of their individual occupational health and safety obligations.

Objectives
To comply with the economic and trade sanctions laws and regulations of the United Nations (UN), European Union (EU), United States of America (US), as well as all applicable sanctions laws and regulations (including import and export control regulations) in the jurisdictions which we operate.

Measures

1. This policy sets out the minimum standards in which Kerry Logistics Network must comply with to meet the above obligations. This includes:
   1. Screening customers and transactions against global sanctions lists;
   2. Prohibiting or restricting business activities or transactions or commencing customer relationships that we believe may violate the applicable sanction laws, whether directly or indirectly; or involve individuals, entities or vessels listed on an official sanctions list; and
   3. Blocking or rejecting business activities or transactions where we are obligated to do so under the applicable sanctions laws and regulations.
2. On a risk-based approach, we will screen customers and transactions against global sanctions lists (including but not limited to UN, EU and US sanction lists). Given the volume of transactions and the fact that the scope of sanctions is highly sophisticated and constantly changing, the screening process will be carried out through IT systems with the assistance of the compliance solutions offered by reputable third-party service provider(s) which provide updated database containing global sanctions lists and other risks data and filtering services. Screening will be performed automatically in our system from time to time upon account opening, creation and execution of transactions and/or other circumstances that we deem appropriate according to our policy.
3. We will prohibit or restrict business activities or transactions or commencing customer relationships that we believe may violate the applicable sanction laws, whether directly or indirectly; or involve individuals, entities or vessels listed on an official sanctions list.
4. We do not tolerate any breach of this policy that could jeopardise the soundness and integrity of our Group. Any suspicious transactions should be reported to the designated manager of the local office, and if applicable, regional and global management office. Where necessary, we will also report breaches of sanction laws to relevant regulatory authorities.
5. The effectiveness of this policy will be monitored regularly. Procedures and practices will be reviewed and further practical guidelines may be issued with a view to ensure compliance with sanction laws and regulations.

Objectives
To protect our information assets from any internal, external, deliberate or accidental threats. Kerry Logistics Network’s Information Security Management System (“ISMS”) is integral to our operation. We strive to assure the integrity of all information we disseminate, produce, manage or store, which is duly handled through sound confidentiality procedures.

Measures
We adhere to this policy and reach our goals by:

• ensuring that all information, including internal, third party, personal and electronic data, is treated with complete confidentiality;
• maintaining integrity of all such information;
• ensuring that our information system and the information contained meet the needs of our core and supporting business operations;
• complying with all applicable statutory and regulatory requirements;
• safeguarding security of our information assets through effective business continuity management;
• making information available to staff and the public with minimal disruption;
• increasing staff awareness of information security management through education and training;
• performing reliable access control to protect our information system against unauthorised access.

Under this policy:

• All breaches of information security, actual or suspected, will be reported to and investigated by authorised persons including System Administrator and Incident Investigator;
• Information Security Management Committee is responsible for documenting and maintaining the ISMS;
• Information Security documents not limited to Policies, Procedures and Guidelines will be made available in both hardcopy and online format through an intranet system to support the ISMS Policy;
• All managers shall implement the policy within their units and ensure that every staff member adheres to the policy.

Objectives
To protect the Company’s employees, properties, information, reputation and customer’s assets from potential threats in the supply chain.

Measures
This policy is guided by the Company’s basic core values, code of conduct, business ethics and supply chain security standards, and it fashions the way we operate throughout the supply chain. All security activities must adhere to the general principles laid down below:

• The first priority must be “Incident prevention”;
• All employees and contractors must always be aware of and take responsibility for the security aspects of the company’s business activities;
• Threats analysis, risk evaluations and countermeasure identification should be conducted regularly and documented;
• Security procedures and guidelines should be seamlessly integrated into business activities;
• Preparedness and response plans must be developed and tested to deal with assessed risks rapidly and effectively;
• Security measures and procedures must be subject to regular inspections, validations and verifications by security auditor so as to maintain high security standards for Kerry Logistics Network’s operations worldwide;
• The level of professionalism, knowledge and integrity of staff involved in security matters must be tightly controlled;
• Appropriate training plans, customer screening, recruitment, contracting and termination procedures must be established and implemented;
• All incidents, including security breaches and irregularities must be reported and recorded. Corrective action should be taken and followed up through regular verifications to improve the overall security standard.

