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Building Back Ever BetterSustainability Report 2020

Intertek Sustainability Report 2020Setting thestandards for a moresustainable futureCOVID-19 has brought our futureforward. It is clearer than everthat making the world a better,safer and more sustainable placeshould be a priority for all of us.As a purpose-led organisation and world leaderin sustainability services, not only can we makea positive impact on the world as a whole, butour people are helping our clients Build Back EverBetter in a challenging business landscape. Onlyby operating in a truly sustainable way, can wesafeguard the legacy that will make the world abetter and safer place for the next generation.Of course, it is vital that our own sustainabilitystandards are as high as those we expect from ourclients. This is why we apply our Total SustainabilityAssurance framework to our own sustainabilityapproach. This approach provides confidence byhighlighting how important sustainability is to ourown purpose, vision and strategy. It also enablesus to align our reporting, as well as constantlyinnovate and challenge ourselves to act ina way that demonstrates sustainability isat the heart of our thinking.In this year’s reportAs a leading provider of sustainability services, andcommitted to Building Back Ever Better, we reportour sustainability progress through the frameworkof our ten Corporate Sustainability Certificationstandards with which we audit our clients.01Highlights02Introduction from our CEO06Customer stories12Our ‘Ever Better’ ApproachOur commitment to sustainabilityWatch our ‘Building Back Ever Better’film, available from 30 March 2021.Find out more online: intertek.com/bbeb15Quality & Safety18People & Culture26Communities30Governance33Risk terprise Security48Communications & Disclosures

Intertek Sustainability Report 2020HighlightsThrough our actions to reducecarbon emissions,2020Highlights2020Intertek participates annually inCDP’s Climate Change Programme43,800is our first carbon neutral year Read more about our carbon reduction efforts and commitmentto net zero on page 40employees across 100 countriesSustainability is central toeverything we do and we arepassionate about helping ourclients make a difference andbettering ourselves every day.58%We were included in the FTSE4GoodIndex for the fourth year runningWe launched our very own Group-wide‘Kindness’ initiative that focuses onemployee wellbeingreduction in lost time incidentssince 2019 Read more about our health and safety on page 19We are an accredited LivingWage Employer in the UKAn index of our sustainability targetsand our disclosures – against SASB, GRIand our own more comprehensive TSAstandards – is available at intertek.com/about/our-responsibilityThrough our vast reach across our300,000customers and the industries which theyoccupy, our services help contribute toprogress across all of the UN SustainableDevelopment Goals 01Read more about our customers on page 06 Read more about our alignmentto the UN SDGs on page 14For the third consecutive year, Ernst & Younghave independently assured our GreenhouseGas emissions data6.3%increase in women in seniormanagement roles since 2017 Read more about diversity, inclusion and equality on page 23 Read more about our Kindness programme on page 20We have joined the Business Ambition for 1.5 Ccampaign and have committed to set sciencebased emissions reduction targets, across theentire value chain, that are consistent withkeeping global warming to 1.5 C abovepre-industrial levelsRead more about ourstrategic progressand 2020 financialresults in our AnnualReport at intertek.com/investors/year-in-review-2020

Intertek Sustainability Report 2020Introduction from our CEOBuildingBack EverBetterIf we are serious about makingthe world better, safer and moresustainable, this must be ourlegacy and our future."André LacroixChief Executive Officer02In last year’s versionof this report, I wrote:“There is no doubtthat sustainability is themovement of our time.”When I wrote that, it was still difficult for any of usto understand the ways in which COVID-19 wouldchange our lives and leave us feeling the problemsour world faces more acutely than ever.COVID-19 is forcing many people and corporationsto rethink how to operate and what it means to beresilient and sustainable. The enormous difficultiesand the personal losses caused by COVID-19 havehighlighted as never before that helping to makethe world a better, safer and more sustainable placeshould be a priority.Former Bank of England Governor Mark Carney hascalled the pandemic “a terrible situation”, adding thatthere will be big opportunities at the end of it toinvest in a greener economic recovery.I agree – and the role that Intertek can play in theglobal recovery from the pandemic is an incrediblyThe unprecedented challenges of COVID-19 haveimportant focus for me and all our people. We knowsharpened our collective focus on, and understandingwe are ideally positioned to have a positive globalof, the biggest global risks. The pandemic hasimpact on the challenges facing the world, and theamplified and accelerated the challenges facingpeople and organisations within it.humanity and our impact on our planet: from risingtemperatures and shifting climates, to ethical,This is why we are launching our ‘Build Back Eversustainable manufacturing; from personal healthBetter’ movement. It is simply living up to our Intertekand wellbeing to disappearing wildlife and polluted‘Ever Better’ culture for the greater good of society.oceans. There is a growing realisation that theseWe don’t believe that corporations or societies shouldglobal issues are interconnected.settle for returning to a new normal. There is only oneglobal solution: Build Back Ever Better.

