Internal

1Electrocomponents’ ESG approach April 2021

Internal

2

Building on our strong track record:

An ESG leader in global industrial distribution, ambition to be

top tier across all sectors*

Strong track record in reducing our environmental impacts –

31% reduction in CO2 due to premises energy use since

2015**

Focus on education programmes to inspire future engineers

and innovative solutions to key global issues

Extensive support for customers, colleagues, suppliers and our

communities during COVID-19, embedded into BAU

Four impact pillars with 2025 targets and initiatives identified Environment

Customers and suppliers

People and health & safety

Community

Underpinned by strong governance, ethics and compliance

Aligned with our purpose and Destination 2025 strategy

ESG mission aligned with our purpose

ESG success factors being integrated into our five strategic

priorities, group targets and key initiatives

Building alignment with strategic investment plans

* See slide 18 for our leadership level performance in key ESG benchmarks ** Emissions updated to reflect changes in reporting methodology and emissions factors

Overview

2

Internal

3

Buildi

Our ESG approach addresses our most material issues

3

► Materiality assessment conducted in January 2020 to identify key ESG issues

► Customers, suppliers, our people, shareholders, regulators, media and NGOs engaged in the process

► 5 key material issue groupings identified:• Environment • Customers and suppliers• People • Community• Governance, ethics & compliance

► The materiality assessment combined with the UN’s Sustainable Development Goals guided the development of our ESG plan,

targets, KPIs and reporting

Internal

4

Our ESG approach at a glance

Our purpose and ESG mission:

Making amazing happen by inspiring a more sustainable world through

education and innovative solutions that improve lives

Four strategic impact pillars:

Environment Customers and suppliers

People and health & safety

Community

4

Underpinned by:

2025 targets and initiatives

Strong governance, ethics and compliance

Internal

5

Environment Customers & suppliers People and health & safety

Community

Our focus Proactively limit our

environmental impacts to tackle

climate change and ensure our

business grows sustainably

Work with our suppliers to improve

the sustainability of our value

chain and deliver innovative and

sustainable solutions for our

customers

Build a safe, inclusive and

dynamic culture which enables

our people to bring their true self

to work and thrive

Enable education and innovation

that improve lives and inspires

future engineers

2025Targets

Be 50% more sustainable by

halving the intensity of our

emissions, packaging, waste

and water impacts*

Grow our customer NPS score

to 70

Further ESG targets in

development

Increase our female leader

population 2% year on year

from baseline of 26% in 2019

30% reduction in All Accident

rate*

Uplift our employee

engagement score to 77

Targets in development for:

new global charity

partnership, volunteering and

education programme

Key initiatives

Energy and carbon reduction

– direct operations and fleet

Packaging, waste & water

reduction

Transport & logistics

optimisation

Environmental management

systems & compliance

Low carbon product ranges

Product sustainability flags

End to end ethical &

sustainable value chain –

sourcing, production,

certifications, transport &

logistics, packaging, labour

standards & human rights

Health & safety

Diversity & inclusion

Employee engagement

Working practices, human

rights, fair pay

Education for engineers of the

future

Global partnership with

Engineers Without Borders and

new global charity partnership

Volunteering

Supporting 6 SDGS

Four strategic pillars

*2018 baseline

Internal

6

Our focus Proactively limit our environmental impact to tackle climate change and ensure our business grows sustainably

2025 target Be 50% more sustainable by halving the intensity of our emissions, packaging, waste and water impacts from a 2018 baseline

Environment

Internal

7

Current progress

31% reduction in in absolute emissions since 2015 (46% intensity

reduction)*

Electricity from renewable sources is 11% of total electricity use

Solar panels on new Bad Hersfeld DC – 750 kW capacity

Energy efficiency measures and LED lighting

EV charge points installed in US, UK, France, Germany and

Netherlands

Early TCFD supporter working towards full disclosure

Future focus

Global energy optimisation and decarbonisation strategy for

our 12 DCs, offices, RS Locals, company cars and vans

Transport & logistics optimisation to reduce complexity and

improve sustainability in the end-to-end supply chain e.g.

optimising transport legs and minimise air freight

TCFD compliance - conduct climate scenario analysis

* At constant exchange rates with emissions updated to reflect changes in reporting

methodology and emissions factors

Energy and CO2 emissions

Solar panels and demand side response for Bad Hersfeld

As part of the expansion of our Bad Hersfeld distribution centre in

Germany, we have installed a major solar energy system on the roof of

the new 9,000 m² building, which is due for completion in 2021. The 750

kW capacity photovoltaic solar panels convert solar radiation directly

into electricity, providing energy to the RS site and feeding surplus

power into the grid.