Objectives
To identify potential threats and the impacts of such threats on Kerry Logistics Network’s business operation, and to provide a framework to improve company-wide resilience in the event of significant business disruption.

Measures
Kerry Logistics Network strives to implement a Business Continuity Management (“BCM”) system based on BCI Good Practice Guidelines and international standard ISO22301:2019 by preparing and maintaining Business Continuity Plans (“BCP”) to ensure that we can regain operational capability and continue to deliver our critical products and services when faced with an emergency.

Objectives
To promote corporate sustainable development and continual improvement. We aim to achieve the following objectives through 5S:

• To enhance team spirit
• To create a culture of continuous improvement
• To improve quality of customer services
• To provide a safe workplace
• To reduce machinery breakdowns
• To ensure business continuity capability
• To improve overall efficiency
• To minimise consumption of operating resources
• To save energy to protect the environment
• To strengthen security control in logistics

Objectives
To maintain and improve the Wine Storage Management System (“WSMS”) for both fine wine and commercial wine by introducing the applicable best practices including the certification requirements and code of practice within HKQAA Wine Storage Management Systems.

Measures
Management representatives ensure the effective implementation and maintenance of the WSMS and establish the performance measurement indicators for demonstrating the achievement of the defined objectives below.

It is the responsibility of every employee and contractor to adhere to this policy and reach our goals of the following:

• continually and effectively improving our performance in wine storage and delivery activities;
• complying with and surpassing standard certification requirements and code of practice within HKQAA Wine Storage Management Systems and all applicable legal requirements;
• promoting sound wine storage and delivery practices within the Company and the industry;
• setting and reviewing the Wine Storage Management Plan and its objectives;
• identifying and minimising the risks which may cause all kinds of loss and/or damage of the wine in store and in transit;
• preventing unauthorised access to the wine cellars and conveyance;
• establishing a preventive maintenance programme to minimise breakdowns of facility equipment and vehicles, disruptions to wine logistics services and power outage;
• minimising adverse environmental impacts on wine including fluctuation in temperature and relative humidity, UV rays exposure and continuous vibration;
• enhancing colleagues and contractors’ awareness of WSMS;
• establishing contingency action plans for invocation in the event of power failure, mechanical breakdowns and other disruptions;
• employing competent staff and providing adequate competency training or education.

Objectives
To fulfil one of the top priorities and commitments of our top management by developing and operating a quality management system in accordance with ISO/DIS 13485:2016 that sets high standards and the best practices which comply with the mandatory requirements on supplies of pharmaceutical products and medical devices.

Measures
We expect every employee and contractor to adhere to this policy and help reach our goals by:

• continually and effectively enhancing our performance in quality assurance;
• complying with standards required by the applicable regulatory ordinances;
• ensuring the products safety, quality, efficacy and fitness for their intended use;
• fulfilling the internal requirements prescribed by the Company;
• promoting the quality policy and practices within the Company;
• setting and reviewing measurable quality objectives;
• minimising quality cost wherever practicable;
• enhancing internal awareness of hazardous situations;
• performing the risk assessment and implementing the effective risk management;
• monitoring the residual risks;
• reducing and preventing products contamination, cross-contamination, counterfeit and mix-ups where possible;
• minimising the chance of product recalls;
• minimising the possible adverse situations of consumer after use of our products;
• advocating “good distribution practices” on both departmental and individual levels;
• effectively communicating our quality performance to stakeholders; and
• reviewing the overall performance of the quality management system and its continual suitability

Objectives
To take all responsible steps and precautions and exercise our due diligence to maintain food safety throughout the food supply chain, particularly at all stages where Kerry Logistics Network performs food sourcing, storage, handling, processing and distribution.

Measures
To ensure best practice Kerry Logistics Network has established the internationally recognised Hazard Analysis Critical Control Point (HACCP) system and ISO22000:2018 Food Safety Management System.

To achieve our goal, we:

• Apply sound food technology, science, industry best practice into our context;
• Perform regular identification of hazards, determination of critical control points and timely implementation of effective control and monitoring measures;
• Conform with the regulatory requirements and the agreed customer requirements;
• Define the food safety objectives and continually review to ensure consistent compliance;
• Communicate, implement and maintain this policy at all levels of the Company;
• Employ competent staff, reliable contractors and source reputable suppliers;
• Provide our staff with adequate food safety information, training, instructions, tools and equipment to carry out their job in a hygienic and professional manner;
• Promote personal hygiene and cleanliness to our staff, contractors, suppliers and visitors;
• Develop and strive to constantly improve our processes for the delivery of safe food products through an efficient, effective and suitable food safety management system.