Intertek Sustainability Report 2020Introduction from our CEO ContinuedWe at Intertek are taking up this challenge byaccelerating progress both on our own sustainabilityperformance and the development of productsand services to help our customers deliver theirsustainability agendas faster. We are focusing onthree core priority areas: supporting sustainablesupply chains; ensuring better personal safetyfor everybody; and helping the world transitionto low-carbon economies. In the months and yearsahead, we will aim to inspire people across theworld to join our Build Back Ever Better movement.From governments, institutions and regulators tocompanies and the consumer population as a whole.If we are serious about making the world better,safer and more sustainable, this must be our legacyand our future.We have a carbon-light earnings model. Our averagecarbon intensity over the last three years was 4.5tonnes of CO2 per employee, which is low comparedto the all-industry average of 12.3 tonnes of CO2per employee1.Sustainability is core to our 5x5 differentiatedstrategy for growth and we strongly believethat ‘Doing Business the Right Way’ with asystemic approach is the only way to deliver ourcorporate goals and create sustainable value forall stakeholders.1.Industry average obtained by Intertek research based on publiclyavailable information for 2018/19. Read more about our differentiated strategyon page 18 within our 2020 Annual ReportSustainability in what we doSustainabilityis in our DNASustainability in who we areIntertek has been a force for good for over130 years, bringing quality and safety to life witha pioneering spirit. Indeed, we believe that we areborn to make the world ever better.Sustainability is central to everything we do atIntertek and as a purpose-led company it is anchoredin our Purpose, Vision and Values. We are passionateabout supporting our clients to make a differenceevery day, and we are passionate about makingIntertek better every day.Our unrivalled expertise in Total Quality Assurance(‘TQA’) – that is, providing assurance solutions acrossall points of our clients’ operations – means we areuniquely positioned to support the needs of ourclients in operating sustainably.Today, the expectations of all stakeholders –employees, customers, consumers, investors,suppliers, communities and wider society,governments and regulators – continue to rise.All stakeholders are demanding that corporationsdemonstrate their commitment to sustainabilitywith clear goals, robust action plans and transparentreporting – and we continue to innovate with oursustainability solutions to help our clients to deliveron this agenda.Our operational sustainability solutionsOver the years, we have extended our TQAproposition to offer a real depth and breadth ofindustry-agnostic and industry-specific operationalsustainability solutions that address the important03operational areas of every company, coveringenvironmental management, products, processes,facilities, assets and systems.to improve their sustainability which are real,robust, measurable and can themselves besustained over time.Our operational sustainability solutions include: sustainability assurance including verificationsand audits of ESG disclosures; people assurance including training andperformance management; supply chain assurance – end-to-end traceabilityand compliance; quality and safety assurance; regulatory compliance; environment – EHS services, carbon and waterfootprint, GHG services; and product innovation.Our corporate sustainability solutionsIn 2019, we launched Total Sustainability Assurance(‘TSA’) – the world’s first independently verifiedcorporate sustainability audit and certificationprogramme.Our TSA programme is based on the ten standardsthat we believe define a truly sustainableorganisation. They go beyond the criteria thatare commonly looked at by ESG rating agenciesto include other factors that stakeholders andinvestors should consider, including businessresilience, risk appetite, enterprise security andsustainability of growth and earnings.Our TSA approach uses our ten standards toevaluate our clients’ sustainability from a companystrategy and corporate governance perspective.The objective of the TSA programme is not for ourclients to achieve certification or get a better score,but for us to help our clients to identify actionsIn 2020, we launched CarbonClearTM, the world’sfirst independent carbon-intensity certificationprogramme. It gives oil and gas producers theability both to evaluate emissions across everystage of exploration and production and to validatethe carbon impact of producing one barrel of oilequivalent. This will drive consumer transparencyand buying decisions and ultimately help indecarbonising oil and gas production – which iscritical to achieving global carbon-reduction targets.Our sustainabilityprogress in 2020Consistent with scientific reports, we recognise thata failure to rapidly decarbonise our economies willlead to increasingly volatile and severe weatherrelated events with significant economic and socialconsequences. While climate change affects nearlyall economic sectors, the level and type of exposureand the impact of climate-related risks differs bysector, industry, geography and organisation.We recognise we must do everything we can toreduce our own impact. It is therefore importantfor us to show leadership in the worldwide effort tomitigate the adverse effects of climate change, bothby reducing our own emissions and by helping otherbusinesses to do the same across our value chain.

