Health and Happiness H&H International : Sustainability Report 2020

& H G R O U P

A B O U T T H I S R E P O R T

C O N T E N T S

H

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This Report covers Health and Happiness (H&H) International Holdings Limited ("H&H Group" or the "Group"), an entity incorporated in the Cayman Islands with limited liability. Globally headquartered in Hong Kong SAR, China, the Group has been listed on the Hong Kong Stock Exchange (HKEx) since 2010.

REPORTING CONTENT AND PERIOD

This Report provides a comprehensive overview of our vision, strategic approach, and performance in the environmental, social and governance areas relevant to our stakeholders. Reporting on other matters specific to financial performance of the subsidiaries can be found in our 2020 Annual Report, which was released concurrently to this Report on 8 April 2021.

The content of this Report covers H&H's global operations, including our brands - Biostime, Swisse, Dodie, Good Goût, Aurelia Probiotic Skincare, Swisse Me and CBII - and associated manufacturing, warehouse and distribution facilities, corporate offices, and wholly-owned service providers such as creative agency Noisy Beast. The Group acquired Pet Nutrition and Care (PNC) brand Solid Gold in December 2020, however this brand has not been included in the scope of this Report due to the timelines for integrating the business into H&H systems and processes.

The data presented in Report this is for the 2020 calendar year (i.e. 1 January 2020 to 31 December 2020). The reporting structure is aligned to the findings of our assessment of material sustainability issues, involving engagement with internal and external stakeholders during the 2020 calendar year and verified by the Board. The process identified 23 topics that were the most important to our stakeholder group, referred to as 'material topics' throughout this Report.

The content is organised to report our respective performance throughout the value chain against our four sustainability impact areas: advancing the story of good health, reducing our footprint on the planet, honouring human rights and fairness, and supporting good governance.

See page 24 for more information on our processes for identifying our topics, and page 90 for the definitions and boundaries for each material topic.

REPORTING CYCLE AND MOST RECENT REPORT

The H&H Group has reported annually on our non-financial performance since 2016. This is the fifth Group-wide edition. To see our previous Sustainability Reports, please visit hh.global.

REPORTING PRINCIPLES AND

EXTERNAL STANDARDS

This Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: 'Core option' and Appendix 27: Environmental, Social and Governance Reporting Guide (the "Guide") of the Main Board Listing Rules of the HKEx.

Please refer to our Disclosure Index listed in the Appendix for a complete listing of GRI disclosures included in this Report. The GRI has not verified the contents of this Report, nor does it take a position on the reliability of information reported herein. For further information about the GRI, please visit www.globalreporting.org.

The H&H Group sought external professional advice on materiality assessment, stakeholder engagement and Report content and format.

CECEP (HK) Advisory Company Limited was appointed to perform independent limited assurance on this Report in accordance with the AA 1000 Assurance Standard v3 (2018) and issued an assurance statement (see assurance statement here). The process of assurance has allowed us to strengthen the confidence we have in our reporting as well as develop agile but robust reporting processes. As a result, we have amended two prior disclosures from our 2018 and 2019 reports (please see Appendix 5 - Restatements). We hope this external assurance provides additional credibility and confidence to our disclosures.

GET IN TOUCH

We are happy to talk to you about the contents of this Report and H&H's journey to more sustainable business practices. Please reach out to our Group Sustainability team:

Ms Jessie Broadway

Suite 1.4, The Aircraft Factory,

100 Cambridge Grove, London,

W60LE, United Kingdom

Email: jessie.broadway@hh.global

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N O T E F R O M O U R C E O

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Without a doubt, 2020 was an extraordinary and challenging year. The global COVID-19 pandemic saw governments, companies, communities and individuals navigating unchartered waters; we had to re-think and, in many cases modify, our priorities, future goals and ways of working and living. Throughout this period, H&H remained committed to our sustainability targets and practices.

On reflection, if I can see a 'silver lining' - and learning - from the past year, as it relates to business and the retail sector, it would be how it has highlighted the importance of adaptability and working together to create and support positive outcomes for the health of people and the planet.

H&H's purpose aligns naturally with a responsible way of doing business, but over the past year we have been conscious of both the 'top-down' and 'bottom-up' forces that have facilitated stronger progress on our sustainability agenda. I spoke in last year's report of our belief in shared value. 2020 cemented this notion further for us, and I am pleased to say that our increased awareness is enabling us to make better business decisions and create shared value in a more conscious way. We also feel certain that our product categories are well-placed to meet consumers' adapted prioritisation of health and happiness.

In September 2020, our MSCI Environmental, Social and Governance (ESG) rating was upgraded from 'BBB' to 'A'. During the same month, we also received a Hong Kong Quality Assurance Agency (HKQAA) rating of 'A' for ESG performance. We are very pleased and proud of these ratings and recognition of our improved sustainability performance.

Our Sustainability Reporting is progressively aligning with our Annual Financial Reporting, providing valuable insights to all our stakeholders as we shift to a stakeholder mindset of doing business. Whilst the documents remain separate for the 2020 reporting period, the Reports were released together on the same day (8 April 2021), and, importantly, the way in which we review our business units and product categories has become further aligned.

The Annual Financial Report illustrates that through the turbulence of 2020 we were disciplined in prioritising our initiatives and agile in taking advantage of opportunities, enabling us to deliver positive revenue and net profit growth. The pandemic accelerated some of our strategic moves already in motion, and in this way, we were also able to invest in our future and create a new growth pillar with the strategic acquisition of Solid Gold Pet.

From a reporting perspective, we are broadening the topics and detail on which we evaluate our performance. We continue to improve the integrity of our own data collection which is a positive reflection of the business's understanding of sustainability, however it has presented some minor inconsistencies in making comparisons to previous periods. In such cases, we have completed further analysis to examine other indications of progress.

In 2020 we revisited the process of identifying and aligning on our material topics. We did this in conjunction with our Board of Directors, identifying 23 priority areas which will support us to achieve long-term business growth that benefits all our stakeholders, society, and the planet.

We have evolved our sustainability approach to include a greater focus on Governance (alongside our existing areas of Good Health, Our Footprint on the Planet and Honouring Human Rights and Fairness) and have increased Board and shareholder engagement on this topic. Elevating Governance across our material topics has

also seen us increase female representation at Board level, incorporate ESG into all executive performance reviews, and harmonise standards, policies and procedures (where possible) across our brands, entities, and regions.

We have engaged the B Lab team that supports organisations on their journey to becoming a B Corp and are on track for our 2025 commitment to achieve B Corp certification. In 2020, our teams around the world made great progress in completing business impact self-assessments and putting in place plans and operational adjustments to improve our responsible business model.

Our contribution to the health of the community extended far beyond our financial and product donations made during the year to support those most at-risk and suffering. In line with our material topics, we returned our R&D focus to developing products that deliver strong consumer health outcomes and met our commitment to launch five new initiatives that contribute to reducing the risk factors associated with the largest preventable health challenges. We also launched our Responsible Marketing of Breast Milk Substitutes policy aligned to the World Health Organization (WHO) Code and participated in the global Call to Action. During the past few years, we reached more than one million people with health initiatives and by the close of 2020 raised and invested over US$500,000 via the H&H Foundation. More than 2,000 team members across our regions participated in our World Community Day in November, united through a walking challenge to collectively raise funds in a 24-hour period for our local charity partners.

From an environmental perspective, we have also reached some important milestones. We integrated our Raw Material Sourcing Policy (developed in 2019) into our innovation process and will continue to embed the important process of understanding the environmental and social impact of our products from initiation. We also doubled our contribution to the protection of the ecosystems associated with our most critical raw ingredients.

I am pleased to say that following my announcement in 2019 to commit to renewable energy, over 85% of our operations in 2020 were powered by renewable energy. One of the exciting energy projects from 2019 was the installation of a photovoltaic solar panel farm on our facility in Guangzhou, China which covers 4,200m2 and produces 450,000kWh of energy per year. It is now providing the benchmark and leading the way for renewable electricity for our operational sites that account for over 80% of our electricity consumption

A number of our targets for 2020 centered on decreasing our waste and emissions. For our manufacturing and supply operations, we were able to monitor a significant decrease in waste to landfill and water consumption, however the unprecedented scenario of having many team members working from their homes for extended periods throughout year made it unrealistic to compare data such

as water consumption, electricity use and landfill waste to previous years. In the areas that we could measure, we had a 5% reduction in water consumption and 20% reduction in waste to landfill in 2020, compared with 2019. We continue to offset the emissions we can't immediately reduce to maintain our carbon neutral status.

As we move forward into 2021, we remain committed to realising our vision to be a global leader in premium nutrition and wellness whilst contributing positively to society and the environment. Our footprint on the planet must remain central to better understanding the impacts of every aspect of our supply chain and facilitating better decisions and processes.

Over the longer term, we see incredible opportunities arising from the permanent changes that the COVID-19 pandemic has triggered in consumer demand and behaviour, particularly the growing appetite for immunity- boosting and health-related products.

Finally, I would like to take this opportunity to reflect on the united effort that is takes to achieve the successes we had in such a year as 2020.

OUR 'ONE BIG TEAM' - ENCOMPASSING OUR TEAM, STRATEGIC BUSINESS PARTNERS AND STAKEHOLDERS - ARE CORE TO DELIVERING ON OUR SUSTAINABILITY JOURNEY AND END GOAL OF CREATING SHARED VALUE.

We are grateful for our team and business partners and look forward to delivering further progress together in 2021.

LAETITIA GARNIER

CEO

G R O U P

S U S T A I N A B I L I T Y G O V E R N A N C E

H & H

N O T E F R O M O U R B O A R D

The H&H Group was founded with a social purpose - an ambition to make an impact on the health and wellbeing of infants through our first product, a children's probiotic, scientifically proven to elevate immunity. We are proud to champion that heritage and expand it through a comprehensive sustainability strategy to nourish people and the planet, with clear impact milestones and monitoring of progress.

The Board supports the transition from sustainability governance and aligned philanthropy - which have been important foundations from which to build - to the identification of opportunities of shared value. We understand this will not only protect the longevity of the company for years to come, but also contribute to a prosperous society in which we are a corporate citizen.

