To our stakeholders:
I am pleased to confirm that Presperse Corporation reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption.
In this annual Communication on Progress, 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,
Joy Atkinson
President and CEO, Presperse Corporation

Presperse Corporation operates in full compliance with all applicable labor and human rights laws and regulations. The Code of Conduct is distributed and signed by all employees and covers the following policies: Antitrust Policy, Product Liability, Occupational Safety and Health, International Transactions, Political Contributions and Anti-Corruption and others. Company Values support Integrity and Respect for people.
Presperse Corporation developed a Gender Equality Policy as a support of SDG 5. We are dedicated to promoting the active involvement of women in business, as one of the important management strategies: respect the principle of gender equality, diversity and equal opportunities for persons identifying as LGBTI. According to the policy of Presperse Corporation, no employee or candidate for a position should be subjected, directly or indirectly, to discrimination or harassment on gender, racial, ethics or religious grounds. We encourage our employees to report any act of discrimination or harassments anonymously.
The number of goals in the area of Human Rights includes the following:
- Evaluation of salaries of men versus women on the same managerial positions
- Balancing the salaries of men and women on the same managerial positions
- Joining and engaging in Women Empowerment Principles
- Commitment of all suppliers to support Presperse Code of Conduct
- Training on Confidential Incident Escalation System

Presperse Corporation, together with a parent Company, Sumitomo Corporation, offers a Whistleblower reporting line - Ethics Point Hotline. This tool allows personnel to confidentially report sensitive matters such as compliance violations, harassment or discrimination. Personnel is trained on Human Rights upon employment, and then annually on the Gender Equality Policy. The policy is evaluated annually what is done using Controlled Document Software. The Gender Equality Policy assigns the responsibilities to Human Resources department.
Presperse Corporation requires all suppliers to sign the Code of Conduct prior to being an approved suppliers. In addition, the CSR risk analysis is performed via EcoVadis assessment for every potential new supplier. The process is detailed in Quality System Procedure - QSP-0152 Approving New Supplier.

This is a first time Presperse is reporting on the issues related to Human Rights. In the past reporting period, 100% suppliers signed off the Code of Conduct.
All harassment or discrimination issues are reported either directly to the Human Resources department, direct supervisor or via Presperse Ethics Point Hotline. The company prohibits any form of retaliation against any employee for filing a bona fide complaint under this complaint procedure, for assisting another employee in filling such a complaint, or for participating in any investigation of a complaint filed under this procedure. Persons who are to be found to have engaged in retaliation are subject to disciplinary action up to and including termination. Any reported allegations of violation of human rights are investigated promptly. The cases are reported by Head of HR and discussed with the management during Leadership meetings. Over last reporting period there were no violations of human rights complaints filed. The Parent company - Sumitomo Corporation - reviews the HR cases during annual Internal Controls audits.

Employee Manual is a document intended as a compilation of Presperse's employment policies, procedures, and benefits and other information employees may find useful. The Manual contains the following information: vision and mission, company values, conditions of employment, work hours, attendance, working from remote locations policy, payroll practices, time off and performance reviews, to name few.
Presperse's commitment to support SDG 8 - Decent Work and Economic Growth is described in the SDG 8 Policy. Presperse is committed to recruiting versatile, talented and dedicated employees with strong expertise, and promoting their development.
Presperse requires all suppliers to sign the Code of Conduct including Section 1: Labor and Human Rights. The Code of Conduct related to any forms of forced or compulsory labor, has to be accepted by any potential new supplier and is a part of Quality System Procedures QSP-0152 - Approving New Supplier (Form 0187 - CFR Code of Conduct).

SDG 8 Policy includes the following actions and objectives: Annual performance review and individual training plan; Employee satisfaction survey and evaluation of the survey and corrective actions for areas of improvement. Presperse Corporation is committed to promoting Employee Health and Safety by implementing safety training of employees as part of on-boarding and annually after, complete health mutual with employer contribution, a retirement savings plan, flexible working hours with video conferencing arrangements and analysis of lab an travel related incidents and implementing of corrective actions.
In April 2022, Presperse Corporation joined Responsible Mica Initiative to help in eliminating child labor in mines of mica in India and Madagascar.
All suppliers are required to be evaluated by EcoVadis for their labor-related policies and actions annually. The requests for questionnaires for suppliers have been initiated in December 2021. The suppliers are assessed based on the following KPIs related to labor practices: active whistleblowing, actions to promote diversity, reporting on labor and human rights issues, child labor, forced labor and human trafficking, employment health and safety and working conditions. The results are presented during the leadership meetings.
All labor-related issues are reported either directly to the Human Resources department, direct supervisor or via Presperse Ethics Point Hotline. Any reported allegations of violation of labor related issues are investigated promptly. The cases are reported by Head of HR and discussed with the management during Leadership meetings.

Currently, Presperse Corporation hires 29 women and 9 men, with 8 employees belonging to minority groups. The current demographics of employees by age are as follow:
- 3 for 25 years or younger
- 3 for 26 to 34 years
- 9 for 35 to 44 years - 10 for 45 to 54 years
- 13 for 55 years or older.
During last year, the employees can enjoy work from anywhere policy. Any safety related accidents are reported to OSHA and for 2021 there were no accidents or lost time due to injuries. Each employee obtained an annual safety training related to the work from the office as well as work from home. Training is documented via on-boarding employee checklists or/and in a Document Control System.
The cases are reported by Head of HR and discussed with the management during Leadership meetings. Over last reporting period there were no labor-related complaints filed. The Parent company - Sumitomo Corporation - reviews the HR cases during annual Internal Controls audits.

