Sustainability/Climate Action Report

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SUSTAINABILITY REPORT
FY26

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CONTENTS
ABOUT THE SUSTAINABILITY REPORT .......................................................................................................................................... 3
TRANSITION RELIEF ............................................................................................................................................................................... 3
FORWARD LOOKING STATEMENTS ............................................................................................................................................... 3
GOVERNANCE .......................................................................................................................................................................................... 3
BOARD AND MANAGEMENT’S ROLE IN GOVERNANCE ........................................................................................................ 3
CONTROLS AND PROCEDURES USED BY MANAGEMENT TO SUPPORT OVERSIGHT OF CLIMATE MATTERS
..................................................................................................................................................................................................................... 4
CLIMATE-RELATED SKILLS AND EXPERIENCE ......................................................................................................................... 5
REMUNERATION ................................................................................................................................................................................... 5
RISK MANAGEMENT .............................................................................................................................................................................. 5
STRATEGY ................................................................................................................................................................................................... 6
CLIMATE SCENARIO ANALYSIS ...................................................................................................................................................... 6
TIME HORIZONS ................................................................................................................................................................................... 7
CLIMATE-RELATED RISKS AND OPPORTUNITIES ................................................................................................................... 8
CLIMATE RESILIENCE ........................................................................................................................................................................ 13
TRANSITION PLAN ............................................................................................................................................................................. 13
METRICS AND TARGETS .....................................................................................................................................................................14
GREENHOUSE GASES: 2026 RESULTS ........................................................................................................................................14
METHODOLOGY FOR THE CALCULATION OF GHG EMISSIONS ...................................................................................14
OTHER CROSS-INDUSTRY METRICS ........................................................................................................................................... 16
CLIMATE-RELATED TARGETS ........................................................................................................................................................ 16
DIRECTORS DECLARATION ..............................................................................................................................................................18
INDEPENDENT AUDITOR’S REVIEW REPORT ............................................................................................................................ 19

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ABOUT THE SUSTAINABILITY REPORT
This Sustainability Report presents climate-related disclosures for Michael Hill International Limited and its
controlled entities (the Group) for the financial year ended 28 June 2026, together with the accompanying
Directors’ Declaration. The disclosures have been prepared in accordance with AASB S2 Climate-related
Disclosures, the applicable Australian Sustainability Reporting Standard for climate-related financial reporting,
and the requirements of the Corporations Act 2001. Consistent with AASB S2 requirements, the report has been
prepared for the same reporting entity and reporting period as the Group’s consolidated financial statements and
should be read alongside those financial statements and the related basis of preparation disclosures. All climate-
related financial information is aligned with the Group financial statements presented in Australian dollars, which
is the Group’s presentation currency. In addition, this report has been prepared using the same underlying data,
assumptions and methodologies applied in the preparation of the financial statements.

No matters or circumstances have occurred subsequent to year end that has significantly affected, or may
significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group
or economic entity in subsequent financial years.
TRANSITION RELIEF
In preparing these climate-related disclosures, the Group has applied the transitional provisions available under
AASB S2 paragraph C4(b), not to disclose Scope 3 greenhouse gas emissions (GHG) in the first year of reporting.
In addition, the Group has elected the relief provided by paragraph C3 and has not included comparative
information for reporting periods prior to the date of initial application.
FORWARD LOOKING STATEMENTS
This Sustainability Report contains forward-looking statements regarding climate-related risks, opportunities,
targets, initiatives and future performance. These statements are based on assumptions, judgements and
information available at the date of this report and are subject to uncertainties and factors that may be outside the
Group's control. Where management has made significant judgements, estimates and assumptions this has been
disclosed in the report. Actual outcomes may differ materially from those expressed or implied in these
statements.
GOVERNANCE
The Board leads the Group’s strategic direction by approving the Group’s business strategy, targets and risk
appetite, and oversees management’s execution against these objectives. It is responsible for the 2030
Sustainability Strategy, including climate-related targets, reported under the Planet Pillar.

BOARD AND MANAGEMENT’S ROLE IN GOVERNANCE

The Board oversees climate-related risks and opportunities and considers the potential impacts of climate-
related risks and opportunities when overseeing the Group’s strategy, significant transactions, trade-offs and
investment decisions. In discharging these governance responsibilities, the Board has established two
committees: the Audit & Risk Management Committee (ARMC) and the Sustainability Committee.

AUDIT & RISK MANAGEMENT COMMITTEE
The ARMC (chaired by a non-executive director) provides oversight of the Group’s financial reporting, internal
controls and audit, risk management and compliance obligations. This includes providing recommendations to
the Board in relation to:

•
Whether the Group’s financial statements and disclosures reflect a true and fair view of the financial position
and performance of the Group
•
Adoption of climate reporting standards.

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The ARMC is the primary committee in overseeing management’s identification, assessment and management of
climate risks and opportunities, including considering their impact on the Group’s financial statements and
disclosures. These responsibilities are outlined below and in the ARMC Charter, as well as the Group’s Risk
Framework.

The Board receives regular reporting from the ARMC on climate related risks and opportunities. Climate-related
matters were discussed at three of the ARMC’s four scheduled meetings during FY26. These discussions
included updates from management on the company’s progress toward the 2026 climate-related reporting
obligations, including management insights on the identification and assessment of key climate-related risks and
opportunities and other climate-related developments.

SUSTAINABILITY COMMITTEE
The Sustainability Committee is responsible for setting the Group’s climate strategy and targets and overseeing
progress against the commitments outlined in the 2030 Sustainability Strategy. The strategy and associated
climate-related targets were approved by the Board in 2022 following the Committee’s recommendation. Future
reviews and updates to the Sustainability Strategy and associated targets will consider climate-related risks and
opportunities when considering changes to the strategy, targets and related initiatives. The Committee
comprises cross-functional representation of executives and senior leaders from across the Group and reports to
the Board on initiatives as required.

MANAGEMENT RESPONSIBILITIES
The Sustainability Committee is supported by a dedicated management working group, the Climate Reporting
Working Group, which supports the identification, assessment and management of climate-related risks and
opportunities (in coordination with the Group Risk Function) and the preparation of climate-related reporting and
disclosures, including greenhouse gas (GHG) emissions. The group meets monthly, and as required, and
comprises cross-functional representation from Finance, Legal, Risk and Compliance.

The Climate Reporting Working Group is responsible for monitoring and evaluating progress against the Group’s
climate target. The Climate Reporting Working Group provides verbal progress updates to the Sustainability
Committee on an ad hoc basis and reports formally to the ARMC on progress against climate-related targets and
the Group’s reporting obligations. Finally, the Board receives and reviews updates on progress and approves the
Group’s climate-related disclosures prior to publication.

