1. INTRODUCTION

At ZS, we recognize that environmental sustainability is integral to our mission of improving health outcomes and fostering a healthier world. This Environmental Policy (the “Policy”) outlines our commitments and actions to help us achieve that mission. We align our efforts with industry best practices and global standards, including adhering to the Global Reporting Initiative (GRI), ISO 14001 for Environmental Management Systems, ISO 14064-1 for Greenhouse Gas (GHG) Emissions reporting and the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard. Additionally, we integrate ZS’s sustainability strategy into our corporate functions and enterprise risk management.

ZS’s sustainability governance is driven at the executive level and embedded into all business processes, to ensure that our sustainability efforts are engrained in our business strategy. Our ESG Steering Committee and ESG Core Team collaborate with the ZS shareholders council, operational leadership team and global cross-functional leaders to ensure sustainable change is driven throughout the organization. We publicly report our sustainability progress via our annual ESG report, and industry platforms like the Carbon Disclosure Project (CDP) and EcoVadis, for transparency and accountability. We routinely strive to improve our initiatives, measurements and reporting processes to follow industry best practices. We make efforts to recertify our organizational adherence to ISO, our own policies and client requirements, and monitor our material issues over time through materiality assessments.

2. OPERATING SUSTAINABLY

ZS takes the following measures to operate sustainably.

2.1 Greenhouse Gas Emissions:

a. Measure our global Scope 1, 2 and 3 emissions following the GHG Protocol and follow GRI standards to report to the public annually. Additionally, we externally audit our emissions by a third party, under ISO 14064-1.

b. Commit to achieve net-zero GHG emissions by 2045, with interim targets of reducing Scope 1 and 2 emissions by 48.8% and Scope 3 emissions by 55% per full-time equivalent by 2030 (compared to our 2019 baseline year). These targets are approved by the Science Based Target initiative (SBTi).

2.2. Climate Risk Management:

a. Regularly conduct comprehensive assessments of our climate-related risks and opportunities to identify vulnerabilities within our operations and supply chain, ensuring alignment with the International Financial Reporting Standards (IFRS).

b. Integrate climate-related risk and opportunity considerations into our strategic planning and decision-making processes to ensure that all our operations and future planning are aligned with our overall climate resilience goals.

2.3 Office Management:

a. Target 100% renewable energy across our global offices by 2030 by focusing on renewable energy procurement, energy-efficiency programs and real estate management.

b. Work actively to manage waste according to circular economy principles, implementing waste reduction initiatives and emphasizing recycling and reusing materials.

c. Prioritize procurement from local, sustainable and diverse vendors.

d. Limit water usage to common kitchen areas and in washrooms by using resource-efficient appliances and educating ZSers about our water-conservation efforts.

2.4 Environmental Compliance:

a. Adhere to the ISO 14064-1 GHG Emissions standard to ensure accurate quantification and reporting of our greenhouse gas emissions across all global offices. Our emissions are independently audited to support the implementation of our climate strategy.

b. Commit to environmental management by maintaining Occupational Health and Safety Management ISO 45001 certification, ensuring that ZS provides safe and healthy workplaces while preventing work-related injuries and ill health.

c. Target 100% coverage in Environmental Management Systems (ISO 14001) certification across all our offices globally. In 2023, nearly 80% of our employees already work in ISO 14001-certified environments.

2.5 Client and Supplier Engagement:

a. Collaborate with clients, suppliers and other external stakeholders to create and scale climate solutions and stimulate the green economy, considering environmental factors when procuring goods and services.

b. Share service-level emissions allocations and emission reduction plans, and partner on mutually beneficial environmental projects with clients.

c. As outlined in our Supplier Code of Conduct, assess the environmental performance of our key suppliers, to facilitate awareness and continual improvement in value chain environmental performance.

2.6 Transparency:

a. Publicly report our progress against ESG targets via an annual ESG report.

b. Disclose and submit annually to the CDP, EcoVadis and client-specific ESG questionnaires. Annual scoring is publicized in our yearly ESG report.

3. CONCLUSION

ZS is committed to integrating environmental principles into our business operations and strategy, to drive continual improvement in the value chain and foster a sustainable and ethical environment for all stakeholders—our people, clients, suppliers and communities. Our journey will continue with strategic intention and direction, ensuring that we make a positive impact on the environment.

4. DEFINITIONS

References in this Policy to “ZS,” “we,” “us” and “our” are references to ZS Associates, Inc. and its direct or indirect affiliates.

This Policy was last updated September 2024. ZS may update or change this Policy at any time without notice.