As Teejay marks 25 years in business, we reaffirm our commitment to strategic growth, strengthening our core mission and competitive edge. We continue to invest in the potential and well-being of our team, while strengthening our social capital and prioritising sustainability in our operations. Our commitment to comprehensive sustainability reporting, which considers social and environmental impact alongside our dynamic operating context, has enabled us to accurately evaluate performance, and identify areas for improvement.

This continuous evolution is driven by our unwavering focus on capacity expansion, product innovation, environmental sustainability, social responsibility, and robust governance and compliance. These elements are crucial in propelling us towards our immediate goal: achieving a USD 300 Mn. company valuation by FY 2025/26. With these strategic pillars guiding us, Teejay is progressing towards industry leadership in textile manufacturing.

Furthermore, this approach has empowered Teejay to effectively navigate external challenges and unlock further growth and success. Ultimately, by staying true to our founding mission and embedding adaptability and innovation into our corporate identity, we are strengthening our commitment to generating long-term value for all stakeholders.

Our Commitment to Sustainable Value Creation

GRI 2-23

Teejay is committed to creating sustainable value for all stakeholders by integrating robust principles of corporate governance, environmental stewardship, and social responsibility into our core business strategy. We recognise that long-term success is intrinsically linked to understanding and managing our operational impacts and engaging meaningfully with our stakeholders.

Stakeholder Engagement and Materiality Assessment

• Continuous Engagement: We maintain ongoing dialogue with stakeholders who can significantly influence or are affected by our operations. This ensures a holistic and responsible approach to business.
• Double Materiality: Our corporate reporting adheres to the principles of Double Materiality, encompassing both Impact Materiality (impacts on stakeholders) and Financial Materiality (impacts on the Company and investors).
• Material Topic Identification:

Sustainability Performance and Risk Management

• Key Sustainability Performance Indicators (KSPIs): Material topics form the basis for measuring our triple bottom line performance through KSPIs.
• Enterprise Risk Management (ERM): SRROs are integrated into the Group’s ERM process, including risk ratings, mitigation strategies, and assigned ownership.
• Monitoring and Reporting: We conduct regular monitoring, analysis, and reporting of sustainability impacts and ESG risks/opportunities to inform senior management decision-making.
• Risk Governance: SRROs are incorporated into our Risk Register, ensuring effective management through our risk governance framework.

Sustainability Management Framework (SMF)

Teejay strives to ensure progress and reporting meet or exceed the requirements of the GRI Standards, IFRS S1 and S2 Standards and the UN Sustainable Development Goals (SDGs).

Information regarding Teejay’s policies and management approach for addressing material topics and ESG risks is publicly available on our website (https://www.teejay.com/imgup/pdf/teejay-policy-statement-dma.pdf). This disclosure, a key component of our GRI-compliant sustainability reporting, is subject to independent third-party assurance.

Managing Sustainability: Structure and Governance

Teejay’s Senior Management Team annually reviews management approaches through the central sustainability division. Overall guidance for this division is provided by the Chief Financial Officer, in collaboration with the administration, OHS, CSR, corporate communications, and legal teams, ensuring effectiveness and applicability. Furthermore, a steering committee for ESG management strategies and formulates necessary policies and procedures.

The progress of our ESG initiatives is reviewed quarterly, with management-level actions taken to improve and strengthen ongoing work. This structure is complemented by the Group’s enterprise risk and control division, which collaborates with the core ESG team to identify SRROs. These SRROs are then integrated into and managed within the Group's risk management process. Further details on the ERM function and its governance are available in the Risk Management section of this report.

Board of Directors

Chief Executive Officer

Chief Financial Officer

ESG Driver

Core ESG Team

Teejay Lanka

Teejay Prints

Teejay India

Putting Our Policies into Practice

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All policies are implemented only after approval by the highest levels of executive management.

To ensure consistent processes and accurate data for our Key Sustainability Performance Indicators (KSPIs), Teejay's sustainability division, within the engineering department and in collaboration with its consultants, has implemented Sustainability Standard Operating Procedures (SOPs). Our overarching sustainability policy is further supported by specific topical policies, procedures, and management practices for all material topics.

A summary of our policy commitments is available in the Disclosures of Management Approach at www.teejay.com. The following sections of this report detail the identification of these topics, our stakeholder engagement methods, and a summary of our management approach.