In addition, the Board delegates day-to-day responsibility of implementing its Sustainability Strategy, including
strategic initiatives in response to identified climate-related risks and opportunities, to members of the Executive
Leadership team. The Board exercises oversight of the activities undertaken by these roles through the
aforementioned committees. Key executive responsibilities include:
•
Chief Executive Officer (CEO) is responsible for the execution of the Group’s 2030 Sustainability Strategy
and for integrating climate-related matters and considerations into the Group’s broader strategic initiatives
and agenda.
•
Chief Financial Officer (CFO) is responsible for incorporating climate-related matters into financial matters
and disclosure activities and executing the Group’s climate-related targets.
•
Chief Product Officer (CPrO) is responsible for integrating climate-related risks and opportunities into
product strategy, including material sourcing aligned with the Group’s Sustainability Strategy for
sustainable and responsible products.

CONTROLS AND PROCEDURES USED BY MANAGEMENT TO SUPPORT OVERSIGHT OF CLIMATE
MATTERS
Management oversee climate matters through a number of controls and procedures which are integrated
throughout business functions, including:

•
Integration with the risk management framework: Climate-related risks and opportunities are identified,
assessed and managed through the Group’s Risk Management Framework, including risk workshops, risk
registers and structured risk assessment methodologies.
•
Monitoring and reporting of the Group’s carbon emissions data, updates on climate-related risks and
disclosures, and alignment with financial reporting processes.
•
Execution of climate strategy and targets through the procurement of green energy solutions, to support
the delivery of the Group’s climate-related goals and targets.

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CLIMATE-RELATED SKILLS AND EXPERIENCE
The Board has adopted a Board Skills Matrix and, as part of the annual Board performance review process,
evaluates the mix of board skills, experience and independence of its members. This includes assessing both the
current capability of the Board and the desired mix of attributes, taking into account the evolving nature of the
Group’s business and the external environment. This process ensures that the Board has the appropriate balance
of skills, knowledge and experience to discharge its obligations effectively and identifies any current or emerging
capability gaps.

Each year, the Board identifies a number of essential personal attributes and skills that directors should possess
in order to be suitable to serve as a director. The Board recognises that each director will not necessarily possess
experience in all areas, so seeks to ensure that the Board is composed of an appropriate mix of directors with
skills, knowledge and experience in these areas. Where the Board requires further depth of expertise in any of
these areas, or expertise in other areas, it seeks that expertise from within the Group and through external
advisors where appropriate.

Sustainability and ESG, including climate-related risks and opportunities, is deemed an essential skill required of
directors. In FY26, 50% of directors were assessed as having skills and experience in this area. During FY25, all
directors received training on climate reporting requirements, including climate-related risk and opportunities,
the intersection with directors’ duties, and the process for preparing the Sustainability Report.

A biography for each director and their governance roles and responsibilities is set out on pages 7 to 9 of the
2026 Directors’ Report (Information on Directors).
REMUNERATION
Management remuneration is not currently linked to sustainability performance or management of climate-
related risks and opportunities.
RISK MANAGEMENT
Climate-related risks are categorised into two categories: physical risks and transition risks. Physical risks arise
from the direct impacts of climate change, including acute events such as floods, storms and heatwaves, and
longer-term changes in climatic conditions. Transition risks arise from the transition to a lower-carbon economy
and may result from changes in regulation, technology, market preferences and stakeholder expectations.
Climate-related opportunities refers to the potential positive effects arising from climate change. Both risks and
opportunities have the potential to impact the Group’s operations and business activities across all locations,
either directly or indirectly.

The Board sets the Group’s risk appetite, oversees high and extreme risks (Group risks), and monitors the
effectiveness of risk management practices. Group risks are identified, assessed and managed in accordance
with the Group’s Risk Management Policy and Risk Management Framework.

The framework (broadly aligned with ISO 31000: 2018 Risk Management – Guidelines) establishes a consistent
methodology for identifying, assessing, managing and reporting risks across the Group. It encompasses key risk
categories, including strategic, business, financial, compliance, project, and climate-related risks and
opportunities. The framework, together with the Risk Appetite Statement and Risk Management Policy, is
reviewed annually and submitted to the ARMC for endorsement.

The following risk processes support the framework:
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Tailored risks workshops are conducted at a departmental level to identify and evaluate risks specific to
each department, including climate-related risks (physical and transition) and opportunities. These
assessments draw on a broad range of internal and external industry data sources to inform risk
identification and assessment of departmental risks.
•
Risk likelihood and consequence are assessed using the Group Risk Matrix, with each risk assigned a rating,
including those related to climate.
•
The Group’s Audit and Risk team maintains oversight of all departmental and Group risks, including climate-
related risks and opportunities. As part of each risk review cycle, risks are stress tested to determine
whether ratings need to be updated.

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•
The Board maintains oversight of the Group’s climate related risks and opportunities in accordance with the
Risk Management Framework, the Group’s Audit and Risk team review and ensure alignment on ratings.
While climate risk is not a standalone high or extreme-rated risk at the Group level, several departmental
risks with climate-related impacts are being managed at the departmental level through the departmental
Risk Registers, where they are monitored and reviewed in accordance with the Group’s Risk Management
Framework.
STRATEGY
Michael Hill recognises that both the physical impacts of climate change and the global transition to a low-carbon
economy may affect aspects of its operations and value chain. These impacts may manifest as direct risks and
opportunities, as well as amplifiers of broader strategic and operational challenges, such as regulatory
compliance, supply chain resilience and customer sentiment.
The Group undertook an assessment in FY26, underpinned by the Group’s risk management framework, to
evaluate how climate-related risks and opportunities may influence the Group’s business model, supply chain and
strategy over a short, medium and long term time horizon. This exercise identified five climate-related risks and
opportunities that could reasonably be expected to affect the Group’s prospects, warranting disclosure to support
primary users’ understanding and decision-making.
Physical risks include the potential for extreme weather events to disrupt the Group's store network and supply
chain, and for climate-driven macroeconomic damage to reduce consumer spending power in key markets.
Transition risks include the potential for energy-transition-driven demand for precious metals to increase input
costs, and for evolving consumer preferences to shift demand toward more sustainable product alternatives. At
the same time, the Group sees meaningful opportunities in the growing consumer demand for sustainable,
responsible and circular jewellery products.
The Group's strategic response to these risks and opportunities is described in the sections below.
CLIMATE SCENARIO ANALYSIS
The Group has assessed the identified climate-related risks and opportunities using scenario analysis. Scenario
analysis is a structured process used to explore a range of plausible future climate states, helping to assess the
potential effects of climate-related risks and opportunities on the Group's strategy, business model and financial
position, and to test the resilience of the Group's strategy under a range of possible climate futures.
The scenario analysis was conducted during FY26 with the support of an external consultancy.
Scenarios were drawn from the Network for Greening the Financial System (NGFS) scenario set and are set out in
the table below. The NGFS scenario framework was selected because it is purpose-built to help organisations
understand the financial implications of climate change. Intergovernmental Panel on Climate Change (IPCC)
scenarios describe how the climate system evolves and NGFS scenarios add the economic and market layers,
including the cost of carbon, physical damage to economies, and shifts in consumer and business behaviour, that
are necessary to assess how climate change could affect Michael Hill's revenues, costs, and operating conditions
across Australia, New Zealand and Canada.
Three scenarios were modelled across a warming spectrum. The Medium Warming scenario has been adopted as
the Group’s Base Case. This scenario, based on the NGFS Nationally Determined Contributions (NDC) scenario,
assumes all countries fulfil their current national climate pledges under the Paris Agreement but take no further
action beyond those commitments. The NDC scenario was selected as the Base Case because it represents a
reasonable central warming trajectory that sits between the more optimistic Net Zero 2050 pathway and the
more adverse Current Policies scenario. Management considers the assumptions used in this scenario to
represent its best estimate of future conditions at the reporting date. The anticipated effects of identified risks
and opportunities described in this report are based on this Base Case scenario and are set out in the Climate-
related risks and opportunities section following.
The Low Warming and High Warming scenarios have been used for resilience testing, to assess how the Group's
strategy and business model would perform under more ambitious or more adverse climate futures. Refer to the
Climate Resilience section.

