SUSTAINABILITY IN ACTION: GOVERNANCE MANAGEMENT AND OPERATIONS STRUCTURE As a subsidiary of the Brookfield Asset Management (Brookfield) group, DBCTM has adopted the vigorous governance practices developed by Brookfield for its portfolio of companies. The DBCTM board comprises a number of Brookfield executives, a co-investor representative, and one independent director. The Brookfield Board Compliance Program ensures DBCTM must develop programs and policies, and regularly report to its board on particular areas of focus, including, but not limited to, enterprise risk management, health, safety and environment, anti-bribery and corruption, cybersecurity and code of conduct. The expertise of Brookfield’s internal audit services is utilised to perform reviews of DBCTM’s systems and processes as well as to review key functions of the operator. DBCTM reports the findings of these reviews to the DBCTM board and to Brookfield. Shareholders of DBCT P/L include a number of global diversified mining companies. Representatives of these companies make up DBCT P/L’s board. The terminal operator is guided by its Sustainability Management Standard and maintains effective commercial and governance processes, which are subject to rigorous internal and external audit. Under the OMC with DBCTM, DBCT P/L must comply with (and where relevant maintain accreditation under) ISO 9001 Quality Assurance Management Systems, ISO 45001 Occupational Health and Safety Management Systems, ISO 14001 Environmental Management Systems and ISO 31000 Risk Management Guidelines. An ISO 9001 certified management system is maintained by DBCT P/L through development of internal documents and systems, which are rigorously audited to ensure continual improvement of processes and a high standard of business performance. DBCT meets the reporting obligations of the National Greenhouse and Energy Reporting (NGER) Act 2007 and the National Pollutant Inventory (NPI). As part of the International Year of the Reef (2018), DBCT P/L partnered with Mackay Regional Council to install 40 gross pollutant traps in the local area to reduce the amount of plastics, cigarette butts and street pollutants entering Mackay’s coastal waterways and the Great Barrier Reef Marine Park. Robust collective governance frameworks  maintained by DBCTM and DBCT P/L,  combined with the stringent risk management  practices of both organisations, ensures  the operation of the terminal meets world’s  best practice across a number of parameters  critical to terminal operations. DBCT Management Pty Limited (DBCTM) leases the terminal on a 99-year lease, comprising a 50-year lease with a 49-year option. Brookfield Asset Management (Brookfield), a global asset manager, is the majority shareholder in DBCTM. DBCTM is responsible for the strategic management of the terminal, including capital works and terminal expansion. Dalrymple Bay Coal Terminal Pty Ltd (DBCT P/L) is responsible for the daily operation and maintenance of the terminal under an Operations and Maintenance Contract (OMC) with DBCTM. A majority of the terminal’s customers are shareholders in DBCT P/L. This creates a strong alignment of interests and a strong incentive to ensure the facility continues to be efficiently and sustainably operated and maintained. 10 |