Independent Assurance Statement for the Atlas Honda Limited Sustainability Report 2019

Corporate Social Responsibility Centre Pakistan (CSRCP) performed an independent review of the Atlas Honda Limited (AHL) Sustainability Report 2019, which was prepared ‘in accordance’ with Global Reporting Initiative’s (GRI) Standards’ Core option. The objective of the critical independent review is to provide AHL’s Management with an independent opinion about the quality of the report and adherence to the principles of Inclusivity, Materiality, and Responsiveness.

Responsibility of AHL and of CSRCP

The Management of AHL is responsible for the preparation of the Sustainability Report and for the information and statements contained within it. The Management is responsible for determining the sustainability goals, performance and for establishing and maintaining appropriate performance management and internal control systems from which the reported information is derived.

Our responsibility is to express independently a conclusion on the Sustainability Report as defined within the scope of work to The Management of AHL only in accordance with the terms of reference agreed with them. We do not accept or assume any responsibility for any other purpose or to any other person or organization. Any reliance any such third party may place on the report is entirely at its own risk.

Scope of Assurance

CSRCP was asked to express an opinion in relation to the review scope which includes the following aspects:

• Review of the policies, initiatives, practices and performance described in the non-financial – qualitative and quantitative information (sustainability performance) reported and referenced in the report.
• Evaluation of the disclosed information in the report to check adherence to the GRI’s Universal and Topic Specific Standards.
• Adherence to ISAE 3000 (Revised) to provide limited assurance on performance data within the Sustainability Report.
• Adherence to the principles of Inclusivity, Materiality and Responsiveness.

Assurance methodology

Our activities included a desk review of the final draft report. We communicated with AHL to determine the accuracy and authenticity of the report content, data points, methodologies and policies around the organization’s social, environmental and economic data and activities.

Our procedures on this engagement included:

• Critical review of the Sustainability Repot 2019 and respective Content Index to check consistency and adherence to GRI´s Universal and Topic-Specific Standards
• Evaluation of the report adherence to the in accordance: Core option
• Analysis of the report content against principles of Inclusivity, Materiality and Responsiveness
• Elaboration of an adjustment report
• Final review of the report content

The work was planned and carried out to provide limited, rather than absolute assurance and we believe that the desk review of the AHL Sustainability Report completed by CSRCP provides an appropriate basis for our conclusions.

Opinion

GRI Standards in accordance option

AHL declares the report to be in accordance with GRI Standards: Core option. CSRCP evaluated the quality of the application of GRI Universal and Topic Specific Standards. Based on the evaluation, CSRCP made a series of recommendations to compete the content or adjust the disclosure level in the Content Index, which have been accepted by the company. Based on the rectifications, we can confirm that the report is attending the above mentioned ‘in accordance’ option, giving a complete overview of AHL’s sustainability governance and management systems in place to report on a relevant set of disclosures related to the identified material topics.

Main Conclusions on Adherence to Principles of Inclusivity, Materiality and Responsiveness

Inclusivity – addresses the stakeholders’ participation in the process of developing and implementing a transparent and strategic sustainability management process.

• AHL report addresses how company identifies and engages with different stakeholders, including AHL focus for engagement and AHL response. The material issues emerging from the stakeholder engagement were collected, prioritized and the results are fairly reflected in the report.
• It is important that AHL carries out a sustainability specific engagement and demonstrate a deeper perspective on stakeholders’ concerns discussed in these sessions and how AHL utilizes stakeholders’ input in strategic decision making.

Materiality – issues required by stakeholders to make decisions on the organization’s economic, environmental and social performance.

• Material issues have been identified by AHL in a Materiality Matrix which considers the influence on stakeholder assessment and decisions and the significance of environmental, social and economic impacts, using a commonly accepted approach. The parameters of risks and opportunities were considered in the materiality determination process, which makes the process more focused on prioritizing issues relevant to AHL.
• AHL material topics of human rights, health and safety, employment and labor practices and supply chain impacts having outreach in the supply chain are monitored by AHL. However it is necessary that company discloses more details about current status of suppliers towards these material topics, AHL approach to managing the associated impacts and methodology towards assessing its supply chain impacts on these material topics.

Responsiveness – addresses the action taken by the organization as a result of specific stakeholders’ demands.

• AHL has appropriate policies and externally certified quality, environmental and health & safety management systems, which involve a high level of analysis of risks, non-compliance and corrective actions.
• Sustainability management at AHL maintains high level support, conforming AHL’s commitment to address sustainability challenges, stakeholder concerns, and promoting sustainable practices in its supply chain. It would be recommendable to define adequate sustainability targets for material topics to demonstrate AHL commitment towards better management of the impacts.

Statement of conclusion

Based on the scope of our work and the assurance procedures we performed using the ISAE 3000 (Revised) assurance standard, we conclude that nothing has come to our attention that causes us to believe that the information in AHL’s Sustainability Report 2019 is in all material aspects not fairly stated.

We confirm that the report is aligned with the requirements of the GRI Standards and reports its material topics in an adequate manner. The compliance with GRI Standards has been disclosed in more detail in the Content Index which provides overview of which standards have been fully complied and which have been partially complied in the report. In our opinion AHL has appropriate systems for collection, aggregation and analysis of the data presented in the report.

Limitations and exclusions

Excluded from the scope of our work is any verification of information relating to:

• Physical verification of data, content of AHL’s Sustainability Report;
• Positional statements (expression of opinion, belief, aim or future intention of AHL) and statements of future commitment.

Statement of independence, impartiality and competence

CSRCP operates strict conflict of interest checks and has confirmed our independence to work on this engagement with AHL. The members of the review team have not provided consulting services and were not involved in the preparation of any part of the report. CSRCP is a consulting firm specialized in sustainability. The review team has the required combination of education, experience, training and skills for this engagement.

Islamabad, May 24, 2019