>

Sustainability Report 2020

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Delivering growth − in Asia and beyond.

> Welcome from the CEO

Welcome from the CEO“We take responsibility for our environmental,social and economic impact to account for
present and future needs.”
Stefan. P. Butz

Dear reader,
I am pleased to share with you our fourth Sustainability Report.
COVID-19 has impacted us all in many different ways. We participated in the collective effort of our local communities to mitigate, asmuch as possible, the impact that it had on people’s daily lives by ensuring the reliable and continued delivery of healthcare products to
hospitals, clinics, pharmacies and retail stores; groceries and consumer goods to stores; specialty chemicals and ingredients to
manufacturers; and technology products to businesses and laboratories.
In addition, in early 2021, we were honored to be entrusted by the Thai Government with the storage and distribution of the first
COVID-19 vaccines to arrive in the market, and to be working in service to the Thai public health – a tangible example of delivering on
our purpose to enrich people’s lives. Our purpose also includes how we create jobs across Asia and offer an attractive and safe work
environment. I am very proud of our teams. Read more about how we maintained our operations during the pandemic on page 10.
Throughout 2020 and early 2021, we further developed our approach to sustainability and established a new Sustainability Frameworkbuilding on three pillars: Our People – Our Partners – Our Planet. The Framework embodies our purpose as a company and provides
a clear commitment to measuring, improving and reporting on relevant sustainability topics. Read more on pages 11-12.
We recently launched the Belonging@DKSH program to celebrate diversity within DKSH. Other employee initiatives are aimed at increasing female and local representation in leadership roles. Demonstrating our enduring commitment to local communities, we continued to support more than 40 charitable projects across Asia Pacific in 2020.
Climate change is a key concern for all of us. Recognizing our responsibility for our environmental impact, we have for the first timeachieved assurance for our environmental data and set a target to reduce our own carbon emissions by 35% until 2025. In addition to
reducing emissions at source by optimizing transport and energy use, we will expand our proportion of renewable energy. By 2030, we
aim to be climate-neutral in our own operations.
Finally, we established a clear governance structure for the management of Sustainability at DKSH, with the Board of Directors
providing oversight and clear responsibilities and targets for the Executive Committee and Sustainability Committee. This will support oursustainability journey as we fulfil our purpose of enriching people’s lives.

Stefan P. Butz
CEO
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Content2

Welcome from the CEO

4

About us8

Sustainability at DKSH

23 Environment
24 Environmental responsibility
27 Social
28 Our people
31 Local communities
32 Procurement practices
35 Occupational health and safety
39 Governance
40 Economic performance
41 Market presence
42 Anti-corruption
45 Customer health and safety
47 Marketing and labeling
49 Information security
51 Appendix
57 GRI Standards and Disclosures
63 Assurance report3About us

10.7
billionnet sales in 2020

48
innovation
centers

160
distribution
Operations incenters

36 markets
870
business locations

33,391
headcount

2,000
clients

2,000
suppliers

550,000
customers

DKSH Identity

As an international company with over 30,000 employees, our DKSH Identity brings us together as
one strong DKSH team working towards a shared goal.

Our purpose

Enriching people’s lives.
Our vision

Being the trusted partner.
Our strategy

Growing our four Business Units, strengthening our service
offering and increasing operational efficiency.
Our values

Integrity Empowerment Collaboration Entrepreneurship Sustainability
Our promise

Delivering growth – in Asia and beyond.

5

> About us

DKSH in brief

DKSH enriches people’s lives by providing access to goods, services and insights as well as generating jobs. United by our vision to be thetrusted partner, we help companies grow.
Delivering life-saving drugs to hospitals, bringing high-quality products to remote villages, installing technology that raises living standards
and providing new formulations for healthcare products that make life easier.
These are just a few examples of how DKSH touches and enriches people’s lives around the clock. We do this while helping our clientsgrow by distributing, promoting and servicing their products and helping our customers grow by providing access to high-quality products,
services and insights.
Learn more at: dksh.com

Our four highly specialized Business Units

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> About usServices we offer

Marketinsights

Sourcing

Marketingand sales

Distribution
andlogistics

After-sales
services
Customers

Clients

Omni-channel service portfolio
Backflow of information from customers to clients

Blanket market coverage across Asia Pacific

The underlying goal of any business is todrive growth. This is DKSH’s role: providing
companies with access and expertise to
grow in and with Asia. We call this Market
Expansion Services.
Our Market Expansion Services are:Comprehensive
Our business partners can choose from acomplete range of specialized services along
the value chain – from sourcing, market insights, marketing and sales to distribution
and logistics as well as after- sales services.

Customized
Our services are precisely tailored to meet
our clients’ and customers’ exact needs.

Integrated
Our intelligently integrated and tailor-madeservices deliver seamless end-to-end solutions – no matter how large or small therequirements.

Learn more about the services we offer at dksh.com/services

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Our service philosophy
Our business is about more than simply theexchange and promotion of goods, butrather taking on a profound responsibility
for products and brand. Our specialists proactively provide strategic advice based on
their experience, know-how and networks,
gathering data from our hundreds of thousands of customers and translating it into
highly detailed and up-to-date market information.

> Sustainability at DKSH

Sustainability at DKSH

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> Sustainability at DKSH

Sustainability highlights 2020

Funding education
through the Pankan
project in Thailand

Improving life skills

Supporting a local

with Right To Play andcommunity hospital

Liverpool F.C. Foundationin India

Winning in nine
key categories at the
Asia eCommerce awards

Planting 50,000 trees toAchieving EcoVadis goldcompensate emissions in

rating in France

founding markets

Being awarded as one of
the best companies at HR
Asia Award in Vietnam

Launching electric vansin Thailand

9

> Sustainability at DKSH

Our contribution during COVID-19

Delivery of life-saving
medicines via speedboats
in Malaysia

Production of masks

Ethanol donation forto protect health of staff

hospitals across Thailand

by Levi’s

Development of B-Box
solution for cold chain
vaccine distribution

Partnership withDistribution of ultra-low

International SOS totemperature freezers for

safeguard supply chain

COVID-19 testing inoperations

Thailand

Shifting our marketing
capabilities online,
for example with LEGO

Cleaning solutions to keep
tool steel provider shiny in
Taiwan10

> Sustainability at DKSH

Our approach to Sustainability

Enriching people’s lives.

Our people
Being an attractive
employer committed todeveloping our talent.
SDGs

KPIs

Our partners
Providing access to markets,goods and services at highest
business standards.
SDGs

KPIs

Our planet
Managing our environmental
and social footprint

SDGs

KPIs

We take responsibility for our environmental, social and economic impact to account for present and future needs.
In the 19th century, our founders built trading relationships between businesses in Asia and Europe, bridging cultures and bringing
people together. From humble roots, our business now employs around 34,000 people. What has not changed over all the last 150
years, however, is our business purpose: enriching people’s lives.
For us, simply providing products is not enough. Of equal importance is how we conduct our business and what impacts our activities
have on our stakeholders. Providing access to markets and products as well as generating jobs is what we have always done, and by
doing this in a reliable and responsible way we contribute to the development of markets and communities as well as to the UN Sustainable
Development Goals.
In 2020, we have made “Sustainability” one of our company values and we bring it to life through our Sustainability Framework
focusing on three pillars:
Our people
As a people-driven company, we seek to
be an attractive employer known for ourcommitment to developing our talent.
Built as an international business from theoutset, we have always embraced
diversity as one of our success factors andcontinue to believe strongly in the benefitsof collaborating with people from different
backgrounds and with different ways ofthinking. We are committed to attracting
and retaining our talent by offering a safe
and supportive work environment that
respects human rights and enables ourpeople to grow and fully develop theirpotential.
11

Our partners
Our business delivers growth for companies
in new or existing markets. We partnerwith clients who seek our who seek ourservices, such as distribution, marketing or
sourcing, based on our aim of delivering
service excellence. We never compromiseon the quality and safety of the products
we are responsible for and go the extra
mile to ensure their availability for our customers and consumers. Our business isbuilt on integrity, trust and reliability, andwe are therefore commit ted toresponsible procurement. We expect thesame high standards from our business
partners.

Our planet
We acknowledge that businesses must playtheir part and be mindful of their environmental and societal impacts. We are committed to managing our environmental
impacts through adequate operational
measures and to becoming a carbon-neutral company by 2030. Focusing on themarkets in which we operate, we continue
to be an active supporter of the local
communities.

> Sustainability at DKSH

Expand training reach and events with a focus on blended learning (p. 29)

Developing our talentContinue reducing voluntary attrition rate (p. 30)

Our people
Being an attractive
employer committed todeveloping our talent.

Increase managerial bench strength (p. 29)

Increase the representation of females in senior leadership (p. 18)

Embracing diversity

Increase the representation of locals in market leadership teams (p. 18)
Train >90% of our managers on diversity awareness (p. 18)

SDG link
Offering a supportive
work environment

Expand Human Rights guidelines and frameworks (p. 30)
Establish an employee engagement survey and improve engagement (p. 29)

Launch a sustainable procurement policy and related training (p. 32)

Procuring
responsibly
Establish a roadmap to assess suppliers

Our partners
Providing access tomarkets, goods andservices with highest
governance standards.

SDG link

100% of relevant sites have a Business Continuity Plan in place

Delivering service
excellenceStrengthen health & safety approach to achieve
zero high-consequence injuries (HCI) (p. 36)> 95% of employees complete business ethics training (p. 30)

Reduce our own CO2 emissions by 35% by 2025 (p. 25)

Our planet
Taking responsibility forour environmental andsocial impact.

Managing ourenvironmental impact

Achieve climate-neutrality in our own operations by 2030 (p. 26)

Create transparency on waste and expand eco-friendly packaging (p. 25)

SDG link
Being an active
community member

12> 90% of significant locations engage in local community activities (p. 31)

> Sustainability at DKSH

Our governance structure

Sustainability is an essential part of our business. Therefore, responsibility for Sustainability requires strong leadership and commitment
throughout our highest governance bodies, such as the Board of Directors and our Executive Committee. This governance structure andour commitment to environmental, social and ethical topics are clearly defined in our Sustainability Policy.
As the highest governance body, the Board of Directors oversees our strategy and has appointed one specific member to supervise theGroup’s approach to Sustainability matters. In this role, the Board member supervises the work of the management-level Sustainability
Committee and provides regular updates to the Board of Directors.
The CEO and the Executive Committee provide guidance on our Sustainability matters. From 2020, each Executive Committee member
has sustainability-related targets linked to their variable compensation.
To drive each of our Sustainability topics, we have established a Sustainability Committee consisting of members of all relevant Functions
and Business Units who meet at least four times per year. The Committee implements our Sustainability initiatives and provides quarterly updates to the Executive Committee and half-yearly updates to the dedicated Board member.

Board of Directors

Executive Committee

Sustainability Committee

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Human Resources

Supply Chain
Management

Governance, Risk
and Compliance

Investor & Media
Relations

Business Unit
Healthcare

Business Unit
Consumer Goods

Business Unit
Performance Materials

Business Unit
Technology

> Sustainability at DKSH

Environment

8%

reduction in our own carbon
emissions year-on-year

35%

carbon reduction set for 2025100%

renewable energy sourced at
our major food blending plantin the Philippines“We are mindful of the environmental and ecological impact of
our activities along our value
chain and are committed to reducing our carbon footprint
through appropriate measures.”First-timeassurance of ourcarbon emissions

14

As a company, we recognize our responsibility to mitigate climate change. We arecommitted to conducting our business in anenvironmentally sustainable manner. Overthe past years, we have reduced our emissions by optimizing transport and energy
use. DKSH decreased emissions by 8% in2020 and targets another 35%-reduction
by 2025 against the baseline of 2020. To
achieve this, we will reduce emissions at
source by further optimizing transport andenergy use, as well as expanding our consumption of renewable energy. As a leading
example, our food-blending plant in thePhilippines has already switched to renewable energy early 2021.

In addition to more efficient energy
resources, we are also reviewing ourapproach to waste management, based ona new waste management guideline developed in 2020. Furthermore, we have introduced a group-wide project called “Faster– Leaner – Greener” to reduce waste especially at our office locations. The global project team targets these three goals for ourinternal processes and has implemented
nearly 200 initiatives in 2020. These range
from smaller measures such as installing
proper recycling stations up to materialchanges like switching to digital signatures
and approval processes. The project continues in 2021 and continues to focus on expanding renewable energy consumption
and reducing waste.