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Low Warming
(Net Zero 2050)
Medium Warming
(NDC) — Base Case
High Warming
(Current Policies)
Scenario
mapping and
sources
NGFS Net Zero 2050
IEA
1
Net Zero Emissions by
2050
NGFS Nationally
Determined
Contributions (NDC)
IEA Announced Pledges
Scenario
NGFS Current Policies
IEA Stated Policies Scenario
IPCC
alignment
SSP
2
1-1.9 IPCC SSP2-4.5 IPCC SSP3-7.0
Warming
trajectory
~1.5°C by 2100 ~2.5 - 3.1°C by 2100 ~2.5 - 4.0°C by 2100
Scenario
narrative
Rapid and ambitious global
decarbonisation.
Governments implement
strong climate policies and
emissions targets. Transition
to renewable energy
accelerates significantly.
Physical climate risks are
minimised, but transition
risks, including rapid shifts in
consumer preference toward
sustainable products, are
more pronounced in the
short to medium term.
Trajectory consistent with
currently implemented
Nationally Determined
Contributions (NDCs).
Steady policy
implementation results in a
balanced mix of escalating
physical risks and gradual
transitional policy changes.
Extreme weather events
increase in frequency and
severity over the medium to
long term.

Delayed or failed global
climate action. Countries
maintain only currently
implemented policies, with
limited new mitigation
measures. Transition risks
are low, but physical risks,
including the frequency and
severity of extreme weather
events, increase significantly
over the medium to long
term.

Role in MHJ
analysis
Resilience testing. Transition
risks such as input price
pressures from clean energy
demand for precious metals
are most acute in the near
term. Consumer preference
shifts toward sustainable
jewellery products
accelerate.
Base Case for anticipated
effects. The Group's
identified risks and
opportunities are assessed
and quantified under this
scenario. Physical risks
increase gradually, while
transition risks and
opportunities evolve at a
measured pace consistent
with current policy settings.

Resilience testing. Physical
risks to the Group's store
network and supply chain
are most severe in the long
term. Macro demand drag
from climate-driven
economic damage is most
pronounced. Transition risks
are lower with a slower pace
of decarbonisation resulting
in reduced pressure on
precious metal input prices
and less impact of customer
preference shifts.

1 IEA: International Energy Agency
2 SSP: Shared Socioeconomic Pathway
TIME HORIZONS
The Group has assessed the potential effects of climate-related risks and opportunities over short, medium and
long-term time horizons. The same time horizons have been used in climate scenario analysis. These time
horizons are defined below:
Time horizon Financial years Rationale
Short term 0–1 year
(to 2027)
Alignment with the Group's annual financial planning, budgeting and
operational forecasting cycles.
Medium term 1–3 years
(2028–2030)
Alignment with the Group's medium-term strategic planning horizon.
Long term 4+ years
(to 2035)
Intended to encompass longer-dated operational and capital allocation
decisions.

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CLIMATE-RELATED RISKS AND OPPORTUNITIES
The Group identified five climate-related risks and opportunities that could reasonably be expected to affect the
Group’s prospects, as described above.
The Group has not identified any material effects on its financial position, performance and cash flows for the
current reporting period as directly attributable to climate-related risks. In addition, the Group has not identified
any significant risk of material adjustment during FY27 to the carrying amounts of assets and liabilities reported
in the Group’s consolidated financial statements.
The Group has assessed, over the short, medium and long term time horizons, the potential effects of climate-
related risks and opportunities on its future performance, including their current and anticipated impacts on its
financial position, financial performance and cash flows. The anticipated effects described below are based on the
Medium Warming (Base Case) scenario.
Estimates of anticipated impacts involve a high degree of uncertainty, as outcomes are heavily influenced by
factors such as macroeconomic developments, consumer behaviour shifts and patterns of severe weather
events. Where this uncertainty limits the reliability or usefulness of quantitative disclosures, the Group provides
qualitative information about financial effects including explanations of the anticipated impacts and financial
categories impacted (items within the financial statements that are likely to be affected by that climate-related
risks or opportunity).
Mitigation and adaptation measures include both direct and indirect efforts as appropriate. Measures described
below form part of existing operations and no additional resources are required to achieve these. However, in the
case of requiring additional resources, the Group will ensure that sufficient personnel and expertise are made
available to support the effective delivery of mitigation and adaptation efforts.






Transition Risk: Increased precious metals input price
Description Increased cost of goods sold (COGS) from increases in gold, platinum, and
silver input prices driven by the energy transition. As cleantech demand for
these metals rises, higher commodity prices could directly increase the
Group's production costs.