Teejay embeds its policy commitments using the outlined previously Sustainability Management Framework and Governance Structure. Designated ESG champions within the sustainability division operationalise and lead the implementation of these policies and the SOPs using a top-down strategy. The division gathers and analyses ESG performance data, reporting quarterly to Senior Management for bottom-up reporting.

Our Approach to Remediation

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Grievance Handling

The Group has established clear mechanisms for stakeholders to provide feedback and raise grievances regarding the environmental and social impacts of our operations. All grievances received are also communicated to the enterprise risk and control division to facilitate the identification of new SRROs. Community members can lodge grievances at the respective location via a logbook at the point of entry. Environmental grievances are also identified through Teejay’s internal assessment of stakeholder concerns and direct, ongoing engagement with customers.

The Compliance Team at each location/SBU serves as the initial point of contact for environmental grievances and for customers, regulatory authorities, and community members. Issues are then escalated through the relevant operations team to the respective Chief Operating Officer (COO) of the location and, if necessary, to Teejay’s Senior Management Team.

We also engage with our team through joint consultative committees, the organisational hierarchy, notice boards and suggestion boxes. Employees can use these channels to communicate employee-related grievances, as well as any environmental concerns, feedback, or suggestions for improvement to the management. Where appropriate, the Group collaborates with industry experts to obtain specialist advice on various topics, including our sustainability initiatives.

Whistle-blowing Policy

Teejay whistle blowing policy is in place to ensure the Group remains informed, accountable, and responsive to stakeholder concerns, reinforcing our commitment to responsible business practices. To cultivate a culture of transparency and open communication that upholds our values and addresses misconduct, our whistle-blowing policy guarantees a safe and confidential channel for reporting concerns related to breaches of our core values or Code of Conduct. Furthermore, suggestion boxes are installed at all plants, providing a confidential and easily accessible means for employees and other stakeholders (including suppliers, partners, vendors, subcontractors, and the wider community) to voice ideas and raise concerns directly with supervisors and management, without fear of reprisal.

Ethical Conduct and Compliance

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The precautionary principle underpins Teejay’s operational decisions, with a strong emphasis on resource conservation, environmental impact management, pollution control, and addressing Climate Change. Teejay strives to surpass industry standards and global best practices to maintain a leadership position, operating in full compliance with all relevant local and international regulatory requirements and conventions. Demonstrating this commitment, the Group received no fines or sanctions for legal and regulatory non-compliance during the year, and there were no confirmed instances of corruption in the reporting period. All operations have been assessed for risk related to corruption. Communication and training provided in this regard.

Valuing Stakeholder Engagement

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Continuous stakeholder engagement is a key priority for Teejay, recognised as vital for both our sustainability strategy and our business growth and profitability. The process of stakeholder identification and mapping is carried out internally through established company protocols. We actively engage with our key stakeholders to identify their core concerns and ensure timely and effective resolution. Underpinning our focus on sustainability and ESG management is the understanding that clear communication and adherence to stakeholder requirements are paramount. Based on the interest and the power we identify the stakeholder engagement.

Taking Action on Key Stakeholder Concerns

Our Materiality Assessment Methodology

GRI 3-1

Teejay’s corporate strategy prioritises a diverse range of stakeholder interests. Our sustainability strategy focuses on key topics material to both the business and its stakeholders. During the reporting period , We conducted a thorough materiality assessment based on GRI Standards, the Committee of Sponsoring Organisations of the Treadway Commission (COSO) Framework, and the Accountability AA1000AS standards. The Teejay Group utilises the AA1000AS six-part materiality assessment to evaluate impact, comprising direct financial impacts, policy-related performance, science-based targets, organisational and peer-based norms, stakeholder behaviour and concerns, and societal norms.

An internal study was also undertaken to identify key ESG topics of concern to stakeholders, which were then prioritised based on their impact and importance using the aforementioned frameworks. Teejay intends to further validate these identified ESG topics through external stakeholder engagement in subsequent years.

To determine material topics, Teejay employs the concept of double materiality, providing a comprehensive approach to both management and disclosure. This involves considering topics that meet the criteria of either impact materiality – reflecting significant potential impacts on people or the environment from our operations – or financial materiality – with the potential to significantly influence or create risks for our future cash flows and operations.

These dual concepts guide our corporate disclosures within this report. Impacts were prioritised based on their significance to internal and external stakeholders, while risks and opportunities were assessed considering their severity and likelihood.