We see our four impact areas of good health, human rights, environmental footprint, and governance as interconnected and as such, we look at these in totality. Evaluating these four impact areas and their interconnectedness allows us to determine key areas of focus - to ensure our ability to continue doing what we do well now, but also hone in on areas which can bring sustainable growth.

THE BOARD HAS ULTIMATE RESPONSIBILITY FOR SUSTAINABILITY GOVERNANCE.

In 2020 we:

• maintained monthly sustainability updates to Board
• increased engagement on materiality and validation of topics
• increased oversight of sustainability strategy
• dedicated time to sustainability performance and governance in all Board meetings
• all Board members complete an annual conflict of interest questionnaire.

BOARD

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Throughout 2020 we reviewed the results of our stakeholder interviews and analysis that identified the most material topics and their accompanying definitions. We then provided feedback on categorisation, refinement of topic scope and definitions, and making the outcomes clearer.

We received a monthly update on performance across our material topics from the Sustainability team and were presented an overview of performance prior to the release of this Report. We recognise the great strides the Group has made across all impact areas in 2020, and look forward to the continued progress in the lead up to our 2025 goal of becoming a B Corp.

One of the key values within H&H is to be brave, and our aspirations certainly reflect this. 2020 was the year of 'unprecedented times' and we see rising social and environmental risks globally that impact our ability for busines continuity. We believe management of the material topics identified in this Report gives confidence to our ability to be resilient to these risks and this was demonstrated by the limited impact on our supply chain throughout the COVID-19 pandemic.

In 2021, we will continue engagement and focus across our four impact areas and provide even greater input on the implementation and monitoring of sustainability initiatives.

LUO FEI

CHAIRMAN

EXECUTIVE TEAM

THE EXECUTIVE TEAM MANAGES BUSINESS PERFORMANCE IN LINE WITH OUR FINANCIAL, ENVIRONMENTAL, SOCIAL AND GOVERNANCE GOALS AND OBJECTIVES.

• All senior leaders have specific sustainability key performance indicators (KPIs) set at the beginning of the year and reviewed as part of their annual performance reviews.
• Each senior leader also has periodic meetings with the Sustainability team to monitor progress throughout the year.
• In 2021 this performance will be tied to their financial incentive plans and each senior leader will be required to meet at least quarterly with the Sustainability team.

SUSTAINABILITY TEAM

THE SUSTAINABILITY TEAM CONDUCTS MATERIALITY ASSESSMENTS, SETS THE SUSTAINABILITY STRATEGY AND MONITORS PROGRESS ON OUR SUSTAINABILITY PERFORMANCE.

In 2020 we:

• identified opportunities for shared value across the group, known as our nourishing people and the planet strategy
• conducted at least one self-assessment using the B Impact Assessment in all four of our regions.

ALL TEAM

ALL TEAM MEMBERS ARE RESPONSIBLE FOR THINKING ABOUT HOW THEY CAN CONTRIBUTE TO OUR SUSTAINABILITY STORY AND IMPACT AREAS.

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M O O N

C O M M U N I C A T I O N S

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H & H F A M I LY

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W E L C O M E T O T H E W O R L D O F H & H

H & H G R O U P

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W E L C O M E

T O T H E W O R L D

O F H & H

H & H G R O U P I S A G LO B A L P R E M I U M FA M I LY N U T R I T I O N A N D W E L L N E S S P R OV I D E R .

We are dynamic and ambitious in our mission to inspire wellness and make millions of people healthier and happier, while contributing positively to the needs of society and the planet.

OUTER CIRCLE BRE AK S DOWN OUR TE AM MEMBERS BY AGE GROUP

E X E C U T I V E

W H E R E W E A R E

Globally headquartered in Hong Kong SAR, China and listed on the Hong Kong Stock Exchange (HKEx), our 3,400- plus team members are located across 13 countries - Australia, New Zealand, Greater China, Singapore, India, Indonesia, Switzerland, France, Italy, the Netherlands, Ireland, England and the United States.

Our major H&H Group Research and Development (R&D) Centres are located in Switzerland, Ireland, China and France.

Note: China's three year standard employment contract system is included as permanent for the purposes of reporting given this is the standard system.

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H & H G R O U P

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A S S O C I A T I O N S A N D E X T E R N A L I N I T I A T I V E S

W E E N G AG E W I T H VA R I O U S A S S O C I AT I O N S A N D H O L D M E M B E R S H I P S W H E R E W E S E E S H A R E D VA L U E W I T H I N C E R TA I N TO P I C S , O R

R EQ U I R E C E R T I F I C AT I O N ,

O R S E E O P P O R T U N I T I E S F O R CO L L A B O R AT I O N - W H E T H E R I T B E I N S C I E N C E , I N N OVAT I O N , O P E R AT I O N S O R B R OA D E R

A DVO C AC Y. W E D O T H I S

W I T H A N AWA R E N E S S O F O U R R E S P O N S I B I L I T Y A S A

M U LT I N AT I O N A L CO M PA N Y T H AT H A S T H E A B I L I T Y TO E N H A N C E T H E S O C I A L A N D ECO N O M I C

C L I M AT E I N W H I C H W E O P E R AT E .

H & H G R O U P

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J O R A N N A

C U S T O M S A F F A I R S

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O U R F O C U S A R E A S

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S U S T A I N A B I L I T Y A T H & H

C H A N G E S I N 2 02 0

SOCIALLY AND ENVIRONMENTALLY, 2020 WA S AN INCREDIBLY CHALLENGING YE AR . UNFORE SEEN E X TERNAL FAC TOR S ,

IN PARTICUL AR THE REPERCUSSIONS OF COVID -19, WERE REMINDER S OF WHY A COMPREHENSIVE PL AN, AN ENG AGED TE A M AND UNITED FOCUS ON WHAT WE IDENTIF Y A S M ATERIAL

IS IMPORTANT. IN 2021, WE WILL CONTINUE TO BUILD ON THIS BY IMPLEMENTING RELE VANT KPIS AT MIDDLE M ANAGEMENT LE VEL .

K E E P I N G O U R M AT E R I A L I T Y U P T O DAT E

Regular, open and transparent communication with our stakeholders is essential in sustaining responsible growth and progress across the Group.

We also recognise stakeholder engagement as the core principle of becoming a certified B Corp in the future. We have refreshed our materiality in 2020, incorporating a number of different resources from our stakeholders as well as conducting interviews with internal and external stakeholders.

Our stakeholders proactively contact us about environmental and social matters through a number of channels. For example, our investors regularly request information via our Investor Relations team regarding

specific topics, such as climate risk and responsible marketing; and our customers can make enquiries regarding formulations, packaging sustainability and suppliers through our customer service channels. We often conduct one-on-one briefings with investors to talk through these topics and ensure clear understanding of their expectations and concerns are considered in our materiality. We also actively ensure that information about our sustainability approach and practices is available and easily accessible in

a variety of forms. Our Sustainability Reports are stored on our H&H website. Specific product-related sustainability information is built into our web-based customer platforms, so it's there and available at the point of (online) purchase.

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The abnormal conditions that resulted all over the world as a result of the COVID-19 pandemic, including travel and workplace changes and restrictions, had a significant impact on our ability to accurately report site-based environmental data. We believe this has resulted in under-reporting and, as a result, the Group has revised our commitment to reduce waste to landfill by 20% to 2021.

Our business is fast moving and agile, which means, particularly where we have engaged in acquisition or organisational changes, Group- wide alignment remains a challenge. That said, our four sustainability impact areas have remained central to business decision-making and we are seeing an increased understanding and focus that is translating into progress across all brands, regions and sites.

We have examined and incorporated external frameworks and embedded feedback from stakeholders on our performance to ensure we are meeting the expectations of investors and the industries in which we operate across environmental, social and governance (ESG) factors. In 2020, our work was recognised with an upgrade to an 'A' ESG rating from the MSCI Index which means we are in the top

26% of all food product businesses that have been rated by MSCI. We also received an 'A' ESG rating from Hong Kong Quality Assurance Agency (HKQAA) in 2020. We continue to work

towards receiving an even higher rating in the future with a focus on the topics highlighted in this Report.

In 2020 we began the B Corp Multinational Certification approach which has seven phases.We have completed the Discovery phase, are currently working through the pre-screening phase and the scoping phase which should give is a clear roadmap for entity assessments and verification in 2021. We have proactively completed the business impact self-assessments in our major regions to give us visibility on our current performance, and have begun implementing improvement plans across target markets. We are on track to be B Corp certified across the Group by 2025.

2019-2020

SEHK:1112

Disclaimer statement:

THE USE BY HEALTH AND HAPPINESS (H&H) INTERNATIONAL HOLDINGS LIMITED OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF HEALTH AND HAPPINESS (H&H) INTERNATIONAL HOLDINGS LIMITED BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

Primary Stakeholders

Secondary Stakeholders

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COMPETITORS

O U R I S S U E I D E N T I F I C AT I O N , P R I O R I T I S AT I O N A N D I S S U E VA L I DAT I O N P R O C E S S I D E N T I F I E D T H E F O L L O W I N G T O P I C S A S I M P O R TA N T T O T H E L O N G - T E R M

S U S TA I N A B L E G R O W T H O F H & H :

• Internal interviews: Nine key internal stakeholders across H&H Group brands, functions and locations.
• Document review: Corporate risk assessments, previous materiality assessments, policies and standards.
• Peer review: Benchmarking against six publicly listed international peers.

• Media review: Coverage of H&H Group, its brands, and industry.
• External Review: Key topics raised by stakeholders (customers, investors, suppliers and industry bodies).
• Compliance Review: Cross-check against the requirements of the Hong Kong Stock Exchange.

The story of good health

Our footprint on the planet

Honouring human rights and fairness

Low High

Governance

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Output:

A total of 46 topics identified

2 I S S U E P R I O R I T I S AT I O N

• Priority criteria and weighting: Review against existing priorities.
• Brand-specificpriorities: Cross-checking brand and market-specific priorities.
• Issue boundaries: Understanding the impacts the business has control over.
• ESG investor benchmarks: Dow Jones Sustainability Index (DJSI), MSCI, Sustainability Accounting Standards Board
  (SASB) and Task Force on Climate-related
  Financial Disclosures (TCFD) frameworks reviewed and incorporated.