Intertek Sustainability Report 2020Introduction from our CEO ContinuedOur own operations may not be as energy intensiveor resource depleting as some other industries,but as a multinational company we acknowledgeour exposure to various types and degrees oflocal, regulatory, physical and socio-economicrisks associated with climate change.Carbon neutral in 2020In line with our commitment to reducing thecarbon footprint of our direct operations, wecontinue to focus on improving our energyefficiency, purchasing energy from clean sourcessuch as renewables and investing in on-siterenewable energy generation at our locations.committed to setting independently verifiedscience-based GHG emission reduction targets.Our aim is for our science-based target to be alignedto limiting global temperature rise to below 1.5 Cand reaching net zero emissions no later than 2050.Addressing the impact of our operationsSustainability Excellence:empowering and inspiring our peopleOur people have found ways to:To make real change happen, we believe all ourpeople need to own their carbon footprint and beempowered and inspired to take ambitious actionsto reduce it. reduce their environmental impact, includingby reducing our waste, increasing our energyefficiency and investing in renewable energysources;Further information on our approach toenvironmental sustainability can be foundon pages 39 to 43 of this report.Helping our clients to makesustainability progressIn 2017, we set ourselves the target of reducingGHG emissions per employee by 5% year-on-year upto 2023, and we are well on track to achieve that.In line with our ‘Ever Better’ approach, we are nowpursuing ambitious new GHG reduction targetswhich will take us towards net zero emissions.We have signed up to the Science Based Targetsinitiative which means that we are formally04Further examples of our innovative solutionsare set out on pages 6 to 11 of this report.In 2020, we have focused on driving oursustainability agenda deeper into the organisationby inspiring our people to create local sustainabilityinitiatives and implement their own efficiency andreduction programmes.In addition, we have bought carbon credits tooffset our direct operational Scope 1, 2 and 3 GHGemissions, making 2020 our first carbon neutralyear. The credits we have bought help to fundverified carbon off-setting projects that have ameaningful benefit to communities in which weoperate, including a hydropower project in Pakistan,an electricity generation project in Turkey, a windpower project in India and a forest conservationproject in Brazil.Our commitment to net zero emissionsprogramme helps employers to protect parentsand carers – and particularly women, who aredisproportionately affected – who are strugglingto balance their work and home lives. support our communities, including throughcharitable and educational activities; and support the wellbeing of our own people.Some examples can be found on pages 27 to 29and 44 and on our website.During the year, we have helped our clientsmake progress on their own sustainability targetswith our innovative solutions.Some of these were a direct response to COVID-19.For example, we launched Intertek ProtekTM at thebeginning of May 2020 as the world’s first industryagnostic, end-to-end health, safety and wellbeingassurance programme for people, workplaces andpublic spaces.Others address issues that COVID-19 has simplyamplified. Our Work-Life Balance CertificationWe understand that driving significantreductions in our carbon emissions is not justabout setting ‘top down’ targets.Sustainability means more than net zeroUsing our Intertek Total Sustainability Assurance(‘TSA’) programme, we take a systemic approach tosupporting our clients by helping them to look acrosstheir entire sustainability footprint – from both acorporate and an operational perspective – so thatthey can deliver sustainable activities in each areaof their company.We know there is a profusion of ESG standardsand ratings agencies and that makes it difficultfor corporations to build clear, measurable,authenticated and actionable sustainabilityobjectives into their business models.This is what we call our Sustainability Excellenceapproach and it is based around giving all our peoplethe insights they need and the freedom andsupport to take real action.The ten TSA Corporate Sustainability standardson which our programme is based go beyond ESGand net zero and recognise that truly