> Sustainability at DKSH

Striving for higher electricity savings in Thailand’s Distribution Centers“In Thailand, we operate several large distribution centers, with a floor area of up to
50,000 square meters. Because of their size, these distribution centers represent thelargest part of our electricity consumption in the market. As part of our continuous
improvement mindset, we regularly discuss how to reduce electricity consumption. In
2020, we raised awareness for proper door management in our temperature-sensitive
areas to reduce the influx of warm air and the need for extra cooling. We also reviewed
our electricity consumption during every morning meeting. We optimized the use oflights during shift changes, installed motion sensors to control when lighting is switchedon, set timers for both lighting and powered handling equipment, and switched to more
LEDs. In total, we saved 1 million kWh of energy in 2020 or 17% of our total energy
consumption in these distribution centers.
My team and I are very motivated to see how even small changes can result in significant
savings and how much impact we can generate by establishing a set of easy-to-follow
processes. We will keep up this spirit to identify further potential for more environmentally-friendly processes.”
Sekson Insee, Logistics Support, DKSH Thailand

Serving our customers for better waste-treatment“Our Business Unit Technology supports manufacturers of capital investment goods andanalytical instruments to expand into the Asia Pacific markets. One of our customers in
Taiwan is a leading, international industrial solutions provider. The regulator tightened
environmental standards for wastewater treatment, which resulted in a more labor-intensive process and higher costs for our customer. DKSH approached the customer withan evaporation system solution developed by another DKSH client, Evaled. This solution
enables more efficient water reuse and matter recovery, reducing the overall amount ofwastewater generated. The solution cut our customer’s wastewater management costsby around 80%.
As a result, the company’s production is not only more environmentally-friendly andcompliant with government regulations, but the investment cost will be recovered inless than three years. This demonstrates how our teams apply their strong technicalknowledge to add value for our customers and achieve more sustainable solutions forsociety.”
Weilun Tsao, Business Unit Technology, DKSH Taiwan

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> Sustainability at DKSH

Switching to renewable energy consumption in the Philippines“As a leading distributor of specialty chemicals and ingredients, our Business Unit
Performance Materials offers a wide range of value-added services in addition to sourcing, sales and marketing, distribution and logistics capabilities. Part of these value-added services is our food blending facility in Manila, Philippines. The plant serves ourbusiness partners with formulation and blending expertise for food service products,
such as sauces, batter and premixes.
To operate our equipment, our plant consumes around 3 million kWh of electricity per
year. With our local team, we have set the ambitious goal of becoming climate-neutral
for the operations at this plant within the next few years. As a first step, we switched
to 100% renewable electricity consumption early 2021, which will substantially reduce
our carbon footprint. In addition, we started removing plastic bottles and swapped
paper reports for digital solutions. As a next step, we will convert our conventional
boilers to biodiesel and we intensify our efforts to reduce the use of plastic and paper.
We are proud to be well on track to render our blending services climate-neutral within the next few years. As a result, our tailor-made formulation services are not only
leading in terms of quality and time-to-market, but also in satisfying our stakeholders’demands for minimal environmental impact.”
Romil Jagunap, General Manager, Business Unit Performance Materials, DKSH Philippines

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> Sustainability at DKSH

Social27%

of our senior management
are women

43

local community projects>80,000

online learning and training
sessions completed“We operate in a socially responsible manner with due consideration to the requirements of our
stakeholders.”

Living up to our promise of enriching people’s lives, DKSH played a critical in responding to the global COVID-19 pandemic.
DKSH continued to reliably supply daily
essentials and pharmaceutical products
across Asia Pacific. While we ensured anuninterrupted supply chain even to theremotest areas in some of our markets, thehealth and safety of our employees
remained as our highest priority.
As a services company, our nearly 34,000
people are the heart of our business, and of
our success. We have strengthened our approach to promoting diversity among ourworkforce. Even though we already employ
27% women in our senior leadership and
73% local staff in local market leadership,
we are committed to improving these ratios
further.

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Hiring and talent development practices
have been implemented to strengthen our
diversity and create opportunities for abroad range of employees.
Besides empowering our employees, astrong commitment to the local communities we operate in has always been an integral part of our business. We supported 43
projects across many of our markets. Early
2020, we have expanded our partnershipwith Right To Play to include the Liverpool
FC Foundation and together use the transformative power of play to educate andempower children facing adversity in
Thailand. To kick-off our new program, weorganized a large launch event including asoccer tournament. Watch our video
here.

> Sustainability at DKSH

Belonging@DKSH

What is Belonging@DKSH?
DKSH emphasizes diversity and inclusion in its workforce, to ensure a well-rounded workplace with a healthy mix of varied perspectives and characteristics​. Belonging@DKSH is an initiative todrive diversity, equity and inclusion at DKSH. It reflects our belief
that we will achieve more when our employees feel they can be
fully themselves at work. It is a natural extension of our culture,
our purpose and our values.

Did you know that...
Women at DKSH make up:
53% of all employees
51% of all managers
Market leadership teams are:73% local staff
DKSH employees represent:
75 cultures

Key initiatives for Belonging@DKSH• Launch engagement surveys and awareness trainings• Embed belonging-related practices into formal guidelines• Launch e-learnings about belonging and hiring practices• Establish new practices around recruitment and talent development

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> Sustainability at DKSH

DKSH celebrates International Women‘s Day“Proud to be a #WomanatDKSH as all mycolleagues, male and female, treat me equally
to others and are also equally dedicated,creative, supportive, open-minded and fun!”- Christina Fischoeder, Switzerland -At DKSH, I have been encouraged as well as
empowered and found my own path to leadmyself with courage and self-esteem.
- Manoshi Mitra, India -I’m proud to be a part of DKSH
and to represent the company’s sales
achievement. In DKSH, everyone has the same
opportunity to develop their own self.

- Elna Wita, Indonesia -I am proud to be #WomenatDKSH because I
have the opportunity to transform thesurroundings, and with it myself. My pridecomes from those who encourage me to move
forward with multicultural experiences.
- Fernanda Ramalho, Spain -19

> Sustainability at DKSHAt DKSH, differences allow us to broaden ourperspectives and ideas that support our roles
and responsibilites. There is no limitation
regarding gender, here. Everyone has theopportunity to achieve success for themselves andthe organization.
- Pinsirin, Jirabrovonkij, Thailand -Proud to be #WomenatDKSH – filled withpositive energy all day long!
- Luc Kim Loan, Vietnam -At DKSH, we are empowered to be leaders
and to see challenges as opportunites.
- Saraveth Horn, Cambodia -The power of women at DKSH is truly beyond
boundaries. We strive to make things happen,
while being empathetic toward people andadaptable to situations.
- Suntree Phasaphasutha, Thailand -20

> Sustainability at DKSH

Governance

Board

Dedicatedmember for Sustainability
Sustainability

Committee
established

Integrity line
introduced“We strive to maintain the highest standards and ethical values
in all our business activities with
our employees, stakeholders andthird parties.”21

Our success is rooted in collaborative, ethicaland sustainable leadership. DKSH’s Boardof Directors and Executive Committee areresponsible for defining the businessstrategy and ensuring its execution, including on sustainability. In 2020, the Board
appointed one dedicated member to oversee the Group’s Sustainability approach andmaintain a regular exchange with the
Sustainability Committee on managementlevel. This Sustainability Committee was
newly formed in 2020 and consists ofrepresentatives from all Business Units andrelevant Functions. It is responsible tofurther develop and implement DKSH’s
Sustainability strategy.

DKSH is committed to conducting businessat the highest ethical standards. Therefore,
DKSH expanded training efforts on the
Code of Conduct. In 2020, nearly 100% of
our workforce completed this training andpassed the concluding test. Furthermore,
DKSH established its Integrity Line, which isavailable 24/7 for all business partners. We
encourage our stakeholders to report potential misconduct via this anonymous platform. This helps to ensure that our value of
integrity is lived throughout our entire
organization.

> Sustainability at DKSH

What really matters: our materiality matrix

DKSH conducts materiality assessments to
identify the most relevant topics for our
stakeholders. Our initial materiality assessment was conducted in 2017. In 2018 and2019, we performed a high-level review of
the assessment. The review included theintegration of updated information frombusiness partners, analysts, media, investors
and sustainability rating agencies. Whendefining report content, we have considered
all significant aspects of our business along
the value chain. Due care was taken for the
preparation of this report through application of the reporting principles of stakeholder inclusiveness, sustainability context, materiality and completeness to the best of ourability.

For establishing our materiality matrix, a listof potential topics was assembled fromseveral sources, including various industry
frameworks, sustainability reports by peers,clients and customers, as well as importantfactors identified by DKSH’s risk profile.
Subsequent steps included an eliminationof topics with limited relevance for our business, followed by an impact assessment
conducted by survey, involving personnel
located in various parts of the business andgeographies.

Separately, expectations expressed by otherimportant stakeholder groups, such as
employees (via employee surveys), clientsand customers, were taken up via direct
feedback. In fact, many of our top clientsand customers have adopted sustainability
principles and reporting standards, and they
expect DKSH to play its part in their upstream or downstream supply chains.
These expectations also relate to stakeholder groups that DKSH does not directly engage with – such as consumers of healthcare products and fast-moving consumer
goods.
GRI 102-40, GRI 102-42 to 44,
GRI 102-46 and 47

Anti-corruption

Influence on assessment by stakeholders

Environmental
responsibility

Economic value

Occupational health and safety
Marketing and labeling

Procurement
practices

Procurement
practices

Local
communities
Information security
Market presence

Environment
SocialSignificance of impacts

22

Our people

Customer healthand safety

GovernanceEnvironment

23

> Environment

Environmental responsibility

Climate change and the resulting adverse
effects on nature and mankind is a huge
global challenge and DKSH is committed toplaying its part in tackling global warming.
Most of our greenhouse gas emissions relate to operations in our significant locations
in South East Asia and Greater China, andmainly result from logistics (warehousing
and transport) and travel by our sales teams.

with maintaining a register of applicablenational environmental laws and regulations
and for ensuring that all our operations arecompliant.

Our management approach has primarily
been geared towards compliance with environmental rules and regulations applicablein the respective countries of operation, as
mandated by our Health, Safety andEnvironment (HSE) policy. The policy underlines DKSH’s commitment to conducting ourbusiness in an environmentally responsible
manner and local HSE managers are tasked

Shifting gear
With the release of our new Sustainability
policy in June 2020, we have expanded our
focus from legal compliance to continuous
improvement. This should support ongoing
reduction of energy consumption, emissions, waste and other environmental impacts.

24

Since 2017, DKSH has had not recorded
any incidents of non-compliance withenvironmental laws and regulations.
GRI 307-1

Our commitment
Optimizing the effectiveness of our distribution system via continuous improvement of our supply chain processes while
reducing energy consumption, emissions,waste and other environmental impacts.
Our progress will be supported by an enhanced HSE Management System, referencing ISO 14001, which has been developed
during 2020 and has been deployed in thefirst quarter of 2021.
Logistics operations
To distribute our clients’ products and ourown, DKSH operates 160 distribution centers (DCs). Our DCs and warehouses are
typically leased, with a few of them built-

> Environment

GRI 305-1 to 305-3

GRI 302-1

First-timeassurance of ourcarbon emissions

25

to-suit. They account for a significant partof our carbon footprint. Energy is consumed
for lighting, cooling and operating forklifts
and other handling equipment. Most of ourhandling equipment is battery-operated.
Temperature-sensitive products may require
storage and transport in air-conditioned
vehicles or in special transportation boxes.
Therefore, the use of refrigerants and theresulting fugitive emissions form part of ourcarbon footprint.

Internal approval systems are in place toprevent unnecessary travel.

Our capillary distribution network serves
several thousand customers daily. Our own
fleet of vehicles is comparatively small. Mostof our outbound deliveries are handled bytransport service providers that we selectbased on quality, reliability and, increasingly, the type of fuel they use. One of ourmost significant impacts relates to fuel consumption within these vehicles. More than
95% of our outsourced fleet is diesel-powered, although some vehicles run on compressed natural gas or gasoline, and route
optimization is key for operating efficiency.
To increase efficiency and tackle emissions
for our small company-owned fleet and ourhaulage carriers, we have rolled-out a specialized software targeting transport network optimization in six markets: Thailand,
Singapore, Hong Kong, Malaysia, Vietnam
and Taiwan. This tool enables us to plan themost efficient routes to take. The system
resulted in considerable savings in 2020 despite certain Covid-19 effects. Demand in
our Consumer Goods and Healthcare businesses was less affected since they are designated as “essential” by local authorities,
however delivery routes had to be adapted
and the number of trips needed increased
in some markets.

While emissions from air travel dropped significantly in 2020, we expect these to gradually creep back up once the pandemic
challenge subsides and international travel
resumes. However, travel may not recover
to pre-pandemic levels as our customers
and sales teams take full advantage of digital communication tools that are now wellestablished and proven to be successful.

Business travel
Under normal circumstances, travel is a key
part of our business. Most of these journeys
are usually made in vehicles not controlled
by the company, such as business flights,
travel by sales and service teams in theirown cars, and travel by public transport.