IMPORTANCE TO H&H

3 I S S U E VA L I DAT I O N

Overall, the results of our materiality assessment reinforce our existing sustainability strategy and initiatives, with some tailoring of our commitments for 2020 through to 2025. There are three emerging new topics that are important to bring into our consideration

Consumer engagement and specifically, delivering health outcomes for consumers, needs to be central in our broader business strategy as our core value proposition. Digitisation was recognised as a key enabler for many topics, particularly consumer engagement, governance and product access.

• Internal workshop: Board-led validation workshop.

Review and sign-off:

The Board and Executive team made issues a declared management priority and aligned on strategy.

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In some of these topics, we are already performing well, and sustainable actions are already part of normal business operations, for example, product safety and quality, where no change to our management approach is required.

Our supply chain holds risks but also the greatest opportunities for positive shift and environmental impact.

We have realigned and refreshed our commitments in line with our four areas of impact.

H & H G R O U P

C O M M I T M E N T S

THE STORY OF

GOOD HEALTH

REDUCING OUR FOOTPRINT

ON THE PLANET

HONOURING HUMAN RIGHTS

AND FAIRNESS

GOVERNANCE

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2020

(COMPLETE)

2021

Review of our Responsible Marketing of Breastmilk Substitutes Policy, align with China and respond to WHO 'Call to Action'.

Launch five new initiatives that contribute to reducing the risk factors of the large preventable health challenges.

Reach 1 million people with health initiatives through the H&H Foundation.

Raise and invested US$500,000 into the H&H Foundation.

Launch a strategy for plant-based innovation and products.

Identify two plant-based product opportunities that have science- based health benefits that contribute to reducing risk factors for non-communicable disease.

2022

2023

Build a direct to consumer (DTC) engagement model (informed by research) that supports consumers on their broader wellness journey.

Translate H&H Science and/or BINC research into a minimum of two product opportunities.

Implementation of shared value programs (including H&H Foundation) in all markets.

2024

2025

Each product category to launch a product designed in collaboration with a health care practitioner group.

H&H Group B Corp certified

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*Commitments have been delayed by 12 months due to limitations as a result of COVID in 2020

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O U R S U S T A I N A B I L I T Y I M P A C T A R E A S

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US$1,451,627

CONTRIBUTED TO

COMMUNITY PROGRAMS

ACROSS THE GROUP

781,886

PEOPLE REACHED

THROUGH H&H

FOUNDATION

PROGRAMS IN 2020

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PROPOSALS SELECTED FOR FUNDING THROUGH BIOSTIME INSTITUTE OF NUTRITION AND CARE (BINC) PROGRAM

T H E S T O R Y

O F G O O D

H E A LT H

W E A D V O C AT E A N D E D U C AT E T O S H A R E T H E B E N E F I T S O F A H E A LT H Y L I F E S T Y L E , S P R E A D W E L L N E S S , A N D T E A M U P W I T H L I K E - M I N D E D PA R T N E R S .

We invest in activities that help people to live healthy lives and promote wellbeing for all ages through the pillars of mind, movement and nutrition.

We create products that contribute to the health and wellbeing of consumers worldwide.

We build a healthier and happier world by cooperating with partners and suppliers that share our values regarding people and sustainability.

H & H G R O U P

B I N C C H I N A

T H E B I N C B A S ED I N C H I N A A I M S TO B O L S T ER S C I EN T I F I C R E S E A RC H A N D T EC H N I C A L

U N D ER S TA N D I N G I N N U T R I T I O N A N D C A R E FO R M OT H ER S A N D C H I L D R EN I N C H I N A .

B I N C G E N E V A

G E N E VA - B A S E D B I N C O F F E R S G R A N T S F O R R E S E A R C H S C I E N T I S T S W O R K I N G I N U N I V E R S I T I E S , H O S P I TA L S A N D O T H E R A C A D E M I C I N S T I T U T I O N S A C R O S S E U R O P E .

Y O F G O O D H E A LT H

As part of the Biostime Institute of Nutrition and Care (BINC) program, five projects were selected by the BINC Scientific Advisory Board in 2020.

The selection was made following an application process in which we received 112 high-quality submissions from scientists based at reputed universities, academic institutions and hospitals around the world. The applications were aligned with our five areas of expertise: microbiota; infant brain development; child nutrition and obesity; allergy;

It draws on resources from across the globe to form a world-class research team of nutrition scientists and maternal and child food and care providers, focusing on providing optimal protection for mothers and children in China. BINC China annually contributes RMB 1million for scientific research in these areas.

The five successful project applications chosen by BINC (China) in 2020 are listed below.

BINC CHINA SUCCESSFUL PROJECTS

Shenzhen Institutes of Advanced

Technology Chinese Academy of Sciences.

Effects of pre-pregnant psychosocial stress on offspring gut microbiome and cognitive development.

Peking University First Hospital. Study

The research grants provide financial support for innovative research projects in the fields of infant gut microbiota and allergy, infant brain development, skin microbiota, infant obesity and postpartum depression.

The five successful project applications chosen by BINC (Geneva) in 2020 are listed below.

The grants are up to €50,000 per project for pre-clinical research and up to €100,000 per project for clinical research.

ITALY 5%

FRANCE 7%

IRELAND 18%

PORTUGAL 13%

SWITZERLAND 11%

USA 11%

T H E S T O R

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and women's health during preconception and pregnancy.

The grants are up to €50,000 per project for pre-clinical research and up to €100,000 per project for clinical research.

on the intestinal microecological characteristics of children with autism spectrum disorder and the influencing factors of probioticsiIntervention effect.

Guangzhou Women's Medical and Children's Center. Study on the association between dietary choline intake, serum choline and its metabolite levels and neurobehavioral development of premature infants after discharge from hospital.

Qingdao University. A study on the effect and mechanism of lactobacillus reuteri in preventing gestational diabetes.

Jiangnan University. Development of sIgA coated bacteria in infant gut microbiota and their correlation with maternal health.

BINC GENEVA SUCCESSFUL PROJECTS

H & H G R O U P

O U R F O O T P R I N T O N T H E P L A N E T

A S A G LO B A L C O R P O R AT E C I T I Z E N D E D I C AT E D T O

S E R V I N G M O T H E R S , B A B I E S

A N D FA M I L I E S , W E C A R E A B O U T

T H E P R E S E R VAT I O N O F A

H E A LT H Y P L A N E T F O R F U T U R E

G E N E R AT I O N S .

84%

RENEWABLE

ELECTRICITY ACROSS

THE GROUP

6%

REDUCTION IN

CO2 EMISSIONS

9%

REDUCTION IN WATER

CONSUMPTION

15%

REDUCTION IN

OVERALL WASTE

INCREASED

RECYCLING RATE BY

O U R

F O O T P R I N T O N T H E

P L A N E T

W E U S E R E S O U R C E S

E F F I C I E N T LY A N D A C T O N

C L I M AT E C H A N G E T O P R E S E R V E O U R E N V I R O N M E N T F O R

F U T U R E G E N E R AT I O N S

We aim to achieve economic growth whilst engaging in sustainable procurement practices and protecting the ecosystems on which we rely for raw ingredients.

We provide consumers with information through standards and labels to ensure traceability and transparency.

We continuously strive to use resources more efficiently, be mindful of our carbon footprint and make conscious decisions to reduce and offset our emissions.

3 8

14%

H & H G R O U P

H O N O U R I N G

H U M A N R I G H T S A N D F A I R N E S S

OUR PHILOSOPHY OF HE ALTH AND HAPPINE SS BEG INS WITH OUR PEOPLE - ENCOMPA SSING , BOTH OUR TE A M MEMBER S EMPLOYED BY THE ENTITIE S WITHIN THE GROUP AND THE PEOPLE WITHIN OUR SUPPLY

THE DIAGRAM BELOW THE CYCLE OF HOW WE AID TALENT AT H&H GROUP:

Drawing on our internal talent pool to fill High Performance Teams; filling vacant and upcoming roles

0 S U S T A I N A B I L I T Y R E P O R T

CHAIN . WE RECOGNISE OUR PEOPLE ARE ONE OF OUR

GRE ATE S T A SSE T S AND PROTEC T THEIR BA SIC HUM AN RIGHT S A S THE FOUNDATION OF HE ALTH AND HAPPINE SS .

In 2020 we launched Our H&H Code of Conduct across all markets. The Code sets out our global standards which are supported by our values, driven by our behaviours and which each team member must follow every day. Having a collective Code

H&H

TALENT

CYCLE

REWARD AND

RECOGNITION

ONBOARDING

AND

ORIENTATION

PERFORMANCE

DEVELOPMENT

Developing individuals to drive performance and engagement:

• 360 performance reviews
• Ability + Influence x Drive (AID) assessment tool

Finding the GaBa talent needed now and for the future

• Talent attraction process
• Talent attraction tools
• Employer Branding

Setting our team members to understand AID and how they are performing :

2 0 2

of Conduct unites us as One Big Team and helps to ensure cultural consistency across all our regions whilst still allowing for localised information to be laid out in regional employee handbooks and contracts.

• Learning (China)
• Learning Hub

DEVELOPMENT MODEL AND TURNOVER:

T I N G T I N G

Our People and Culture teams across the business units manage employee working conditions, remuneration and wellbeing as well as compliance with relevant regulations. They are committed to promoting diversity, inclusiveness, fair recruitment, employee retention and development. At all stages of talent development, we assess, give feedback, develop, reward and promote our talent based on the following three factors:

• Our team are a younger demographic and global trends are showing shorter tenure than older generations and they also value organisations that are purpose led and align with their values
• Key reasons given for leaving the organisation is career growth and progression. We are quite a flat structure - not as structured and hierarchial as more traditional organisations with clear career pathways.

• Our key focuses to address these challenges are:
• • investment into leadership and emerging leaders programs to support leadership development
  • targeted development opportunitites in technical and critical skill areas
  • talent mapping and development plans
  • mentoring and internship programs

• cross-functionalproject and secondment opportunitites
• reward and recognition of performance
• strengthening our credentials as a purpose- led organisation
• sustainability

4 8

P R O D U C T M A N A G E M E N T

All of our team members received performance reviews in 2020 at a minimum of annually.

