5th June 2019

To our stakeholders:

I am pleased to confirm that PHNX Group LLC reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress (COP), we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Adam Beriro
CEO

PHNX Group LLC believes in the fundamental role of equality and defending and upholding human rights as the key for the sustainable advancement of mankind. Our policy is to implement our belief system by treating all our staff and stakeholders equally and fairly, guided by the principles of the Universal Charter of Human Rights. In addition to our policy our public commitment is equal opportunity or all workers which we practice in our human resources hiring process. Our company goal is to be a global reference with regards to human rights and also inspire others thereby advancing a regional and global collective of awareness and results.

PHNX Group conducts monthly individual satisfaction reviews with its employees and immediately implements corrective actions when grievances are made known.

The company breaks from regional tradition as our employee's sponsor and we do not withhold passports as we believe that legal free movement of people is a fundamental human right.

As a recent success in equal employment opportunity practice, we successfully hired a Bangladeshi national in spite of a UAE visa freeze banning Bangladeshi citizens. We fought this ban as it was politically motivated and unfair and achieved success by submitting a special exemption request directly to the relevant Ministry pleading our case and won.

Our actions lead to a general awareness within our professional ecosystem that this type of achievement was possible and received a great deal of praise catalysing similar behaviour in other organisations.

PHNX Group communicates on its human resources practises with its clients specifically as a means to promote our behaviour as an example for them to follow in the region and world.

We only work with internationally accredited fair-trade suppliers and factories.

We are socially recognised and accountable to all our stakeholders through our positive social licence which is a backbone required to operate as a sustainability-focused organisation and without which we would be out of business. Practising what we preach is our currency to operate.

Participation in this UN program is one of the ways we demonstrate our belief of and commitment to the importance and achievement of human rights best practises.

PHNX Group LLC believes in the fundamental role labour rights have as a supporting pillar of the development and enjoyment of our employees in achieving growth and job satisfaction. Our policy is to implement these beliefs by surpassing local legal minimum requirements and industry standards.

Our company goal is to be a regional and global reference in this regard and to continue inspiring other employers, employees and organisations to aspire to our same standards.

PHNX Group LLC breaks with oppressive regional tradition of withholding our employee's passports, as is usually practised by sponsors. We do so as we believe the legal free-movement of people is a fundamental human right.

We pay our staff substantially above going market rates and have a twice-yearly all expenses paid vacation policy allowing our employees the dignity of healthy human relationship and contact with their families, children and loved ones.

We hire on a policy of mandatory diversity with a focus on low-opportunity home countries of origin.

We conduct individual monthly satisfaction reviews with our employees.

Our policy is to have employees conduct their own administrative procedures with local authorities without our intervention and a proof of our commitment to them and transparency.

PHNX Group LLC's business is sustainability and our tailor-made client solutions are always only sustainably produced products and services that are in-turn fully recyclable, bio or oxi-degradable and carbon neutral. Sustainability is our 'raison d'etre' and our ethos.

A few examples of PHNX Group LLC's practical solutions implemented with clients include:

Elimination or single-use plastics.

Substitution of plastic items with non-plastic items by use of PLA (vegetable oil v petroleum)

Starch-based packaging

Use of d2W containing plastics

Natural fibres including Jute and Bamboo

Our offices are plastic free

Our operations and solutions are carbon neutral

We only work with certified and carbon neutral supplier and factories. All raw materials must be shown to adhere to this policy right up the supply chain.

PHNX Group LLC believes that corruption is the Achilles heal that prevents the genuine and ethical development of the World's people and economy.

Our organisation categorically refuses to work with even indirectly any organisation whose behaviour or associations remotely support or endorse corrupt behaviours, institutions or practises.

PHNX Group LLC only works with and via verified banking institutions and international best practises.

We nominate 3rd party inspectors to visit and scrutinise our suppliers and service providers.

We will not support any administrative shortcuts to please a client, expedite a particular service or permit a specific operation. This approach to doing business is explained upfront and reflected in the cost of our solutions and product and service packages.

PHNX Group LLC performs, at a minimum, annual visits to our supplier and factory sites including review of certifications and documentations. We also select our partners by their use of 3rd party inspectors and internationally recognised certifications and verification practices and procedures.