Environmental Sustainability Report Group Change Support Services and Information Technology Report

ENVIRONMENTAL SUSTAINABILITY REPORT

The financial year 2020/21 presented a unique set of circumstances across the world, created by the Covid-19 pandemic. There were many challenges faced during the year, but it was not void of opportunities. There were several movement restrictions and lockdowns in many countries, including Jamaica, which in turn affected the whole economic ecosystem and outlook of the country as well as many businesses. Adapting to these changing and challenging circumstances was therefore essential in maintaining business operations. JMMB was no exception to this rule and therefore several of the planned environmental sustainability initiatives were also affected; however we were still able to continue with a number of others.

Despite the worldwide challenges faced this year, the Covid -19 pandemic gave the world a clear perspective on the

effects of human activities on the planet, as we saw many positive changes to the environment - such as reduction in air pollution and overall carbon emissions across the world - resulting from the movement restrictions and lockdowns that were enforced. This has reiterated the need for renewed commitment to sustainability initiatives.

Environmental sustainability therefore remains a key focus of JMMB’s corporate and social responsibility and is embedded in the company values and guiding principles as expressed through our own Vision of Love. With the opportunities presented this FY we were able to accomplish the following:

WATER CONSERVATION - RAIN WATER HARVESTING AND IRRIGATION SYSTEM

• We implemented another rainwater harvesting system during the FY and this is being used for irrigation of our green spaces on Phoenix Avenue.

• We currently have a total capacity of 7,000 gallons and this is expected to increase in the next FY.

REDUCTION OF ENERGY CONSUMPTION & SUBSEQUENT CARBON EMISSIONS

• JMMB utilizes alternative energy solutions, namely

Solar Photovoltaic (PV) systems, to power some of our facilities in order to simultaneously reduce our carbon emissions and dependence on the electrical grid. We also seek to increase the number of PV systems annually; however our efforts this year were impacted by the pandemic and will therefore be carried forward to the next FY.

• Our existing systems continue to produce results and achieved a 95,670 kwh reduction in energy usage for the FY 2020/21, which translated into an overall energy savings of approximately JA$4.352 mil. JMMB has therefore reduced its carbon emission by over 1,349,112 kg per year.

INSTALLATION OF INVERTER AIR CONDITION UNITS

• We continued with our mandate to replace all

A/C units that are at end of life, with new inverter technology

• As a result, over 25 new inverter air condition units were installed island wide during the FY, resulting from replacement exercises as well as newly built/renovations of existing spaces.

The replacement units provide a reduction of 18,755kWh per year.

INSTALLATION OF LED LIGHTS

• LED lights are standard across 100% of our facilities and we continue to extend this standard to all new and existing locations.

• We also pair our lights with occupancy sensors that control both the lighting and the air condition units in some of our locations.

RENEWABLE ENERGY LOANS

The JMMB renewable energy loan product was restructured this FY to provide more favorable terms for our clients, which will better support them in reducing their emissions and dependence on the grid.

• The loan product supports renewable energy solutions for homes as well as businesses and now offers financing for up to 100% of the cost to purchase and implement the system. The interest rate was also reduced to 8% and payback period extended based on ownership status.

• JMMB has also partnered with two renewable energy providers for the supplying of these systems to our clients. There is active engagement of new mortgagers as housing development initiatives increase across the island. This furthers our sustainability agenda as well as fuel growth targets by extending the reach and the impact of renewable energy solutions.

WASTE REDUCTION & RECYCLING

REDUCTION IN PAPER USAGE AND PRINTING

We continued to reduce our paper usage and printing needs as we deepened our electronic service delivery channels throughout the FY. The Covid -19 pandemic also provided opportunities to move further in this direction with more clients migrating to online channels to complete transactions.

REDUCTION IN EMISSIONS FROM OFFICE COMMUTE

Covid-19 presented a rare opportunity as the business was forced to re-imagine how team members work, and therefore work from home (WFH) arrangements were established. As a result this contributed to reductions in office energy usage as well as reduced carbon emissions from WFH team members not having to drive to our locations for work. We expect to see this trend continuing in the future as WFH arrangement continues and is adopted long term. RECYCLING

We partner with an onsite shredding company to destroy our paper waste through shredding. This waste is then recycled through the partner company and hence does not end up in landfills.

SUPPORTING ENVIRONMENTAL SUSTAINABILITY INITIATIVES WITHIN THE COMMUNITY

JMMB usually gives back to the community every year by adopting an environmentally responsible initiative such as tree planting or coastal cleanup activities as its annual Labour Day project. However, due to the restrictions from the Covid-19 pandemic this initiative was not done this FY. Team members were therefore encouraged to take on labour day projects within their own spaces and quite a number of them created green spaces as part of this initiative.

The world events over this past year has served as a reminder in underscoring the importance of greater environmental stewardship and the need for institutions as well as individuals to each play our part in reducing our impact on the environment. JMMB therefore remains resolute in its commitment to contribute to the shaping of a more environmentally sustainable future and will always seek opportunities to fulfil this mandate.