Time horizon The effects of increased precious metals input pricing could reasonably be
expected to occur over the short to medium term time horizons

Short term
0–1 year (2027)
Medium term
1–3 years (2028–2030)
Long term
4+ years (to 2035)







Potential impacts on
business model & value
chain
The Group's business model is directly exposed to this risk through cost of
metal, with gold, silver and platinum being core inputs to jewellery
manufacturing. The risk is concentrated in the Group's upstream value chain,
specifically in the procurement of raw precious metals and finished goods
from suppliers in India, Thailand and Italy. Gold dominates the exposure. The
risk affects the Group's cost base and gross margin, with potential flow-on
effects to retail pricing strategy and product mix decisions.

Mitigation & adaptation
measures
The Group actively monitors external commodity price indicators and
macroeconomic conditions, using scenario modelling to assess potential
impacts on COGS. Regular monitoring and analysis of sales volumes and
gross margins by product category supports decision-making and risk
mitigation. The Group performs strategic planning processes, including
adjustment or reprioritisation of initiatives for sourcing and product offering if
necessary. Historically, the Group has demonstrated a strong ability to
maintain gross margins in the face of rising commodity costs, effectively
offsetting record high gold and silver input costs through intelligent product
design, enhanced product mix and disciplined pricing execution.

Current financial
impacts
This risk did not have a material impact on the Group's financial position,
financial performance or cash flows in 2026. The impact of rising input costs
has not been material to margins due to product mix and pricing discipline.

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Anticipated financial
impacts
The modelled impact on gross margin from demand-side price increases in
gold, platinum and silver driven by the energy transition is assessed to be
immaterial across both the short and medium term time horizons. The impact
on gross margin from potentially higher metals input prices in the short to
medium term are expected to be recovered through product mix and pricing
discipline.
Financial categories
impacted
Cost of goods sold (materials); gross profit



Physical Risk: Operational disruption to facilities and store network
Description Lost trading-day revenue from extreme weather events disrupting the Group's
store network and operational facilities. Extreme weather events, such as floods
and cyclones, can force store closures and disrupt the operation of the distribution
centre, causing lost trading-day revenue. The more the world warms, the more
frequent and severe these disruption events become.

Time horizon The effects of extreme weather events causing disruption to operations could
reasonably be expected to occur over the short to long term time horizons.

Short term
0–1 year (2027)
Medium term
1–3 years (2028–2030)
Long term
4+ years (to 2035)




Potential impacts on
business model & value
chain
Anticipated effects include operational disruption from extreme weather leading to
closure of facilities; employee access limitations reducing staffing and productivity;
weather-related events deterring customers from visiting physical locations; and
increased costs from emergency repairs and temporary closures. The risk is
concentrated in the Group’s retail store network.

Mitigation & adaptation
measures
The Group performs strategic planning of store locations for its current and future
store footprint, with a focus on identifying and mitigating risks in climate-
vulnerable areas. The Group leverages risk assessments provided by insurance
partners, which include analysis of weather perils such as cyclones, flooding and
bushfires, to inform location decisions and support long-term resilience planning.
The Group's store network, spanning over 280 locations across Australia, New
Zealand and Canada, provides a degree of natural geographic diversification that
reduces the likelihood of any single extreme weather event having a significant
disruption to the Group’s operations. In addition, the Group's omni-channel
strategy and e-commerce capability provides the ability to offset in-store sales
disruption. Ship-from-store processes enable retail locations to fulfil online orders
from store inventory, rather than relying on central distribution centres. Emergency
response plans are regularly tested, and the Group has established long-term
relationships with multiple contractors who can be mobilised quickly for repairs. In
addition, the Australian Distribution Centre is the Group’s primary distribution hub
and provides contingency support for New Zealand and Canada during supply
disruptions.

Current financial
impacts
The Group has tracked the impact of lost trading days due to extreme weather
events since 2021, and to date the financial impact of lost sales has not been
material.

This risk did not have a material impact on the Group's financial position, financial
performance or cash flows in 2026.
Anticipated financial
impacts
The macroeconomic models used in the modelling suite to estimate physical
climate damage are subject to measurement uncertainty. Additionally, the
assumptions used to translate the physical climate hazard signal into operational
revenue loss are based on structured expert judgement anchored to the Group's
own tracked experience since 2021, rather than empirically derived parameters.
Canada and New Zealand have not been separately modelled, with Australia used
as the proxy market for the Group as a whole.

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The modelled impact from lost trading-day revenue from extreme weather is
assessed to be immaterial across all selected time horizons.

The Group has assessed assets that may be vulnerable to this risk using the results
of a global natural catastrophe diagnostic prepared by our insurance brokers
during FY25. The diagnostic assessed each site’s exposure to twelve natural
hazards, including flood, cyclone, earthquake, storm, fire, tornado and volcanic
activity. For the purposes of this assessment, a site was considered vulnerable
where it received the highest hazard classification for one or more hazards under
the diagnostic methodology. Based on this assessment, 15% of the Group’s sites
were identified as vulnerable to physical climate-related hazards. The risk is
concentrated in store sites, with more than half located in Australia. In most cases,
these sites were identified due to river flood or coastal flood exposure, where the
highest hazard classification represents areas with a 1% annual chance of flooding.
These sites had a written down property, plant and equipment asset value of $5.1m
at the end of FY26, representing 1% of the Group’s total assets. These hazard
classifications represent the degree of exposure of a site to a particular natural
hazard and do not indicate the expected severity of damage, financial loss or
business interruption that may result if such an event occurs.

Financial categories
impacted
Revenue; gross profit




Physical Risk: Climate-Driven Macro Demand Drag
Description As extreme weather events increasingly impact broader economic productivity,
climate-driven macroeconomic damage may reduce national incomes and consumer
spending power, affecting demand for discretionary luxury purchases like jewellery.

Time horizon
Short term
0–1 year (2027)
Medium term
1–3 years (2028–2030)
Long term
4+ years (to 2035)




Potential impacts on
business model &
value chain
The Group's revenue is exposed to macro demand reduction driven by climate-
related economic damage. As temperatures rise, the increasing frequency and
severity of extreme weather events, including floods, heatwaves and tropical
cyclones, damages physical infrastructure and reduces economic productivity. Over
time, these effects suppress national income growth below the level it would
otherwise have reached, reducing the spending power available to households for
discretionary purchases. Jewellery, as a discretionary luxury purchase, may see
demand fall by more than the income reduction itself. The exposure is geographically
concentrated, with Australia seeing a disproportionate share of projected climate
damage.

Mitigation &
adaptation measures
The Group actively monitors external macroeconomic indicators and uses scenario
modelling to assess potential impacts on revenue. The Group's strategic planning
processes include consideration of geographic market mix and the relative climate
exposure of key markets. Furthermore, the brand positioning toward “accessible
modern luxury” broadens appeal to customers who become price sensitive during
periods of economic pressure. Key initiatives include increased use of lower-cost
materials such as vermeil to maintain attractive entry price points. Targeted
promotions rather than blanket discounting and inventory agility and demand-led
planning, the strategy aims to improve responsiveness to changes in customer
demand through AI-enabled assortment planning, improved inventory allocation and
more data-driven pricing.

