RAYWARE ESG STRATEGY

ESG STRATEGY

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INTRODUCTION

Rayware understands the responsibilities that it has to society and the planet, as well as ensuring that the principles of governance are followed. To uphold these responsibilities, and to ensure prosperity for the company and the wider community, Rayware is committed to developing and implementing an ESG strategy and framework. We believe that by setting ESG goals and targets for now and into the future we will keep sustainability at the forefront of our activities and ensure resilience against potential risks and change.

‘Design and deliver beautiful sustainable products that are valued by our global customers and consumers.’ OUR VISION STATEMENT Rayware’s ESG goals will be in alignment with our company vision statement but will also encompass the wider community and the UK’s Net Carbon Zero goals.

ESG STRATEGY ROADMAP

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Conduct a workshop with team members from across all business areas to capture what we are already doing within three ESG pillars ASSESS RAYWARE’S CURRENT POSITION

STAKEHOLDER ANALYSIS

PRIORITISE ACTIVITIES

ESG STRATEGY

Set SMART objectives to help acheive Rayware’s ESG goals SMART OBJECTIVES

Integrate the goals into the business and assign a responsible person to each. Capture data to enable progress reporting and regularly report to stakeholders IMPLEMENT, MONITOR & CONTROL

Conduct research into what our key stakeholders feel is important in relation to ESG. Factoring in The Board, Executive Team, Employees, Customers and Consumer Views

Based on the assessments and research carried out, identify what are the key priorities. Catagorise these activities into short, medium and long term goals

Write an ESG strategy to document the businesses aims in relation to the three pillars and how they work together to enable sustainability and resilience

ENVIRONMENTAL Working towards Carbon reduction, plastic waste reduction and energy efficiency Key highlights include: well-established waste management practises, a portfolio of sustainable products across the brands and hybrid working for office-based staff.

WHERE WE ARE NOW

Rayware has identified the following processes and procedures that are already in place across the Environmental, Social and Governance pillars. There is a good amount of work that is already underway but still room for improvement.

BEFORE 2019

2019

2020

2021

2022

2023

US catalogues –reduced paper consumption by only producing one catalogue per year instead of two

Servers have been retired and removed from site reducing power consumption

LED lighting in head office

Encourage a mix of digital and in person meetings

128.03 tonnes of Co2 for scope 1 and 2

Joined OPRL

Re-use or recycle cardboard

0% landfill

Sustainable packaging guide

UK catalogue pages reduced by 25% compared to 2022 and paper size reduced to A5

All staff gifted Typhoon reusable glass and metal drinking bottles for use in the office or at home to reduce plastic waste

Office closed on Fridays

Working with OPRL to improve and define recycling logos across all packaging

Fork lifts are battery powered opposed to diesel

SOCIAL Working towards improving communication of ESG strategy, raising awareness of mental health, continuous improvement of employee development and wellbeing Key highlights include: having a library of HR policies and procedures, an employee forum, charity committee and health and safety committee who all meet up regularly to boost employee engagement, support the wider community and to ensure safe working practises.

To help identify our status in relation to carbon emissions, we have received assistance from University of Liverpool as part of the Low Carbon Eco Innovatory program. Working in collaboration with the university, a report has been produced which includes recommendations and an example of a Low Carbon framework to assist Rayware in reaching its goals. We have also received external help from Clean Growth via their Net Carbon Zero workshops.

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2019

2020

2021

2022

2023

Performance management reviews and development

Product testing and risk assessments

Number of accidents reduced by a third in 2022 compared to 2021- 9 in 2021 and 6 in 2022

Viners guarantee and aftersales policy

Covid risk assessment completed and health & safety measures put into place to protect staff

HR and Health & Safety projects in place to produce new and improved policies & procedures

Charity & Events Committee

Supplier code of conduct

Volunteer day

Staff events and activities such as the Summer BBQ, pancake day, buffets

£3,600 raised by employees for nominated charities

Ongoing Health & Safety training for all staff

The first Rayware Bake Off Event was held supporting Stand up to Cancer

Health & Safety inductions for new starters

Summer BBQ fun day held for staff

Hybrid working for office-based staff

Employee forum

GOVERNANCE Working towards improved processes around supplier compliance and ESG reporting Key highlights include: independent financial audits, health & safety inspections, Antibribery and Corruption and Money Laundering policies and compliance with legislation across the business.

2018

2019

2023

2020

2021

2022

Company vision statement

PCI compliant

Employee strategy updates,

External inspections (insurance and racking)

Covid measures put into place based on Government legislation

Anti-fraud policies in place

Annual external financial audits

Board diversity and experience

free flowing from top to bottom.