Once the global Covid-19 crisis emerged inearly 2020, DKSH experienced a significant
drop in business travel. While deliveries ofgoods were able to proceed, meeting customers was restricted at times and marketing activities were shifted online as much as
possible, including webinars, online campaigns and new digital marketplaces.

Waste management
With a comparatively small footprint in own
or outsourced manufacturing activities,
waste primarily accumulates in our logistics
activities pertaining to packaging materials.
Preparing goods for delivery requires mostly cardboard boxes and plastic foil for palletwrapping, and packaging waste is also generated from incoming shipments. Healthcare
cold chain goods need particularly extensive
packaging to protect temperature-sensitive
items.
Waste may also accumulate from goods
turned unsellable due to expiry or for otherreasons, from administrative activities (officewaste) or the redundancy of IT equipment.
During 2020, DKSH developed a more comprehensive guideline on waste management. In future reports, we intend to provide more information on waste and how
we manage or reduce the amount of waste
in our operation.

> Environment

Faster – Leaner – Greener
In 2020, DKSH initiated a Group wide program called “faster-leaner-greener” (FLG),
which promotes environmentally friendly
practices, such as using digital solutions instead of paper. Living our value of collaboration, all markets have a dedicated FLGrepresentative who shares learnings andbest practices with the wider team. DKSH
implemented nearly 200 FLG initiatives in2020 that were suggested by employees
and replicated across to other markets.
Examples ranges from ‘quick fixes’, such asproviding clear labelling at recycling stations, to wider operational changes, such as
switching to digital signatures and approval
processes.
The program will continue in 2021, with afocus on expanding the use of renewables,
reducing waste and paper consumption,and the overall streamlining of processes.
Our targets
Energy consumption and carbon emissions
We have been reporting the carbon emissions related to our operations since 2018and have launched several initiatives to reduce our environmental footprint. In addition to reducing carbon emissions, DKSH
started a program in 2019 to offset progressively more of its carbon footprint each year,with the aim of becoming climate neutral
by 2030.
In 2020, we set our first Group-wide carbon
reduction target. By 2025, DKSH will reduce
emissions from our direct operations by
35% against the 2020 baseline. To achievethis, we will:• reduce emissions at source by optimizing
our transport routes and ensuring more
efficient use of electricity across our sites• expand the consumption of renewableenergy across our main markets• compensate remaining, unavoidable emissions with carbon offsets.
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Reporting approach
Data on refrigerants, fuels and downstream
transportation is captured for markets withthe highest usage of refrigerated storageand largest distribution networks. In previous years these included Cambodia, Hong
Kong, Malaysia, Myanmar, New Zealand,
Singapore, Thailand, Taiwan and Vietnam.
In 2020, we extrapolated data for Myanmar
since the political situation meant primarydata collection was not conducted. Fuel usage includes CNG, LPG, diesel and gasoline
for our internal fleet of delivery vehicles andback-up electricity generators. For outsourced logistics services, major suppliers
provided diesel consumption data in litersfrom bill data. For consistency, all fuel property and carbon intensity factors weresourced from UK Government GHG
Conversion Factors for Company Reporting(2020 edition). The Global Warming
Potentials applied are from theIntergovernmental Panel on Climate Change(IPCC) Fourth Assessment Report (AR4) over
a 100-year period.
We collect data on electricity consumption
from bills received from utility suppliers foralmost all of our markets. For our US market, we have extrapolated energy data fromcost data, and for our small UK market we
do not report data since electricity consumption is charged through a buildings
services fee. We have applied LocationBased Factors according to the following
hierarchy: (i) government source (as recent
as possible, by state if available), (ii) IEA
2012, (iii) nearest neighboring country. For
Market-Based Factors, we applied the following hierarchy: (i) electricity supplier factor, (ii) most recent credible residual factor
source (e.g. RE-DISS for European countries)and (iii) same as Location-Based Factor.

Kilometers flown data was supplied by ourbusiness travel providers for major markets
including Hong Kong, Malaysia, Singapore
and Thailand, and UK Government (2020)
carbon factors were applied. Data was extrapolated for the remaining countries
based on the available flight spend data.
We also disclose to CDP; please see our latest carbon disclosure on the CDP website
for further information. CDP is an international non-profit organization that aims toestablish business norms for environmental
reporting and risk management. Given its
relevance to both business partners and investors, DKSH has published CDP disclosures since 2016.

TargetAchieve climate neutrality in our own
operations by 2030.
Reduce our carbon emissions by 35% by2025 against our baseline in 2020.

> SocialSocial27

> Social

Our people

Attracting and retaining people who share
our values and our purpose is crucial in ourbusiness. We offer safe, healthy workplaces
and follow fair employment practices. DKSH
employees follow the principles outlined in
our Code of Conduct: respecting humanrights and offering equal opportunities, investing in talent and supporting our people
in their personal growth.
With a multinational history of more than
150 years, our very essence has long included working together across nations, cultures, creeds and other elements that makethe world a diverse and exciting place. With
our 4,000 clients and suppliers and our
550,000 customers across 36 markets, ourdiverse workforce is a critical factor to our
successful service delivery.

28

To underline our commitment to diversity,internal equity and inclusiveness, we haverecently launched our “Belonging@DKSH”
initiative with three priorities.
Priorities for “Belonging@DKSH”• Increase the representation of womenin middle and senior leadership• Increase the share of local nationals in
our market leadership teams• Strengthen employee engagement

This is also partially due to the current andhistoric underrepresentation of women in
the science, technology and logistics talentpools. We are committed to diversity at alllevels in the organization. We have embedded diversity- and belonging-related practices into formal guidelines and have introduced education around diversity, equity
and inclusion in both daily management andin hiring practices. These efforts will help us
improve in all three priority areas.

In 2020, 51% of our workforce and 36% of
our market leadership teams were women.
For our approximately 200 senior-most leaders, the ratio was 27%. There are currently
no women on the Executive Committee.

E n a b l i n g p e r s o n a l g r ow t h a n drecognition
To grow our business, we also need to enable our people to grow. The diversity ofour business and the industries we serve
offer significant learning and development

> Social

opportunities. We emphasize hands-on experience, empowerment and stretch assignments as our primary way of developing
employees. This, combined with feedback
and learning from others as well as formal
training from our Fantree Academy, provide
a balanced development approach known
as “70-20-10”.
At DKSH, we encourage our people to own
their professional development. We promote internal talents whenever possible
instead of hiring externally. All open positions are advertised in an internal job market and we enable internal mobility including international assignment s. For
management level positions, the ratio ofinternal promotions versus external hiring isa closely monitored performance indicator.
In early 2021, DKSH launched an enhanced“HR scorecard” to enable team leaders tobetter monitor and manage relevant KPIs
such as attrition, diversity, internal fill andmanagerial bench strength.
Since 2013, we have built our in-houselearning and development center, “Fantree
Academy”, with curricula built on the pillarsof Leadership, Functional Skills and Essential
Skills. Our training curricula are complemented by programs addressing other important matters, such as ethics and compliance, employee onboarding and health andsafety.
Training is typically delivered through online,
classroom, on-the-job or external assignments. In 2020, because of the Covid-19
pandemic, we saw a significant shift to online training and postponements of in-person training programs. To increase training
effectiveness, we are favoring shorter, more
intense learning sessions with an emphasison on-demand digital learning. Facilitatedby our new learning management system
introduced in 2019, employees can accessvarious online and offline sessions according
to their individual needs and interests.
29

Nearly all our 34,000 employees received atleast one training in 2020. In total, they
completed more than 80,000 training sessions both online and offline. This resulted
in an average of three training hours each.
Before the launch of the new learning management system, training was available andtracked only for a portion of our workforce.
In 2019, 7,000 employees participated at
Fantree Academy and received on average
12 hours of training, entirely classroom-based.
Overall, the launch of the new learning
management system results in a significant
increase in training reach. Whereas before,
employees had access at most to a few dozen programs, there are now more than
1,000 unique learning items in the catalog.
Going forward, we will further expand
training reach and increasingly use a blended approach of digital learning, in-person
learning and on-the-job application.
GRI 404-1
Recognition is a key part of our approach toretaining talent. In addition to training, onthe-job opportunities for growth and internal mobility, DKSH celebrates the employees
who have most embodied our corporate
values through the DKSH Fantree Awards.
Individual employees or teams are encouraged to nominate colleagues at the local
level. Awards are recognized and celebrated
during town hall meetings and given bymembers of senior management. In addition to local awards, five corporate-level
awards acknowledge extraordinary contributions and the winners present their success stories during a ceremony at a Boardof Directors meeting.
Performance and feedback culture
Employee performance is measured against
mutually agreed quantitative and qualitative
objectives and is linked to remuneration. All
employees participate in a formal annual
appraisal with their manager. For manage-

ment-level employees, this is carried out via
the DKSH Talent Portal, an online performance and talent management solution andincludes a personal development plan.
Regular dialogues between managers andemployees on development objectives, including constructive feedback, are also apart of their development journey at DKSH.
Our aim is for every employee to benefit from a yearly appraisal. A morecomprehensive performance review
was completed for 23% percent of employees in 2020 (2019: 19%). This review includes a reflection on our values,
individual targets and development
plans. All decision-making with respect
to appraisals, development opportunities and promotions uphold our equal
opportunities commitment.
GRI 404-3
Other than via performance dialogues,
DKSH encourages periodic feedback from
employees via employee engagement surveys. Our Human Resources function conducted a survey in early 2021, covering
more than half of the workforce, to better
understand perceived strengths and weaknesses of DKSH as an employer. This survey
covers all our employees with email accessand the entire workforce in Thailand as ourlargest market. Building on the 2021 survey,
follow-up surveys covering the entire workforce are planned annually.

TargetTo develop our talents, we expand training reach and eventswith a focus on blended learning

> Social

Creating a supportive work
environment
Providing a work environment that is conducive to people performing at their best
includes offering relevant benefits to theworkforce. DKSH provides a variety of benefits to its employees, based on applicablepolicies in the countries of operation.
Standard benefits, with some variation bymarket, include life insurance, healthcare,disability and invalidity coverage, statutory
retirement provision and parental leave.
Benefits related to stock ownership are limited to eligible key managers of the company (Annual Report 2020, page 33). Our
practices with respect to providing benefits
exceed applicable legislation in many cases.
In four out of ten significant locations (ref.
GRI 102-4 for definition), the benefits provided to part-time and temporary employees are identical to those of permanent fulltime employees, and in five other markets
some of the benefits are only provided tofull-time employees. In one market, no voluntary benefits are provided to part-time or
temporary employees.
GRI 401-2
Most importantly, at DKSH, we are committed to providing a work environment where
people are treated with dignity and respect,free of discrimination or harassment where
people positively collaborate with each other, enabling them to thrive and fully develop
their potential. Respecting human rights isa key element in our employment offering,as laid out in our Code of Conduct. DKSH
does not discriminate based on age, religion, gender, or any other protected category. We respect our workers’ rights tofreedom of association and collective bargaining. We would never penalize anyone
engaging in good faith in workers’ groups.
The lower percentage of employees coveredby collective bargaining agreements in 2020is the result of an organizational adaptation
to regulatory changes in one of our significant markets of operation.
30

At the end of 2020, 20 percent of
DKSH’s employees were covered bycollective bargaining agreements (2019:24 percent).
GRI 102-41
Our commitment to respecting humanrights and non-discrimination is made clear
to employees through our Code of Conduct
and related induction training. This includes
the importance of treating all people withrespect. The training materials specificallystate that any form of discrimination, harassment or bullying is not acceptable. The
training also encourages people to reportany cases of misconduct to the site manager or to HR and emphasizes that reports will
be kept confidential. Organizationally, we
practice a business partnering approach
whereby representatives of the HR department are stationed within operations, allowing employees to easily access theirsupport. Integrity Line, the online reporting
tool we introduced in late 2020, further enhances the avenues available to employees
for confidential reporting of human rights
or labor condition concerns. In 2020, nosuch incidents were reported to HR.
In July 2020, we launched Code of Conduct
refresher training which substantially centered around human rights and workplaceissues, targeting all employees. By end of
2020, 28,417 employees or 86.7% of ourentire workforce had completed the training, and the remainder will complete it in
2021.
DKSH recorded no incidents of discrimination or harassment in 2020.
GRI 406-1
To ensure labor rights are fully upheld, theHR and Supply Chain Management teams
in each of our key operating markets have
responsibility for all hiring and for ensuringthat employees and contractors have thecorrect documentation. We operate management programs in line with applicable
local laws and labor regulations to preventchild or forced labor, or illegal workers, andto ensure decent and safe workplaces, fair
and timely pay, and adequate rest periods.
Our management approach to non-discrimination and human rights practices has focused thus far on legal compliance andgovernance processes, and evaluation of
their effectiveness has mainly been at the
local level. Although we are not aware ofsignificant issues arising in our operations,
we intend to standardize our compliance-led approach to ensure consistent operating standards in all countries where
DKSH operates. We are working towards
centralized oversight of this issue, with clear
reporting lines to Group management. The
steps towards such a more coordinated approach, which will include a human rights
impact assessment, was initiated in late
2020 and we will report on progress in our
2021 report.
Sharing a moment in life
We seek to offer an attractive work environment in support of our objective of retaining our people, but we understand thatsome employees may seek new opportunities outside DKSH. In 2020, the overall attrition rate for the Group was 23% with avoluntary attrition of 15%. For our management levels, total attrition rate was 15%.
Although our attrition rate may seem high,there are two factors to consider. Firstly,
South-East Asia is a very dynamic economic region with generally higher attrition rates
than, for example, European markets.
Secondly, the logistics sector, which makes
up a large proportion of our workforce, isparticularly dynamic compared to other local industries, resulting in high attrition rates
among this employment segment. Over the
past years, we have successfully reduced
voluntary attrition and target to do sofurther.

