ESR ESG 2020 - EN

Building for the New Economy 27 CORPORATE GOVERNANCE AND RISK MANAGEMENT Corporate Governance The Group complies with the Corporate Governance Code in Appendix 14 of the Hong Kong Stock Exchange Listing Rules, which sets out principles of good corporate governance and relevant provisions. Our commitments to sustainable development are underpinned by robust governance with oversight from our highest governance body, the Board of Directors. ESG Governance The ESG Committee oversees implementation of our ESG Framework. Comprised of senior representatives from key departments and regions, it is chaired by the ESG Officer and reports to the Executive Management Board. Enterprise Risk Management The Group’s Enterprise Risk Management Framework provides a holistic and systematic approach for identifying, assessing, monitoring and reporting risks, including risks associated with Environmental, Social and Governance topics identified in our ESG Framework. Our risk management culture and management approach incorporates top-down oversight, as well as bottom-up engagement from the frontline through four lines of defense. For more information about corporate governance disclosures concerning the composition and workings of please refer to our FY2020 Annual Report. Singapore China Australia Japan India South Korea Secretariat: ESG Department ESG COMMITTEE EXECUTIVE MANAGEMENT BOARD BOARD OF DIRECTORS Report Report Approvals Cooperation Approvals process systems people 4 th Line of Defence: Board Oversight Board 3 rd Line of Defence: Independence assurance internal/external audit 2 nd Line of Defence: Management and Assurance ERM function Compliance 1st Line of Defence: Business Governance / Policy Management Operational Governance Financial Governance Policy Management