Net-ZeroLong-term aim

Environment

Internal

8

Waste and recyclingCurrent progress

33% reduction in waste

intensity since 2015*

79% of our waste is

recycled with many key

sites sending no waste to

landfill

Future focus

Reduce waste, increase

recycling and

packaging re-use and

limit single-use plastic.

Zero waste to landfill at

sites where it is possible

Packaging, waste and recycling

Automated packaging machines We’ve introduced automated packaging systems at our DCs in

Nuneaton, UK and in the Americas and Germany (due online in 2021).

We’re optimising packaging size and weight, introducing sustainable

materials and increasing use of recyclable packaging.

Packaging Current progress

15% reduction in packaging

intensity since 2015*

3 DCs using automated

packaging machines

Optimising packaging

weight and volume

Packaging made from

recycled materials in UK

Future focus

Optimise packaging size and

weight for each product /

order

100% recycled packaging for

all products sold

Implement automated

packaging machines

globally

Environment

* At constant exchange rates with reports updated to reflect changes in reporting methodology. Waste reports for one major site updated to use supplier data

Internal

9

Environment

Current progress

Certified Emissions Management and Reduction Scheme (CEMARS) Greenhouse Gas Data Verification standard, ISO 14064-1 UK holders

11 of our 12 global DCs (either owned or leased) have environmental management systems in place - four certified to ISO 14001

39 further sites, including the RS Local trade counters, are certified to ISO 14001 or have internal environmental management systems

By revenue, over 52% of our operations are covered by ISO 14001

Future focus

Further extend coverage of ISO 14001 across Electrocomponents operations

Environmental management system for Hong Kong DC

Environmental management systems

Internal

10

Our focus Work with our suppliers to improve the sustainability of our value chain and deliver innovative and sustainable solutions for our customers

2025 target Grow our customer net promoter score (NPS) to 70. Further ESG targets in development

RS Monition helps reduce customers’ energy losses, carbon emissions and costs

RS Monition’s energy loss survey combines thermography and

ultrasonic air-leak technologies to identify and quantify energy

losses in customer operations. Combined with onsite repair, it

reduces costs, wasted energy and carbon emissions.

We’re working with GSK to conduct energy loss audits at over 55

of its sites in 25 countries, which has reduced emissions and costs.

CustomersCurrent progress

Expanding sustainable product range e.g. RS Monition (IoT, energy, carbon

& water testing equipment), variable speed drives, high-efficiency motors,

low-energy lighting and leading automation solutions

Improving sustainability attributes of products, external accreditations and

profiling to customers – RS PRO key focus

Future focus

Expand sustainable product range and profile online, through innovation

labs in our DCs and DesignSpark

Rollout smart factory solutions through RS Monition and IESA

Work with suppliers to improve product sustainability attributes,

certifications and profiling to customers

Customers and suppliers

10

Internal

11

Customers and suppliers

SuppliersCurrent progress

Expanding DCs in US and Germany to support local sourcing,

delivery and storage closer to customers, reducing delivery miles

and environmental impacts whilst also improving resiliency

Transport and logistics optimisation – e.g. migrating air to sea and

road freight

Ongoing work with our suppliers to meet the highest ethical and

legal standards and continuously improve. We take a risk based

approach to auditing supplier performance in the areas of human

rights, corruption, legal compliance and product standards.

Future focus

Collaborate with suppliers to improve end to end sustainability of

value chain – sourcing, production, sustainability certification,

transport & logistics, packaging & waste

Longer term Net-Zero aim across the whole value chain

Collaborate with suppliers to develop and showcase sustainable

products, services and solutions to customers using our DCs as

innovation labs

11

Internal

12

People and health & safety

Our focus Build a safe, inclusive and dynamic culture which enables our people to bring their true self to work and thrive

Our 2025 targets• Increase our female leader population 2% year on year from a

baseline of 26% in 2019• 30% reduction in All Accident rate* • Uplift our employee engagement score to 77

12*from a 2018 baseline

Internal

13

People and health & safety

Current progress

Executive sponsored D&I strategy focusing on wellbeing, gender, race

and LGBTQ+

Four inclusion networks – race, gender, LGBTQ+ and wellbeing which

align to the global D&I strategy. Each host inclusion & wellbeing events, campaigns and training throughout the year

Engagement score increased to 72 in 2020

Building future skills: apprenticeship programme, Future Shapers talent

development programme, Learning Academies in digital and data

All Accident rate at 0.69 / 200k hours – down 22% in year

Future focus

Continued focus on inclusion, wellbeing and mental and physical

health emerging from COVID-19

Train 300 leaders in mental health awareness

Set long-term gender and racial diversity ambitions

Continued focus on safety and avoiding near-miss accidents

13

Internal

14

Our focus Enable education and innovation that improves lives and inspires future engineers.