Current financial
impacts
This risk did not have a material impact on the Group's financial position, financial
performance or cash flows in 2026.

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Anticipated financial
impacts
The macroeconomic models used in the modelling suite to estimate physical climate
damage to national incomes are subject to substantial measurement uncertainty. As a
result, any quantitative estimate of the anticipated financial effects would be highly
uncertain and is not considered useful to users of the report.

However, the direction of impact is considered informative, indicating that increased
physical climate damage could exert downward pressure on discretionary consumer
spending, relative to a no-climate-change world, in key markets over the medium to
long term.

Financial categories
impacted
Revenue (all product categories); gross profit





Transition Risk: Customer Preference Shift
Description As climate awareness grows and consumer values evolve, customers may increasingly
seek jewellery products they perceive as more sustainable — shifting purchasing
behaviour away from products associated with carbon-intensive extraction and
mining.

Time horizon The effects of customer preference shift could reasonably be expected to occur over
the medium to long term time horizons.

Short term
0–1 year (2027)
Medium term
1–3 years (2028–2030)
Long term
4+ years (to 2035)




Potential impacts on
business model &
value chain
Exposure is concentrated in the Group’s diamond-containing product categories,
where direct, price-competitive and potentially lower-impact alternatives are available
at commercial scale. The Group's natural diamond-containing product revenue is
exposed to substitution if consumer preference shifts toward lab-grown alternatives.
As climate policy tightens and sustainability awareness grows, customers may
increasingly prefer sustainable jewellery options or reduce jewellery purchases due to
concerns about the environmental impact of mined raw materials. This could lead to
loss of market share and reduced sales, requiring a strategic shift towards sustainable
sourcing and product transparency.

Mitigation &
adaptation
measures
The Group continues to offer a broad range of products, including lab-grown
diamonds, to cater to customers seeking diverse and potentially lower-impact
jewellery options. By closely monitoring sales volumes and gross margin performance
across product categories, the Group identifies evolving trends and works
collaboratively with suppliers to ensure the product offering remains responsive to
market demand.
Initiatives such as the Re:Cycle Program enable customers to recycle gold jewellery,
which helps reduce mining impacts and emissions. Additionally, the Re:Store Program
has been expanded to include non-Group jewellery products, providing customers
with the opportunity to extend product lifespans and prevent waste. The Group's
sustainability strategy remains focused on progressively integrating responsible and
circular materials.

Current financial
impacts
This risk did not have a material impact on the Group's financial position, financial
performance or cash flows in 2026. Based on the Group's FY26 pricing experience, lab-
grown diamond products have achieved average selling prices and margins at or
above comparable natural diamond products, reflecting customer trading-up
behaviour.

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Anticipated financial
impacts
Modelling the financial impact of this risk across the short, medium and long term time
horizons is subject to significant measurement uncertainty, particularly concerning:
- the pace at which consumer preferences shift toward lower-impact jewellery
alternatives, which is not directly or uniformly tied to climate policy settings
- the extent to which customers switching to lab-grown alternatives demand a
price discount, or continue to trade up to larger or higher-quality stones at
comparable or higher price points
- the degree to which lab-grown diamonds become consistently demonstrated
and accepted as a sustainable alternative, which remains unsettled at an
industry level.

As a result, any quantitative estimate of the anticipated financial effects would be
highly uncertain and is not considered useful to users of the report. The Group will
continue to monitor market dynamics and reassess this position as the evidence base
matures.
Financial categories
impacted
Revenue (diamond product categories); gross profit




Transition Opportunity: Sustainable Product Revenue Uplift
Description Growing consumer interest in sustainably sourced and lower-impact jewellery
products would present the Group with an opportunity to capture incremental
revenue by expanding its offering to meet that demand.

Time horizon The effects of sustainable product revenue uplift could reasonably be expected to
occur over the medium to long term time horizons.

Short term
0–1 year (2027)
Medium term
1–3 years (2028–2030)
Long term
4+ years (to 2035)




Potential impacts on
business model &
value chain
The opportunity is concentrated in the Group's diamond-containing product
categories, where direct, price-competitive, potentially lower-impact alternatives are
available at commercial scale and consumer interest is already established. As
climate policy tightens and sustainability awareness grows, customers may seek
sustainable jewellery options. The Group is well-positioned to capture this shift, with
an existing product range, strong customer consideration rates, and the commercial
infrastructure to expand its offering of lower-impact alternatives in response to
evolving customer preferences.

Implementation
strategies
The Group continues to develop and expand its range of lab-grown diamond
products, recognising the growing customer appetite for choice in jewellery options.
By working closely with suppliers and monitoring sales volumes and gross margin
performance across product categories, the Group is well positioned to identify
emerging demand trends and respond with product offerings that suit a diverse
customer base. The Group's sustainability direction includes a progressive focus on
sourcing lower-impact materials from responsible sources, guided by evolving
customer preferences and supply chain capabilities.

Current financial
impacts
Lab-grown diamond revenue has grown strongly in 2026, reflecting a continued shift
in product mix. However, multiple factors have contributed to this growth, including
pricing, product range expansion and broader consumer trends. As a result, the
Group is unable to separately identify the portion attributable to customer
sustainability preferences.

Anticipated financial
impacts
As is the case for the counterpart risk (customer preference shift), the Group has
determined not to disclose the financial quantification of this opportunity externally
due to the level of uncertainty in the modelling approach.