H & H G R O U P

D F A I R N E S S

J O A O

P R O D U C T D E V E L O P M E N T

WORKING CONDITIONS AND ADDITIONAL BENEFITS

All of our team members are of an appropriate age; all work is conducted on a voluntary basis and working hours are reasonable to the standards set by local regulatory bodies and clearly stated in employment agreements.

We have highly reputable systems for looking after our people at H&H Group, as demonstrated by the five awards received related to our employment practices in 2020. To see a detailed statement of how we protect individuals touched by our business particularly in relation to modern slavery please see our 2020 Modern Slavery Statement.

We offer many additional benefits, including team fitness classes, gym allowances, vaccinations, skin checks, healthy team lunches and guided meditation, to our team members across the regions. Our regional People and Culture teams determine the best health-related benefits that are relevant for team members in each location.

FINANCIAL SECURITY

Our benchmark for renumeration is often set far above the minimum requirements, however, we do ensure at a minimum every team member is paid a fair wage. We monitor market rates in most regions utilising our banding structure to ensure we are providing attractive benefits for team members at varying stages in their career or levels of management. We incentivise and reward our team members with industry benchmarked salaries and bonuses for meeting or exceeding goals and targets.

OVER 97% OF NON-EXECUTIVE TEAM MEMBERS RECEIVED A BONUS

Salaries are reviewed at least once per annum, with consideration given to the individual's role, responsibilities and performance.

RECRUITMENT

To ensure we offer equal opportunity to prospective team members, our Talent Acquisition team ensures that for each role, we interview a diverse mix of candidates. We understand that age, race, gender, religion and ability can result in unfavourable treatment or discrimination and whilst our team is consciously trying to avoid this, we know that there may be unconscious bias. To avoid this in North America and Australia we are trialling 'blind interviews'. In 2020 we recruited 999 new team members.

RETENTION

We monitor employee retention, seeking to understand why our employees sometimes choose to leave.

We experienced high business volatility along with restructuring in many of our regions in 2020 which has led to a turnover rate of 25% - a 6% increase in turnover from 2019 levels. We will continue to monitor turnover with more frequent reporting, including a breakdown of functional teams, to draw insights and set benchmarks for target rates.

H O N O U R I N G H U M A N R I G H T S A N

5 0

We also offer life insurance, parental leave, retirement provision, stock ownership, health care and disability and invalidity coverage, all helping to keep our team members healthy, happy and financially secure.

IN 2020 WE SPENT US$2,726,900 ON TEAM MEMBER WELLBEING ACROSS THE GROUP.

US$3,000,000

US$2,500,000

US$2,000,000

US$1,500,000

US$1,000,000

US$500,000

2020

0

2020 RECRUITMENT AND TURNOVER

Note: This figure includes a lunchtime subsidy that was not taken into account in previous years' reporting.

Note: The high turnover figure for USA reflects the relocation our office from San Diego to Los Angeles in 2020.

H & H G R O U P

H O N O U R I N G H U M A N R I G H T S A N D F A I R N E S S

We report on parental leave and return to work rate as a means of measuring how we are supporting parents as they grow their families. Given we are in the business of inspiring wellness at every life stage, and have a huge focus on baby nutrition and care, we think it's particularly important that we 'walk the talk' and give the mums and dads in our teams the chance to take time off work and return to their jobs without impacting their career progression. All our team members are entitled to paid parental leave, although the eligibility criteria and amount available varies from region to region. We go beyond regulatory parental leave requirements in two of our five regions, providing additional paid leave, superannuation payments whilst on unpaid leave and up to 10 paid 'keeping in touch' days whilst on unpaid leave. We also recognise this is a way of supporting gender equality across our operations.

200

Number of team members that took parental leave % that returned to work after their leave period

HEALTH, SAFETY AND WELLBEING

Our Global Health and Safety Policy has been implemented at all sites across the world, covering 100% of our team members, in 2020. The Policy covers how to manage and raise health or safety risks and log and manage incidents as well as many other components.

We are proud to report that across the Group we have had no incidents of non-compliance with relevant laws and regulations relating to providing a safe working environment and protecting employees from occupational hazards in 2020.

Unfortunately, we had one injury at one of our sites in 2020 which resulted in two lost days of work. In the previous year (2019), we recorded four injuries which resulted in 73 lost days of work.' This is a 75% reduction in the number of injuries compared with 2019.

TRAINING AND DEVELOPMENT

We provide our team members with a wide variety of training and development opportunities, covering leadership, diversity, performance, workplace culture, induction, productivity, and technical training.

We also offer information and training on healthy living, diet and nutrition in line with our wellness philosophy.

1,918

TOTAL NUMBER OF TEAM MEMBERS THAT UNDERTOOK FORMAL TR AINING AND DEVELOPMENT IN 2020

56% OF TEAM MEMBERS IN THE GROUP

TRAINING AND DEVELOPMENT IN 2020 BY CATEGORY:

35,000

30,000

5,000

2020 increase 2019

0

31,524

HOURS

TOTAL NUMBER OF HOURS OF TRAINING AND DEVELOPMENT UNDERTAKEN ACROSS THE GROUP

No fatalities at H&H for as long as we have been reporting, since 2017.

In 2020 we had no incidents of non-compliance relating to compensation, recruitment and promotion, working hours, rest periods, equal

M A N AG E M E N T

E X E C U T I V E

28.69

100% (375)

14.57

89% (41)

85.67%

5 2

opportunity, diversity, anti-discrimination, other benefits and welfare and national labour laws and standards. However, we had four cases of unfair dismissal, with three resulting in penalties.

Average number of hours of training and development

Percentage and number of team members that undertook training and development

OVERALL SATISFACTION RATING FROM TEAM MEMBERS IN RELATION TO TRAINING AND DEVELOPMENT

H & H G R O U P

J A C K Y

H & H F A M I LY

G O V E R N A N C E

G O V E R N A N C E

WE MAKE DECISIONS TAKING

ALL STAKEHOLDERS INTO

ACCOUNT, ULTIMATELY SERVING

OUR PURPOSE TO MAKE PEOPLE

HEALTHIER AND HAPPIER .

We act with strong principles and put in place structures, processes and monitoring systems that work towards a sustainable future.

We monitor and mitigate risks and capture opportunities that support our mission.

We transparently share information relating to company performance.

We have a Group-wideAnti-Corruption and Whistle Blowing Policy and system, called HH Speak Up. This applies and is available to all team members across regions, suppliers, and retailers.

We regularly communicate with our team members on appropriate conduct in our business and the broader marketplace. This was emphasized in the launch of our Group-wide Code of Conduct in 2020 that references HH Speak Up several times as a channel for raising concerns.

The Code of Conduct covers the Group's approach to preventing corruption, bribery, money-laundering, and fraud, as well as our approach to whistleblowing and information on the HH Speak Up system.

At induction all team members, including directors and managers, are required to complete training on anti-corruption and bribery in the on boarding process. There is content specific training annually for the supply chain department where the risk is higher due to more frequent engagement with external parties. There is quarterly communication on HH Speak Up and within China there are also case studies shared via WeChat to raise awareness of what bribery and corruption looks like and resulting action taken. We also have a formal communication plan for suppliers ensuring they are also aware of our policies and expectations and where to raise any concerns.

Our Risk Management team conducts an annual risk evaluation that covers every region and function within the Group, and the results are reported to the Board, Audit Committee and Senior Leadership team. No risks were identified in 2020 relating to bribery and corruption. 16 distinctive cases were reported via HH Speak Up in 2020. All cases were appropriately followed and investigated by responsible departments, for two of which, external professional resources were introduced to facilitate the thorough investigation. We had no legal cases regarding corruption practices against any of our brands during 2020.

We believe the whistle blowing system continued working well as we were always striving to increase its visibility and awareness. Through regular communication, more partners (i.e. suppliers, distributors and customers) and employees are willing to report via HH Speak Up. We will continue to carry out relevant anti-fraud and compliance training, demonstrating the Group's adherence to compliance, transparency and integrity culture and values.

INTELLECTUAL PROPERTY (IP)

We maintain a central, Group-wide Intellectual Property and Trademark Register, which is administered by the Group's Legal department with support from external law firms. This process manages disputes alongside any other IP challenge.

Each brand also monitors the market for local infringements on IP rights and trademarks, and escalates issues to the Legal department for their region. We had no incidents of non-compliance related to IP in 2020. We also maintained the Group product information database, where confidential product information on our brands and product categories can be safely stored and used.

GOVERNMENT RELATIONS AND COMPLIANCE​

Our risk analysis in 2020 identified that political tensions pose a risk to our ability to market globally, making our government relations topic even more critical. Our engagement with policymakers is managed by our Government Affairs team, which works to strengthen the Group's relationship with governments in all of our markets, positioning the company as an industry leader and a trusted advocate on a range of important industry development issues.

We do this through long-term relationship building and advocating pragmatic, evidence-based policy solutions through one-on-one meetings with politicians and their advisors, as well as participating in key forums and events.

In 2020, our engagement activity looked to promote public policy settings that deliver legislative frameworks that reward responsible, and restrict irresponsible, business behaviours, with relevant enforcement. We supported standards-based systems. Engaged in global public policy discussions regarding trade agreements on IP and market access; and seeking government support for key business expansion (AU, UK, HK and CN) and industry development. The team also continued to build our four sustainability impact areas into government communications and engagement strategy in 2020.

We do not have any government entity in our shareholding structure. The H&H Group did not make any financial or in-kind political contributions in 2020.

H & H G R O U P

H & H S T R A T E G Y A N D V I S I O N

A S AN ENABLER FOR OUR VISION, OUR GROUP STR ATEGY IS ANCHORED IN OUR DESIRE TO CRE ATE LONG -TERM VALUE FOR ALL OUR STAKEHOLDERS, INCLUDING SHAREHOLDERS .

We need to shift our

mindset towards

shared value, seeing

sustainability as a business success driver.