Organisational chart

OUR GOALS FOR THE FUTURE Rayware has set short and long-term high level goals. The initial set up of the work required in order to meet these goals will be run as a project with input from team members across departments. Following project closure, annual reporting on progress will sit with the relevant team and will become business as usual.

Our high level strategic ESG goals include:

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Record and measure scope 1 and 2 carbon emissions by 2030 with the aim of reducing carbon footprint year on year.

By the end of 2023, conduct a deep dive into supply chain processes and policies to ensure robust practices and ongoing compliance with our expected standards.

To become accredited to B Corp standards or equivalent by the end of 2024.

Continuous operational improvement in relation to the three pillars.

To improve transparency around the social and governance pillars.

Within each of the high level goals, once we have kick-started initial discussions with the relevant teams, we plan to make these goals SMART (specific, measurable, achievable, relevant and time bound) so that we can measure and report on our success year on year to our key stakeholders.

PRODUCTS

WASTE MANAGEMENT Since 2019 Rayware has sent 0% of waste to landfill. Commercial waste is collected and used for RDF (refuse derived fuel). In addition to this, we ensure that any other waste products that are generated via our operational processes such as bailed plastic, cardboard and paper, metal and glass are collected and recycled, helping to protect the environment by diverting from landfill. CARBON FOOTPRINT We have begun to measure our scope 1 and 2 emissions as well as recording data of some of the attributes that form our scope 3 emissions.

ENVIRONMENTAL We are aware of the impact that our business activities have on the planet and have already made some changes to reduce this. Our ongoing ESG strategy puts the emphasis on continuous operational improvement, with plans in place to focus on specific areas to achieve this. The changing environment in which we operate also delivers challenges and risks, Rayware has plans in place to regularly review our risk register which sits within our business continuity strategy.

The products that we design are not intended for single use and we do not manufacture on site. Many of our products are eco-friendly, such as:

1. Typhoon Pure collection contains reusable products e.g. Takeaway coffee cups and glass water bottles and all items are made using sustainable materials. 2. Kilner ® glass is recyclable even if it’s broken. 3. Viners Organic range features knife blades made from 80% recycled steel and handles crafted using 35% wheat fibre.

Our 2022 Co2 footprint for scope 1 and 2 is 128.03 tonnes Co2.

We will continue to look for new sustainable materials to use in our manufacturing process and design products that will help in the fight against single use plastic and throwaway items.

Our 2022 Co2 footprint including some of the scope 3 emissions is 650.69 tonnes Co2.

This has taken into account:

KEY FOCUS AREAS Sustainable products

Scope 1 Refrigerants for heating and cooling buildings Company cars

Scope 2 Energy

Scope 3 Water usage Waste disposal– mixed general, plastic, metal and cardboard Business travel Employee commuting

PACKAGING used to wrap and supply products. Some of our products are packaged in plastic bags or sleeves. We are actively reducing the amount of plastic packaging that we use and aiming for any plastic that we do use to be made from at least 30% recycled material.

consumption – electricity usage in warehouse and head office

Plastic packaging reduction (Product packaging as well as transport packaging) Carbon reporting and reduction Energy efficiency

WE HAVE:

ENERGY EFFICIENCY To help us to reduce our carbon footprint as well as costs, we are planning on conducting an energy efficiency audit. This will help us to identify any devices or machinery that use high volumes of energy and then we can look into alternative options such as more efficient versions, charging overnight or only using between certain hours. In addition to this we are planning on rolling out Commercial Awareness training to all employees so that they have a better understanding on how their actions and behaviour impacts the business as well as the wider environment.

Received external help and advice from University of Liverpool and via the Clean Growth program on how we can lower our carbon footprint going forward. Started discussions on how we can assess suppliers to ensure that they have ESG plans in place and are in alignment with our goals Made plans to annually measure our carbon footprint to track improvements and meet our goal to continuously lower this year on year.

COMPANY IMAGE Rayware are proud of the work that we have done so far in relation to ESG and are looking forward to implementing changes across the business to help us to achieve our goals. We want to share our plans and progress with our stakeholders via our websites, social media pages and company intranet so our valued trade customers, consumers and employees can celebrate our achievements. CHARITY AND EVENTS COMMITTEE Our Charity and Events Committee plans and organizes fundraising events and engaging staff activities throughout the year. The charities that we support are nominated by our employees, so we know that we are supporting causes that hold a special place in the hearts of these individuals. The Rayware family always gets together in any way they can to support colleagues in raising as much money as possible for their chosen charities. As well as this, we also have a relationship with our corporate charity Rainy Day Trust who provides support to those who are currently working in the housewares industry or have done so in the past. In 2022, we raised a total of £3,600 for Rainy Day Trust and employee nominated charities.