Financial categories
impacted
Revenue (diamond product categories); gross profit

13


CLIMATE RESILIENCE
The Group has assessed the resilience of its strategy and business model to climate change by considering the
identified climate-related risks and opportunities under both the Low Warming (Net Zero 2050) and High
Warming (Current Policies) scenarios described in the Climate Scenario Analysis section above, across short,
medium and long-term time horizons.
Although the relative severity of transition and physical risks differs across the two scenarios, with transition risks
and opportunities more pronounced under Net Zero 2050 and physical risks more pronounced under Current
Policies, the Group's assessment has not identified any implications that fall outside those already described in
the climate-related risks and opportunities tables above. The mitigations and adaptive capacity set out in those
tables remain applicable across both warming pathways and all assessed time horizons.
Based on this assessment, the Group's business model and strategy are considered resilient to climate-related
risks and opportunities across all assessed time horizons. The Group's capacity to adapt is supported by several
structural characteristics of its business model, including its diversified geographic footprint across Australia,
New Zealand and Canada; its omni-channel retail capability, which provides the ability to offset physical store
disruption through online fulfilment; its demonstrated ability to maintain gross margins through disciplined
pricing and product mix management in the face of commodity cost pressures; and its active management of its
product range to respond to evolving consumer preferences. Disruption to diamond supply due to cutting,
polishing or sourcing activities in India is managed through strong supplier partnerships and inventory flexibility
initiatives, including increased use of consignment arrangements and risk sharing models with suppliers. These
measures assist in reducing supply disruption impacts should sourcing challenges occur in a particular region.
Furthermore, the Group experienced no disruption to product availability or cost increases as a result of the 2024
Surat flooding events, supported by sufficient inventory levels maintained throughout the supply chain.
The significant areas of uncertainty disclosed in the climate-related risks and opportunities tables above remain
applicable to the scenario analysis outcomes described in this section. While the outcomes of the resilience
assessment reflect the Group's current understanding of climate-related risks and opportunities, the Group
acknowledges that there could be unknown risks and uncertainties that may cause actual outcomes to differ from
those described. The Group will continue to monitor key climate indicators and integrate these insights into its
ongoing strategic planning processes.
TRANSITION PLAN
The Group has not developed a formal transition plan at this stage, however, it continues to consider climate-
related matters as part of its ongoing strategic planning activities and will revisit its 2030 Sustainability Strategy
in the coming years including consideration of whether a transition plan is appropriate.

14

METRICS AND TARGETS
GREENHOUSE GASES: 2026 RESULTS
OPERATIONAL GHG EMISSIONS



The Group’s absolute gross Scope 1 and 2 GHG emissions for FY26 were 2,198 tonnes of carbon dioxide
equivalent (tCO
2
e), using the location-based method. This included 26 tCO
2
e Scope 1 and 2,172 tCO
2
e Scope 2
(location-based) emissions.

Scope 1 emissions are direct GHG emissions that occur from sources controlled by the Group. This consists
of emissions from refrigerants used in air conditioning units and fridges and gas used in manufacturing and
repairs facilities.
Scope 2 emissions are indirect GHG emissions from purchased or acquired electricity and heating. The Group has
calculated Scope 2 emissions using both location-based and market-based methodologies. The location-based
method estimates emissions using an average emissions intensity for grids where the electricity consumption
occurs. The market-based method estimates emissions in the context of the Group’s investments in different
electricity products, such as voluntary purchases of renewable energy certificates. These contractual
arrangements include GreenPower and Large-scale Generation Certificates (LGCs) in Australia, New Zealand
Energy Certificates (NZ-ECs) in New Zealand and certified renewable energy certificates in Canada. The Group
set a target to achieve net zero Scope 1 and 2 emissions by the end of 2025 (refer to the Climate-Related Targets
section) and has used the total Scope 1 and 2 market-based emissions metric to track progress towards this goal.
Total gross Scope 1 and 2 emissions using the market-based method of 62 tCO
2
e represent operational emissions
unrelated to electricity use. These residual emissions have been offset through the procurement of certified
carbon credits (refer to Climate-Related Targets section on page 16 for details of offsets purchased) resulting in
net zero Scope 1 and 2 emissions for FY26.
METHODOLOGY FOR THE CALCULATION OF GHG EMISSIONS
CALCULATION STANDARD
The GHG emissions inventory for the Group for FY26 has been calculated in accordance with The Greenhouse
Gas Protocol: A Corporate Accounting and Reporting Standard (2004).
The operational control approach has been used to determine the organisational boundary for the Group’s
emissions inventory. All sites and assets under the Group’s direct operational control are included within the
reporting boundary. This includes all Michael Hill and Bevilles stores across Australia, New Zealand and Canada
and Michael Hill and Bevilles support office locations (including the manufacturing and distribution centre and
repairs site) in Brisbane. The Group wholly owns these operations, so the emissions boundary is aligned with the
Group for financial reporting purposes. The distribution centres in Canada and New Zealand are operated by third
party logistics providers and, as the Group does not hold operational control over these facilities, they fall outside
the organisational boundary and will be included in Scope 3 emissions.
Direct operational control also refers to assets under the Group’s management control. Equipment which is
maintained and under the management control of the landlord is not included within the Group’s reporting
boundary.

Total Carbon Emissions (tCO2e)
2026
Scope 1
26


Scope 2
Location-based
2,172


Market-based
36


Total Scope 1 and 2 (location-based)
2,198


Total Scope 1 and 2 (market-based)
62


Carbon credits retired (tCO2e)
63


Net Scope 1 and 2 (market-based) post offset
-

15

Scope 1 and 2 emissions are measured as follows:

Scope Emissions
category
Activity Data source GWP and
Emissions factor
source
Methodology,
estimates, uncertainty
Scope
1
Fugitive
emissions
Top up of
refrigerants used
in air conditioning
units and fridges
maintained by the
Group
Maintenance
records
GWP values from
IPCC Sixth
Assessment
Report 2020
(AR6)
GHG Protocol guidance
“Lifecycle Stage
Approach”
methodology for HFC
emissions is used.
Under this method the
relevant refrigerant
GWP is applied to
refrigerant used in
servicing equipment or
lost in disposal of
equipment.

Stationary
combustion
Combustion of
LPG from a small
number of gas
bottles used in the
Group’s
manufacturing
and repairs
facilities
Invoices DCCEEW
Australian
National
Greenhouse
Accounts
Factors 2025
Usage of gas (based on
invoice data for
replacement of gas
bottles) is multiplied by
the relevant emissions
factor.

Scope
2
Purchased
electricity
(location-
based)
Electricity
consumption
kWh data
sourced:
AU and NZ sites -
Smart Power e-
smart online
reporting
(supplier and
landlord
invoices).
CA sites - Smart
Power e-smart
online reporting
(supplier
invoices) and
landlord
invoices/
confirmation for
embedded
networks.
kWh usage
accruals are
made where data
is not available
within reporting
timeframes.

DCCEEW
Australian
National
Greenhouse
Accounts
Factors 2025
NZ Ministry of
Environment
Guidance 2025
Environment and
Climate Change
Canada (ECCC)’s
National
Inventory Report
(NIR) 1990 –
2023
kWh electricity
consumed is multiplied
by state (AU), province
(CA) or national (NZ)
average emissions
factors for all electricity
consumed from those
grids.

Medium uncertainty in
some activity data for
CA. In some cases (10
stores in FY26), kWh
activity data has been
estimated for
embedded network
retail sites where data
was not available from
landlords.