T Y R E P O R T

Our consumer focus underpins an 'outside in' approach which drives a greater emphasis on making considered choices in the way we expand.

Our primary growth contributors remain organic growth in our existing markets, expanding into new markets and new product categories, and through strategic mergers and acquisitions and partnerships. We believe we can continue to build from our strong core business, expanding our holistic wellness offering through targeted innovation in product development and new technology, and solutions such as personalisation.

When faced with both challenges and opportunities, we have always positioned H&H

Group as a mission-driven, and sustainable company that is committed to investing for the future and creating platform for profitable growth.

We also strongly believe that sustainable development is a necessity and not a choice. The concept of shared value plays an increasingly present role in our global strategy across each of ANC, BNC and PNC businesses.

We have a robust development plan for the next three years which outlines a return to our traditional fast-growing path of achieving sustainable profit growth and growing market share in all major categories.

We need to focus not

only on consumer acquisition but also on retention, and create omni-channel consumer experience.

We need to

accelerate our digital

2 0 2 0 S U S T A I N A B I L I

To become a global leader

in premium nutrition and wellness

through superior products and aspirational brands

WHAT THIS

MEANS FOR H&H

capabilities with a

data driven approach,

to be more visible

online with the right content, experience and fulfillment.

strengthening

R&D and science

Winning in core

Clear leadership for core brands in their stronghold market(s)

• Biostime China
• Swisse China
• Swisse ANZ domestic

Globalisation and diversification

Expansion into new markets - core brands and fast-growing new category with right to win

• Swisse globalization
• Biostime globalization
• PNC scale-up
• Adjacent sub-category (baby food, baby care, skincare)

Investing for the future

Seeding and new business model with a longer time horizon

• Digitization
• Sustainability, including plant- based, packaging
• Breakthrough innovation, incl. NewH2

We are well

positioned in the

right categories. Now

we need to focus

on winning in these

categories.

communication will help us respond to increased demand for preventative health and holistic wellness.

5 6

H & H G R O U P

T A X T R A N S P A R E N C Y S T A T E M E N T

H&H GROUP SUPPORTS TA X TR ANSPARENC Y TO ENSURE THE BUILDING OF TRUST IN THE MANY TA X JURISDIC TIONS IN WHICH WE OPER ATE .

I N A B I L I T Y R E P O R T

H&H Group pursues a proactive approach to tax strategy. Long-term tax planning seeks to enhance sustainability and shareholder value whilst having full regard to all relevant tax laws and regulations. These principles are governed by the Group Tax Risk Management Policy (the "Policy"). This Policy is approved by the Board of H&H Group and covers:

• tax strategy
• tax governance principles
• tax risk appetite
• tax risk management.

This Policy is reviewed annually and supported by the Group Delegation of Authority, Group Risk Management Policy, and the Group Transfer Pricing Policy.

OUR TAX CONTRIBUTION

H&H Group operates in numerous countries and as a corporate taxpayer contributes to the economies of the regions in which we operate. The distribution of taxes paid by the H&H Group reflects the geographical spread of the Group's businesses.

The parent entity of the H&H Group is Health and Happiness (H&H) International Holdings Limited, which is a Hong Kong tax resident. The principal subsidiaries are disclosed in the FY2020 Annual Report.

All related party transactions are conducted under arm's length methodologies prescribed by the Organisation of Economic Cooperation and Development, both at normal market prices and on normal commercial terms, and in accordance with global transfer pricing laws.

During FY2020, the key business dealings between related entities of the H&H Group related to sales of tangible goods.

EFFECTIVE TAX RATE

2 0 2 0 S U S T A

THE 2020 CORPORATE INCOME TAX RATES OF THE COMPANIES

IN WHICH THE H&H GROUP OPERATES ARE:

SINGAPORE17%

NEW ZEALAND 28%

The effective tax rate is an accounting concept and reflects the income tax accrued on the profit for a particular year. It differs from the actual income tax payable in that year due to timing differences, where the timing of income and expense recognition differs for accounting and tax purposes.

H&H Group's effective tax rate (i.e. its accounting income tax expense expressed as a percentage of the profit before tax) was 29.2% in FY2020 and reflects:

• non-deductibleexpenses
• tax losses not being recognised
• regional tax rate differential
• tax concessions.

H & H G R O U P

V A L U E C H A I N

V A L U E C H A I N

IMF

FeedMilk

cultivation production

SKINCARE

VHMS

Raw material

PACKAGEDproduction

FOODS

Research and development

DIAPERS AND BABY

ACCESSORIES

Raw material

extraction

PACKAGING

Resource

production and

extraction

End of life

H & H G R O U P

CASE STUDY

H O W G O O D G O Û T I S N O U R I S H I N G ( L I T T L E ) P E O P L E A N D T H E P L A N E T A C R O S S T H E V A L U E C H A I N

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

IN LINE WITH OUR S TR ATEGY TO NOURISH PEOPLE AND THE PL ANE T, GOOD GOÛT L AUNCHED

• SHARED VALUE PARTNER SHIP WITH FOUNDATION GOODPL ANE T
  IN FR ANCE TO DRIVE IMPAC T
  NUTRITIONAL EDUC ATION FOR YOUNG FA MILIE S , AND AL SO FUND THE PRE SERVATION OF
• VULNER ABLE SPECIE S AND ECOS YS TEM . THE PARTNER SHIP FE ATURE S ON BOTH THE KIDS AND BABY R ANGE S .

Our Good Goût products start to protect ecosystems at the very beginning of their production - where our natural ingredients are grown 100% organically - all Good Goût products carry the Agriculture Biologique certification by Bureau Veritas SAS (FR-BIO-10). This certification guarantees that the production methods used meet strict non-polluting environmentally friendly specifications, respecting our soils, biodiversity, the preservation of natural resources and the assurance of a high level of animal welfare.

The ingredients then get converted to our delicious, healthy baby & kids range recipes designed by a Michelin star Chef. Not only are there no additives, but 30% less sugar than the average equivalent products in the market. The recipes are short with no weird ingredients, so parents know exactly what their children are eating. Only with ingredients parents have in their kitchen!

The products are then packed into convenient, lightweight packs and shipped to our consumers. Once finished, the packaging can be recycled through our partnership with TerraCycle (see Resource Recovery chapter for more information).

Through the partnerships with Foundation GoodPlanet which is a French NGO that works in favor of sustainable food and biodiversity we have funded 20 free workshops for kids and parents on how to balance everyday diet.

We have also funded two biodiversity programs through this partnership:

• Preservation of the elephants in Botswana:
• • This project has three objectives; to improve conservation knowledge on elephants within the community of Khumaga, improve human- elephant conflict mitigation techniques and increase the economic viability of farmers' fields
• Conservation of marine and coastal ecosystems in Mauritius:
• • This project also has three objectives; to protect coastal ecosystems in the regions of Roches Noires and Anse la Raie and reduce vulnerability to climate change, to ensure the sustainability of "Marine Voluntary Conservation Areas " (AMCV) and to expand and consolidate collaboration and partnerships with government and local and international institutions

On-pack we feature information about biodiversity to educate children on the importance of this issue.

H & H G R O U P

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

I N N O V A T I O N

H&H GROUP 'S A MBITION IS TO BECOME A GLOBAL LE ADER IN PREMIUM WELLNE SS AND NUTRITION . PRODUC T INNOVATION IS AT THE HE ART OF THIS VISION, A S WE FOCUS ON DELIVERING SUPERIOR PRODUC T S TO OUR CUS TOMER S TO SUPPORT THEIR WELLNE SS JOURNE Y. WE PROVIDE E VIDENCE - BA SED PRODUC T S WITH NEW INGREDIENT S , INNOVATIVE FORMUL ATIONS

AND DISRUP TIVE TECHNOLOGIE S THROUGH A CROSS - FUNC TIONAL PORTFOLIO, R ANGING FROM BABY TO ADULT NUTRITION AND C ARE .

In 2020, we finalised our global innovation strategy that aligns to three succinct consumer needs: protect, perform and perfect. The three key enablers to innovation in these categories have been identified as product, package and personalisation.

Our R&D team has worked on some ground-breaking research that supports these needs including:

• advanced pre-clinical models that facilitate the identification of ingredients and ingredient combinations for the development of next generation products for immunity, digestion, anti-aging, mobility support and beauty benefits
• development of different Human Milk
  Oligosaccharide (HMO) combinations with proven gut health function and microbial interactions
• gene sequencing profiling gut microbiome, breastmilk microbiome and skin microbiome composition
• investigative trials and overall formulation optimisation in infant formula protein nutritional quality for infants
• patented packaging or product format innovations that provide functional health benefits and raise quality standards
• clinical trials on formulations that, if successful, could support health outcomes for consumers who experience urinary tract infections, high cholesterol, osteoarthritis, gut microbiota challenges and neurocognitive functions and mood.

77 RESEARCH PROJECTS

6 CLINICAL TRIALS APPROVED

18 PATENTS FILED

10 TEAM PUBLICATIONS IN PEER REVIEWED SCIENTIFIC JOURNALS

We have also conducted a number of research projects to examine and assess the possibility of reduced environmental impacts. For example, analysis of plant-based or natural ingredients performance versus genetically modified, enzymatically modified or animal-based ingredients. We're excited by these projects and how they inform our plant-based strategy and product opportunities that lead to a more sustainable future right from product inception.

To help engage the scientific community in this research and spread the story of good health, attendance and contribution at high profile scientific conferences around the world are important. We were limited in our ability to hold, attend and host conferences as a result of the pandemic in 2020, but still managed to attend three highly acclaimed global events on paediatric nutrition, microbiome and maternal health. We also built out our scientific community with seven healthcare professionals and created several digital assets, such as scientific animations, expert interviews, educational videos and infographics.

US$20.1 MILLION

SPENT ON R&D IN 2020

OUR KEY STRATEGIC COLLABORATIONS

H & H G R O U P

R E S E A R C H A N D D E V E L O P M E N T

N E W P R O D U C T H I G H L I G H T S

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

OUR R&D L ABOR ATORY AT MOORE PARK , BA SED IN ONE OF THE MOS T WORLD - RENOWNED INS TITUTE S ALONGSIDE LE ADING SCIENTIS T S IN THIS FIELD, IS THE RE SIDENCE OF SOME OF OUR MOS T QUALIFIED SCIENTIS T S .