Suppliers labor-related issues KPIs, year to date, show the following:
- 82% have evidence of actions on child labor, forced labor and human trafficking,
- 87% show evidence of actions on employee health and safety issues, and actions on career management and training,
- 68% has active whistleblowing procedure in place,
- 61% audits or accessed suppliers on CSR issues including labor practices
- 42% reports on health and safety indicators
- 29% reports on labor and human rights issues
- 29% reports on diversity in executive positions - including minorities, vulnerable workers and women

Presperse Corporation is committed to move towards naturalness, traceability and transparency of products offered to the customers to save the Planet. Our commitment to environmental footprint is summarized in SDG 12 Climate Action Policy. We have identified two major issues: Health and Safety of products; chemical materials and waste, and energy and carbon emissions. Specific goals include the following:
Carry ecological risk evaluation of products in our portfolio: ecotoxicity, biodegradability and bioaccumulation – 2023
100% of products shipped with Safety Data Sheets – 2021
Recall procedure in place – 2022
Introduce procedures for storage of dangerous products – 2022
Develop a plan to limit the disposal of chemical waste - 2022
Evaluate the potential for introduction of recyclable packaging by 2025
Implement Carbon Footprint software to measure carbon emissions (either with help of Consultant or EcoVadis) – 2022

Evaluate the baseline of carbon emissions – 2022
Establish Science Based KPIs for reduction of carbon emission - Join Science Based Initiative to commit to net-zero and join the Business Ambition for 1.5°C and the Race to Zero - 2023
Join UN Global Compact start reporting on progress - 2022
Evaluate the need of obtaining ISO14000 for Environmental Systems – 2022

SDG12 Policy is distributed to all employees via training software annually, to build their understanding and awareness related to climate changes and biodiversity issues. The policy is reviewed annually and the environmental issues are handled by Presperse Sustainability Team consisting of personnel from various departments including sales, quality and regulatory.
New products are screened carefully to provide safe, environmentally friendly and sustainable products. The promotional materials concentrate on environmental health of products distributed by Presperse.
Presperse supports environment and biodiversity by providing RSPO certified products. We are a licensed RSPO distributor and a member of RSPO since 2020 as an associated with e membership no. 9-3229-19-000-00.
Since we are at the beginning of this journey, we have been working to establish the baseline for GHG gas emission. The basic emissions were calculated using EcoVadis carbon calculator for 2021 however, the data used for calculations were limited. We are in process of evaluating other available tools for carbon footprint evaluations. Once appropriate tool is identified, Presperse will be able to monitor company environmental performance.
Presperse has implemented EcoVadis assessment requirement for all existing and potential suppliers and manufactures. The following KPIs are monitored for all suppliers: actions on energy consumption and GHGs, reputing on energy consumption and GHGs, waste management measures in place; ISO 14001 certification, policy on sustainable procurement issues, reporting on CO2 emissions, use of renewable energy, CDP respondent, actions on water, RSPO certifications and policy on environment issues.
As a company that is concerned with environmental issues, Presperse introduced "work from anywhere" policy that reduced the carbon footprint by eliminating active commute.

Presperse Corporation has started the sustainability journey in 2022 and we are currently gathering the baseline data. Some data were already posted on the EcoVadis platform using EcoVadis carbon calculator, however the data used were limited. Until now, the results related to our environmental footprint were reported jointly with a Parent Company - Sumitomo Corporation.
Presperse uses third party services related to disposal of hazardous and non hazardous goods as well as the office waste. The results gathered in 2022 will serve as a baseline for improvement. The suppliers are evaluated using EcoVadis platform and the results are discussed with leadership during periodic reviews. The current results, for the suppliers assessed so far, are as follows:
- 61% has actions on energy consumption and GHGs
- 53% reports on energy consumption or GHGs
- 505 has waste management in place
- 39% reports on CO2 emissions
- 37% reports on use of renewable energy
- 32% are Global Compact Signatory
- 13% reports on scope 3 emissions

Presperse Corporation implemented Code of Conduct for our employees. The COC addresses the corruption, conflict of interest, fraud, anti-competitive practices and information security. Our Corporate Social Responsibility Policy provide CSR guidance to ensure fair business transactions, abide by all applicable laws, rules and regulations, and prevent extortion, bribery and all other forms of corrupt business practices.
Presperse Corporation initiated supplier evaluations via EcoVadis assessment. The project is in process. Some of the KPIs measured for suppliers are existence of policy on corruption and whistleblowing procedure.

Presperse Corporation, together with a parent company, Sumitomo Corporation, implemented a whistleblower process for stakeholders to report corruption and bribery. The process is described to personnel during on-boarding and documents are easily accessible on company shared drive. Employees are trained on mailings, internet vial document control systems annually using automated Document Control Software. All new employees are trained on ethics based on on-boarding training checklist. After that, the training is done annually.

All ethics related issues are reported either directly to the Human Resources department, direct supervisor or via Presperse Ethics Point Hotline. The company prohibits any form of retaliation against any employee for filing a bona fide complaint under this complaint procedure, for assisting another employee in filling such a complaint, or for participating in any investigation of a complaint filed under this procedure. Persons who are to be found to have engaged in retaliation are subject to disciplinary action up to and including termination. Any reported allegations of violation of ethics are investigated promptly. The cases are reported by Head of HR and discussed with the management during Leadership meetings. Over last reporting period there were no violations of ethics related issues. The Parent company - Sumitomo Corporation - reviews the HR cases during annual Internal Controls audits.
Currently evaluated suppliers show the following statistics:
- 89% has policy on corruption
- 68% has whistleblowing procedure in place
Over last year, Presperse Corporation did not report any anti-corruption incidents.