Purpose

International Workplace Group plc group (‘IWG’) is committed to conducting its business operations in an environmentally sustainable and responsible manner. IWG’s Environmental Policy supports the development of a resilient organisation that can deliver long term return on investment for its stakeholders through ethical and sustainable business practices and contribute to protecting the planet.

IWG is committed to integrating environmental factors throughout its own corporate operations and focuses on matters that are meaningful to its customers, employees and broader stakeholders. IWG has stated ambitions including:

• Net Zero carbon emissions by 2040
• 100% renewable electricity in all centres by 2030
• 20% reduction in water usage per sqm by 2030
• 75% of operational waste in centres to be diverted from landfill by 2030

We operate a broad sustainability programme covering environmental and social business strategies with accountabilities across the organisation. This includes delivery of our environmental targets and ultimately enhanced outcomes for customers, employees and investors.

Scope

This policy applies to all IWG employees, contractors, customers, landlords, supply chain partners, and our local communities.

Definitions

Biodiversity: means the variety and variability of life on Earth, including species, Ecosystems, and genetic diversity.

Circular Economy: means an economic system that aims to eliminate waste and keep resources in use through recycling, reuse and sustainable design.

Decarbonisation: means the process of reducing or eliminating greenhouse gas emissions from the companies’ activities:

Scope 1: means the direct greenhouse gas emissions that occur from the sources that an organisation owns or controls like company vehicles, boilers, and generators.

Scope 2: means the indirect greenhouse gas emission from the generation of purchased electricity, steam, heating and cooling consumed by the reporting organisation.

Scope 3: means all other indirect greenhouse gas emissions that occur outside of a company’s direct control such as purchased goods and services, commuting and business travel emissions.

Ecosystem: means dynamic complexes of living organisms and their physical environments, functioning as ecological units.

Just Transition: means an inclusive approach to sustainability that ensures the shift to a low-carbon, nature-positive economy happens in a fair and equitable way.

RE100: means the global corporate renewable energy initiative bringing together hundreds of businesses committed to 100% renewable electricity.

SBTi: means Science-Based Target Initiative being the corporate climate action organisation that develop standards, tools and guidance which allows companies to set greenhouse gas emissions reduction targets in line with what is needed to keep global heating below catastrophic levels

TNFD: means Taskforce on Nature-Related Financial Disclosures being an international, market-led initiative aiming to provide organisations and institutions with a reporting framework for identifying, assessing, managing and disclosing nature-related dependencies, impacts, risks and opportunities.

UN CEO Water Mandate: means the mandate established in 2007 aiming to mobilize business leaders to address water challenges through corporate water stewardship, in collaboration with the UN, national governments and stakeholders.

Policy Statement

The following outlines our guiding principles in relation to our sustainability strategy to achieve our targets and minimise our impact on the environment.

Decarbonisation

Decarbonisation to meet Net Zero by 2040

IWG recognises the urgency of addressing climate change. We are committed to reaching our 2040 Net Zero target in alignment with ISO Net Zero Guidelines and SBTi, and implementing Decarbonisation initiatives to reduce our Scope 1, Scope 2 and Scope 3 emissions. IWG is committed to decarbonisation and the following actions form part of our sustainability strategy:

• Reducing energy usage across our direct operations through reduction mechanisms.
• Improving Scope 1, Scope 2 and Scope 3 emissions data though continuous improvement of our annual emissions calculations and reporting to further understand our impact areas.
• Engaging and influencing partners and building owners to support Decarbonisation.
• Transitioning to 100% renewable electricity where possible by 2030 in alignment with RE100.
• Implementing and pursuing a supplier engagement strategy to support our supply chain partners in reducing their environmental impact and reduce our Scope 3 emissions.
• Seeking collaborations with organisations, industry associations and stakeholders to address challenges through knowledge sharing and expertise.
• Educating employees on sustainability to increase awareness and engagement across the business.

Biodiversity and Ecosystems

Reducing out impacts on Ecosystems

IWG recognises that the health of Ecosystems underpins the sustainability of our business, the wellbeing of our communities, and our ability to meet climate goals. As a responsible business, we are committed to minimising our impact on Biodiversity and contributing to its conservation. IWG aims to minimise the potential impacts we have on the natural environment by:

• Assessing nature-related dependencies, impacts, risks and opportunities.
• Aligning our Biodiversity strategy with our Net Zero and climate strategy.
• Embedding Biodiversity responsibilities across our sustainability governance structures.
• Sourcing in alignment with our No Deforestation Policy and engaging with our suppliers to assess and reduce their Biodiversity impacts.
• Monitoring and reporting on key Biodiversity indicators on an annual basis aligned with the TNFD framework.

IWG continues to develop and assess our Biodiversity and Ecosystems strategy in alignment with regulatory requirements, voluntary disclosure frameworks and best-practice in an effort to reduce our impact on the natural environment.