A streamlined and automated innovation system is the globally accepted best practice to achieve maximum efficiency, optimised resource utilisation and global transparency that will facilitate more successful product launches. Considering this, our stage-gate process moved to a digital best in class system and is currently being rolled out in all regions. The stage-gate approach divides project management into five distinct stages, from ideation to product launch. The process is also separated by five strategic decision-making points referred to as gates.

151 NEW PRODUCTS

LAUNCHED ACROSS THE GROUP IN 2020

NEW PRODUCTS BY CATEGORY:

Supporting our little ones' healthy immune systems

BIOSTIME IMMUNE DEFENCE CONTAINING LACTOFERRIN

Contains lactoferrin, which is naturally abundant in mothers' breastmilk, vitamin D to support healthy growth and development and maintain bone health, as well as vitamin C to support a healthy immune system function and to help fight illness.

SWISSE NUTRA +

(MAGNESIUM, COLLAGEN REPAIR, PRO STRENGTH VIT C + D, ADVANCED PREGNANCY CARE)

Expansion of the premium formulas developed based on scientific and traditional evidence, practitioner only range in Australia only available behind the counter in pharmacies.

BIOSTIME

PROBIOTICS WITH M-16V

Upgraded formula: Probiotics with bifidobacterium brevis M-16, which better prevents allergies and relieves allergic symptoms for babies.

SWISSE ME

VEGAN PROTEIN RANGE

Plant-based protein range with all nine essential amino acids, vitamins, probiotics and antioxidants.

SWISSE

ULTIBIOTICS RANGE

(ENERGY +, DEFENCE +, CLEANSE +, CALM +)

Innovative dual function format combining two premuim formulas: a probiotic capsule paired with key nutrients and herbs in a convenient tablet.

AURELIA

CBD SUPER SERUM

Scientifically advanced super serum contains unique pure crystallised CBD isolate. The lightweight, fast-absorbing, highly concentrated formula is suspended in hyaluronic acid to increase hydration, moderate sebum production and reduce wrinkles.

H & H G R O U P

R A W M A T E R I A L

S O U R C I N G

I N 2019 W E D E V E LO P E D A R AW M AT E R I A L S O U R C I N G P O L I C Y W H I C H

O U T L I N E S T H E K N O W N S U S TA I N A B I L I T Y H OT S P OT S F O R T H E D I F F E R E N T T Y P E S O F I N G R E D I E N T S T H AT W E S O U R C E F O R P R O D U C T S AC R O S S

T H E G R O U P. I N 2020 W E P R OV I D E D T R A I N I N G TO T H E P R O D U C T

D E V E LO P M E N T T E A M TO A L LO W T H E M TO CO L L EC T I N F O R M AT I O N F R O M P OT E N T I A L S U P P L I E R S O N T H O S E H OT S P OT S TO AVO I D A N Y N EG AT I V E E N V I R O N M E N TA L O R S O C I A L I M PAC T S .

D A I R Y

• All our directly procured dairy suppliers follow ISO 14001 standards for Environmental Management Systems and have environmental targets and KPIs in place.
• H&H Group continues to invest in a partnership with Isigny
  Sainte-Mere to protect the Normande breed of cow and support local farmers in keeping the cows within the region to ensure sustainable supply into the future.

F I S H A N D K R I L L O I L

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

We have seen a significant shift across multiple stakeholder groups - consumers, suppliers, local community organisations and investors - for a preference for plant-based natural ingredients. Currently 4.5% of the world's population don't eat dairy1. We are seeing many motivations for this including:

• digestive health
• environmental concerns
• animal rights and ethics
• general health.

The highest overall reason that consumers report for avoiding dairy is that it makes them feel better.

In light of this, in 2020 we signed off our global plant-based strategy, which preferences ingredients and formulations that provide health outcomes for consumers and are sourced from plants.

PLANT- BASED PRODUCTS BY CATEGORY:

In 2021, we are targeting every new product to meet the criteria set out in the Raw Material Sourcing Policy which covers known industry sustainability hotspots for different types of ingredients, such as health and safety in relation to chemicals used in the production process, biodiversity risk, and human rights violation risks.

In 2020, we implemented a system for capturing this information in our stage-gate process (see the Innovation chapter for more information). This follows as our approach to monitoring adherence to the policy.

In addition to Group policy changes, we have conducted analysis to identify our most critical existing ingredients across the business. Given two of our brands - Swisse and Biostime - represent a large percentage of our volume, the analysis focuses on them. The ingredients identified as critical for Swisse and Biostime include dairy, botanicals, minerals, krill and fish oils and other oils and fats.

• 100% of products that contain fish and krill oil ingredients carry a sustainably sourced certification from either:

• We also support the Antarctic Wildlife Research Fund which facilitates and promotes research on the Antarctic ecosystem.
• We are exploring plant-based alternatives for Omega 3 DHA, and launched the Swisse hemp seed oil range and Biostime algae capsules in 2020.

O I L A N D FAT S O L U T I O N S

• Fat acid profiles are critical for our infant milk formulas to ensure the nutritional profile is as close to human breast milk as possible. We currently source these from either vegetable or milk fats.
• • By the end of 2021, all our oil for Biostime's core range will carry a sustainable sourcing certification.
  • Our milk fats currently come from farms that maintain comprehensive sustainability strategies and plans.

7 0

B O TA N I C A L S

• We are working towards our commitment to source our top 10 botanicals by spend organically or regeneratively by the end of 2023.

H & H G R O U P

61.6%

OF ISIGNY

COOPERATIVE

FARMERS HAVE THEIR

OWN WATER BOREHOLE,

REDUCING THE STRESS

PLACED ON REGIONAL

WATER CAPTURE AND

STORAGE .

ON FARM

More than half of Isigny Cooperative farmers have their own water borehole, reducing the stress placed on regional water capture and storage. Whilst Isigny Cooperative don't monitor the water consumption on each farm due to privacy concerns (as the farm water is also for personal use), the farmers follow the Charter of Good Breeding Practices (CBPE) which is the reference for Sustainable Agriculture according to Isigny's certification "Agri Confiance". The CBPE raises awareness about water usage and requires farmers to fit with its rules of water wastage.

H & H G R O U P

P R O C E S S I N G A N D

M A N U F A C T U R I N G

O U R S U P P L I E R CO D E O F CO N D U C T, W H I C H H A S B E E N P U B L I C LY AVA I L A B L E O N H & H ' S W E B S I T E S I N C E D EC E M B E R 2018 , H A S B E E N T H E F I R S T B U I L D I N G B LO C K I N D I S C U S S I O N S W I T H S U P P L I E R S

A R O U N D O U R S U S TA I N A B I L I T Y J O U R N E Y.

These actions have laid good foundations for supply chain sustainability by creating a database of information on our supply chain and progress in sustainability to benchmark and build on. Currently, the information about our supply chain's sustainability performance has been self-reported and, therefore, carries risk of inaccurate or misleading reporting.

To combat this, we are planning to:

56.8%

OF MANUFAC TURER S WITHIN OUR SUPPLY CHAIN HAVE ENVIRONMENTAL

TARGETS IN PLACE

*That have completed our sustainability assessment

Yes

No

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

The Code outlines our sustainability strategy and goals as well as specific expectations and values regarding:

• business practices
• research and training
• responsible sourcing
• health, safety and quality
• global citizenship.

We ensure that all the Group's business units engaged in ingredient sourcing and product- related purchases follow the Code and arrange for new suppliers to sign the Code prior to engagement. The Code applies to our upstream supply chain as well as raw material, manufacturing and packaging suppliers with whom we have direct relationships. As outlined in the Code, it is then the responsibility of direct suppliers to communicate, educate and exercise due diligence on their supply base to implement

entities through the development of our H&H Sustainability Essentials survey. The survey is tailored to the topics specifically identified as material for the industries we operate

in, largely focused on The Sustainability Consortium's Thesis Industry hotspots for the following product categories:

• vitamins and supplements
• dairy
• personal care
• soup and convenience meals
• diapers
• baby accessories.

In 2020 we have met all targets and commitments we set out to achieve as a first step to full transparency and governance over our complex supply chain across our portfolio of products, including:

We are also looking to not only respect human rights within our supply chain, but also enhance and support communities that may be struggling with poverty and unemployment in their journey to reducing inequalities. We have a number of projects currently underway in this regard, but do not have formal commitments or targets relating to these projects at this stage.

T YPE OF ENVIRONMENTAL TARGETS OUR MANUFACTURERS HAVE IN PL ACE

Emissions (GHG) 9.7%

requirements equivalent to our Code.

We successfully implemented phase two of our roll-out plan with existing suppliers in 2020 and 100% of our Swisse and Biostime contract manufacturers have signed up to the Code. Many of our suppliers have communicated that they are glad to partner with us on this journey and are aiming to exceed our expectations set

roll out with our major contract manufacturers

supply team member engagement and training on roll out of Sustainability Assessment

supplier sustainability performance management platform implemented

high-risk direct suppliers identified

Water use 18.1%

Waste minimisation/

Energy efficiency 22.2%

out in the Code.

We have implemented a formal process for carrying out due diligence within our existing supply base across all our direct suppliers for any of our product generating brands and

46% of our suppliers completed our sustainability assessment (Sustainability Essentials survey) and had an ethical or

social audit carried out by a third party.

recycling 22.2% Hazardous waste minimisation 13.9%

Renewable energy 6.9%

Raw material sourcing 6.9%

H & H G R O U P

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

89%

OF MAUNFAC TURER S

WITHIN OUR SUPPLY

CHAIN (BY SPEND)

HAVE COMPLETED

SUSTAINABILITY

ASSESSMENT

Yes

No

MANUFACTURERS (BY COUNT) BY REGION

Australia and New Zealand - 17 suppliers

Asia - 19 suppliers

Europe - 86 suppliers

North America - 11 suppliers

8%

27%

7%

58%

K E Y C O N T R A C T M A N U F A C T U R E R S

7 6

Note: this list of manufacturers represent over 90% of our manufacturing of finished goods.