Objectives
To identify and manage climate change-related impacts and develop strategies in line with global and industry practices as we acknowledge that climate change presents risks and opportunities to the business. We also ask our employees and stakeholders in the value chain to help to reach our goals by following this policy.

Measures

Mitigation – To reduce the emission of greenhouse gases into the atmosphere, we will:

• measure and maintain a carbon emission inventory to develop strategies and targets;
• increase the use of renewable energy and low carbon energy sources where applicable;
• incorporate environmental considerations into procurement processes and promote the use of low carbon and energy-efficient products and services;
• explore the opportunities of offsetting carbon emissions; and
• engage employees, suppliers and customers to reduce carbon emissions in their daily operations and promote a low carbon culture where practicable.

Adaptation – To equip our operations for a changing climate, we will:

• assess climate-related risks and opportunities and identify response actions by incorporating them into the risk management system and crisis management plans;
• improve operational processes to respond to climate risks, including physical risks and transition risks; and
• strengthen employees’ awareness of climate change as well as emergency management.

Resilience – To enhance our ability to rebound quickly from the impacts of climate change, we will:

• track global and local climate-related trends and improve knowledge of best practices available and applicable to Kerry Logistics Network and our value chain;
• ensure that relevant information and resources are available for the monitoring and regular review of the impacts of climate change on our operations, as well as climate mitigation and adaptation strategies; and
• communicate with suppliers and customers on Kerry Logistics Network’s climate risks, opportunities and strategies to identify practicable actions and help improve their resilience against future climate-related issues.

Disclosure – To communicate with stakeholders transparently, we will:

• disclose climate-related information transparently and in a timely manner through Environmental, Social and Governance Report and the Company website.

We will take our business development, resources and capabilities and availability of technologies into consideration, while striving to achieve the aforementioned strategies and practices. The Global Management Board works closely with different business units as needed and is responsible for implementing and monitoring this policy and reporting to the Board of Directors.

Objectives
To undertake corporate social responsibilities according to standard SA8000. It is the responsibility of every employee and contractor to adhere to this policy.

Measures
We expect ourselves, as well as all of our suppliers, manufacturers and service providers, along with their subsidiaries, affiliates and subcontractors to make these same commitments below:

• No child labour will be employed;
• No involuntary, forced or compulsory labour will be employed;
• No use of corporal punishment, threats of violence, coercion or other forms of physical, sexual, psychological or verbal harassment, abuse or intimidation;
• Treat each employee with dignity and respect;
• No discrimination in hiring and employment practices, including salary, benefits, advancement, discipline, termination or retirement, on the basis of race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, marital status, political opinion, disability, or any other category protected by law;
• Respect the rights of employees to associate, organise and bargain collectively in a lawful and peaceful manner, without penalty or interference;
• Provide employees with a safe and healthy workplace in compliance with all applicable laws and regulations, ensuring, at a minimum, reasonable access to potable water and sanitary facilities, fire safety, and adequate lighting and ventilation;
• No retaliation against any employee who makes a good faith report of abuse, intimidation, discrimination, harassment or any violation of law or who assists in the investigation of any such a report;
• Comply with all applicable wage and hour laws and regulations and provide legally mandated benefits;
• Comply with all applicable environmental laws and regulations;
• Continue to assess our business operations to improve process efficiency and reduce our environmental impacts;
• Provide resources to encourage and facilitate employees to participate in volunteering, community services and charitable activities;
• Comply with all laws related to bribery, extortion and other forms of corruption;
• Comply with all applicable local, national and international laws, regulations, treaties and industry standards, including, without limitation, those pertaining to provision of products or services, pricing, sale and distribution of the relevant products and/or services, and
• Communicate this policy to all employees and post a copy of this policy in a place readily accessible to employees at all times.

Objectives
To champion responsible business practices and environmental stewardship by recognising climate change as the most pressing issue confronting humanity, committing to playing a part in reducing temperature rise and prioritising sustainability so as to ensure long-term value for our stakeholders. Kerry Logistics Network has committed to achieving net-zero from operations and value chain by 2050. This Carbon Offset Policy represents a key step in our pathway towards that net-zero goal.