> Social

Local communities

A strong commitment to the local communities in which we operate has always beena key part of our business. We create positive impacts on society by providing stablejobs with fair employment terms and opportunities for personal development, and by
setting a clear standard for how businessshould be conducted. Through our capillary
distribution network, we enable market access for healthcare products and other necessary items across Asia. In addition, we
provide ingredients and equipment to build
local industries and infrastructures with ourBusiness Units Performance Materials andTechnology.
Amidst the COVID-19 pandemic, our colleagues in Business Unit Healthcare donatedmedical supplies to hospitals, including in
Cambodia, India, Malaysia, Myanmar andThailand. In addition, the Business Unit
Performance Materials donated more than31

4,000 liters of ethanol to remote hospitals
across Thailand to use as disinfectant inhand sanitizers. Several teams from Business
Unit Consumer Goods regularly participatedin food donation programs.
Alongside our business activities, we create
a positive impact by engaging in projects
and selected sponsorship programs.
However, as stated in our Code of Conduct,
DKSH does not engage in political processes and refrains from any form of donation
for political topics.
In our major Thai market, we have supported Right To Play for more than 14 years. This
global organization uses the transformative
power of play to educate and empowerchildren facing adversity. In 2020, we expanded the partnership; together with Right
To Play and the Liverpool FC Foundation,
DKSH will establish sport and play-based
sessions for disadvantaged children,

rehabilitating sports fields and organizing
tournaments as well as voluntary initiatives.
Through these activities, children will gain
the critical life skills they need to take ownership of their future, build resilience, andengage more meaningfully with their communities and society. In early 2020 welaunched this new phase of our partnershipwith a football and chairball tournament for
500 children.
We are also open to opportunities to offer
roles to local people who have struggled toenter the workplace. For example, in
Malaysia, DKSH employs 11 deaf people
from the local community at the Famous
Amos cookie outlets.
DKSH supported 43 local community
projects. Charitable activities took placein 8 of our 10 significant markets.
GRI 413-1

> Social

Procurement practices

More than 90% of our business activities
relate to the procurement of goods for resale. Our current procurement practices
generally follow a tailored approach adapted to individual business requirements, as
described below. However, going forward,
we intend to move towards higher uniformity in our approach by enhancing andstandardizing supplier evaluations and setting standards and objectives for certain
procurement categories and will report on
progress in future reports.
Marketing and distribution services
DKSH’s core business model is to enable
market access and business growth for
manufacturers of products in the industries
and markets we serve through our fourbusiness units, with a focus on Asia Pacific.
Our main activity is the provision of contract-based marketing and distribution
services, with procurement of trading goods
32

directly from our clients, which accounts forthe bulk of our procurement activities.
Our goods for resale and distribution originate from a global client base headquartered in the Americas, Europe, and Asia.
Contracts specify shipping and delivery
terms and may vary depending on clients’locations and their fulfilment strategies.
Based on agreed terms, we either organize
international shipments, take over products
at port, or receive deliveries directly at our
distribution centers, which often also originate from sources within a country.
As enshrined in our Code of Conduct, weonly engage with business partners whomeet our standards of doing business. We
procure goods within well-defined productcategories, following ethical standards andstringent contract management procedures.
Our distribution of tobacco products is verysmall, accounting for less than one percent
of group sales and we do not trade in arms.
We respect all applicable international andlocal laws and regulations pertaining totrade.
Customer solutions
In addition to its marketing and distribution
ser vices, Business Unit Performance
Materials provides sourcing services to customers in various manufacturing industries.
Sourcing involves identifying the right product and supplier for a specific requirementof a customer and is typically international,
allowing customers to benefit from our vast
network of sourcing specialists. Innovationlaboratories assist customers with formulations for new product development andprocurement of associated product supplies.

> Social

Our sourcing activities mainly bring together Asian suppliers (mostly from China andIndia) with European and American customers, many of which are multinational companies with stringent quality (e.g. ISO 9001,
GMP) but also responsible sourcing requirements.
Manufacturing
DKSH’s third largest revenue stream, albeit
far smaller than marketing & distribution
services and customer solutions, relates toour own manufacturing and branded activities. We have a portfolio of diversified businesses predominantly in own brands, franchising, and in-licensing. Many of our own
brand activities rely on outsourcing to specialized manufacturers, or source products
directly from franchisors and licensors.
Retail franchises
Our Thailand and Malaysia-based franchising operations (Levi’s, Famous Amos) follow
strict procurement guidelines set by therespective franchisors (The Levi Strauss Co.,
Ferrero SpA). The franchisors supply materials to us for manufacturing, either throughsuppliers appointed by the franchisor, or byauditing and approving suppliers selected
by DKSH. Whenever possible, we prefer touse local suppliers.
Medinova, Favorex
In our Medinova own-brand healthcare
business, the selection of contract manufacturers is primarily driven by quality andcapability considerations. Outsourcing partners undergo stringent due diligence procedures including environmental certifications and other requirements. Our main
partner production sites in 2020 were located in Germany and Thailand.
In our Favorex in-licensing business, where
we are the licensee, our supply sources areeither the licensors themselves or are appointed /approved by the licensors.
All supply sources must meet GMP and
33

WHO standards and be compliant with thePharmaceutical Inspection Co-operation
Scheme (PICS).
Consumer own brands
An important pillar in our Luxury & Lifestylebusinesses is our Maurice Lacroix watch
manufacture located in Switzerland. About
70% of procurement is from local suppliers.
Our range of gold and fine jewelry watches
is comparatively small and materials are
sourced from local suppliers who must respect standards of responsible procurement(e.g. REACH regulations, OECD Due
Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected
and High-Risk Areas, Kimberley Process
Certification Scheme and Responsible
Jewellery Council).
In Malaysia, through our Auric Pacific acquisition in 2019, we market own brand goods
produced internally and externally, most ofwhich are dairy products. Third-party manufactured products are sourced fromhigh-quality responsible suppliers inAustralia, New Zealand and Belgium.
Ingredients for the production site are exclusively sourced locally, except for a few
ingredients not available in the local market,
with a primary focus on quality and foodsafety.
A few smaller businesses include the marketing of household goods and appliancesin Malaysia and Australia which are exclusively sourced from China.
Food processing
Our food processing activity in thePhilippines focuses on flexible solutions(both premixes and finished products) for
customers in food services or consumer-facing businesses. About 60 percent of procured materials for production (mixing andblending) are sourced from local suppliers,
with the rest procured internationally from
China, USA, ASEAN, Korea, and Europe.

Agrichemicals
Through the Axieo acquisition in Australia
in 2019, DKSH now also owns a brandedbusiness in agrichemicals which are bothmanufactured in-house (mixing, blending)and procured from a local manufacturing
plant.
Procurement for our own operationand service delivery
Logistics and distribution costs are our biggest area of spend for our own operations.
We procure services for goods handling,
movement in or between our locations, anddeliveries to customers, and purchase related goods such as packaging materials.
Transportation is largely outsourced to specialized local logistics companies. For theoperation of our distribution centers we
procure the services of foreign workers engaged via specialized labor service providers
where there is a shortage of local labor. This
includes workers for the adaptation or customization of products to local market conformity (e.g. repacking or labeling).
Our second largest expenditure item, selling
costs, refers mainly to advertising and promotional expenses. These may include specialized media agencies, but often relate toin-store trade marketing expenses. Some
expenses are incurred in the engagementof promoters (for example for product sampling) on a casual basis, providing a sourceof income for people with low educational
background or for those preferring flexible
work arrangements. Other procurement
relates to general business items, such as
rent, utilities, stationery and office supplies,
consultancy, IT licenses and service fees.
Except for some consultancy and IT licenseand service fees, these are incurred locally

> Social

For the local execution of our business(primarily service delivery), almost 100
percent of our procurement by spend
in 2020 in significant locations of operation was from local companies.
GRI 204-1
Overall, this part of our activity is guided by
our Non-Trade Procurement (NTP) Policy and
our Supplier Code of Conduct. The NTP policy sets various requirements for supplierselection and management, including bothcommercial criteria and expectations ofbusiness conduct. It mandates that all supplier arrangements must be in writing, withreference to the Supplier Code of Conduct
forming an integral part of any contract.
Our Supplier Code of Conduct addresses
topics such as anti-corruption, health andsafety, decent working conditions, and respect for human rights and the environment.
Our technical requirements tend to limit the
number of qualifying suppliers. In Business
Unit Healthcare, for example, redressing
suppliers (for repacking or labeling of products) need to be able to operate under therequirements of Good Manufacturing
Practices (GMP). Supplier assessment isbased mainly on factors such as the company’s financial robustness, capabilities, capacities and standing in the market. The respective Business Unit’s Quality Assurance (QA)
team will monitor service delivery and theneed to retain or replace service providers.
This activity is also typically scrutinized byour clients’ own Quality Assurance (QA)
management.

34

Part of our unique selling proposition (USP)
is how quickly and flexibly we can respondto client and customer requirements, andthis is reflected in the lead time we can offer our suppliers. Our delivery services providers are expected to meet certain key
performance indicators, such as delivery
accuracy and timeliness, which are monitored over time and may lead to performance improvement discussions (applicable
mostly in our Fast-Moving Consumer Goods
and Healthcare businesses). Since our clientsand customers value our reliability, we seek
long-term stable relationships with criticalsuppliers. For our crucial delivery services,
we use a few main providers in each market. Corporate Supply Chain Management(SCM) sets the standards for transport logistics suppliers and oversees implementation of the standards in local operations.
Importantly, our standards require suppliers
to be dealt with fairly and transparently, andfor the results of tender or bidding processes to be communicated openly. Our procurement teams form part of the target
audience for risk-based training pertaining
to anti-corruption and conflicts of interest.
DKSH is bound to investigate any complaints raised by suppliers of unfair or unethical practices conducted by any of ouremployees or by their competitors. At thesame time, we also expect our suppliers to
act in line with our principles and standards,
as expressed via our Supplier Code of
Conduct and to report any non-complianceas per reporting channels identified by the
Code.

> Social

Occupational health and safety

Occupational health and safety (OHS) is a
top priority for DKSH. The management of
OHS risks is addressed through our corporate Health, Safety & Environment (HSE)policy. The scope of the policy includes all
DKSH operations worldwide and encompasses all activities and facilities. Local country management is responsible for operatinga HSE Management System (HSE-MS) that
ensures compliance with applicable regulations, with due consideration to the natureand risk profile of local operations. The
management are supported by qualified
local HSE managers, tasked with the implementation and monitoring of the HSE-MS.

35

In 2020, we developed an enhanced corporate HSE-MS which references the current
leading ISO 45001 / OHSAS 18001 and ISO
14001 standards and introduced it in thefirst quarter of 2021. Local HSE managers
are tasked with ensuring that local HSE-MS
are aligned to the corporate HSE-MS as applicable.
Our HSE-MS also encompasses the healthand safety of contractors we appoint in support of our service delivery. To reinforce ourcommitment to safe practices for contractors, we released a new Contractor Safety
Management guideline in 2021. Contractors
involved in higher risk activities, such as operating forklifts, are evaluated based on

their health and safety performance andprocesses, including injury/illness performance, special skills and training, effective
work procedures, instructions, or equivalent
HSE-MS, and compliance to applicable licensing, rules and regulations. Safeguards
for contractors operating on our sites include Working Instructions on Visitor Safety,
Contractor Safety and Permit to Work
(which also covers safe driving), andContractor Guidelines.
The performance of our HSE-MS is regularly audited by internal and external parties
including our key clients. Country-level internal self-assessment, audits and reviews
are also conducted by the local HSE
Manager to support continuous improvement.