sustainablesolutions must address the important aspects ofevery company, to cover environment, products,processes, facilities, assets, systems, corporatepolicies and stakeholder engagement.In 2020, we implemented emissions dashboardsthat allow the teams at our sites to understandtheir total carbon emissions and what is causingthem, and to put in place initiatives at the site levelto improve their metrics and manage their ownenvironmental impact.For the second year, we are reporting our ownIntertek sustainability activities against our tenCorporate Sustainability Certification standards.The areas covered by these standards – and ourdefinition of what it means to be sustainable –are as follows:We are giving all of our teams their ownsustainability digital space as a way of facilitating‘grass-roots’ initiatives that are not directly partof our corporate agenda and can be authentic,individual and meaningful to our people and thecommunities in which they live and work. This digitalspace also promotes the sharing of trends, insightsand initiatives across our sites and countries, usingthe successes our people have achieved to inspireothers across the organisation. Quality & Safety Communities Risk Management Governance Enterprise Security Financial Compliance Communications& Disclosures Environment People & Culture

Intertek Sustainability Report 2020Introduction from our CEO ContinuedLiving up to our ownsustainability standardsAs a purpose-led organisation and a world leader insustainability services, our own standards must beas high as those we provide for our clients. We arecommitted to leading by example by applying ourCorporate Sustainability Certification standards toourselves at Intertek, and by using the principlesof our TSA programme to guide and frame our ownSustainability Excellence approach.You can read more about how we apply our own TSACorporate Sustainability Certification standards onpages 12 to 50 of this report.Taking total accountability for oursustainability, with clear goalsIn line with our TSA standard on Communications& Disclosures, we deeply believe that totaltransparency with robust disclosures and relevanttargets aligned to corporate strategy is integralfor corporations to demonstrate sustainabilityaccountability to their stakeholders.With that in mind, we have this year reviewed oursustainability disclosures and we have significantlyincreased our disclosures in this report so we canprovide total and robust transparency. You can seehow our latest sustainability disclosures map to ourown TSA standards, GRI Standards and applicableSASB Standards on our website.This year, we have also reviewed the sustainabilityareas that are most material and relevant toour stakeholders and we have set ourselvestargets in those areas that are aligned to ourcorporate strategy.05You will find details of our targets – around healthand safety, customer satisfaction, employeeturnover & engagement, diversity & inclusion,compliance and, of course, carbon reductions –in this report.An index of our sustainability targets and ourdisclosures – against SASB, GRI and our own morecomprehensive TSA standards – is available g our futuregenerations and #BBEBDuring this challenging year, our people havegone above and beyond their normal call of duty tosupport our customers, helping them to resolve theemerging risks they face in an increasingly complexworld and to operate safely during the pandemic.This is worthy of celebration and a timely reminderof what our community of 43,800 Intertek heroesacross the globe can achieve when they bringour purpose to life every day with precision,pace and passion.Now, we must aim to inspire people across theworld – governments and companies, institutions,regulators and consumers everywhere – to join BuildBack Ever Better (#BBEB) and focus on three priorityareas: helping make supply chains more secure;improving better personal safety for everyone;and building a lower-carbon society.So for us, the next year is about more thanjust recovering. It’s about being part of a globalmovement in which we work together to createsomething bigger and better for everybody.Among our achievements at Intertek, I believe thecreation of Build Back Ever Better may prove to bea fundamental step towards a unified approach fromleaders and innovators everywhere to taming thecomplexity of our connected world and the risksit brings with it. Most importantly, I am optimistic itwill create a better