Supply Chain

Minimising impact on the environment across our value chain

IWG recognises that minimising impact on the environment includes ensuring our value chain aligns with our ambitions and expectations. Requirements of our supply chain partners are outlined in our Supplier Code of Conduct. IWG is committed to encouraging the continual evaluation of environmental best practices and mitigating harmful environmental impacts and emissions reduction across our supply chain. To ensure a positive selection of suppliers, we will review our suppliers’ objectives and actions in relation to best practices, via our detailed Supplier Evaluation Questionnaire on sustainability.

We will encourage and assist the adoption of best practice amongst all suppliers.

IWG’s sustainability team are committed to continuous evaluation and development of our supply chain strategy to ensure we are minimising our impact on the environment.

Water Management

Implementation of water efficiency and conservation mechanisms

IWG is aware of the importance and increasing scarcity of freshwater as a resource, as well as climate change inflicted risks such as flooding and drought. We recognise that water is a shared natural resource and is critically important to our operations, employees, customers and to the communities in which we operate. Therefore, as a global company, we strive for sustainable water management practices throughout our global operations in order to minimise our water footprint, ensure water conservation, and promote efficient water usage. IWG aims to mitigate negative impact through the following actions:

• Adopting international best practices in water management aligned with the UN CEO Water Mandate and TNFD, including prioritising water efficiency through consumption minimisation and adopting technologies to reduce waste while prioritising water efficiency in water stressed areas.
• Actively promoting water conservation, encouraging responsible use and raising awareness about the importance of preserving water through our internal water policies.
• Implement measures to prevent water pollution, ensuring proper handling, storage, and disposal of hazardous substances
• Actively seeking collaborations with organisations, industry associations and stakeholders to address challenges through knowledge sharing and expertise.

IWG’s sustainability team will continue to evaluate and develop our strategy surrounding water reduction, conservation and preservation in alignment with applicable regulations and TNFD.

Waste Reduction

Waste management practices and conservation of natural resources

A key component of IWG’s sustainable business operations is waste management. Our global approach towards sustainable waste management is in accordance with Circular Economy principles to conserve natural resources.

To reduce waste across our global operations, IWG is committed to implementing the following:

• Adopting international best-practice Circular Economy principles across our business including using natural resources efficiently and minimising waste, monitoring how materials across our centres can be reused.

Monitoring and reporting on waste data, including methods of disposal. IWG’s Sustainability Team and category manager for waste will be responsible for aligning the waste management plan with local, national and international regulatory requirements. We will continue to assess and develop our waste management and reduction strategy for the purpose of diverting waste from landfill and implementing an advanced Circular Economy strategy.

Just Transition

Ensuring an ethical and fair transition to Decarbonisation.

IWG will implement the following actions in our commitment to Just Transition by:

• Ensuring equitable distribution of responsibility with regards to emissions reduction throughout our own operations.
• Mitigating any adverse impacts from our transition plan on humans.
• Providing training to ensure that our employees are informed about relevant environmental-related issues and best practices.
• Engaging with customers, suppliers and other stakeholders to build awareness and ensure they are informed about relevant environmental-related issues and best practices.
• Protecting and respecting land rights of indigenous peoples and local communities.

IWG’s sustainability team will continue to advance our commitment to Just Transition in line with changing market sentiment and suggested criteria.

Please refer to our Just Transition Commitment for further detail.

Transparency

Transparent reporting

IWG communicates its efforts, progress and performance to its stakeholders through reports and disclosures, adhering to relevant reporting frameworks and standards.

IWG’s Annual Report and Accounts and Sustainability Report will provide details regarding its sustainability programme on an annual basis and provide periodic updates on the website.

Stakeholder Engagement

Engagement with our stakeholders

IWG engages with its stakeholders (including investors, employees and customers), to understand their expectations, concerns, and feedback related to environmental matters. Additionally, IWG will collaborate with external organisations, experts, and peers to exchange best practices, enhance transparency, and contribute to collective efforts to address global sustainability challenges.

Roles and Responsibilities

Roles and Responsibilities across our sustainability program

IWG operates a broad sustainability program with clear accountabilities across the organisation. This program includes the delivery of our environmental targets, contributing to enhanced outcomes for customers, employees and investors.

IWG’s independent Board of Directors, regularly reviews and assesses environmental performance and ensures alignment with its corporate strategy. The Board sets environmental targets and frameworks to comply with, for the business, based on the business department and jurisdiction.

Compliance

Maintaining compliance with regulatory requirements

IWG is committed to complying with all applicable laws, regulations and standards related to sustainability matters where reasonably possible and practicable. IWG will annually review and update its Environmental policy to reflect changes to the business and changes in applicable laws and regulations.

Compliance with this Environmental Policy will be monitored by IWG’s sustainability Team and reported annually through IWG’s Sustainability Report. Non-compliance may be escalated in accordance with IWG’s internal risk management and supplier governance processes.

References

1. Just Transition Commitment
2. Supplier Code of Conduct
3. No Deforestation Policy
4. Fair Treatment Policy

Revision

This policy is reviewed annually and updated in line with evolving best practice, and regulatory requirements.