> Social

Hazard management
Timely and proper hazard identification andproactive management of health and safety
risks is essential for a safe working environment. Hazard identification and risk assessments are performed on both a routine (e.g.
scheduled assessments, audits and checks)
and non-routine basis (e.g. new legal requirements, changes to systems, equipment
or materials), and include abnormal and/or
emergency situations (e.g. incidents / accidents, breakdown, maintenance, fire emergency, chemical spills, etc.). The assessments
follow the applicable Standard Operating
Procedure and Guidelines, and the process
is overseen by appropriately qualified
Country HSE personnel in close collaboration with risk owners and cross-functional
stakeholders.
The overall objective is to ensure timely
identification of hazards and risks and implement control and recovery measures toreduce health and safety risks to as low asreasonably practicable (ALARP).
Governed by our policy and HSE-MS, allemployees and workers are required toquickly report any hazards or risks they
identify to their line management. All accidents, incidents and near misses must also
be promptly reported to line management
to ensure timely investigation and corrective
action. Employees and workers are obliged
to stay alert to potential health and safetyincidents at the workplace, and are empowered to work with line management towards establishing and applying the hierarchy of controls based upon ‘E-SEAP’ (i.e.
Eliminating the hazard, Substituting thehazardous with less-hazardous, Engineering
controls, Administrative controls and PPE).
Employees and workers are also empowered36

to avoid and remove themselves from potentially harmful situations as necessary andinform their line manager. It is against ourCode of Conduct to punish any employee
or contractor who, acting in good faith, reports an issue or removes themselves froma situation on H&S grounds.
In line with our commitment to continuous
improvement of health and safety management, it is essential that any incidents arereported and investigated, and that remedial action is taken to prevent reoccurrence.
All accidents, incidents, and near misses areinvestigated. For injuries, significant process
safety events, and incidents with high potential impact, root cause analysis is performed, and the lessons learned are communicated across the relevant parts of theorganization. To support effective enquiry,
DKSH encourages a culture of open communication between employees, workers,
and line management.
Our policy and HSE-MS require the outputof these hazard identification and risk assessment activities to be documented andused for the development of health andsafety objectives, plans, and appropriate risk
control measures. Country HSE Managers
are accountable for the development anddocumentation of health and safety objectives and targets before seeking review andapproval from Country HSE Steering
Committees. Objectives and targets basedon hazard identification and risk assessments are periodically reviewed and communicated to employees and workers, and/or other stakeholders as applicable.

Employee engagement and training
Employee and worker participation, consultation, and communication activities aremostly conducted via local workshops andengagement sessions on occupational H&S.
Employees and workers are encouraged toprovide input and feedback on constructive
improvements towards supporting healthand safety standards in the workplace. Extraawareness sessions may be convened shortly after an incident or accident. Our employees and workers can also approach their line
managers and local HSE team at any time
to report dangers and risks.
DKSH is committed to providing necessary
health and safety information, instructions,and training to everyone working in ouroperations. Local country HSE Managers are
responsible for identifying OHS training
needs and implementing the company-wide
OHS training program, supplemented by
local country regulatory content. In specificcases, such as following an incident or whena new piece of equipment is introduced, thelocal HSE team can develop their own tailored training materials. Building on the
DKSH Learning Management System (LMS),
health and safety trainings include traditional face-to-face classes as well as online
courses and materials. New employees receive comprehensive health and safety induction training on top of any job-specifictraining they require. All new recruits mustcomplete induction training (with signed
attendance records) before commencing
duties. Periodic refreshers are held, and attendance is monitored.

> Social

DKSH countries run local campaigns designed to promote health and safety awareness among employees and other workers.
In 2020, most DKSH countries focused on
COVID-19 awareness and prevention, as
well as general health and safety related toworking from home. We also hold dialogue
events, information days, courses and training for employees and other workers toregularly inform our employees about current health topics.
Addressing impacts in the supply chain
We are not only committed to ensuring thehealth, safety, and general well-being ofpeople working at our sites, but also contractors in operations outside of our control,
such as transport or warehouse logistics
providers. The management of hazardous
chemicals is often outsourced to specialized
providers who must have in place the necessary standards and systems to qualify foroutsourcing. This equally applies to OEM
manufacturers. From all our service providers we expect clear commitments to proper
business conduct, including health and safety for their workers, embodied in our
Supplier Code of Conduct.
GRI 403-1 to GRI 403-7

372020 performance
In 2020 our workplace safety was audited
by key clients, customers, standards boards
and regulatory bodies, plus our internal
Supply Chain Management and HSE teams.
Key hazards we identified and addressed
during 2020 mainly consisted of improper
behaviors at operational level relating tooperating forklifts and powered equipment;
stacking of loads and storage of materials;
manual lifting and/or handling; unsafe driving on roads; and the risk of exposure topotentially dangerous goods and hazardous
substances. Actions taken to manage theserisks include engineering and administrative
controls, additional training, and the provision of personal protective equipment.
Despite all the leading measures we have
put in place, we were saddened by the passing of a fellow colleague who lost his life ina road accident in 2020 while working for
DKSH in Thailand. Our employee lost controlof the delivery van he was driving underadverse weather conditions (poor visibility,
slippery road). DKSH supported the familyof the deceased by contributing to funeralcosts and providing a compensation fund.
No other incidents of high-consequencework-related injury were recorded for theyear.

The incident increased awareness on theimportance of safe driving and triggeredroad safety refresher trainings, recurring
communication and sharing sessions, consequence management on road safety violations, management reviews of road safety
performance, and increased vehicle inspections.

> Social

Work-related injuries
Number
Employees

Rate1

2019

2020

2019

2020

Fatalities from work-related injuries

1

1

0.02

0.01

High-consequence work-related injuries

0

0

0

0

Recordable work-related injuries

46

49

0.8

0.7

54.5

68.9

-

-

Number of hours worked (in million)

NumberWorkers (all, no exclusions)

Rate1

2019

2020

2019

2020

Fatalities from work-related injuries

1

0

0.1

0

High-consequence work-related injuries

0

0

0

0

Recordable work-related injuries

16

9

1.6

0.6

10.3

14.1

-

-

Number of hours worked (in million)1

per 1,000,000 hours worked

Main types of work-related injuries
Employees
Types of injury

Other workers

2019

2020

2019

2020

No. of First Aid injuries

23

45

14

10

No. of Medical treatment beyond first aid

6

6

5

1

No. of Job restrictions or transfers

4

2

1

0

No. of Lost time injuries

35

40

9

8

No. of Fatalities

1

1

1

0

Data was compiled via an internal reporting system guided by Occupational Safety and Health Administration (OSHA) reporting requirements. HSE managers in countries are responsible for recording incidents into incident registers and to report these for consolidation atgroup level.
GRI 403-9

38

> Governance

Governance39

> Governance

Economic performance

Economic performance refers to our ability
to operate a profitable business model whileliving up to our corporate value of“Sustainability”, taking responsibility for ourenvironmental, social and economic impact.
DKSH drives a clear strategy for sustainable,
profitable growth that continuously increases our market share and helps our clients
expand their businesses. Both our business
operations and charitable activities support
the 2030 Global Goals.
The economic value that we generate benefits our stakeholders, such as providing
returns and dividends for our shareholders,salaries for our employees and tax payments
to local governments. DKSH also supports
a diverse range of smaller community-based
charities which directly address local needs.

40

DKSH’s strategy for economic value generation is based on our three strategic pillars:• We focus on our existing Business Unitsand markets to leverage our leadership
position• We continuously strengthen and extend
our service offerings to ensure long-term
success for our clients and customers• We progressively drive improvement in theefficiency and effectiveness of our processes
DKSH has a Group Tax Policy in place, whichis reviewed annually by the CFO and Headof Tax. The policy is approved by the Boardof Directors and any proposed amendments
are subject to the Board’s approval.

DKSH is committed to complying with tax
law in all operating markets and to paying
taxes in the markets where the revenue was
generated. Intra-group transactions are carried out under market conditions and aresupported by transfer pricing documentation.
DKSH monitors its financial performancethrough a process steered by the CEO, the
CFO and the Board of Directors. The Grouppublishes its results twice a year. Refer to
our Annual Report for more information.
GRI 201-1 data: see more on page 52 inAppendix

> GovernanceMarket presence

DKSH distributes clients’ products in local
markets, particularly in Asia Pacific. Our indepth knowledge of these markets is a key
part of the value we bring to our clients,
who often do not have a local presence. An
important part of our service offering is ourmarket coverage via a capillary distribution
network, serving customers wherever they
are located. In the last few years, we havemade several acquisitions to expand ouroperations across the Pacific region. We
have therefore increased the number ofmarkets with significant operations fromnine to ten as our Australian business grewin importance and above the 500 specialists
threshold.
Operating as part of each community wedo business in is part of our corporate
culture. We also believe sharing businesspractices across cultures contributes tolocal skills and economic development.
41

Therefore, our diverse management teams
represent various cultures and backgrounds.
This aligns well with the requirements of thebusiness and with DKSH serving as a bridge
between international clients and local customers. Our nearly 34,000 DKSH employees
cover 75 nationalities, meaning that we
speak the language and understand theculture of our business partners in the 36
markets we operate in. In 2020, 73% of ourmarket leadership teams were locals. Within
our markets with significant operations,
65% of all senior managers were hired fromthe host country, with “senior” referring tomanagers in corporate, regional or local
management roles. Local management roles
include first- and second-line managers(2019: 60%).

DKSH defines significant operations as
all markets with more than 500 employees. This includes the ten markets
of Australia, Cambodia, Hong Kong,
Indonesia, Malaysia, Myanmar,
Singapore, Taiwan, Thailand andVietnam.
GRI 102-4
In 2020, 65 percent of local senior
managers in our markets with significant operations had been hired fromlocal communities.
GRI 202-2

> GovernanceAnti-corruption

At DKSH, we are committed to acting withintegrity and conducting our business in an
ethical manner. We do not tolerate any formof corruption and have formalized our approach in our DKSH Code of Conduct andour Anti-Bribery and Anti-Corruption(ABAC) policy.
Most of our business is conducted in Asia
where several of the markets and industries
we work in are generally viewed as having
higher exposure to corruption risks. It is,therefore, imperative that our employees
and business partners both understand ourvalues and our expected standards of business conduct and uphold these principles inall their activities.
DKSH Holding Ltd.’s Board of Directors is
responsible for adopting the Group’s compliance standards and policies and supervises their application. In tandem with local
42

governance bodies, the senior leadershipplays a pivotal role in communicating ourvalues both by word and by example. This
includes DKSH’s Executive Committee atGroup level (ref. DKSH’s 2020 Annual
Report, page 22-25) as well as the Boardsof our publicly listed entities in Malaysia andIndonesia, and all our local Country
Management Teams.
In 2020, 100 percent of governancebody members were aware of DKSH’s
anti-corruption policies and had completed anti-corruption training.
GRI 205-2a-dCompliance program
Fraud and embezzlement are risks faced bymost organizations and are also recognized
by DKSH as risks to be actively monitored
and managed. As an organization operatingin markets and industries where inducements in the form of gifts, hospitality orother formats are not uncommon, the active
management of bribery risks features highon our corporate agenda.
Our management approach to mitigatingthese risks is addressed through several
group policies, including the:• Anti-Fraud policy• Anti-Corruption and Anti-Bribery (ABAC)
policy• Gifts, Hospitality & Entertainment (GHE)policy• Third-Party Intermediary (TPI) policy• Conflict of Interest (COI) policy• Manuals for Interaction with Healthcare
Professionals (IHCP)• Non-Trade Procurement (NTP) policy

> GovernanceCompliance with our standards on anti-bribery is addressed via a comprehensive compliance management system and program,as informed by our ABAC and related policies which reflect recognized international
regulations, such as the U.K. Bribery Act
2010 or the U.S. Foreign Corrupt Practices
Act. Our governance processes include
fraud risk assessments and fraud prevention
covering the entire DKSH organization via
segregation of duties and an internal control
system (ICS), which is overseen by theGroup’s Finance function.
In 2018, we launched an enhanced bribery
risk assessment process1 for deployment
across all our markets, with prioritization
based on country scores in Transparency
International’s Corruption Perception Index(CPI). By the end of 2020, 12 of our markets(40%) had adopted our risk assessment process, representing 90% of our significant
operations and 100% of operations locatedin territories exposed to higher risks as per
the CPI rating. (Note: Following M&A activities completed in 2020, our Australian operation is now classed as significant; the risk
assessment process there is ongoing. We
expect 100% of our significant markets tohave adopted our risk assessment processby the end of 2021).
1

Risks are identified based on detailed process mapping. Risk levels are determined byapplying the Group’s Risk Management
policy and procedures, and appropriate controls are assigned. For example, the use ofintermediaries in business transactions potentially increases the risk of bribery; controls include due diligence requirements for
either standard or enhanced procedures
depending on the assigned risk levels.
All risks and their mitigating controls are
documented in detailed Bribery Risks &Controls (BRC) templates. Controls include
documentation of control processes andprocedures, how controls are communicated within the organization and how therelevant personnel are instructed andtrained to perform controls. BRC templates
are reviewed and updated annually to ensure their currency and they build the basis
for review and enforcement activities by the
corporate compliance team.
GRI 205-1

and associated procedures pertaining todisclosure and management of conflicts ofinterest (COI). This policy was introducedwith the support of an online training module, which included the requirement for
employees to declare any actual, potential,or perceived COI upon training completion,and thereafter whenever such issues arise
during their employment with DKSH. COI
checks are carried out as part of the recruitment process, and both the training and
COI declaration are now mandatory for all
new employees during induction and onboarding. The training is also being rolled
out to a target group of existing employees,
including all management level employees
and those with potential exposure to COI
situations based on their role. By the end of
2020, 11,116 employees out of a target
group of 13,157 employees (i.e. 84.5%) had
completed COI training. Moreover, a declaration and approval procedure was set for
all Executive Committee members for any
engagement outside of DKSH.