world for our young people, whomight be just 20% of the population today but arecertainly 100% of the future.I believe the journey to net zero is an equivalentchallenge to that of landing a man on the moonmore than 50 years ago. Humanity succeeded then,and I believe with all the knowledge, wisdom andingenuity our connected world can bring together,we will collectively find a way to overcome thechallenges we face today.That journey is well under way. This is the momentwhen, working with and for everyone, we will playour role in building an ever-better, safer and moresustainable world.OurheroesOur shared purpose – to make the world a better,safer and more sustainable place for all – shapeseverything we do and how we do it.Our colleagues have gone above and beyondto support our customers during the pandemic,helping them to resolve the difficulties theyface in an increasingly complex world. Theselocal activities have highlighted that collectively,Intertek colleagues make a huge positive impactfor their customers, for their communities andfor the world.We think this is worth celebrating, and congratulate43,800 Intertek heroes across the globe whobring our purpose to life every day with precision,pace and passion.Later in this report, you’ll read just a few of theheroic stories that have emerged during 2020.Watch our ‘Building Back Ever Better’film, available from 30 March 2021.Find out more online: intertek.com/bbebAndré LacroixChief Executive Officer Read more about our hero stories on page 17

Intertek Sustainability Report 2020Customer storiesSupportingourcustomersInnovative sustainability serviceshave been core to our globalbusiness for more than 100 years.Through our leading-edge innovationsand integrated Assurance, Testing,Inspection and Certification (‘ATIC’) solutions,we are uniquely placed to help our customersunderstand, achieve and validate theirexisting and emerging sustainability goals.06Case studyEPD development achieves100% satisfactionThe Intertek team received an exceptional’10 out of 10’ satisfaction rating from leadingBritish polymer manufacturer Aquapak Polymersfor their work on developing an EnvironmentalProduct Declaration (‘EPD’).This independently verified and registereddocument, providing transparent andcomparable information on a product’s life cycleenvironmental performance, is the most stringentand robust environmental label possible to have.The Ocean CleanupCase studyHelping to cleanthe oceansThe Great Pacific Garbage Patch,located between California andHawaii, is essentially what it soundslike – home to the ocean’s largestaccumulation of floating trash. But,according to The Ocean Cleanup, anon-profit organisation dedicated toridding the world’s oceans of plasticdebris, micro-plastics and lost fishinggear, 50% of it can be removed everyfive years.Using a fleet of floater systems witha massive screen underneath, thefirst phase of this massive clean-upoperation has already taken place. Thefocus now is on enabling the plasticsrecovered to be used again in otherproducts, for sale to the public. All theproceeds will be used to fund futureocean operations.Intertek is a proud supporter of thiseffort. We are providing guidanceon The Ocean Cleanup’s QualityManagement System and are carryingout testing services on the materialsinvolved. In addition, we are helpingto design compatible processes anddocumentation that will facilitatethe development of safe and durablematerials for making the products.According to Intertek’s Health,Environmental and RegulatoryServices (‘HERS’) Global BusinessLine Leader Ayush Dhital, we arealways looking for ways to protectthe environment. As he says, “We areat a tipping point, and the pressure ismounting for companies to embracesustainability. We’re delighted tobe part of this movement, whichaims to solve one of the biggestenvironmental problems of our time.”The Intertek team built the Aquapak EPD usingan in-depth life cycle assessment to gaugethe environmental impacts of the company’sproducts at every stage, from sourcing andmanufacturing through to disposal and recycling.This approach has a very strong scientific basis,leveraging many years of research to effectivelypinpoint a product’s main environmental risks,enabling its impact to be reduced.We are not only in ongoing discussionswith Aquapak Polymers about furthersustainability-related work – as a result ofAquapak Polymer's positive feedback we havealso won a number of other projects.