Purchased
electricity
(market-
based)
Electricity
consumption
kWh data as for
purchased
electricity
(location-based)
Invoice data for
kWh GreenPower
purchases
DCCEEW
Australian
National
Greenhouse
Accounts
Factors 2025,
Residual Mix
Factors
For AU, NZ and CA,
electricity usage
matched with
GreenPower purchases
or LGC/NZEC
retirements is deducted
from total KWh
electricity consumed.

16

Invoice data for
LGC and NZ-EC
purchases


NZ Brave Trace
Residual Supply
Factors
Environment and
Climate Change
Canada (ECCC)’s
National
Inventory Report
(NIR) 1990 –
2023
Renewable energy grid
mix (RPP and JRPP) is
also deducted for
Australia. A residual mix
factor is applied to the
remaining electricity
consumption to
calculate market-based
emissions.
For CA, as no renewable
electricity instruments
have been purchased in
FY25 or prior years,
location-based
emissions have been
used for those years.
Purchased
heat
Gas usage for
provision of store
heating (CA retail
locations)
Gas usage data
from direct
supplier invoices
Environment and
Climate Change
Canada (ECCC)’s
National
Inventory Report
(NIR) 1990 –
2023
m
3
gas usage is
multiplied by province
emission factors.


USE OF ESTIMATES
In some instances, actual usage of electricity and heating was not available from supplier invoice data. In these
cases, consumption has been estimated based on average consumption for sites of a similar size and location, or
historical consumption for that site.
OTHER CROSS-INDUSTRY METRICS
INTERNAL EMISSIONS PRICE
The Group does not currently have a methodology to calculate or apply an internal emissions price to incentivise
lower carbon practices or guide investment decisions.
CLIMATE-RELATED TARGETS
NET ZERO SCOPE 1 AND SCOPE 2 EMISSIONS TARGET
The Group set a target to achieve net zero GHG emissions from its own operations (Scope 1 and 2 emissions with
Scope 2 emissions measured using the market-based method) by the end of 2025 (calendar year target). This
target applies to the Group as a whole and was set in 2022 as part of the Group’s 2030 Sustainability Strategy. The
target was set with the intention that 100% of the Group’s electricity usage would be matched with zero emissions
renewable energy. Any remaining emissions, calculated under the Scope 2 market-based method, would be offset
with carbon credits.
The target was developed internally with reference to the goals of the Paris Agreement and with guidance from an
external specialist sustainability consultancy. The target was not validated by a third party. The Group’s target is a
net GHG emissions target, with an objective to minimise scope 1 and 2 emissions. The Group has not set a gross
GHG emissions target. Greenhouse Gas Protocol metrics are used to measure this absolute target, specifically
carbon dioxide equivalent (CO
2
e) measured in tonnes of CO
2
e.
PERFORMANCE AGAINST CLIMATE-RELATED TARGETS
The Group successfully achieved its net zero target for Scope 1 and 2 emissions in December 2025 and has
continued to meet this target for the full FY26 reporting period.
To achieve the Group’s net zero goal in Australia, the Group voluntarily purchases GreenPower and surrenders
renewable energy generation certificates (LGCs) to match electricity use above Australia’s Renewable Power
Percentage (RPP). The RPP is the portion of electricity that the Clean Energy Regulator (CER) requires to be from
renewable sources under the Renewable Energy Target.
In New Zealand, the Group voluntarily purchases and redeems New Zealand Energy Certificates (NZ-ECs) via the
New Zealand Energy Certificate System. These NZ-ECs are equivalent to 100% of the Group’s electricity use,
ensuring that consumption is matched with certified renewable energy generated in New Zealand.

17

In Canada, the Group purchases EcoLogo certified renewable energy certificates (RECs), that meet strict
environmental standards, to match 100% of Canadian store electricity usage.
Investment in these products means the amount of electricity used from the grid in Australia, New Zealand and
Canada is matched with electricity produced from certified renewable sources. This allows the Group to report
our market-based scope 2 electricity emissions as zero, using the market-based methodology as per the GHG
Protocol Scope 2 Guidance.

USE OF CARBON CREDITS TO ACHIEVE TARGETS
The Group has achieved the net zero Scope 1 and 2 emissions target primarily through renewable energy
procurement as described above. However, some operational emissions not related to electricity use remain.
These residual emissions have been offset through the procurement of certified carbon credits aligned with our
broader nature restoration goals.
The Group purchased a total of 63 tonnes of CO
2
e offsets (equivalent to 3% of the Group’s total Scope 1 and 2
emissions for FY26) to cover these residual emissions:
• Australia: 27 tonnes of CO
2
e offsets were purchased through Clima to cover Scope 1 fugitive emissions.
The underlying offsets are Australian Carbon Credit Units (ACCUs) generated from the Limestone
Plantation Forestry project, which establishes and manages high-quality commercial timber
plantations in Victoria, Australia drawing down significant carbon stocks.
• Canada: 36 tonnes of CO
2
e offsets were purchased through Carbonzero to cover Scope 2 emissions
associated with gas usage for store heating. The underlying offsets are generated from the Niagara
Escarpment Forest Carbon Project, which promotes and maintains the function and diversity of forest
ecosystems in Ontario. This project is publicly listed on the CSA CleanProjects Registry and is third-
party verified under ISO-14064-2 by Carbon Consult Group.

18

DIRECTORS DECLARATION
In the opinion of the directors of Michael Hill International Limited (collectively, ‘the Group’), I state that the Group
has taken reasonable steps to ensure that the substantive provisions of the Sustainability Report of the Group and
its subsidiaries for the year ended 28 June 2026, as presented on pages 3 to 17, are in accordance with the
Corporations Act 2001, including:
a. Complying with Australian Sustainability Reporting Standard AASB S2 Climate-related
Disclosures and any further requirements determined under section 296C(2) of the
Corporations Act 2001; and

b. Containing the climate statement disclosures required by section 296D of the Corporations Act
2001.
Made in accordance with a resolution of the directors of Michael Hill International Limited pursuant to section
296A(6) of the Corporations Act 2001, as modified by section 1707C(2) of the Corporations Act 2001.