In addition to risk assessments, the execution of our compliance program includes
training, education, reviews and audits, aswell as investigations and corrective actionsin the event of incidents arising. In mid2020, we reinforced our compliance program by launching a new corporate policy

Based on “Diagnosing Bribery Risk”, Guidance for the Conduct of Effective Bribery Risk Assessment, Transparency International UK

RegionTotal governance body members

Thailand

13

Greater China*

19

Malaysia and Singapore

22Rest of Asia Pacific85

Rest of the World

49

Total

188

* Includes mainland China, Hong Kong, Macau and Taiwan
43

> GovernanceTraining and communication are important
cornerstones of our compliance programand are instrumental in driving and maintaining a culture of ethics and compliance.
All new employees undergo thorough onboarding procedures upon joining our organization, with Code of Conduct training
setting the foundation. Periodically, all employees are required to refresh their knowledge of DKSH’s anti-corruption policies. Our2020 training focus, alongside COI training,
was a Code of Conduct refresher, with eleven local language versions of the online
training released in a phased approach.
Small pockets of employees within our organization not able to follow any these eleven languages as well as English undergo
in-person training delivered by our HR function. By December, 28,417 employees or
86.7% of our entire workforce had completed the refresher training. Training completion for local modules launched later inthe year continued into the first quarter of2021, and data will be included in our next
GRI Report.
GRI 205-2e
Ethics in the medical sector
DKSH’s Healthcare Business Unit distributes
pharmaceuticals and medical devices andregularly interac t s with healthcare
professionals (HCP). DKSH, through active
membership in the respective industry
Zassociations, supports ethical businessconduct via endorsement of the relevant
industry codes of ethics (IFPMA, APACMed).
Comprehensive Manuals for Interactions
with HCPs convert these codes of ethics
into internal processes and procedures
aimed at ensuring compliance with the relevant local codes whenever interacting with
HCPs, further enhancing DKSH’s complianceprogram.

44

Integrity along our supply chain
As an outsourcing partner to our clients, weare committed to upholding integrity in the
supply chain within our sphere of influence.
This includes our business partners, for example customs brokers, event organizers
and forwarding companies, whom we rely
on for parts of our service delivery. DKSH
does not maintain relationships with business partners that do not share our values
or meet our standards for doing business.
Business partners are engaged based on
written service contracts that include anti-corruption compliance clauses, with bothour Supplier Code of Conduct and the
ABAC policy serving as contractual requirements.
Anti-corruption policies and our Supplier
Code of Conduct are communicated toall our business partners acting for andon behalf of DKSH.
GRI 205-2c
New helpline launched
In 2020, we introduced our Integrity Line, asecure online whistleblowing platform providing employees and external parties witha 24/7 channel for reporting concerns in
confidence and, at the reporter’s discretion,
anonymously. The launch of the Integrity
Line was broadcast internally by the CEO,encouraging employees to speak up whenever coming across a reportable concern.
This was reinforced by local communications, which will continue, with the aim ofgiving employees the confidence to speak
up and promptly report any incidents ofcorruption or other misbehaviors. Under theguidance of the Group’s Compliance orInternal Audit functions, cases will be investigated, and errant par ties will beadequately sanctioned, with DKSH having
zero tolerance for retaliation against anyone
who reports incidents in good faith.

The Integrity Line went live in the latter partof the year which means that we are notable to provide full year data on the incidents reported through this system, although we intend to include this from 2021.
A few, comparatively minor incidents of
non-compliance with our Code of Conduct
were reported, via the Integrity Line andother channels, and led to disciplinary action, including dismissals. No public legal
cases regarding corruption or other issues
have been brought against the organization
or its employees during the reporting period.
GRI 205-3
Effectiveness of the compliance program
Management at all levels is responsible andaccountable for ensuring proper applicationof compliance standards in the business.
The Group’s compliance function supports
management by providing advice, methodologies and tools and performs reviews toassess the level of awareness, understanding and application of standards and compliance controls through a structured review
and tailored enforcement program.
Furthermore, the Group’s internal audit
function is equipped to perform compliance
audits through audit assignments based on
their independent risk assessments and independently reports to the Board of
Directors on the results of such assignments.
Externally, DKSH’s compliance program isassessed by prospective or active clients
and/or external audit firms appointed bythem. We give our full assistance to theseassessments, which include thorough due
diligence procedures and pre- or post-contract compliance audits and reviews, andmake use of the results of such assessments,
if any, to further strengthen our complianceprogram.

> Governance

Customer health and safety

DKSH’s business is built on trust and integrity. Our clients entrust us with the marketing and distribution of their products andexpect us to preserve the quality and safetyof their goods whilst under our care andcustody. Irrespective of the product categories we are handling – which include items
as diverse as pharmaceuticals, food, specialty chemicals and machinery – we operatequality management systems to ensure wemeet the high standards necessary to safeguard the health and safety of customers,
consumers and patients. This includes assurance that all our products originate fromauthentic manufacturing processes, avoiding potential safety issues from counterfeit
products.

45

Our management approach adapts to thedifferent business lines and product categories we handle and the corresponding regulations governing them. Products in thehealthcare sector focus primarily on patient
safety and must meet stringent quality standards specified by clients and regulators andcomply with international guidelines (e.g.
from the World Health Organization, theInternational Council for Harmonization ofTechnical Requirements for Pharmaceuticals
for Human Use, and the Pharmaceutical
Inspection Co-operation Scheme). All our
Healthcare distribution facilities are approved by the respective local health authorities with the appropriate internationally recognized Quality Management System

certification (e.g. ISO 9001 and ISO 13485).
Any issues with product safety are handled
under stringent pharmacovigilance procedures by our regulatory affairs specialists.
Food safety is another significant concernthat we address through quality management procedures, whether for finishedgoods distributed by our Consumer Goods
business or food ingredients marketed by
our Performance Materials business. Our
quality assurance and regulatory affairs
teams ensure that our products and operations comply with applicable regulations set
by the respective food and drug administrations in the countries where we operate.

> Governance

The handling of chemicals poses a different
set of challenges that we manage throughstringent safety procedures based on applicable standards including ISO 9000, theClassification, Labeling and Packaging (CLP)
regulation, and our own Standard Operating
Procedures (SOPs), as well as DKSH’s Health,
Safety and Environment (HSE) policy, enhanced through a new HSE management
system and a new guideline for the management of hazardous chemicals and dangerous goods, both developed in 2020 andenacted in 2021 .
In our Technology business, our focus is on
safety procedures for the operation of machinery and equipment by our customers.
Where applicable, our products are tested
before delivery and our service offering also
includes installation, commissioning andtraining to ensure proper and safe operation. All our service engineers are trained by
the original equipment manufacturers.

46

Our operations are frequently audited byour clients or their appointed auditors toensure that storage and handling of products meets their expected standards. Dueto the sensitivity of the products, most ofthese audits occur in the Healthcare business. In 2020, 82 such audits took place.
The number was lower than in previous
years due to COVID-19 and related travel
restrictions and lockdowns (2019: 117 audits).
Any deviations from applicable standards
detected through reviews, audits or complaints are promptly reported and addressed. Product recall procedures are inplace and DKSH constructively cooperates
with authorities, clients and suppliers should
recalls occur.

Against the backdrop of hundreds ofthousands of products handled, DKSH
recorded five incidents of non-compliance concerning health and safety impacts of products and services in 2020.
Three incidents related to correct documentation for import procedures, one
incident to test stripes used in the sealing process and one was a productrecall for light switches. All incidents
were swiftly addressed based on established internal procedures and in alignment with our suppliers.
GRI 416-2

> GovernanceMarketing and labeling

Our company’s main activity is to market
and distribute products sourced from manufacturers. Many of our products are imported and require local customization before being fit for sale. Additionally, a core
activity in our service delivery to clients andcustomers is the advertising and promotionof the products in the markets we serve.
The marketing of our products can involve
various risks if not managed properly andsupported with the relevant and necessary
product information. Rising public awareness and new policy initiatives on transparency have increased demand for correct andcomplete product information, making this
topic highly relevant for DKSH’s businessmodel and brand reputation.

47

Product adaptation and customization tomeet regulatory requirements, including
product labeling, is an important DKSH service offering. Our regulatory affairs teamsin the various Business Units are responsible
for establishing relevant Standard Operating
Procedures and for monitoring compliance,with assistance from our quality assurance
teams. In our Business Unit Healthcare,
where regulations are particularly stringent,
we perform customization work in accordance with Good Manufacturing Practices(GMP). In Business Unit Performance
Materials, we implement and audit against
GHS (Globally Harmonized System), with its
strict requirements for classification, labelingand packaging.

For the marketing of our own-brand products, our regulatory affairs teams ensurecompliance with applicable laws. For all
products distributed by the Business Units
Consumer Goods and Healthcare, we observe guidelines on responsible marketing
published by the relevant industry bodies.
Policies, procedures and controls are inplace and are supported by training activities to ensure that the marketing of our
products meets our standards and expectations. All our regulatory affairs specialists
have the required professional training andqualifications to perform their work in accordance with applicable regulations andinternal standards.

> Governance

DKSH carefully monitors and validates relevant product data from clients on an ongoing basis and takes corrective actions
where appropriate. Any complaints aboutmarketing and labeling are addressed by therelevant Business Unit.
In 2020, DKSH recorded one incident
regarding marketing and labeling practices, which resulted in a letter from
Chinese authorities regarding wording
for advertising in a social media chat.
Remedy action was taken immediately
and local teams reminded of relevant
guidelines.
GRI 417-3

48

Industry-specific risks in the healthcare
business
Advertising and promotion of healthcare
products in many jurisdictions are highly
regulated, often limited or even disallowed.
Many products are prescribed or dispensed
by healthcare professionals, or they require
professional expertise for their application.
Various segments in the healthcare industry(specifically for prescription drugs and medical devices) and in the food sector (e.g.
infant nutrition) have adopted codes of ethics advocating responsible marketing of
their products. DKSH adheres to these standards through membership of the respective
industry associations (local IFPMA associations; APACMed) and by operating management programs to ensure compliance by
employees and service providers.

> Governance

Information security

Through our business operations, we haveaccess to significant amounts of data relating to products and services as well as toour customers and business partners.
Unavoidably, we also serve clients who arecompetitors. Ensuring confidentiality istherefore crucial. We also may need to collect personal data relating to employees,
contractors and others. In today’s digitaland interconnected world, the risk of data
theft or leakage has risen, and information
security should be a key concern for all companies.
As stated in our Code of Conduct, we are
fully committed to processing and protecting personal data with due care, and tocomply with applicable data protection laws
as well as DKSH’s principle of protecting
confidentiality.xxxxxxxxxxxxxxxxxxxxxxxx

49

Our information security program and cybersecurity strategy is endorsed and supportedby the Executive Committee and the Boardof Directors, under the responsibility of theGroup Chief Information Officer. Our strategy focuses on implementing cyber threat
preventive counter measures, developing
organization information security maturity
and running group-wide cyber security
awareness programs.
In line with our strategy, we have an IT
Security Policy in place and a dedicatedglobal Information Security team, which isavailable via a 24/7 hotline for urgent security matters.

We train our staff on various topics relating
to information security with a mandatory
course once per year. More than 8,000 employees who use IT in their work completed
an online IT security awareness training andpassed the accompanying test (2019: morethan 7,000 employees).
DKSH’s main IT hub is in Malaysia; however,each market has its own local IT team responsible for regular additional IT security
training. Quarterly Group-wide IT newsletters as well as ad-hoc IT news flashes ensurethat awareness of sensitive topics is raised
across all markets.