Measures
This Carbon Offset Policy (the “Policy”) governs Kerry Logistics Network’s approach to carbon offsetting and the procurement of verified carbon credits. At present, the Policy focuses on carbon credits generated from project-based activities, from which the vast majority of carbon credits are sourced.

The Policy was developed and last updated in December 2021. We will review the Policy periodically to ensure that it remains up to date and aligns with international standards and industry best practices.

The Policy adheres to the following carbon management hierarchy:

1. Avoid: We show preference for business decisions and actions that avoid greenhouse gas (GHG) emissions, to minimise the need for offsets in the first place.
2. Reduce: Where emissions cannot be avoided, we seek to reduce our emissions through the improvement of energy efficiency and conservation.
3. Compensate: Where we cannot avoid or reduce emissions, any offsetting activity taken to neutralise the remaining emissions should be realised through the procurement of high-quality carbon credits from accredited registries.

Carbon Offset Procurement Criteria

We have developed a set of robust criteria to guide us in identifying and procuring high-quality carbon credits to offset the remaining emissions in our value chain. We apply the following criteria and standards when selecting projects to invest in:

1. Real: Carbon offsets represent real emission reductions or removals that have already occurred (not projected to occur in the future).
2. Additional: Emission reductions or removals are in addition to what would have occurred otherwise (without the financial incentives provided by revenue generated by offset sales).
3. Based on realistic and credible baseline: Carbon credit should be issued against a defensible and conservative estimated emissions baseline that assumes a “business as usual” trajectory (i.e., emissions without the implementation of the emissions reduction, avoidance or removal project). Baseline should be recalculated in a regular, conservative time frame.
4. Measurable: Emission reductions or removals generated from the offset projects can be accurately quantified.
5. Verifiable: Emission reductions or removals are verified by an independent auditor against established protocols or methodology.
6. Permanent: Carbon offset projects have established approaches to lower the risk of reversal and emissions are compensated when the projects proved not permanent.
7. Minimised leakage: Leakage happens when emission reductions occurring within the boundary of the project result in emission increases elsewhere. Carbon offset projects should demonstrate that any leakage is minimised and accounted for as a result of the project activity.
8. No double-counting: Emission reductions and removals should not be used more than once to achieve climate targets or goals. There should be no double issuance, double use and double claiming with international mitigation targets.
9. Co-benefits: Carbon offset projects may generate positive environmental and social benefits beyond reducing or removing emissions. Examples include reducing air pollution, supporting poor communities, improving public health and well-being. These co-benefits are often good communication tools for stakeholders.
10. Do no net harm: Carbon offset projects have established approaches to identify related environmental and social risks and taken actions to avoid significant harm and to mitigate associated harm.

The criteria are informed by international standards set by accredited registries.

As a global logistics company, Kerry Logistics Network prioritises carbon offset projects that contribute to both environmental and community benefits, particularly for low-income or vulnerable communities. These projects should ideally quantify the positive social impact that they have on communities.

Transparent Reporting

Kerry Logistics Network commits to reporting our carbon offsetting activities transparently through our sustainability report. To request information on our carbon offsets, please contact us at sustainability@kln.com.

Kerry Logistics Network Limited is an Asia-based, global 3PL with a highly diversified business portfolio and an extensive coverage in Asia. We offer a broad range of supply chain solutions from integrated logistics, international freight forwarding (air, ocean, road, rail and multimodal), e-commerce and express to industrial project logistics and infrastructure investment.

With a global presence across 59 countries and territories, Kerry Logistics Network has established a solid foothold in half of the world’s emerging markets. Our diverse infrastructure, extensive coverage in international gateways and local expertise span across the Mainland of China, India, Southeast Asia, the CIS, Middle East, LATAM and other locations.

Kerry Logistics Network is committed to conducting our operations in an ethical and legal manner in compliance with internationally recognised norms and business standards with respect to anti-corruption, human rights, employee health & safety, the environment, and product & service safety.

