This section of the Impact report outlines MAS Holdings’ approach to managing Material Topics, with a particular focus on mitigating Environmental, Social, and Governance (ESG) risks. It details the company’s policies, strategies, and actions aimed at minimising the impact of these Material Topics, while upholding responsible and sustainable business practices. The Disclosures of Management of Material Topics under GRI 3-3 are an essential part of the Impact Review Report of MAS Holdings, following the guidelines set by the Global Reporting Initiative (GRI) Standards. To guarantee the accuracy of the information, the sustainability data presented in the report is verified by an independent third-party assurer.

In alignment with the Global Reporting Initiative (GRI) Standards, this disclosure demonstrates the commitment of MAS Holdings to transparency, accountability, and continuous improvement in sustainability efforts.

Objectives

The objectives of this document are to:

• Clearly define the policies, strategies, and management approaches employed by MAS Holdings to address ESG risks and manage Material Topics effectively.
• Provide transparency regarding the Company’s sustainability efforts and their alignment with globally recognised standards.
• Demonstrate MAS Holdings’ commitment to fostering long-term sustainable growth and value creation through responsible business practices.
• Ensure stakeholders receive reliable, verified information to support informed decision-making and build trust in the company’s ESG management approach.

Sustainability at MAS Holdings

MAS Holdings, headquartered in Sri Lanka, is a global leader in innovation, technology, and sustainable solutions, with over 100,000 employees across 14 countries including India, Bangladesh, Hong Kong, Vietnam, Indonesia, Sri Lanka, Singapore, China, Jordan, Canada, UK, the USA, Kenya and the Dominican Republic. Our integrated supply chain includes 50+ manufacturing facilities and design houses across multiple nations. We partner with world-renowned brands like Nike, lululemon, and Calvin Klein, while also creating our own market-leading brands such as Become and GT Nexus. Beyond apparel manufacturing, MAS is a hub for innovation, addressing diverse needs through sustainable solutions. With ten specialised divisions, we lead in Intimates, Athleisure, Wearable Technology, Adaptive Apparel and more, shaping the future of fashion and sustainability.

MAS Holdings’ journey of nearly four decades in business has been driven by a relentless pursuit of change and continuous improvement. From the early adoption of the UN Global Compact’s 10 Principles in the 2000s to the establishment of material issues in 2014, MAS has consistently prioritised sustainability. This process evolved further in 2016 with external consultants and input from employees, suppliers, and local communities, broadening our focus on social and environmental sustainability.

In 2020, we launched the MAS Plan for Change, rooted in three pillars: Products Changed for Good, Lives Changed for Good, and Planet Changed for Good. These pillars guide our approach to making a lasting positive impact on the world, from sustainable products to improving lives and protecting the environment. The plan was informed by regulatory monitoring, consumer trends, and insights from our customers and partners, helping us prioritize issues that impact our people, partners, and planet. We are committed to championing change and advocating for transformation, particularly where collective effort is needed. As a company, the MAS Plan for Change extends our commitment to stakeholders beyond responsible business conduct to embrace the prospect of positive change that is ingrained in our DNA.

The Boards of Directors and senior executives actively shaped Our Plan for Change, with guidance from the Sustainability Advisory Council (SAC). This process prioritises critical environmental and social issues through ongoing materiality assessments. Clear sustainability goals are communicated across the company, supported by Hoshin and Foundational KPIs, and regularly reviewed alongside broader business KPIs.

The SAC, including the CEO, advises on sustainability strategy, meeting quarterly and providing consultation as needed. CEOs review key reports, such as the UN Global Compact Communication on Progress and Impact Review Report that provides stakeholders with a comprehensive picture of how the Group is managing impacts, responding to sustainability-related risks and opportunities, and progressing against sustainability commitments as well as, ensuring transparency and accountability. Senior leadership receives regular training on sustainability, while feedback from internal and external stakeholders is escalated through designated channels. Additionally, we periodically review applicable legal requirements and ensure internal monitoring processes are in place to evaluate compliance with the same outcomes of compliance evaluations being presented to the Board. Moreover, the Group’s governance process is empowered with adequate resources, robust policies, standardised procedures, and integrated KPIs that are cascaded across operations.

MAS is dedicated to driving sustainable, systemic change through collaboration across its ecosystem. Employees, customers, suppliers, and communities play pivotal roles in the MAS Plan for Change. Stakeholder engagement begins with thorough mapping and the use of an Impact-Influence Matrix to identify and prioritise those most impacted by or influential to operations, enabling effective communication and partnerships throughout the organisation. MAS fosters strong relationships with regulatory bodies, civil society, and institutions, working together to transform systems and create collective impact. The Company provides regular updates on initiatives, compliance, risks, and performance, advocating for positive change where collaboration is vital. With nearly four decades of expertise, MAS has developed a vertically integrated, innovative ecosystem that partners with leading global brands. By maintaining stringent quality standards, MAS ensures consumer safety while championing sustainability.

Sustainability at MAS is more than a commitment; it is a core principle driving our innovation and growth. By embedding responsible practices across our operations, fostering collaboration with stakeholders, and aligning with global standards, we strive to create lasting positive impact for our people, communities, and the planet ensuring a better future for generations to come.