AG TRANSPORT - SUSTAINABILITY POLICY.docx

Objective

The objective of this Sustainability Policy (the “Policy”) is to articulate the AG TRANSPORT’s philosophy of sustainability, to provide guidelines for deployment of this Policy throughout the AG TRANSPORT, and to define the Governance & Monitoring Framework for ensuring the effectiveness of this Policy. At AG TRANSPORT, our commitment to sustainability is core to our business strategy and corporate culture. By thinking and acting sustainably, we recognize our responsibility as an employer, a services provider and a business partner.

Governance

All Employees of AG TRANSPORT are responsible for supporting of this Policy, with the ultimate responsibility for strategy, Policy content and implementation, the AG TRANSPORT Sustainability Committee.

Sustainability Committee

The AG TRANSPORT Sustainability Committee is headed by the AG TRANSPORT CEO, and has as its members. The members of the Committee are subject to change. The Committee meets at least once per each quarter and is responsible for:

• Approving and reviewing sustainability strategy and priorities;
• Reviewing performance of actions under sustainability pillars;
• Discussing and addressing as appropriate important global sustainability challenges; and
• Promoting sustainability at AG TRANSPORT.

Sustainability Pillars

Our three sustainability pillars: Care. Sustain. Recycle. provide a clear framework for our goals and reflect the expectations of our owners.

CARE. We recognize our responsibility towards Employees and Communities

• We aim for zero accidents at the workplace, thus we strive to ensure a safe working environment for all our employees.
• We live up to our global compliance standards and have zero tolerance towards discrimination, forced labor and employment of minors. We help our suppliers to implement these standards through our Supplier Code of Conduct.
• We firmly support and respect the rights and dignity of our employees
• We lend a helping hand to people who are in need through AG TRANSPORT Foundation activities.
• We support programs focused on increasing environmental awareness and creating opportunities for youth and women in the communities where we operate.

SUSTAIN. We recognize our responsibility towards Environment

• We maintain environmentally responsible operations compliant with global standards, and seek to continuously improve those operations.
• We support water stewardship by working to increase our water use efficiency including decreasing the amount of water consumption, increasing the quality of the wastewater we generate, and supporting local freshwater issues.
• We adopt sound environmental practices as we strive to be good neighbor for each and every community where we operate.
• We address climate change issues through adoption of globally recognized standards for carbon footprint management.
• We seek to improve raw material and energy consumption efficiency through capacity building programs and we urge our suppliers to do the same.

RECYCLE. We recognize our responsibility towards implementation of Circular Economy

• We provide road transport and crane services and thus we advance the circular economy.
• We cooperate with our suppliers to increase the share of recycled content in the raw materials we use.
• We seek to reduce the amount of our operational waste with the goal of disposing of zero waste in landfills.
• We continue to improve recycling rates through collection of used tires, supporting regulators and the waste management industry, as well as running and supporting educational programs related to this matter.
• We seek to focus these efforts in a way that is consistent with the goals and expectations of AG TRANSPORT’s customers and the ultimate consumers of the products purchased from those customers.

Sustainability Expenditures

All expenditures related to Sustainability will follow the regular budgeting and expenditure processes with priority given to projects and other expenses that support the sustainability pillars.

Monitoring & Impact Assessment

The AG TRANSPORT Sustainability officer is responsible to monitor & support on an ongoing basis the performance of all AG TRANSPORT entities in areas related to sustainability.

Roles & Responsibilities Related to Sustainability Pillars

• The Sustainability officer is responsible for implantation of this Policy.
• AG TRANSPORT’s managing director is responsible to support regulators in area of extended producers’ responsibility and waste management, engage employees in educational programs aimed at increasing environmental awareness, measuring our influence on climate change, and supporting our suppliers to improve the recycled content in raw materials and to increase energy consumption efficiency, and to coordinate educational programs targeting packaging end users.

Risks and Opportunities Related to Climate Change

Climate change is an inevitable and urgent global challenge with long-term implications for the sustainable development of all countries. To limit human-driven influence on climate, various international and local regulations have been implemented with many more proposed actions under consideration by both governments and private parties. With a growing awareness of these issues, consumers are taking into consideration the environmental aspects of the products they buy, which gives metal cans and glass bottles an advantage over other types of packaging as they are indefinitely recyclable.

We believe that industry should play an important role on climate related issues, therefore beyond compliance with all laws and regulations we put our efforts to reduce greenhouse gas emissions within our own operations.