Our Key Material Topics

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Managing Materiality

Teejay’s management approaches for material topics are outlined below and detailed at www.teejay.com. The Risk Management section of this report provides an overview of the Group’s Sustainability-Related Risks and Opportunities (SRROs), the risk governance process, and related risk mitigation strategies.

Economic Performance

Teejay aims to enhance stakeholder value through sustainable economic performance, underpinned by the highest standards of corporate governance, environmental stewardship, and social responsibility. Management prioritises corporate governance best practices relevant to a publicly quoted company, sound financial management, robust internal controls, and comprehensive risk management. We are also committed to full compliance with all applicable local regulations. To promote integrity and a transparent working environment, all employees must adhere to our anti-corruption policy and our whistle-blowing policy, the latter addresses any suspicious transactions or breaches of the anti-corruption policy.

A full disclosure of Teejay's corporate governance practices is available on page 149.

Environmental Stewardship

Our environment management system prioritises effectiveness, efficiency, and sustainability, including an annual review of our environmental policy, which is communicated to relevant stakeholders, including authorities, customers, and employees. We strive to continuously improve our practices to minimise natural resource depletion, preserve the environment and prevent environmental pollution throughout our operational lifecycle. Teejay's dedication to environmental stewardship is demonstrated through strict compliance with ISO 14001:2015 objectives.

Our commitment extends to prioritising compliance with local regulations, and we actively engage with regulators and customers to ensure adherence. Consequently, we monitor fines, spillages, and overall compliance, alongside tracking occupational health incidents via the SPA Tool. Spillage risks are minimised through safety measures including SOPs and Secondary Containment Tanks. Moreover, Teejay Lanka utilises real-time online monitoring and alerts for its water and effluent treatment.

Our Workforce and Social Responsibility

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Teejay Group's commitment to high standards of integrity, ethics, and professional conduct is embedded in our employee Code of Conduct. This ensures that all representatives of Teejay uphold our values, embrace core principles, strive for excellence, and prioritise ethical decision-making, especially in situations involving conflicts of interest.

Our recruitment policy reflects Teejay's recognition of employees as key to our success. It promotes fairness, transparency, and compliance with employment legislation, guaranteeing equal opportunities regardless of sex, ethnicity, or social group. We actively seek to recruit and retain a motivated and skilled workforce.

The comprehensive employee Code of Conduct at Teejay addresses ethical standards, workplace conduct, confidentiality, conflicts of interest, and other relevant matters. All employees sign and undergo training on this Code during their induction. Our HR practices adhere to local labour laws and regulations, drawing on ILO conventions, and are regularly benchmarked against industry standards. Respect for universal human rights and core labour principles informs our ethical business conduct, protecting our brand reputation. Moreover, the Company fully complies with all national regulations regarding employee benefit plans.

Teejay provides various channels and established management policies to address concerns and resolve issues or conflicts transparently and fairly. Company policy actively encourages open dialogue amongst employees, enabling direct access to Senior Management for resolving any employment-related or personal issues. In accordance with the Trade Union Ordinance 14 of 1955, every employee has the freedom of association and the right to engage in collective bargaining, including the choice to join or not join a trade union.

To further our commitment, we have established a Joint Consultative Committee (JCC) through employee elections, facilitating continuous dialogue between workers and Management to proactively address conflicts and grievances.

Ensuring a safe work environment for employees, subcontractors, customers, and third parties accessing our premises is a key priority for the Company. We achieve this by minimising injuries through comprehensive hazard risk management. Our Occupational Health and Safety (OHS) practices align with the requirements of our licenses and ISO 45001:2015 certification, satisfying both customer expectations and regulatory obligations.

Furthermore, we prioritise the personal and professional development of our associates, aiming to enhance their capabilities to meet future challenges and maintain high quality standards. We employ a systematic approach to continuous improvement: identification of learning needs, design of relevant programmes, execution of training plans and finally, evaluation of outcomes.

The Company maintains a zero-tolerance stance against all forms of discrimination, abuse, and harassment, including that based on gender, race, religion, and other characteristics. Employees can report complaints to HR or their line managers, and all substantiated complaints are thoroughly investigated and addressed in accordance with company policies. A comprehensive abuse and harassment-free workplace policy is implemented, with regular training provided to all employees and workers.

Moreover, Teejay has a zero-tolerance approach to child labour, does not employ anyone under the age of 18, and does not endorse it among its stakeholders. Furthermore, the Company ensures that no employee is subjected to forced or bonded labour, made to work against their will, or subjected to corporal punishment or coercion of any kind related to their work.