H & H G R O U P

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

Q U A L I T Y

M A N A G E M E N T

O U R B R A N D S H AV E LO N G T R A D I T I O N S A N D A S O P H I S T I C AT E D A P P R OAC H TO Q UA L I T Y A N D S A F E T Y. T H E S E

AC T I V I T I E S A R E E X P R E S S E D I N O U R

G LO B A L Q UA L I T Y M A N UA L , L AU N C H E D I N 2019, W H I C H I N C L U D E S S U P P L I E R Q UA L I F I C AT I O N A N D M A N AG E M E N T, B U L K V E N D O R S P EC I F I C AT I O N S A N D R E V I E W I N G A N D A P P R OV I N G F I N I S H E D P R O D U C T V E N D O R S P EC I F I C AT I O N S .

All our brands actively manage the potential health and safety impacts of our products. Our products are subject to brand-specific product quality reviews, testing regulatory compliance and a risk-based approach to determine priorities for further investigation.

We complete reviews during the research and development phase prior to our product reaching the market, throughout the product life cycle, as well as in reaction to customer enquiries or feedback from regulators. Customers who place a complaint are offered another product or discount voucher to demonstrate our appreciation of their feedback.

We have product quality assurance processes and recall procedures in place, which are periodically tested through mock recalls.

THERE WERE 0 PRODUCT RECALLS IN 2020

We had two partial-withdrawals of products due to manufacturing challenges both of which were investigated and remediated quickly with no health risk identified in the investigation process.

Market- and product-specific quality requirements and processes apply to our brands, depending on whether products are regulated as foods, medicines, or other categories. Please see Appendix 3 for more information on our product category regulators and standards.

3,754,955

PRODUCT ENQUIRIES

100%

OF ENQUIRIES WERE

RESPONDED TO

99.9%

OF ENQUIRIES

WERE RESOLVED

<2%

OF THE

ENQUIRIES WERE

COMPLAINTS

100%

OF COMPLAINTS

WERE RESPONDED TO

99%

OF COMPLAINTS

WERE RESOLVED

128,055,205

TOTAL NUMBER OF

PRODUCT UNITS SOLD

IN 2020

SPEND ON QUALITY

MANAGEMENT:

US$6,385,764

US$7M

US$6M

US$5M

US$4M

US$3M

US$2M

US$1M

0

201820192020

Spend on quality management

H & H G R O U P

P A C K A G I N G

SELECTING SUSTAINABLE PRODUCT PACK AGING REQUIRES C AREFUL CONSIDER ATION OF SEVER AL FACTORS, INCLUDING:

• selecting materials that are renewable or have been recycled
• ensuring safety of materials used
• optimising material efficiency
• designing for material recovery, litter minimisation, consumer accessibility, transport efficiency and reduced product waste.

11,660,954 UNITS PRODUCED WITH RECYCLED CONTENT

RESCUING OVER 300,954KG

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

Finding the right balance of the above-listed factors can be challenging, particularly where technology does not currently allow us to use materials or formats that would be preferable from a sustainability perspective. The three materials most commonly used in our packaging are paper, tin and plastics. Consumer recycling availability and frequency for paper and tin are high, however, we recognise that currently we are heavily reliant on petroleum-based virgin plastic packaging and that with plastic recycling rates globally sitting at around 20% there is a lot of work still to do to circulate the lifecycle of plastic. Further, over 11% of our plastic packaging contains mixed types of plastic, adding further complexities to their suitability for recycling.

In our two biggest product categories of infant formula and supplements, we must prioritise quality and safety, including active ingredient stability. At this point in time, we haven't been able to find alternatives to plastic for the core supplements range. We are working with research partners and suppliers to develop solutions and have set ourselves the target that all product packaging will be either recyclable, compostable or biodegradable by 2023.

To progress towards this in 2020, we created a packaging charter that identifies the priorities to move towards the goal of a closed loop system. To make incremental changes, the first (or ideal) choice for packaging is recyclability. The second priority is to use recycled content, but if that isn't possible, then use of biobased materials (such as sugarcane, which doesn't have

the same environmental impact as petro-based raw ingredients) is the third preference. We are also exploring some options that meet all three of these categories, that is, recyclable packaging that is made from a biobased waste material and is also biodegradable, however there are many quality checks we need to complete before we can safely use this type of packaging with our products.

For more information about how we are working towards a more environmentally friendly end of life for our packaging, please see the section of this Report titled 'Resource Recovery' on page 86.

TOTAL MATERIAL T YPE

OF MATERIAL AND HELPING TO FUEL THE CIRCULAR ECONOMY.

25,977t

PACK AGING

MATERIALS

1KG

FOR EVERY US$68

IN REVENUE WE

PRODUCED 1KG OF

PACK AGING

107,828,831 PACKAGING COMPONENTS PRODUCED WITH RENEWABLE MATERIALS

INCLUDING:

8 0

The data relating to packaging only covers Swisse, Biostime and Good Goût products in Australia, New Zealand, China, the United Kingdom, France, Italy and the Netherlands which covers over 90% of our packaging.

H & H G R O U P

D T C C H A N N E L S A L LO W B E T T E R V I S I B I L I T Y O F T H E E N V I R O N M E N TA L F O O T P R I N T O F D I S T R I B U T I N G O U R

P R O D U C T S T O O U R C O N S U M E R S .

N A B I L I T Y R E P O R T

D I S T R I B U T I O N

TR ANSPORT AND LOGISTICS

O U R E V E R - E VO LV I N G A N D E N T R E P R E N EU R I A L

B U S I N E S S H A S M E A N T O U R S U P P LY C H A I N S H AV E T R A N S I T I O N E D F R O M S E R V I C I N G O N E M A R K E T TO

S E R V I C I N G M U LT I P L E M A R K E T S AC R O S S T H E W O R L D I N A R E L AT I V E LY S H O R T A M O U N T O F T I M E .

Currently 55% of our manufacturing is conducted in the region in which the product is sold. Our infant formula and supplement products require the most stringent of quality and safety standards due to the nature

of the industries and the regulatory systems that protect the safety of consumers. For this reason, ingredient sourcing is often niche and stretches to all corners of the world. We recognise that currently this means the environmental footprint of our product supply chains is significant. In 2020, we localised approximately 30% of the Swisse supply chain that services the USA from Australia to North America. We are working on how we can have an impact on reducing our upstream emissions in the future.

2 0 2 0 S U S T A I

4 5%

PERCENTAGE OF LOCAL MANUFACTURING SERVICING LOCAL MARKET

8 2

55%

Yes

No

Note: By region (Asia, Americas,

Europe, Australia and New Zealand)

In 2020 we maintained strong relationships with retailers and other distribution partners whilst also launching and growing our direct-to- consumer (DTC) channels across all of the Group's brands. Aurelia Probiotic Skincare, Good Goût, Swisse Me and CBII make most of their sales through such channels. DTC channels allow better visibility of the environmental footprint of distributing our products to our consumers and this part of our supply chain has been identified as a more material area with a larger proportion of our business relying on this model. We were hoping to be able to measure the environmental footprint of these channels in 2020, however, COVID implications meant we need to push this target into 2022. We will work with our transport and logistics partners to increase environmental performance in the future.

H & H G R O U P

M A R K E T I N G

W E U N D E R S TA N D T H AT T H E R E I S N O R E A L S U B S T I T U T E F O R H U M A N B R E A S T M I L K A S T H E B E S T N U T R I T I O N A L S TA R T I N L I F E , S O A S A N O R G A N I S AT I O N T H AT P R O D U C E S

I N FA N T F O R M U L A , W E N E E D TO B E S E N S I T I V E TO T H E I M P L I C AT I O N S O F A N Y M A R K E T I N G

A N D CO M M U N I C AT I O N S R E L AT I N G TO O U R

P R O D U C T C L A I M S A B O U T T H E I R I M PAC T O N T H E W E L L B E I N G O F B OT H M OT H E R S A N D N E W B O R N S .

PRIVACY

All H&H Group brands fully comply with privacy legal requirements in the markets in which they operate.

In 2020, we remained compliant with the General Data Protection Regulation (GDPR) in the European Union, The Privacy Act in Australia, the Cybersecurity Law of the PRC in China mainland, Personal Data (Privacy) Ordinance in Hong Kong, and other privacy related laws in new markets. We continued to use the 'Personal Data Breach Response Procedure' and 'H&H Privacy Impact Analysis Procedure' for global markets to better respond to privacy challenges.

We have specific consumer data protection and privacy policies in place and deploy Information Security Management Systems or equivalents to prevent breaches and resolve incidents. Our Global Information Security team periodically promotes security awareness, global risk assessments and tests the resilience of key business processes and systems against security breaches. In the Australian market, we comply with Australian privacy law,

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

8 4

In 2018, we published our Responsible Marketing of Breast Milk Substitutes Policy (BMS Policy) that is available on our website. In 2020, we revised the Policy to allow time for a phased approach to implementing three of the articles specifically in the China market. These adjustments will allow our teams to adjust to the new way of conducting business in this region where regulation is less stringent than our Policy. Outside China we had one case (currently being investigated) but anticipate it will not be in breach.

In 2020 we reviewed and updated our approach to implementation and monitoring with the development of a Baby Nutrition and Care (BNC) Council. The BNC Council is made up of marketing and regulatory representatives from every brand and region in which products within the scope of our BMS Policy are sold. The BNC Council will meet every six months and has been set up to:

• keep up-to-date with local and global industry developments and changes

• oversee the Group's approach and positioning in relation to baby nutrition and care matters (including breastmilk substitutes)
• report on regional training of the BMS Policy
• raise and discuss concerns with the BMS Policy
• report on compliance with the BMS Policy to Global Risk team and the Board
• discuss any concerns and cases of non-compliance raised through the 'H&H Responsible Marketing
  Non-Compliance form' and respond accordingly (assigning roles and responsibilities).

We also monitor all product claims through a regulatory review process and ensure we have accompanying documentation to support the specific claims we make. In 2020, we had three minor incidents of non-compliance with labelling regulations all of which were rectified and did not result in any consumer complaints, legal action, penalties, or fines.

and ensure our customers first agree to clear terms and conditions at the point of data collection.