Our Sustainability Vision Statement has laid down the three principles: Commitment, Action and Transparency which integrate sustainability into our corporate strategy.   Kerry Logistics Network is committed to achieving net zero carbon emission from our operations and value chain by 2050.  Being a signatory to the UN Global Compact, we shall disclose our progress on sustainability initiatives annually on the UNGC platform and strive to contribute to the United Nations’ Sustainable Development Goals wherever practicable in our operations.  Furthermore, we shall make reference to the baseline of greenhouse gas emissions for setting carbon reduction targets across our supply chain.  Kerry Logistics Network shall take steps to maximise the utilisation of renewable energy and drive the goal of net-zero by adherence to our carbon offset policy.  We shall increase the transparency on climate-related risks and opportunities and collaborate with our business partners to implement climate actions and conduct environmental and social risk assessment on their own operations for enhancing sustainability risk management.

Kerry Logistics Network expects our business partners to carry out their business with integrity in compliance with the provisions of this Business Partner Code of Conduct, which is based on the Universal Declaration of Human Rights adopted by the United Nations General Assembly in 1948, the fundamental Conventions of the International Labour Organization (“ILO”) and the Rio Declaration on Environment and Development adopted in 1992 as well as the Environmental, Social and Governance Reporting Guide issued by Stock Exchange of Hong Kong.  Kerry Logistics Network prioritises reporting on the materials topics that represent our most significant impacts on the economy, environment, and people, including impacts on human rights in pursuance of the GRI Standards.

Commitment to People First
We commit to maintaining a safe, healthy and productive work environment, and we count on our business partners to do the same.

• Follow safe standard operating procedures and comply with all applicable laws and regulations of the countries where we operate.
• Encourage employees to work safely and to immediately report any unsafe conditions or near misses.

We commit to establishing a culture that respects all people and reflects the diversity of the communities in which we operate.  We recognise and respect the rights of employees to form and join trade unions and bargain collectively in accordance with applicable law.  We expect our business partners to share this commitment and to operate free of unlawful discrimination and harassment, abusive conduct and bullying.

• Treat employees equally and fairly compensate them by providing wages and benefits in accordance with applicable laws.
• Compensate employees in accordance with all applicable laws including those that relate to minimum wage and overtime hours. Wages shall in no event be below the minimum legal or collective bargain agreement amount.
• Disallow any discrimination against them on the basis of race, colour, religion, sex, sexual orientation, age, gender identity or gender expression, national origin, political orientation, or disability.
• Prohibit harassment, abusive behaviour, any forms of abuse, inhumane or degrading treatment, corporal punishment or intimidation.

We expect business partners throughout the global supply chain to respect human rights and jointly adopt the following principles.

• Prohibit employment of underage children or forced labour or any form of physical punishment or abuse and take steps to ensure that slavery and human trafficking are not taking place in their organisations.
• Ensure no involuntary prison labour and any situation requiring employees to withhold their identity documents prior to commencing employment.

Environmental Compliance and Sustainability
Kerry Logistics Network also encourages our business partners to support a precautionary approach to environmental matters and to collaborate with us on initiatives to minimise the environmental impact of the products or services they supply to us.  Business partners shall comply with all applicable industry standards, laws and regulations in relation to the environment.

• Work alongside us to reduce the environmental impact of our operations.
• Mitigate the impact arising out of climate change by reducing the carbon emissions during operations.
• Protect the environment by the conservation of energy and natural resources.

Product & Service Safety
Business partners shall comply with the applicable industry standards, laws and regulations in relation to the safety of their products or services.

• Fulfill the legal and contractual obligations to the vendors and contractors who provide services or perform work in the supply chain.
• Be sure to check the applicable regulations, the availability and validity of specific license or permit that may apply to the particular products or services before delivery.

Ethics and Integrity
Kerry Logistics Network requires its business partners to adhere to high standards of ethical conduct and to respect the applicable anti-corruption laws and regulations in the countries where we operate, which may include the OECD Convention on Controlling Bribery of Foreign Public Officials in International Business Transactions.

Our business decisions shall always be made in Kerry Logistics Network’s best interests.  We expect our partners to disclose to us (at sustainability@kln.com) any situation of which they become aware that could be considered as a conflict of interest in its business relationship with us, including any relationship between directors, employees, agents and/ or subcontractors of the supplier and those of Kerry Logistics Network.

• Never offer, authorise, give, promise, accept or offer to accept, anything of value in exchange for an improper advantage.
• Ensure no unreasonable or substantial gifts or entertainment to anyone in the context of your relationship with Kerry Logistics Network.

We abide by all laws in relation to anti-money laundry and sanctions designed to deter criminal enterprise, prevent terrorism and protect the national security of the countries where we do business.