> GovernanceIn 2018, DKSH achieved ISO 27001:2013
certification of the Corporate Shared
Services Center SAP Infrastructure on information security management. Following thecertification, DKSH conducted several surveillance audits to ensure process adherence. The second successful surveillance
audit took place in 2020. As part of thecontinuous improvement of the company’s
IT landscape, IT applications will also be certified to ISO27001:2013. The gap analysis
and necessary measures have been conducted and DKSH aims to achieve certificationin 2021. Our quality assurance team ensuresthat the required standards are maintainedon an ongoing basis.

50

Group Internal Audit conducts independent
audits on access management. Furthermore,
the Group IT Security team performs audits
on all country IT installations on a regularbasis. Our business continuity and contingency plans, as well as incident response
procedures, are tested twice yearly.

As in previous years, DKSH received nocomplaints related to data breaches ofcustomer privacy and loss of customer
data from outside parties or regulatory
bodies in 2020. Similarly, DKSH is notaware of any identified leaks, thefts, orlosses of customer data
GRI 418-1

Appendix

> Appendix

Value generation
2019
in CHF milions

2020
in CHF millions

Direct economic
value generated

Revenues

11,613

10,789Economic value
distributed

Operating costs(10,658)(9,825)

Employee wages and benefits

(688)

(696)

Payments to providers of capital

(155)

(165)

Payments to governments (taxation)

(60)

(58)

Direct economic value generated −economic value distributed

53

45

Economic value
retained
GRI 201-1

52

> Appendix

Stakeholder engagement
Identification of relevant stakeholder
groups resulted from an assessment
carried out by senior management.

Groups were selected based on their ability to influence or impact (directly or indirectly) DKSH’s approach to business, or the
potential for DKSH to have an impact on
them.

Stakeholder GroupEngagement and key topics

Clients

As a partner in the downstream supply chain, our engagement with clients is the mostintense of all stakeholder groups. Discussions on expectations are part of due diligence,business negotiations and sustainability audits. Other examples of engagement are annual client satisfaction surveys and regular business reviews. Topics focus on employment
practices, responsibility in the supply chain, product stewardship, health and safety, anti-corruption, information security and, lastly, our emissions.

Suppliers, Vendors

Our engagement with suppliers and vendors is mainly via business negotiations and business reviews during the financial year. Vendor concerns are primarily ethical businesspractices, including fair competition and anti-corruption. DKSH’s expectations are enshrined in our Supplier Code of Conduct.

Employees

As a service provider, employees are our most important asset. Therefore, employee engagement and satisfaction are of highest importance. We conduct periodic structured
employee engagement surveys and promote an open feedback culture. Employee concerns mainly are good corporate citizenship, fair employment practices, development
opportunities and associated training, safe and healthy workplaces, our safeguarding of
the environment, the integrity of our products and services, as well as our engagementwith local communities.

Customers

Our direct interaction with customers through our operations focuses mostly on their
expectations or areas of concern. Engagement with customers in the manufacturing industries in our Business Unit Performance Materials is most intense and key topics include
procurement practices.

Shareholders, Investors

DKSH directly engages with investors via roadshows and meetings as well as indirectly
through interaction with sustainability rating agencies. Investor’s main interests are economic performance, corporate governance, environmental topics, customer health andsafety and anti-corruption.

Local communities

Our local management directly engages with the communities in the markets we operate
in to address topics such as labor practices and environmental responsibility.

Authorities

DKSH is in continued exchange with authorities as part of the licensing process and otherregulated activities, to ensure legal requirements are met.

GRI 102-40, 102-42 to 102-44

53

DKSH engages with the identified stakeholder groups as follows:

> Appendix

Further details about our employees
All disclosures in this Statement relating toemployee numbers are based on headcount, rather than full-time equivalents.

This contrasts with the data reported in our
Annual Reports, but we believe it is more
appropriate for Sustainability reporting purposes. All data was extracted from DKSH's
SAP HRIS system.
GRI 102-8

Total number of employees by employment contract (permanent and temporary), by gender
Gender

Permanent% of total

Temporary% of total

Total

Female16,520

92.0%

1,477

8.0%

17,997

Male

15,576

98.0%

358

2.0%

15,934

Total

32,096100.0%

1,835

33,931

Total number of employees by employment contract (permanent and temporary), by region
RegionPermanent% of total

Temporary% of total

Total

Thailand

10,653

97.0%

374

3.0%

11,027

Greater China*

2,646

98.0%

48

2.0%

2,691

Malaysia andSingapore

5,494

100.0%

12

0.0%

5,506

Rest of Asia Pacific12,855

90.0%

1,396

10.0%

14,251

Rest of the World

451

99.0%

5

1.0%

456

32,096100.0%

1,835

Total

33,931* Includes mainland China, Hong Kong, Macau and Taiwan
Total number of employees by employment type (full-time and part-time), by gender
GenderFull-time% of total

Part-time% of total

Total

Female16,275

90.0%

1,722

10.0%

17,997Male

15,065

95.0%

869

5.0%

15,934

Total

31,340100.0%

2,591

54

33,931

> Appendix

Membership of associations
DKSH companies are members of several
associations in the markets we operate in,with a focus on industry associations for thechemical, pharmaceutical and food industries, as well as membership of chambers ofcommerce. Membership is generally considered from a strategic perspective, and insome instances, DKSH managers hold positions in governance bodies, participate inprojects or committees.

DKSH does not provide funding to associations beyond routine membership dues,apart from our membership of the Swiss
Chamber of Commerce and Industry inJapan, for historic reasons (this is where
DKSH was originally founded in the 19th
century; we are the Swiss company with thelongest uninterrupted presence in Japan).
The below list provides an overview ofmembership of associations by market.
GRI 102-13

MarketName of association or advocacy organization

Switzerland

scienceindustries
Business Association Chemistry Pharma Life Sciences
vips - Association of Pharmaceutical Companies in Switzerland

Germany

VCH Verband Chemiehandel e.V.

Spain

Spanish Chemicals Distributors Association AECQ
AFCA (Associación de Fabricantes y Comercializadores de Additivos yComplementos Alimentarios
SEQC (Sociedad Española de Químicos Cosméticos)

FranceCentre Européen de Dermocométologie (CED)
Union Française du Commerce Chimique (UFCC)
France Chimie Auvergne-Rhônes-Alpes

Hong Kong

Hong Kong Association of Pharmaceutical Industry

Japan

Swiss Chamber of Commerce and Industry in Japan
German Chamber of Commerce and Industry in JapanThe Tokyo Chamber of Commerce and Industry

Myanmar

Myanmar Cosmetic Association
Myanmar Chamber of Commerce for Pharmaceutical and Medical Device
Union of Myanmar Federation of Chamber of Commerce & Industries

55

> Appendix

MarketName of association or advocacy organization

Malaysia

Malaysian Retailers-Chains Association (MRCA)
Pharmaceutical Association of Malaysia
Malaysian Animal Health and Nutrition Industries Association
Malaysia International Chamber of Commerce and Industry (MICCI)Malaysian Employers Federation (MEF)
Federation of Malaysian Manufacturers (FMM)
Malaysian Electrical Appliances Distributors Association (MEADA)
Malaysia Medical Device Association

New Zealand

Food and Grocery Council

Philippines

Philippine Swiss Business Council

Singapore

Singapore International Chamber of Commerce
Singapore Business Federation
Singapore Association of Pharmaceutical Industries (SAPI)

ThailandPharmaceutical Reseach & Manufactures Association (PReMA)
Thai Medical Device Technology Industry Association (THAIMED)Thai Cosmetic Manufacturers Association (TCMA)
Thai Retailers Association (TRA)
GS1 Thailand, The Federation of Thai Industries
Health Food Supplement Association (HSFA)
Cosmetics Industry Association
Thai Self-Medication Industry Association
Regulatory Affairs Pharmacy Association (Thailand) - RAPAT

TaiwanInternational Research-Base Pharmaceutical Manufacturers Association (IRPMA)
Taipei Medical Instruments Commercial Association
Taipei Pharmaceutical Agents and Distributors Association
Taipei Pharmaceutical Business Association
Taipei Instruments Commercial Association
Taipei Machinery Traders’ Association
Taiwan Chain Stores and Franchise Association
Taiwan Pharmaceutical Marketing & Management Association
Taiwan Advanced Medical Technology Association
Taiwan Cold Chain Association

Vietnam

European Chamber of Commerce in Vietnam
American Chamber of Commerce56

> GRI Standards and Disclosures

GRI Standards and Disclosures57

> GRI Standards and Disclosures

GRI Content Index

About this report
DKSH’s third report, released in June 2021, prepared in accordance with the Global Reporting Initiative (GRI) Standards "Core
option" offers a review of the Group’s sustainability efforts. It outlines our progress over the past year and shows important areas ofaction for the future.
If you have any feedback or need further information on our sustainability approach, please contact sustainability@dksh.com.

Abbreviations:
AR = Annual Report
CB = Corporate Brochure
CoC = Code of Conduct
All documents are available at: www.dksh.com/global-en/home/about-us/sustainability/sustainability-reports

GRI standards and diclosures

References

GRI 101

Foundation (2016)

GRI 102

General Disclosures (2016),
Core option

GRI 102-1

Name of the organization

AR 2020, p. 7

GRI 102-2

Activities, brands, products and services

CB 2021, p. 14-16

GRI 102-3

Location of headquarters

AR 2020 p. 7

GRI 102-4

Location of operations

p. 41

GRI 102-5

Ownership and legal form

AR 2020, p. 7-8

GRI 102-6

Markets served

CB 2021, p. 14-16, 40

GRI 102-7

Scale of operations

AR 2020, p. 4-5, 100-101
CB 2021, p. 40

GRI 102-8

Information on employees and otherworkers

p. 54

GRI 102-9

Supply chain

CB 2021, p. 14-16

GRI 102-10

Significant changes to the organizationand its supply chain

AR 2020, p. 40-42

GRI 102-11

Precautionary principle or approach

DKSH takes a risk-based approach to managing its
operations and supply chain. Although most of the
products we distribute have been developed by ourclients, we run a product stewardship program covering activities such as storage, labeling, packaging andarranging transportation, and our tracking systems
ensure that any issues can be quickly traced back tothe source. Regular auditing is in place to ensure
product safety and that operations are being run inaccordance with our environmental policies.

58

Omissions

> GRI Standards and Disclosures

GRI standards and disclosures

References

GRI 102-12

External initiatives

p. 11-12, 55

GRI 102-13

Membership of associations

p. 55-56

GRI 102-14

Statement from senior decision-makerp. 2

GRI 102-16

Values, principles, standards and norms of
behavior

p. 5, 14-21
CoC, p. 1-6

GRI 102-18

Governance structurep.13
AR 2020, p. 7-28

GRI 102-40

List of stakeholder groups

p. 22, 53

GRI 102-41

Collective bargaining agreements

p. 30

GRI 102-42

Identifying and selecting stakeholder

p. 22, 53

GRI 102-43

Approach to stakeholder engagement

p. 22, 53

GRI 102-44

Key topics and concerns raisedp. 22, 53

GRI 102-45

Entities included in the consolidated
financial accounts

AR 2020, p. 100-101

GRI 102-46

Defining report content and topic
boundaries

p. 22

GRI 102-47

List of material topics

p. 22

GRI 102-48

Restatement of information

No restatement

GRI 102-49

Changes in reporting

There have been no major changes in the material issues we report on between 2018 and 2020.

GRI 102-50

Reporting period

Calendar year 2020

GRI 102-51

Date of most recent report

Published 2021, relating to calendar year 2020

GRI 102-52

Reporting cycle

We intend to update the report on a yearly basis.

GRI 102-53

Contact point for questions regarding thereportsustainability@dksh.com

GRI 102-54

Claims of reporting in accordance wit the
GRI Standards

This report has been prepared in accordance with
the GRI Standards: Core option.