On behalf of the Board



Rob I Fyfe
Chair

28 August 2026

A member firm of Ernst & Young Global Limited
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Ernst & Young
111 Eagle Street
Brisbane QLD 4000 Australia
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Fax: +61 7 3011 3100
ey.com/au
Independent auditor’s review report to the members of
Michael Hill International Limited
Conclusion
We have conducted a review of the following information in the Sustainability Report of Michael Hill
international Limited (the Company), and its subsidiaries (collectively the Group) for the year ended
28 June 2026 (the ‘selective sustainability information’) as required by Australian Standard on
Sustainability Assurance ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability
Reports under the Corporations Act 2001 issued by the Auditing and Assurance Standards Board
(AUASB):
Selective sustainability
information
Criteria: Reporting requirement of
AASB S2 Climate-related
Disclosures (AASB S2) (including
related general disclosures
required by Appendix D) Location in Sustainability Report
Governance Paragraph 6 Governance section (pages 3 to 5)
Strategy (risk and
opportunities)
Subparagraphs 9(a), 10(a) and
10(b)
Climate-related risk and opportunity
tables, limited to risk/opportunity
descriptions and classification as
physical or transition (pages 8 to
12).
Scope 1 and 2 emissions Subparagraphs 29(a)(i)(1) to (2)
and 29(a)(ii) to (v)
Metrics and Targets section (pages
14 to 16), ending with the "Use of
estimates" subsection
The requirements of AASB S2 identified in the table above form the criteria relevant to the selective
sustainability information and apply under Division 1 of Part 2M.3 of the Corporations Act 2001 (the
Act).
We have not become aware of any matter in the course of our review that makes us believe that the
selective sustainability information specified in the table above does not comply with Division 1 of Part
2M.3 of the Corporations Act 2001.
Basis for conclusion
Our review has been conducted in accordance with Australian Standard on Sustainability Assurance
ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000) issued by
the AUASB. Our review includes obtaining limited assurance about whether the selective sustainability
information is free from material misstatement.
In applying the relevant criteria, we note that subsection 296C(1) of the Act includes a requirement to
comply with AASB S2.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


Our conclusion is based on the procedures we have performed and the evidence we have obtained in
accordance with ASSA 5000. The procedures in a review vary in nature and timing from, and are less
in extent than for, an audit. Consequently, the level of assurance obtained in a review is substantially
lower than the assurance that would have been obtained had an audit been performed. See the
Summary of the Work performed section of our report.
Our responsibilities under ASSA 5000 are further described in the Auditor’s responsibilities section of
our report.
We are independent of the Group in accordance with the auditor independence requirements of the
Act and the ethical requirements of APES 110 Code of Ethics for Professional Accountants (including
Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited
(November 2018 incorporating all amendments to June 2024) (the Code) that are relevant to reviews
of the selective sustainability information of public interest entities in Australia. We have also fulfilled
our other ethical responsibilities in accordance with these requirements and the Code.
We confirm that the independence declaration required by the Act, which has been given to the
directors of Michael Hill International Limited, would be in the same terms if given to the directors as
at the time of this auditor’s report.
Our firm applies Australian Standard on Quality Management ASQM 1 Quality Management for
Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information or Other
Assurance or Related Services Engagements, which requires the firm to design, implement and
operate a system of quality management, including policies and procedures regarding compliance with
ethical requirements, professional standards, and applicable legal and regulatory requirements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Other matter
Comparative information was not subject to an assurance engagement in the prior period. In
connection with our review on the selective sustainability information, our responsibility is to
determine whether the comparative information is appropriately presented, by evaluating its
consistency with the disclosures presented in the prior period and the consistency of the criteria with
the criteria applied in the current period. Our conclusion is not modified in respect of this matter.
Other information
The directors of the Company are responsible for the other information. The other information
comprises the Company’s Annual Report, including the Financial Report and the Sustainability Report,
but does not include the selective sustainability information and our review report thereon.
Our conclusion on the selective sustainability information does not cover the other information and we
do not express any form of assurance conclusion thereon.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


In connection with our review of the selective sustainability information, our responsibility is to read
the other information identified above and, in doing so, consider whether the other information is
materially inconsistent with the selective sustainability information, or our knowledge obtained when
conducting the review, or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities for the selective sustainability information
The directors of the Company are responsible for:
▪ The preparation of the selective sustainability information in accordance with the Act; and
▪ Designing, implementing and maintaining such internal control necessary to enable the
preparation of the selective sustainability information, in accordance with the Act that is free
from material misstatement, whether due to fraud or error.
Inherent limitations
As discussed on page 8 of the Report, climate-related risk management is an emerging area, and often
uses data and methodologies that are developing and uncertain. The Report contains forward looking
statements, including climate-related scenarios, targets, assumptions, climate projections, forecasts,
statements of future intentions and estimates and judgements that have not yet occurred and may
never occur. We do not provide assurance on the achievability of this prospective information.
Greenhouse gas emissions quantification is subject to significant measurement uncertainty, which
arises because of incomplete scientific knowledge used to determine emissions factors and the values
needed to combine emissions of different gases. The comparability of sustainability information
between entities and over time may be affected by inconsistencies in the methods to estimate or
measure those emissions, due to different, but acceptable, methods applied.
Auditor’s responsibilities
Our objectives are to plan and perform the review to obtain limited assurance about whether the
selective sustainability information, defined in the Conclusion section of our report, is free from
material misstatement, whether due to fraud or error, and to issue a review report that includes our
conclusion. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis
of the selective sustainability information.
As part of a review in accordance with ASSA 5000, we exercise professional judgement and maintain
professional scepticism throughout the engagement. We also:
▪ Perform risk assessment procedures, including obtaining an understanding of internal control
relevant to the engagement, to identify and assess the risks of material misstatements, whether
due to fraud or error, at the disclosure level but not for the purpose of providing a conclusion on
the effectiveness of the entity’s internal control.

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Liability limited by a scheme approved under Professional Standards Legislation


▪ Design and perform procedures responsive to assessed risks of material misstatement at the
disclosure level. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Summary of the work performed
A review is a limited assurance engagement and involves performing procedures to obtain evidence
about the selective sustainability information. The nature, timing and extent of procedures selected
depend on professional judgement, including the assessed risks of material misstatement at the
disclosure level, whether due to fraud or error.
In conducting our review, the procedures we performed included, but were not limited to:
▪ Considered the completeness of Michael Hill International Limited’s’ s assessment of climate-
related risks and opportunities
▪ Conducted interviews with key personnel to understand the process for collecting, collating and
reporting the selective sustainability information during the reporting period
▪ Read minutes of relevant committees to understand matters discussed and decisions made with
respect to climate-related disclosures
▪ Assessed the appropriateness of the reporting boundaries applied
▪ Undertook analytical review procedures to support the reasonableness of the selective
sustainability information
▪ Evaluated the appropriateness of emission factors applied in the greenhouse gas emission
processes
▪ Agreed the selective sustainability information disclosures made in the report with the underlying
records
▪ Evaluated the presentation and disclosure of the selective sustainability information against the
requirements of AASB S2




Ernst & Young





Rebecca Burrows
Partner
Brisbane
28 August 2026