• Exercise good judgment when dealing with customers or other business partners to prevent inadvertent use of our business activities for money laundering or terrorist financing.

We comply with all antitrust and global competition laws where we operate and expect our partners to always act with integrity and business ethics and never enter into any agreement that unlawfully restricts competition as well as never deceive, defraud or mispresent the facts.

• Compete fairly and share our unwavering commitment to conducting business and winning business with integrity and quality.

Protection of Our Property
We respect our assets and prevent them from misuse, manipulation, damage, loss, theft or, in the case of information, disclosure to unauthorised parties.  Our business partners are requested to preserve our reputation and our Group brand.

• Use our physical and electronic assets for business use and never use them for personal benefit, outside work, in an unlawful or unauthorised manner.
• Never share confidential information with any unauthorised persons even if our business relationship with your organisation ends.

Intellectual Property Rights
We respect our trademarks, copyrights, patents and other assets (including internal publications and software programmes developed for or by our Company).  This intellectual property belongs to Kerry Logistics Network and must be protected and managed appropriately in the manner stipulated in our contract or non-disclosure agreement.

Personal Data Privacy
We respect data privacy and we expect you to comply with all applicable local, national and international data privacy laws, information security laws, regulations and industry standards regardless of what services you provide to us.

Objectives
To fulfil one of our social responsibilities by striving for sustainable procurement and to minimise the adverse impacts possible across the entire life cycle of the goods we procure. It is the duty of every employee and contractor to adhere to this policy.

Measures
We expect ourselves, as well as all of our suppliers, manufacturers and service providers, along with their subsidiaries, affiliates and contractors to commit to the following principles for sustainable procurement:

• Accountability: to be accountable for our own impacts on society, the economy and the environment arising from the life cycle of the goods or services in the context of procurement.
• Transparency: to be transparent in those procurement decisions and activities that result in sustainability impact and encourage our suppliers to be transparent.
• Ethical behaviour: to behave ethically and promote ethical behaviour throughout our supply chains.
• Full and fair opportunity: to avoid bias and prejudice in all procurement decision-making and give all suppliers a full and fair opportunity to compete.
• Respect for stakeholder interests: to respect, consider and respond to the interests of stakeholders impacted by its procurement activities.
• Respect for the rule of law and international norms of behaviour: to strive to be aware of any violations throughout its supply chains and to encourage our suppliers to abide by these rules, to assess and address the relevant compliance.
• Respect for human rights: to respect internationally recognised human rights.
• Innovative solutions: to seek solutions to address its sustainability objectives and encourage innovative procurement practices to promote more sustainable outcomes across the entire supply chain.
• Focus on needs: to review demand, buy only what is needed and seek more sustainable alternatives.
• Integration: to ensure that sustainability is integrated into all existing procurement practices to maximise sustainable outcomes.
• Analysis of all costs: to assess the cost incurred over the life cycle, value for money achieved, and the costs and benefits for society, the environment and the economy resulting from its procurement activities.
• Continual improvement: to work towards continually improving its sustainability practices and outcomes, as well as encourage organisations in our business partners to do the same.
• Communication of this policy: to inform all employees and business partners of our commitment to sustainable procurement and post a copy of this policy in a place readily accessible to employees at all times.

Objective:
To establish guidelines and procedures to prevent and combat drug trafficking within the Company, ensure a safe and drug-free work environment and comply with all applicable laws and regulations.

Measures:

1. Prohibition of Drug Trafficking: 

• Drug trafficking, including the transportation, distribution, sale, purchase, possession, or use of illegal drugs, narcotics, or controlled substances within company premises, during company operations, or while representing the Company, is strictly prohibited.

2. Employee Education and Awareness:

• All employees shall attend orientation training on the Company’s Anti-Drug Trafficking Policy upon joining and will be required to attend periodic refresher training sessions.
• The Company will provide educational materials, such as brochures and posters, to raise awareness about the dangers of drug trafficking and the available relevant

3. Security Measures:

• The Company will implement stringent security measures to prevent drug trafficking within its facilities, including controlled access points, surveillance systems and regular security audits.
• Employees are required to report any suspicious activities, unauthorised access, or breaches in security to the appropriate authorities within the Company.

