Environmental and Social Policy

SCR – Sustainable Carbon Registry

Effective Date: 30th September 2025

Version: 1.0

1. Purpose

SCR is committed to the highest standards of environmental integrity, social responsibility, and transparency in carbon markets. This Environmental and Social Policy (ESP) sets the framework to:

• Ensure that all carbon credits listed are credible, environmentally sound, and socially responsible.

• Minimize environmental impacts and enhance positive social outcomes.

• Promote health, safety, and well-being for employees, contractors, and local communities.

• Maintain trust, transparency, and integrity across all registry operations.

This policy aligns with international best practices and registry standards, including

methodologies and guidance from leading carbon registries such as Isometric.

2. Scope

This policy applies to:

• Registry Operations: All employees, management, and contractors involved in listing, verification, monitoring, and administration of carbon credits.

• Project Developers and Credit Issuers: Entities submitting projects for registration.

• Buyers, Intermediaries, and Partners: Participants engaging with SCR-listed credits.

• Suppliers, Auditors, and Contractors: Supporting registry operations and verification activities.

The policy governs:

• Environmental performance and risk management of registered projects.

• Social impacts and community engagement.

• Health and safety considerations for staff, contractors, and communities.

• Governance, transparency, and conflict-of-interest mitigation.

• Compliance with local laws, international standards, and recognized carbon market Methodologies.

3. Principles

3.1 Environmental Integrity

• Ensure all projects meet rigorous environmental standards.

• Verify that emission reductions are real, measurable, additional, and permanent.

• Promote sustainable land-use, forestry, renewable energy, and other climate mitigation initiatives.

• Minimize unintended environmental impacts through robust monitoring and mitigation Measures.

3.2 Social Responsibility

• Respect human rights and promote fair labor practices.

• Engage local communities to assess and mitigate potential social impacts.

• Promote equitable benefits sharing and capacity building in project regions.

• Support projects that improve education, livelihoods, and sustainable development outcomes.

3.3 Health, Safety, and Community Well-being

• Ensure safe working conditions for all employees, contractors, and project participants.

• Implement measures to prevent occupational hazards and accidents.

• Promote community health and well-being through project design and engagement.

• Encourage projects that deliver tangible social benefits, including access to clean energy, water, and healthcare.

3.4 Transparency and Governance

• Maintain transparent processes for listing, verification, and trading of credits.

• Separate registry functions from market operations to mitigate conflicts of interest.

• Provide public access to project and credit information, while respecting confidentiality Requirements.

3.5 Compliance and Continuous Improvement

• Comply with applicable laws, regulations, and recognized carbon market standards.

• Implement corrective actions for non-compliance or adverse impacts.

• Regularly review and update practices to reflect emerging best practices and stakeholder Expectations.

4. Roles and Responsibilities

Board and Executive Management

• Endorse and enforce the Environmental and Social Policy.

• Allocate resources for environmental, social, and health initiatives.

• Oversee governance, conflict-of-interest mitigation, and policy compliance.

Environmental and Social Team

• Conduct environmental, social, and health risk assessments for all projects.

• Monitor compliance with policy objectives, regulations, and international standards.

• Report performance metrics and incidents to the Board and stakeholders.

Project Developers and Credit Issuers

• Provide evidence of compliance with environmental, social, and health standards.

• Implement mitigation measures for identified risks.

• Engage with local communities to ensure positive social and health outcomes.

Buyers, Suppliers, and Contractors

• Adhere to SCR’s environmental and social standards when engaging with projects or credits.

• Cooperate with audits, verification, and monitoring activities.

All Employees

• Follow internal procedures to uphold environmental, social, and health standards.

• Report incidents, non-compliance, or conflicts promptly.

• Participate in training programs on ESG practices and registry operations.

5. Implementation

• Conduct environmental, social, and health risk assessments for all projects and registry operations.

• Integrate ESG considerations into decision-making, procurement, and operational procedures.

• Maintain a transparent registry platform with accessible project and credit data.

• Establish monitoring and verification systems to track compliance and social impacts.

• Develop corrective action plans for projects with adverse environmental, social, or health impacts.

• Engage stakeholders, including communities, regulators, and buyers, in meaningful Consultation.

6. Monitoring, Reporting, and Review

• Conduct annual internal and third-party audits of environmental, social, and health performance.

• Publicly report key metrics, including emissions reductions, social outcomes, and health/safety performance.

• Review and update the policy every three years, or sooner if required due to regulatory or operational changes.

• Incorporate lessons learned, stakeholder feedback, and global best practices for continuous improvement.

7. Violations and Regular Review

• Reporting Violations: Individuals aware of any potential violation of this policy must promptly report it to their Line Manager, the Environmental and Social Team, or through established internal channels.

• Consequences for Non-Compliance: SCR may take disciplinary measures against employees, contractors, or partners who breach this policy, up to and including contractual termination, suspension of project activities, or exclusion from registry Participation.

• Policy Review: This policy will be reviewed annually, or sooner if required due to changes in regulations, standards, or operational practices. Updates will be communicated to all stakeholders.

8. Commitment

SCR is committed to ensuring that all carbon credits listed are environmentally credible, socially responsible, and contribute to the health, safety, and well-being of communities and workers. All employees, contractors, project developers, and partners are expected to uphold this policy. Adherence to these principles strengthens trust, credibility, and positive environmental and social impact in global carbon markets.