Intertek Sustainability Report 2020Customer stories ContinuedReliablesolutionsCase studyThe complex routeto drug approvalCase studyRaising standards inthe textile industryWith consumers becoming moresustainability conscious over the productsthey buy, we are supporting the textileindustry in several countries, through ourTextile Exchange Standards Certifications.Our goal is to drive sustainability inthe industry and encourage the use ofrecycled, organic or preferred materialsto reduce or eliminate the harm causedin production.Our global network of textile processingexperts conducts environmental, socialand chemical management audits whenrequired, backed up by local knowledgefrom our experts in the countrieswhere our clients’ suppliers are located.Intertek is globally accredited to provideindependent third-party certification ofthe following Textile Exchange standards:07Global Recycled Standard (‘GRS’), RecycledClaim Standard (‘RCS’) and Content ClaimStandard (‘CCS’).We support our clients with processmanagement and provide guidancethroughout the entire certification life cycle– giving them the knowledge and tools theyneed to make significant improvementsin three core areas: Fibre and Materials,Integrity and Standards, and SupplyNetwork. Textile Exchange identifies andshares best practices regarding farming,materials, processing, traceability andproduct end-of-life to reduce the textileindustry’s impact on the world’s water, soiland air, and on the people affected by ordirectly involved in the industry.For more than 25 years, thePharmaceutical & Healthcare Group withinthe Intertek HERS business line has beenhelping clients develop and gain regulatoryapproval for new products.And now our pharmaceutical consultantshave played a vital role in gaining USFood and Drug Administration (‘FDA’)and Health Canada approval for a newdrug combination, oral decitabine andcedazuridine, for the treatment ofintermediate and high-risk MyelodysplasticSyndrome (‘MDS’) and ChronicMyelomonocytic Leukemia (‘CMML’). Thisdrug will improve the quality of life formany patients, who for the first timewill be able to take medication for theseconditions at their own homes.The route to approval has been unique.Our HERS Pharma team has supportedseveral aspects of the developmentprogramme over a number of years,including study-monitoring services,study report reviews, toxicological riskassessments and preparing whitepapers.Most recently, the team authored portionsof the regulatory submission that wasreviewed and approved by the FDA,Health Canada and TGA (Australia).Once again, the Intertek team proved ourunique ability to provide bundled solutionsincluding our regulatory, safety andcompliance expertise. Our global laboratorynetwork, meanwhile, provides bioanalysis,formulation development, quality controland other services to support clinicaldevelopment and manufacturing.

Intertek Sustainability Report 2020Customer stories ContinuedCase studySetting new standardsfor responsible sourcingThe expertise of Intertek’s HERScolleagues in developing standards wasbehind the successful delivery of anupdated version of the EcoReinforcementstandard that supports responsiblesourcing for reinforced-steel mills andmanufacturers.Developed for the EcoReinforcementCouncil based in the UK, the standarddefines the requirements and ways ofworking companies need to apply.These include the need to respectindividuals, communities and the planetas a whole. The new version of thestandard goes beyond industry normsand local regulations, with the aim oftransforming the sector’s sourcing andproduction activities. Intertek’s work onthe project included extensive stakeholderconsultation and a number of pilotprojects covering different aspects of theprogramme. It also involved creating anentirely new set of criteria reflecting thelatest ethical practices and the sciencecovering responsible sourcing acrossvarious associated sectors, includingaluminium and virgin steel. Many of ourteam members have worked with theEcoReinforcement Council for morethan a decade, giving them the in-depthknowledge required to develop and delivera solution that now sets the standard forresponsible sourcing.Case studyUse of Remote VideoInspection increasesunder COVID-19The unprecedented spread of COVID-19 hashad multiple impacts on business and industry– including the ability to undertake crucialinspection and audit services that help ensurebusiness continuity and, even more importantly,employee safety.With governments and businesses around theworld restricting third-party access to their sites,the viability of such important quality inspectionsis under threat.To help resolve the situation, Intertek is increasingthe availability of our innovative Remote VideoInspection (‘RVI’) service, originally developedto help companies in the energy supply chaininspect their sites and equipment using remotelive video streaming and smartphone technology.As a result, our technical specialist inspectors canremain off-site while leading inspection activitiesat our customers’ premises and at the premisesof their suppliers. Critical

Intertek has been a force for good for over 130 years, bringing quality and safety to life with a pioneering spirit. Indeed, we believe that we are born to make the world ever better. Sustainability is central to everything we do at Intertek and as a purpose-led company it is anchored in our Purpose, Vision and Values. We are passionate