4. Collaboration with Authorities:

• The Company will maintain a cooperative relationship with law enforcement agencies and relevant authorities to exchange information, report any suspected drug trafficking incidents and assist in investigations when necessary.
• Employees are obligated to cooperate fully and truthfully with any investigations related to drug trafficking, as required by law.

5. Supplier Due Diligence:

• The Company will conduct due diligence on suppliers to ensure that they adhere to anti-drug trafficking policies and practices.
• Contracts and agreements with suppliers and vendors will include clauses that prohibit drug trafficking and outline consequences for non-compliance.

6. Reporting and Confidentiality:

• Employees are encouraged to report any suspected drug trafficking activities through the Whistleblowing channel.
• All reports will be treated with the utmost confidentiality, and the Company will not tolerate any form of retaliation against employees who make a good-faith report.

7. Disciplinary Actions:

• Violation of the drug policy, including drug trafficking, may result in disciplinary actions, which may include warnings, suspension, termination and legal action, as appropriate.
• The severity of the disciplinary action will depend on the nature and circumstances of the violation, previous infractions and other relevant factors.

8. Rehabilitation and Assistance:

• The Company acknowledges that drug addiction is a medical condition and is committed to providing support to employees struggling with substance abuse.
• Employees who voluntarily seek assistance for drug-related issues will be provided with information on available resources, such as employee assistance programmes or counseling services.

9. Compliance with Applicable Laws:

• The Company will comply with all applicable local, state and international laws and regulations relating to drug trafficking and substance abuse.
• This policy is not intended to supersede any legal requirements but rather to supplement them.

10. Policy Review:

• The Company will periodically review and update this policy to ensure its effectiveness and alignment with current laws, regulations and industry best practices.

Objectives:
To comply with the applicable trade compliance laws, regulations and regimes in the jurisdictions where Kerry Logistics Network operates, including the Wassenaar Arrangement, Export Control Regulations of the United States of America and Export Control Law of the People’s Republic of China.

Measures:
This policy sets out the minimum standard which Kerry Logistics Network must comply with to meet the above obligations.  All Business Unit Heads shall ensure that their teams strive to:

• prevent any failure to meet trade compliance requirements that will lead to serious consequences for Kerry Logistics Network in terms of reputational damages, monetary penalties, and suspension/revocation of the rights or the authorisations to export and/or import;
• and adhere to the Internal Trade Compliance Programme and ensure the implementation, maintenance and continued review of its trade compliance with the domestic or national and international regimes relevant to the business processes through the following actions:

• • Export Compliance

All exports are to be accurately declared as applicable under the national customs/trade laws. Shipping documentation shall accurately describe item(s) being shipped as well as the applicable export classification.

• • Import Compliance

All imports are to be accurately described as applicable under the national customs/trade laws. All customs entries shall accurately state all required information, including the importer of record’s name and address, importer number, quantity, value, classification, duty preference eligibility, and country of origin for the imported items.

All imported dutiable products handled by the Company shall be documented, packaged and distributed in strict compliance with all relevant applicable laws.

• • Sanctions Compliance

Screening customers and transactions against global sanctions lists according to Kerry Logistics Network’s Sanctions Policy.

Prohibiting or restricting business activities or transactions or commencing customer relationships that we believe may violate the applicable sanction laws, whether directly or indirectly; or involve individuals, entities or vessels listed on an official sanctions list;

Blocking or rejecting business activities or transactions where we are obligated to do so under the applicable sanctions laws and regulations.

Avoiding participation in transactions in which the destination, end-use, or end-user is subject to a sanctions programme, including, but not limited to, those programmes of UN, EU, US and PRC sanctions lists.

We will prohibit or restrict business activities or transactions or commencing customer relationships that we believe may violate the applicable trade compliance laws, whether directly or indirectly; or involve individuals, entities or carriers listed on an official sanctions list, dual use goods list, munitions list, including, but not limited to, Commerce Control List of United States of America and List of Dual-Use Goods and Technologies and Munitions List under the Wassenaar Arrangement.

We do not tolerate any breach of this policy that could jeopardise the soundness and integrity of Kerry Logistics Network. Any suspicious transactions should be reported to the designated manager of the local office, and if applicable, regional and global management office. Where necessary, we will also report breaches of trade compliance laws to the relevant regulatory authorities.

The effectiveness of this policy will be monitored regularly. Procedures and practices will be reviewed and further practical guidelines may be issued with a view to ensure trade compliance.