EMPLOYEE HEALTH & WELLBEING Every year in April, the Charity & Events Committee plans activities to promote ways of living a healthier lifestyle. This includes providing free fruit for healthy snacking, organizing lunchtime walks and sharing information such as healthy eating tips and links to external support via the staff Intranet and printed posters. This year we have received support from our local JD Gym who visited us at both our head office and warehouse to offer free health checks and advice to employees. As well as this, they also provided staff with the opportunity to attend a relaxing yoga class. In terms of ongoing support, Rayware has a Health and Wellbeing policy alongside regular employee and manager one to ones. This year, Rayware are offering Mental Health training to managers to provide additional knowledge on how to identify and support team members that may be struggling with mental health issues. Head office based staff follow a hybrid working model, attending the office on set days and working from home the remaining time. The warehouse closes early every Friday, enabling staff to finish work earlier than usual. We believe that this way of working promotes a better work-life balance whilst enabling employees to work more efficiently. HEALTH & SAFETY Rayware’s Health & Safety Committee are dedicated to ensuring a safe working environment. The team regularly carry out audits and checks of both sites to minimize or remove risks and ensure compliance with health & safety regulations. This sits alongside our policies, procedures and risk assessments that we have in place to ensure high standards of safety. In addition to this, Rayware have a team of trained First Aiders and Fire Marshals who are available to assist when required.

SOCIAL We want to help our employees reach their full potential in a safe, engaging and positive environment where communication is key and success is celebrated. Our wider communities are also part of our plans with importance placed on raising money for employee nominated charities and improving communication of ESG via our websites and social media.

KEY FOCUS AREAS Improve company image of ESG issues using websites and social media. Continue fundraising for employee nominated charities. Place a greater importance on health and wellbeing by implementing mental health training for managers. Continue putting health & safety first Re-launch of Rayware Stars scheme Ensure that companies or

Charities we are supporting in 2023 include:

Employees are also entitled to take a volunteering day where they can choose to help a charity of their choice for a day whilst receiving full pay.

social media influencers that we may partner or collaborate with, share the same ESG aspirations.

To celebrate success and show thanks to our colleagues, the Rayware Stars scheme has been re-designed and re-launched for 2023. The scheme helps to recognize staff achievements, those who go over and above what is expected of them or who champion Rayware’s values.

RAYWARE STARS

SUPPLY CHAIN ASSESSMENT Rayware values the relationships that it has with its suppliers. As part of our ESG goals we plan to standardize our procurement procedures to ensure that any suppliers that we are looking to do business with, can meet our expectations in relation to the three ESG categories; Environmental, Social and Governance. Ongoing compliance is also just as important. We want to set up processes to audit and review our key suppliers annually, helping us to monitor their progress and to assure that our high standards continue to be met.

DATA PRIVACY AND SECURITY Over the past year, Rayware’s IT team have worked hard to make our data security polices and procedures as robust as possible. This has been possible due to upgrades across our infrastructure as well as increasing awareness of cyber risks amongst employees through internal communications and training. Due to the ongoing threat of cyber-attacks and fast developments in technology, our team will continue to review and improve upon our data security practises. ESG FINANCIAL RISK MODEL Part of our strategy is to build on existing risk management practices by using Financial Risk Modeling. This will help us to predict changes in financial markets and mitigate any potentially damaging and costly ESG incidents.

GOVERNANCE In order to deliver long-term success, we follow robust policies and procedures across the business. This includes risk assessments, internal and external audits and inspections as well as setting high standards to ensure compliance with legislation. Communication We believe that effective communication works both ways. As well as having the employee forum for staff to raise any suggestions or issues, Rayware’s Executive Team holds regular strategy update sessions with the whole workforce to guarantee alignment across all teams with the overall business goals.

SUPPLIER CODE OF CONDUCT AND BEHAVIOUR STANDARDS

As part of the supply chain assessment piece, we also plan to review and strengthen our Supplier Code of Conduct and supporting documents. This will help us to improve transparency of best practice across a number of different areas and further strengthen our supply chain governance.

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CONCLUSION Rayware are proud of the achievements that we have made so far in relation to ESG however we are eager to continue on our journey towards sustainability and are keen to make the relevant changes required in order to meet our goals. With complete faith in our talented teams, we are looking forward to providing regular updates to our stakeholders of our progress.

KEY FOCUS AREAS Supply chain assessment and ongoing compliance Supplier code of conduct and behavior standards Data privacy and protection ESG Financial Risk Model