11/11/2020

To our stakeholders:

I am pleased to confirm that ComfortDelGro Corporation Limited reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Mr Yang Ban Seng
MD/GCEO

ComfortDelGro Group is a signatory in the Tripatite Alliance of Fair and Progressive Employment Practices (TAFEP). We adhere to the key principles of fair employment practices – recruiting and selecting employees on the basis of merit, treating them fairly and with respect, providing them with equal opportunities for training and development, rewarding them based on their ability, performance, and contribution and abiding by labour laws and the Tripatite Guidelines to provide a better workplace for all. We strongly subscribe to zero tolerance for discrimination and employees are selected based on merit. We strive to provide a fair and supportive work environment for all our employees, regardless of their age, sex, marital status, sexual orientation, disability, race, color, nationality, ethnic or national origin, religion, or affiliation to any political party or trade union.

On 7 October 2019, 65 of our investors collectively issued a statement in support of the United Nations (UN) Women's Empowerment Principles and strengthened their commitment to implement effective initiatives towards gender equality in the workplace, marketplace and community where they do business so as to benefit workers, Management, society and Shareholders. ComfortDelGro is aligned with our investors' views that gender equality contributes to increased benefits for the society, economy and better financial performance. Female representation on our board stands at 30%, where exceeds the 20% target established by the Council for Board Diversity. Female employees are well represented across all Business Units with a fair remuneration structure without gender bias. With the support of our investors, ComfortDelGro will continue to build a company that supports and respect the protection of human rights, diversity and non-discrimination.

ComfortDelGro Group's hiring policies and terms and conditions of employment are compliant with relevant government regulations as well as human and labour rights. The Group does not state preferences or requirements for age, race, gender or religion in our recruitment advertisements and pay special attention to the rights and needs of individuals at risk of becoming vulnerable or marginalised.

Complaints of discrimination or unfair work practices can be reported to the Management, the Union or Authorities responsible for employment matters, according to the country of operation.

The Group reviews the hiring policies and terms and conditions of employment periodically to ensure compliance with relevant government regulations as well as human and labour rights.

ComfortDelGro Group subscribed to the belief that a motivated workforce will ultimately translate into happy and satisfied customers. Labour relations play a prominent role in day-to-day operations in the organisation and the company strives to maintain a harmonious tripartite Labour-Management relationship. 80% of all employees across our global operations are covered by Collective Agreements.

The Management and the Union share a relationship built on trust and respect as well as a common goal of improving employees’ welfare. The Union representatives, appointed from and by Union members, serves as vital communication channels between Management and the Union. Negotiations for operational changes that affect the working conditions and well-being of employees are always discussed with the Union, and only implemented after a consensus is reached.

ComfortDelGro Group's hiring policies and terms and conditions of employment are compliant with relevant government regulations as well as human and labour rights. The Group does not state preferences or requirements for age, race, gender or religion in our recruitment advertisements and pay special attention to the rights and needs of individuals at risk of becoming vulnerable or marginalised.

Complaints of discrimination or unfair work practices can be reported to the Management, the Union or Authorities responsible for employment matters, according to the country of operation.

The Group reviews and honour the Collective Agreements signed with the Union on the policies and terms and conditions of employment periodically to ensure compliance with relevant government regulations and well-being of employees.

The ComfortDelGro Group aims to minimise the impact of its activities on the environment by ensuring continuous improvement in environmental performance whilst bearing in mind prevailing technical and operational constraints.

In 2019, ComfortDelGro Group developed the Sustainability framework to support the achievement of the United Nation’s (UN) Sustainability Development Goals (SDGs) through the three key pillars: Enabling an Energy-efficient Transport System, Enhancing the Safety and Well-being of the Community and Our People, and Engraining a Culture of Innovation and Strong Governance. For each of these pillars, we set targets and commitments, and implement measures to contribute to the SDGs.

In Environment management, ComfortDelGro Group adheres to its commitment of Enabling an Energy-Efficient Transport System by adopting cleaner and more energy efficient systems. The organisation has set targets to reduce greenhouse gas (GHG) emissions through improving energy efficiency, transitioning to a Greener fleet and increasing the use of renewables.

ComfortDelGro Group established both short-term and long term Environmental targets in year 2023 and 2030 to align with the UNSDGs. The targets are presented and approved in 2019 by the Sustainability Steering Committee chaired by MD/GCEO.

The action plans are brought forth for discussion quarterly during the Environmental Working Group and presented to the Sustainability Steering Committee during quarterly reviews.

The Group reviews and assesses the Environmental targets, including carbon emissions, electricity consumption, water consumption, waste management on a regular basis. The yearly Environmental achievements are also published in the annual Sustainability Report.

ComfortDelGro Group conducts our business with integrity, transparency and honest. We do not condone any corrupt practices such as bribery, extortion or embezzlement. Similarly, we do not condone fraudulent practices such as intentional deception or misappropriation of resources.

Business and ethical integrity are pillars of our corporate psyche. With operations and a workforce that span seven countries, the Group recognise that good corporate governance, transparency and integrity are key in maintaining the trust of our Stakeholders.

The Group has in place strong processes that ensure impartiality and provide checks and balances. Regular workshops are held to educate employees on corruption risks and regular audits are conducted to review internal practices and processes. Our employees are not allowed to accept payments, gifts or other kinds of reimbursement from a third party that could affect or appear to affect their objectivity in their business decisions.

ComfortDelGro Group extend our anti-corruption commitments to our partners. Representatives of the Group are not allowed to offer Customers, Potential Customers, Suppliers, Consultants, Governments, Agencies of Governments, or any representatives of such entities, any rewards or benefits in violation of applicable laws, in order to obtain or retain business or to gain any other improper advantage.

Suppliers are also required to operate in accordance with the principles in our Supplier Ethics Policy and in full compliance with all applicable law and regulations. All members of the Procurement Category team are to attend a workshop on “Procurement Fraud Prevention & Detection” within their first two years of service. The workshop equips our staff on effective internal controls within the procuremen process, as well as the prevention and detection of procurement fraud.

The ComfortDelGro Alert Line also facilitates whistle blowing reporting to the Chairperson of the ComfortDelGro Audit and Risk Committee and the Group Chief Internal Audit Office. All whistle blowing reports are investigated thoroughly, independently and fairly, with prompt and proper closure.

The Group strives for zero corruption cases and aims to always be in full compliance of local laws and regulations in all areas of operation. We expect our Business Units and Suppliers to uphold the highest ethical standards and whistle-blowing cases are all investigated thoroughly with prompt closure. The Governance performance is also published annually in the Sustainability Report.