Our 2025 targetsTargets in development covering global charity partnership, volunteering and education programme

Current progress

Global partnership with Engineers Without Borders - 7k students

involved in engineering design challenges that address key global

issues aligned to the UN SDGs

Our mobile innovation centres, Titan II & MAX, showcase the latest

engineering technologies and inspire future engineers. They travel

around Europe each welcoming around 30k visitors from schools,

customers and suppliers (on pause during COVID-19 pandemic)

STEM educational resources and skills training from primary to university,

including lesson plans, EdTech products, employability skills and home

projects during COVID-19

Awards, events & competitions – RS STEMFEST; Sponsorship of young

engineer competitions in Germany & UK (BrightSparks); Maker Fairies

events

Empowering young female engineering talent through STEM initiatives

such as Girls Go Tech in Hong Kong to sponsorship of the IET’s Young

Woman Engineer of the Year

All colleagues have two paid volunteering days – includes 220 RS STEM

Ambassadors

Community

14

Internal

15

Future focus

Establish and deliver our global partnerships with Engineers Without

Borders

Continue our STEM and Grass Roots initiatives and educational

solutions (EdTech and OKdo kits) to support, develop and inspire

primary school to higher education students to become future

engineers and technologists

Supporting our markets to increase their involvement and amplify the

reach and impact of our STEM and Grass Roots programmes globally

Community

Titan II & MAX trucks – inspiring innovation, education and future engineers

Our two mobile innovation centres feature the latest

technologies such as our DesignSpark platform, Raspberry Pi,

3D printing, robotics, IoT, thermal imaging – as well as virtual

reality (VR) and augmented reality (AR) technology to bring

innovation to life.

Titan II tours North Europe and MAX Central Europe. Each

year they welcome around 30k visitors aboard from schools

and universities, as well as our customers and suppliers.

They offer interactive experiences demonstrating the latest

technology and inspiring the next generation of STEM talent

to pursue a career in engineering.

Titan and Max are on pause during the COVID-19 pandemic.

Internal

16

Our ESG approach in action during COVID-19

Keeping critical industries running

Supporting ventilator production Kits for Kids – home education 3D printing of visors for frontline staff

Continuing to deliver a seamless

first class service to our customers

Major focus on our people’s

safety and wellbeing

Internal

17

Ethics and compliance

Current progress

We have a suite of policies and procedures in place

to maintain the highest ethical standards, covering;

Codes of conduct for employees and suppliers

Supplier ethical trading policy and declarations

Business ethics and human rights

Anti bribery, corruption and competitive

behaviour

Privacy, data and cyber security

Future focus

Policy library and data centre in ESG section of

website

Governance

Current progress

Board and Senior Management Team

oversight of ESG

Global ESG Delivery Group established

Future focus

Establish ESG Leadership Committee

Approach underpinned by strong governance, ethics and compliance

Link to our ethics & compliance policy library

Internal

18

Frameworks and standards

Our ESG reporting is informed by best practice standards and we perform strongly in external benchmarks:

ESG external benchmarks

CDP Climate Change leadership score of A-

Sustainalytics rating: 8th/13,410 (all companies), 2nd in

sector

MSCI rating: A

EcoVadis Gold rating

FTSE4Good Index score: 3.2/5

ESG benchmarks and standards

Internal

19

Our ESG approach is delivered across our global network

Our nine brands and 7,000+ people put our purpose and ESG mission into

action globally, having a positive impact across 32 countries

Internal

20

Our future focus

We are on an exciting journey to evolve and strengthen our ESG approach to continuously improve the value we deliver for our stakeholders. Over the next year we will focus on:

Environment

Advance our actions to run clean and green

business operations and develop our long-

term plan to be net zero

Customers and

suppliers Work with our suppliers to evolve the sustainability

of our whole value chain, and develop innovative

and sustainable products, services and solutions for

our customers

People

Build a diverse, engaged and dynamic team, fully reflective of

the customers and communities we serve,

and continue to develop a culture which enables our people to

thrive

Community

Launch our exciting new global charity partnership which utilises innovative engineering to improve

thousands of lives globally, as well as

enabling education that inspires the next

generation of engineers

Community