GROUP CHANGE SUPPORT SERVICES ANDINFORMATION TECHNOLOGY REPORT

PROTECTING CLIENTS’ GOALS AND THE GROUP’S SUSTAINABILITY

With the significant changes to our local operating environments as well as the global financial services sector brought on by the onset of COVID-19 pandemic during the year, our teams’ focus was on supporting the Group’s revised strategy (which emphasized protecting clients’ goals) and ensuring the Group’s operational sustainability. Our teams thus had a laser focus on improving accessibility for clients, implementing improved functionalities for the management of their goals via our digital channels and supporting core areas of the business in new and quickly evolving operating environments.

Our work over the last two financial years to improve time-to-market for critical digital initiatives, strengthen project portfolio governance and communication and to execute quick client and business wins was therefore critical in successfully executing projects and initiatives under this focus. During the year, we saw positive results and impactful client outcomes as we were able to effect over thirty (30) system deployments which drove:

• The realignment of the way we partner with clients by transitioning our high-transaction Investments clients to our banking business line in Jamaica to better align and meet their payments needs.

• The upgrade of the systems to support our Money Transfer business line which has experienced rapid growth particularly during this financial year.

• Improvements to service delivery and partnership with our clients through our Digital Channels including:

Functional and experience upgrades to Moneyline for our investments and banking clients

Upgrades to our website (JA) to include online chat Implementation of EMV Visa Debit Cards (T&T)

RESHAPING OUR BUSINESS MODEL – CENTRALIZATION AND STANDARDIZATION

We continue to be at the helm of the Group’s operational transformation and the build out of critical infrastructure to support its continuous organic and inorganic growth. Given the Group’s expansion objectives and activities over the last three financial years, our teams have undertaken the work of transforming the Group’s Operating Model to enable this growth. This has entailed significant work to adjust the existing operating model to facilitate the centralization and digitization of core internal and client facing processes. For the year, work under this area included the centralization of the Group’s Client Care (Call Centre) operations in Jamaica as well as Group Visa Debit Card processing in Trinidad and Tobago. This centralization work expands the reach of our call center team as they now serve all three territories and leverages core competencies in the Group related to card processing. Both projects should yield significant synergies and efficiencies for the Group in the coming financial years.

As part of the Group’s standardization imperative, we deployed standardized banking business operations in Trinidad and Tobago inclusive of the switch over of core banking and online banking platforms. From this switch, clients in Trinidad and Tobago now benefit from the proprietary communication features of Moneyline including alerts, updates and direct messaging with our Client Care Centre and our banking teams in Jamaica and Trinidad and Tobago now operate on the same core platform. In the coming financial year, we anticipate that clients in Trinidad and Tobago will benefit from improved access to our range of banking and investments solutions and services, all in keeping with our integrated approach to client partnership. We also expect in the coming financial year, to commence the standardization of our banking operations in the Dominican Republic.

These investments in centralization and standardization have reflected as a drag on the Group’s efficiency ratio in the last two financial years. We, however, expect significant improvement within the next two to three years as our clients find it increasingly easier to do business and partner with us and, as we leverage core competencies across the Group to enhance and streamline our operations, making them more efficient.

ENHANCING OUR IT INFRASTRUCTURE BACKBONE

In the latter half of the year, we experienced some difficulties and disruptions on our digital platforms. Our teams were, however, able to respond effectively and simultaneously took the opportunity to improve and upgrade our infrastructure backbone to ensure reliable service as we grow as a Group and execute our Client First digital strategy. In the coming year, we will continue to build out of this infrastructure to allow for the ease of adding new business lines and services and the delivery of a seamless multi-channel experience to our clients; making our mantra of “One Group. One Client. One Experience.” a reality.

As the Group grows and the IT landscape becomes more complex, our IT team undertook the first phase of a restructuring exercise with the introduction of the Enterprise Architecture (EA) function. One of the main objectives of this function is to build out a cost effective and nimble architecture which allows the Group to respond quickly to market and other changes. Given the current global environment and the relative uncertainty which still persists, the EA function will assist in ensuring alignment between the Group’s technology investments and its strategic direction.

OPERATING IN A NEW WORLD

The pandemic precipitated an unprecedented shift towards remote work arrangements globally. The Group had a strong base on which to facilitate remote and hybrid work arrangements as we had begun work on our network security and infrastructure, video conferencing capabilities, and hardware in previous financial years. Our teams in all our operating territories were therefore able to partner with clients and collaborate successfully via a number of technology solutions, all underpinned by a robust existing infrastructure backbone. Given this shift, we bolstered our capabilities to monitor threats and identify risks to our channels and general operations. We expect in the coming year to continue to be ahead of potential threats to our operations and consistently improve our ability to identify risks and manage them appropriately.