GRI 102-55

GRI content index

p. 58-62

GRI 102-56

External assurance

p. 64-65

59

Omissions

> GRI Standards and Disclosures

GRI standards and disclosures

References

Economic
GRI 201

Economic performance (2016)

GRI 103

Management approach (2016)

p. 40

GRI 201-1

Direct economic value generated anddistributed

p. 52

GRI 202

Market presence (2016)

GRI 103

Management approach (2016)

p. 41

GRI 202-2

Proportion of senior management hiredfrom the local community

p. 41

GRI 204

Procurement practices (2016)

GRI 103

Management approach (2016)p. 32-34

GRI 204-1

Proportion of spending on local suppliers

p. 34

GRI 205

Anti-Corruption (2016)

GRI 103

Management approach (2016)p. 42-44

GRI 205-2

Communication and training aboutanti-corruption policies and proceduresp. 42-44

GRI 103

Management approach (2016)p. 24-26

GRI 302

Emissions (2016)

GRI 302-1

Energy consumption within theorganization

GRI 305

Energy (2016)

GRI 305-1

Direct (scope 1) GHG emissions

p. 25

GRI 305-2

Indirect (scope 2) emissions

p. 25

GRI 305-3

Other indirect (scope 3) emissions

p. 25

GRI 307

Environmental compliance (2016)

GRI 307-1

Non-compliance with environmental laws
and regulations

Environment

60

p. 25

p. 24

Omissions

> GRI Standards and Disclosures

GRI standards and disclosures

References

OmissionsSocialGRI 401

Recruitment and retention (2016)

GRI 103

Management approach (2016)p. 28-30

GRI 401-2

Benefits provided to full-time employeesthat are not provided to temporary or
part-time employees

p. 30

GRI 403

Occupational health and safety (2018)

GRI 103

Management approach (2016)p. 35-37

GRI 403-9

Types of injury and rates of injury, occupational diseases, lost days, absenteeism andnumber of work-related fatalities

p. 38

GRI 404

Training and education (2016)

GRI 103

Management approach (2016)p. 28-30

GRI 404-1

Average hours of training per year per
employeep. 29

We do not report this data separatelyby gender or employee category;
however, our equal opportunity policies apply to the availability of training and development opportunities.

GRI 404-3

Percentage of employees receiving regularperformance and career development
reviews

p. 29

Information is currently unavailable
according to employee categories.

GRI 406

Non-discrimination (2016)

GRI 103

Management approach (2016)p. 29-31

GRI 406-1

Incidents of discrimination and corrective
actions taken

p. 31

GRI 407

Freedom of association and collective
bargaining (2016)

GRI 103

Management approach (2016)p. 28-30

GRI 407-1

Operations and suppliers in which theright to freedom of association andcollective bargaining may be at risk

p. 30

GRI 408

Child labor (2016)

GRI 103

Management approach (2016)p. 28-30

GRI 408-1

Operations and suppliers at significant risk
for incidents of child labor

p. 30

61

Although we operate in countries
which are frequently ranked as having a higher risk of human rights issues on international ratings, wehave not identified any specific risks
affecting our operations or supply
chain in 2020. In 2021 we intend toroll out a company-wide training on
the Code of Conduct, which includes
human rights and issues such as
forced labor and child labor, and wewill remind all staff to remain vigilant
and report any concerns through thechannels outlined in our Code of
Conduct.

> GRI Standards and Disclosures

GRI standards and disclosures

References

GRI 409

Forced or compulsory labor (2016)

GRI 103

Management approach (2016)p. 28-30

GRI 409-1

Operations and suppliers at significant risk
for incidents of forced or compulsory
labor

p. 30

GRI 412

Human rights assessment (2016)

GRI 103

Management approach (2016)p. 28-30

GRI 412-2

Employee training on human rights
policies and procedures

p. 30

GRI 413

Local communities (2016)

GRI 103

Management approach (2016)

p. 31

GRI 413-1

Operations with local community engagement, impact assessment anddevelopment programs

p. 31

GRI 416

Customer health and safety (2016)

GRI 103

Management approach (2016)p. 45-46

GRI 416-2

Incidents of non-compliance concerning
the health and safety impacts of products
and services

p. 46

GRI 417

Marketing and labeling (2016)

GRI 103

Management approach (2016)

p. 47-48

GRI 417-3

Incidents of non-compliance concerningmarketing communications

p. 48

GRI 418

Customer privacy (2016)

GRI 103

Management approach (2016)p. 49-50

GRI 418-1

Substantiated complaints concerning
breaches of customer privacy and lossesof customer data

p. 50

62

Omissions

Although we operate in countries
which are frequently ranked as having a higher risk of human rights issues on international ratings, wehave not identified any specific risks
affecting our operations or supply
chain in 2020. In 2021 we intend toroll out a company-wide training on
the Code of Conduct, which includes
human rights and issues such as
forced labor and child labor, and wewill remind all staff to remain vigilant
and report any concerns through thechannels outlined in our Code of
Conduct.

> GRI Standards and Disclosures

Assurance report63

> Assurance report

VERIFICATION STATEMENTGreenhouse Gas Verification Statement

The inventory of Greenhouse Gas emissions in the period 01/01/2020 – 31/12/2020 for

DKSH Management Ltd.
Wiesenstrasse 8, 8008 Zurich

has been verified in accordance with ISAE 3000 as meeting the requirements of

WRI/WBCSD GHG Protocol – A Corporate Accounting andReporting Standard
To represent a total amount of:

4,970 t CO2e (Scope 1 emissions)
52,906 t CO2e (Scope 2; gross location-based emissions for electricity)
83,914 t CO2e (Scope 3 emissions)

FOR THE FOLLOWING ACTVITIES
Logistic and office services of DKSH worldwide.
SCOPE
SGS has been contracted by DKSH Management Ldt (hereinafter referred to as “DKSH”) for the verification of direct andindirect carbon dioxide (CO2) equivalent emissions as provided by DKSH as displayed in their GHG Assertion in the form ofCorporate Responsibility Report 2020. (https://www.dksh.com/global-en/home/about-us/sustainability).
CONTENTThe management of DKSH is responsible for the organization’s GHG information system, the development and maintenance ofrecords and reporting procedures in accordance with that system, including the calculation and determination of GHG emissions
information and the reported GHG emissions.
It is SGS’ responsibility to express an independent GHG verification opinion on the emissions as provided in the DKSH GHG
assertion for the period 01/01/2020 – 31/12/2020.
SGS conducted a third-party verification following the requirements of ISAE 3000 of the provided CO2 equivalent assertion in
March 2021. The assessment included a desk review at the headquarter and remote interviews with key locations. The
verification was based on the verification scope, objectives and criteria as agreed between DKSH and SGS on 12/01/2021.
LEVEL OF ASSURANCE
The level of assurance agreed is that of limited assurance for Scope 1, 2 and 3 emissions.
SCOPE
DKSH has commissioned an independent verification by SGS of reported CO2 equivalent emissions arising from their activities,
to establish conformance with the requirements of the “GHG Protocol Company Accounting and Reporting Standard” within thescope of the verification as outlined below. Data and information supporting the CO2 equivalent assertion were historical innature and proven by evidence.
STATEMENT OF INDEPENDENCE
The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries
and providing services including management systems and service certification; quality, environmental, social and ethicalauditing and training; environmental, social and sustainability report assurance. Société Générale de Surveillance SA affirm our
independence from DKSH being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders.

GP5008 Issue 1

64

> Assurance report

This engagement
coversverificationof emissions
sourcesofofgreenhousegreenhousegases
includedThis engagement
coversverificationof emissionsfrom
fromanthropogenic
anthropogenic sources
gases
included
withinwithin
the theorganization’sboundary
andandmeets
thetherequirements
organization’sboundarymeetsrequirementsofofISAE3000.
ISAE3000.
The assertionof DKSHemissionsof greenhousegases
gasesfollows
follows theapproachof thegreenhousegas protocol.
The assertionof DKSHemissionsof greenhousethe methodologicalmethodologicalapproachof thegreenhousegas protocol.
This approach
includesthe following:This approach
includesthe following:• organizationalboundarywasestablishedfollowing
following thethe operational
approach.
• organizationalboundarywasestablishedoperationalcontrol
control
approach.
• Activities:
Infrastructure
logistic
services• Activities:
Infrastructure
for forlogistic
services• Location/boundary of the activities: worldwide• Location/boundaryof the activities: worldwide• Physical infrastructure, activities, technologies and processes of the organization: warehouse, office and• Physicalinfrastructure,
activities, technologies and processes of the organization: warehouse, office andadministration, transportation
administration,transportation• GHG sources,
sinks and/or reservoirs included:• GHG sources,
sinks1and/or
reservoirs
included:•
Scope- stationary
combustion
from emergency generators, mobile combustion of own fleet, fugitive•
Scope 1 emissions- stationary
combustion
from emergency generators, mobile combustion of own fleet, fugitiveof coolingagents;•Scope
2 – purchased
emissionsof coolingelectricity;
agents;related to fuel consumption in connection with logistics activities by outsourced external•
Scope– emissions•
Scope
2 – 3purchased
electricity;
for nine majorinmarkets,
accounting
for moreactivities
than 85%byof outsourced
DKSH’s total external
relatedproviders,to fuel consumption
connection
with logistics•
Scope 3 transportation– emissionsservice
net sales; Emissions
from air travelfor businesspurposes accounting
by all employees
worldwide
transportation
service providers,for nine
major markets,for morethan 85% of DKSH’s total• Types of GHGs included: CO2, N2O, CH4 and HFCs.
net sales; Emissions from air travel for business purposes by all employees worldwide• GHG information for the following period was verified: 01/01/2020 – 31/12/2020• Types of GHGs included: CO2, N2O, CH4 and HFCs.
• Intended user of the verification statement: Stakeholders such as national and international NGO’s, customers, general• GHG public,
information
for theperiod was verified: 01/01/2020 – 31/12/2020
regulators
andfollowing
rating agencies.
• Intended user of the verification statement: Stakeholders such as national and international NGO’s, customers, generalpublic, regulators and rating agencies.
OBJECTIVE
The purposes of this verification exercise are, by review of objective evidence, to independently review:•
Whether the CO2 equivalent emissions are as declared by the organization’s CO2 equivalent assertionOBJECTIVE•
That
theverification
data reported
are accurate,consistent,
free of material review:error or omission.
The purposesof thisexerciseare, bycomplete,review ofobjectivetransparent
evidence,and
to independently•
Whether the CO2 equivalent emissions are as declared by the organization’s CO2 equivalent assertion
CRITERIA•
That the data reported are accurate, complete, consistent, transparent and free of material error or omission.
Criteria against which the verification assessment is undertaken are the requirements of WRI/WBCSD GHG Protocol – A
Corporate Accounting and Reporting Standard.

CRITERIA
Criteria
against which the verification assessment is undertaken are the requirements of WRI/WBCSD GHG Protocol – A
MATERIALITY
Corporate
Accounting
and ReportingStandard.
The materiality
requiredof the verification
was considered by SGS to be below 10% for Scope 1 and Scope 2 emissions, basedon the needs of the intended user of the GHG Assertion.

MATERIALITY
CONCLUSION
The materiality
required of the verification was considered by SGS to be below 10% for Scope 1 and Scope 2 emissions, based
GHG
of DKSH
forthethe GHG
periodAssertion.
01/01/2020 – 31/12/2020 disclosing Scope 1 and 2 emissions of 57,857 metricon theThe
needs
ofinformation
the intended
user oftonnes CO2 equivalent (including gross location-based emissions for electricity) were verified by SGS to a limited level ofassurance, consistent with the agreed verification scope, objectives and criteria. A further 83,914 tonnes of CO equivalent from2
CONCLUSION
Scope 3 sources were verified by SGS to a limited level of assurance, consistent with the agreed verification scope, objectives
The GHG
information of DKSH for the period 01/01/2020 – 31/12/2020 disclosing Scope 1 and 2 emissions of 57,857 metricand criteria.
tonnes CO2 equivalent (including gross location-based emissions for electricity) were verified by SGS to a limited level ofassurance, consistent with the agreed verification scope, objectives and criteria. A further 83,914 tonnes of CO2 equivalent fromScopeSGS
3 sourceswereverified
SGS to thata limitedlevel
of assurance,
consistent
the agreed
verification
scope,is objectives
assertionnotconcludes
withlimitedby
assurance
there isno evidence
to suggestthat the withpresented
CO2 equivalentmaterially correct and is not a fair representation of the CO2 equivalent data and information.
and criteria.

Signed for and on behalf of Société Générale de Surveillance SA, Technoparkstrasse 1, 8005 Zurich, Switzerland

SGS concludes with limited assurance that there is no evidence to suggest that the presented CO2 equivalent assertion is notmaterially correct and is not a fair representation of the CO2 equivalent data and information.
Signed for and on behalf of Société Générale de Surveillance SA, Technoparkstrasse 1, 8005 Zurich, Switzerland

65

Daniel Aegerter
Lead Auditor

Roland FurrerManager Climate Change Services

Zurich, June 8th, 2021

WWW.SGS.COM

Daniel Aegerter
Lead Auditor

Roland FurrerManager Climate Change Services

Zurich, June 8th, 2021

WWW.SGS.COM

Sustainability Report 2020
Publisher
DKSH Holding Ltd.
P.O. Box 888
Wiesenstrasse 88034 Zurich
Switzerland
Phone +41 44 386 7272
Fax +41 44 274 2034

Group Investor & Media Relations
Group Governance, Risk & Compliancesustainability@dksh.com

Edition: June 2021