Responsible Supply Chain

Materiality assessment process results
Scale: [0–10], where 0 "Not significant" and 10 "Very significant"

Management Approach
[GRI 102-11] [GRI 103-2c]

The purpose of this disclosure is to inform MYTILINEOS' Stakeholders about the responsible practices applied by the Company in its broader supply chain. The main objectives of the Company, until 2025, are the strengthening of the level of maturity and integration of Sustainable Development in its supply chain, the inclusion of ESG criteria in the selection process for new suppliers and the commitment of existing ones to good and responsible practices, with a view to developing responsible partnerships to better understand impacts and harmonize goals and expectations.

Key Challenges / Impacts
[GRI 103-1a] [GRI 102-15]

Responsible supply chain management is gradually integrated into the regulatory framework at European and national level. Through due diligence processes, partnerships with supply chain members can provide better risk management, help exploit business opportunities, ensure business continuity, and, along the way, could transform the supply chain into a value chain capable of generating extended economic and social value.

Commitment
[GRI 103-2c]

Development of a responsible supply chain based on ESG criteria and in accordance with the Company's Suppliers / Business Partners Code of Conduct.

Major risks
[GRI 102-15]

The lack of responsible practices in the Company's supply chain can be a source of various risks, such as problems in the supply of raw and other materials and of services, increased environmental impacts, health and safety risks, risks of human rights violations, and ethical and compliance risks, with consequences for the reputation and credibility of MYTILINEOS as well as potential financial sanctions.

Risk Management / Control Practices
[GRI 103-2a] [SASB EM-MM-210b.1]

MYTILINEOS seeks to develop strong, long-standing and mutually beneficial relationships of trust with its suppliers and business partners. The Company's priority is to support its local communities, by establishing partnerships with local suppliers and contractors, while, in the context of its sustainable development strategy, it has launched specific initiatives that are also aimed at expanding responsible practices to its supply chain.

MYTILINEOS typically develops long-term partnerships with a large number of suppliers. Depending on the scope and nature of a specific purchase, priority is given to local suppliers, who are selected on the basis of their solvency, reliability in terms of quality and punctuality in terms of delivery, cost of products or services, available capacity to ensure the quantities required, and capability to meet the requirements of the particular purchase in accordance with the specifications set by the Company's Business Units.

Moreover, MYTILINEOS has developed a dedicated "Suppliers / Business Partners Code of Conduct", which sets out the Company's minimum requirements / expectations from its supply chain actors regarding issues related to responsible entrepreneurship and sustainable development, as a key precondition for entering into any commercial association with them. The Code is structured according to the ESG criteria and is aligned with the United Nations' Sustainable Development Goals.

To strengthen the level of awareness, maturity and integration of Sustainable Development in the supply chain, the Company organizes annual training cycles for its main suppliers in Greece, in cooperation with the CSR Hellas network (a member of CSR Europe).

Supplier evaluation process using ESG criteria MYTILINEOS aims to promote the integration of the principles of sustainable development in its supply chain and to support its business partners in the improvement of their performance in the management of the material ESG topics that concern them. More specifically, MYTILINEOS intends to create, by 2025, a list of suppliers that meet the ESG criteria set by the Company.

In this context, the Company has prepared a custom supplier evaluation questionnaire, which is fully aligned with the requirements of MYTILINEOS' Suppliers / Business Partners Code of Conduct. The evaluation process of new and existing suppliers is gradually being integrated in the Purchases / Procurement units of all Business Units of the Company.

The evaluation of the ESG performance of MYTILINEOS' suppliers and business partners focuses on material sustainable development topics which are directly related to the Sustainable Development Goals and include, among other things, the evaluation of compliance with environmental requirements, the management of health and safety issues, the protection of human rights, as well as ethical and integrity issues.

A basic description of the MYTILINEOS supply chain is presented below:

Results
[GRI 103-3a-ii]

• At the end of 2021, the number of MYTILINEOS' active suppliers and business partners in Greece and abroad exceeded 10,000. Compared to 2020, no significant changes affecting the Company's activity were recorded in the basic structure of its supply chain. [GRI 102-10]
• MYTILINEOS' total expenditures to its suppliers in Greece for for the production of its products, the supply of services and the development of its projects amounted to nearly €1.6 billion, with the share of the total amount being allocated to domestic suppliers standing at 59.6%, thus indirectly contributing for yet another year to the preservation of jobs and the creation of incomes. [GRI 204-1]
• In 2021, almost 14% of all new suppliers with which MYTILINEOS entered into a commercial relationship were evaluated using environmental criteria, while almost 16% were evaluated using social criteria. [GRI 308-1] [GRI 414-1]
• In 2021, the evaluation of key suppliers using ESG criteria was launched. The information submitted by the suppliers is reviewed in order to estimate whether action should be taken in cases of suppliers' non-compliance, so as to mitigate the risk in the Company's supply chain.
  • In the Power & Gas Business Unit, 18 key suppliers have been evaluated.
  • In the Metallurgy Business Unit, 6 suppliers have been evaluated in the evaluation carried out in 2021. The evaluation continues during 2022 and, by April 2022, 13 suppliers had been evaluated.
• The evaluation process will be completed in 2022 and actions will be taken as necessary.
• Concerning the total number of environmental inspections of contractors / suppliers, 69 such inspections were carried out, resulting in 49 confirmed cases of non-compliance for which appropriate measures were taken. Regarding the total number of inspections related to health and safety issues, 120 such inspections of contractors / suppliers were carried out, resulting in 33 confirmed cases of non-compliance.
• In addition, the Company completed the 2^nd training cycle of key suppliers on corporate responsibility topics, increasing the number of suppliers that have already being trained to 85, of which 10 completed an additional in-house training on sustainable development topics.
• The figure below presents the allocation of expenditures to suppliers in 2021 per Business Unit of the Company. The largest expenditure, which also showed a large increase in 2021 (by 84%), concerns the Power & Gas Business Unit. The increase observed is primarily due to the purchase of increased quantities of natural gas and to the price increases that took place during the year. A significant increase was also observed in the expenditures to suppliers in the Sustainable Engineering Solutions (SES) Business Unit, which was to purchases necessary for the construction of the new thermal power plant.

Data on the number of suppliers, their geographical distribution and the expenditures to them per Business Unit are presented below.