We had no incidents of non-compliance relating to privacy matters in 2020.

N E W : S W I S S E L A U N C H E S F R E E W E L L N E S S C H A T S

W E A R E E X P LO R I N G N E W

WAY S T H AT W E C A N

E N G AG E CO N S U M E R S

B E YO N D P R OV I D I N G

P R O D U C T I N F O R M AT I O N

A N D M A R K E T I N G .

In 2020 Swisse launched free-of-charge wellness chats via phone with our qualified naturopath and nutritionist team members. Our naturopaths provide general advice on herbal and nutritional medicine, as well as diet and lifestyle, whilst our nutritionists apply a holistic approach to health addressing the whole person - mind, body and soul - included when assessing an individual's health and wellbeing.

H & H G R O U P

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

C H I N O

H & H F A M I LY

A P P E N D04I X

A P P E N D I X

B A B A K

S U P P LY C H A I N A N D

P R O D U C T I O N

H & H G R O U P

V I C T O R I A

S H O P P E R M A R K E T I N G

A P P E N D I X 1

1. N O T E A B O U T O U R M E T H O D O L O G Y

DATA WA S CO L L EC T E D T H R O U G H A S E R I E S O F O N L I N E S U R V E Y S B R O K E N U P BY TO P I C , LO C AT I O N O R F U N C T I O N . A TOTA L O F 79 S U R V E Y S W E R E CO M P L E T E D BY T E A M M E M B E R S F R O M D I F F E R E N T F U N C T I O N S A N D

LO C AT I O N S AC R O S S T H E H & H G R O U P.

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

B R O C C O L I

H & H F A M I LY

Each of these surveys capture information relating to our material topics, once collected analysis is conducted to pick up trends, capture any big outliers or possible data entry mistakes and cross-checks are made against documentation such as invoices, general ledger data or other platforms that are used to monitor key topics.

Environmental data was collected through a site-based survey covering 17 sites that represent the different countries in which the Group operates and the different site types, e.g. warehouse, factory or office. Most of our sites have team members from different brands and entities across the Group so this is the most efficient way to capture environmental data.

Environmental data collected through surveys were cross-checked with financial general ledger and invoice data to ensure completeness. The survey results captured the amount of resources being used by

the organisation at their place of business, including electricity, natural gas and water as well as the tonnage of waste being produced. The data was separated into individual sources of emissions and converted

to carbon dioxide equivalents by using appropriate emission factors. In the case that there was a data gap, for example if an organisation did not have access to weights of waste disposed of in the year, an appropriate factor or rate was calculated using data from other similar sites and extrapolated as required. The vast majority of our offices are shared office spaces and therefore access to accurate data on H&H activity

is very limited however we were able to identify an extrapolation method as outlined below for these sites.

Emission factors were sourced from a credible publication for each country represented in the sample

and applied to the survey activity data. Emission factor sets used in the analysis include: the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (Australia); Ministry for the Environment Guidance for Voluntary Greenhouse (New Zealand); and DEFRA GHG Conversion Factors (UK). Emissions from material reuse, composting and recycling were assumed to have an emission factor of 0, all other waste emission categories were conservatively assumed to be Municipal Solid Waste sent to landfill. The gasses included in the calculation of emissions include CO2, CH4 and N2O.

After a complete inventory was created for the sample of H&H sites represented in the survey, the data was then extrapolated across the entire organisation. This was done by dividing down key data such as emissions to a per FTE basis, then extrapolating this across

the entire H&H Group. Extrapolation considered the country of origin of the responding organisation and the organisation type. The countries represented in the H&H Group include Australia, New Zealand, Mainland China, Hong Kong (China), France, Switzerland, Italy, the Netherlands, Singapore, USA and the UK. Organisation types represented include factories, laboratories, warehouses, packing facilities and offices.

Where data for a specific organisation type and country had insufficient information to calculate an appropriate factor for extrapolation, substitute factors were derived from a culturally similar country and organisation type.

Emissions calculated from survey results and financial information accounted for 85% of the extrapolated emissions inventory with 15% of emissions estimated through extrapolation.

H & H G R O U P

A P P E N D I X 2

M A T E R I A L T O P I C S

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

9 2

PRODUCT SAFETY AND QUALITY

Ensuring our products, and all ingredients and processes, are tested, safe for consumers, and of the highest quality. This includes enabling traceability throughout the supply chain to prevent counterfeiting and protect consumers' safety.

CONSUMER ENGAGEMENT

Connecting with our consumers to engage and educate them on H&H's brands, products (and benefits), and how they may embark on their broader wellness journey. This includes developing trusting and lasting relationships between our brands and consumers, to support business growth across international markets. A focus on digitisation will be a key means for H&H to do so.

INNOVATION FOR CONSUMER HEALTH OUTCOMES

Investing in the research and development of new products, and the continuous improvement of the nutrition and efficacy of our existing products. Focusing on serving the health and wellbeing needs of our consumers, and utilising the power of digital technology to do so.

RESPONSIBLE MARKETING (AND LABELLING)

Transparently communicating the effects, benefits, limitations and alternatives for H&H's products. This includes ensuring products are accurately and transparently labelled with product ingredients, the nutritional profile and sourcing information to be easily understandable for consumers and empower them to make better health decisions.

COMMUNITY IMPACT AND INVESTMENT

H&H's contribution to community impact, engagement,

investment in social solutions and inclusive growth. This includes for communities across our value chain, from upstream suppliers to consumers and end-of-life management.

LOCALISATION

Tailoring our product portfolio for the specific tastes and health needs of local consumers. Using local ingredients and manufacturing, and sustainable practices that support the local environment, such as regenerative agriculture.

ACCESS AND AFFORDABILITY OF PRODUCTS

Considering whether our products are accessible and affordable to meet communities' health and nutrition needs. Helping to address inequality and potential food scarcity resulting from geo-political, social or environmental disruption, and use of digital platforms to do so.

SUSTAINABLE PACKAGING

Designing our packaging to reduce energy consumption in production and transportation, reduce waste and facilitate recycling. Partnering with suppliers and research institutions to understand and manage lifecycle impacts.

GHG EMISSIONS AND ENERGY

Actively working to reduce the greenhouse gas emissions and energy consumption of our operations and value chain, including from raw ingredients and transportation as well as manufacturing. Increasing our use of low-impact, renewable sources of energy.

LAND MANAGEMENT AND BIODIVERSITY

Understanding and working to reduce the impacts of our supply chain on land, soils and biodiversity, especially where ingredients are scarce, drawn from vulnerable ecosystems and/or ecosystems which support endangered species. Supporting sustainable agriculture practices that will in turn, ensure long-term, high- quality supply.

WASTE MANAGEMENT

Our aim to reduce waste sent to landfill and increase resource recovery. This includes a focus on managing waste outputs in our supply chain and operations, with both partners and suppliers.

WATER STEWARDSHIP

Both our water consumption and wastewater practices. Water consumption focuses on our operations and supply chain, and working with our supply chain to reduce usage. Our focus on waste water aims to ensure that water used in our production operations is treated responsibly and does not contribute to water pollution, or adversely affect local communities or environments. Plus, designing our products to avoid water pollution from use or disposal.

CLIMATE RISK

Understanding and managing our exposure to climate-related risks and opportunities throughout our value chain. This includes considering the impacts of the transition to a zero-carbon economy and the physical impacts of climate change.

HEALTH, SAFETY AND WELLBEING

Actively managing and monitoring the health and safety risks for our own employees and in our supply chain. Creating supportive policies, procedures and an environment that supports health, safety and wellbeing.

TALENT ATTRACTION, RETENTION AND DEVELOPMENT

Attracting, developing and retaining a skilled workforce as a strategic

priority; ensuring that we have and develop the human capital to

innovate, grow and navigate the global consumer goods markets. This includes training, and investing in the long-run, sustainable success of

our teams.

LABOUR RIGHTS AND MODERN SLAVERY

Ensuring consistent, fair and attractive remuneration and working conditions for own employees in the workplace and in our supply chain. Respecting and protecting the rights of all contributing to the value of H&H's business. This includes actively identifying and managing modern slavery risks within our supply chain.

DIVERSITY AND INCLUSION

Embracing and being inclusive of the diversity of staff at all levels and in all regions of our organisation. Recognising the value this brings to our organisation. Supporting diversity and inclusion in our supply chain and local communities.

ANIMAL WELFARE

Actively managing animals' quality of life and welfare in the

production of animal-derived ingredients, research and development

and testing of products in H&H's brands.

SUPPLY CHAIN GOVERNANCE,

RELATIONSHIPS AND CONTINUITY

Ensuring our supplier partnerships and relationships are governed

to ensure high-quality, reliable supply; and to manage social and

environmental impacts (especially those highlighted in our material topics). This includes not only raw material sourcing, but also R&D relationships, manufacturing and packaging processes.

COMPLIANCE AND GOVERNMENT RELATIONS

Actively participating in policy and engaging with government at all levels on behalf of the industry and to ensure regulatory compliance. Increasingly, positive relationships with governments are pertinent to

enable the long-term security of trade and the business future.

ETHICS, INTEGRITY AND TRUST

Ensuring our business operates to clear and high ethical, legal and moral standards, both internally and when managing external relationships with our suppliers, partners, and engagement with customers. Includes having policies and procedures in place to combat bribery and corruption.

STRATEGY AND VISION

Global integration of strategy and vision including integrating and managing H&H's strategy across multiple brands, countries and varied cultures. Managing the risks and challenges of a fast-paced strategy in a young company assimilating multiple acquisitions. This includes integrating our ways of working and communication and leveraging our diversity for business success.

DATA PRIVACY AND SECURITY

Ensuring the compliance of H&H's partners and employees with data protection, cyber security laws and internal policies. Beyond compliance, this is a focus on the robustness of our systems to protect customer, employee and partner data.

H & H G R O U P

2 0 2 0 S U S T A I N A B I L I T Y R E P O R T

Talent attraction, retention and development

Ethics, integrity and trust

Compliance and government relations

103-1,103-2,

103-3,102-15, Management ApproachGovernance55 B7, B7.2, B6.3, B6.5 102-30