Sustainability Report -

MCS Group & Sustainable Development

At MCS Group, we recognize that sustainability is integral to our long-term success. This Sustainability Report reflects our proactive efforts to responsibly manage our environmental and social impacts while strengthening corporate governance. By embedding ESG considerations into our decision-making processes, we aim to drive meaningful progress in areas such as climate action, community engagement, and ethical business practices.

Our Sustainability Strategy

Environment

We focus on biodiversity conservation and the management of waste and natural resources, promoting circular economy practices to minimize our environmental footprint.

Social

We are committed to creating a positive social impact through community engagement, maintaining a healthy and safe workplace, and advancing diversity and inclusion across our operation.

Governance

We uphold the highest standards of ethical, transparent, and accountable corporate governance that fosters long-term value creation for our stakeholders.

CARBON EMISSION REDUCTION

6,641 tonnes

CO2-eq emission

Energy Management

3,899 MWh

generated from renewable energy sources

Water Management

1.2 million tonnes

water was reused

Diverse and Inclusive Workplace

+13,000 employees

average of 43 billion MNT spent on salaries and benefits

Corporate Social Responsibility and Community Development

47 billion MNT

invested in CSR initiatives, with implementations of 45 projects and programmes

Sustainable Supply Chain Management and Procurement

2.2 trillion MNT

goods and services purchased from around 8,600 domestic suppliers

GHG Emissions Reduction Approach

We are committed to addressing carbon emissions by prioritizing the reduction of our operational greenhouse gas (GHG) emissions. Since 2021, we have been estimating our emissions using internationally recognized standards and methodologies. These efforts have enabled us to set concrete targets for our carbon-intensive businesses, aligning with Mongolia's “Nationally Determined Contribution” of reducing national GHG emissions by 22.7% by 2030.

Project Purpose	The preservation of historical and cultural monuments that symbolize Mongolia’s national heritage and values.
Duration	Since 2019
Investment	2.5 billion MNT
Collaborating organization	Arts Council of Mongolia
Results	The program has supported 15 projects, including the Choijin Lama Temple Museum, Bogd Khan Palace Museum, and Zanabazar Fine Arts Museum, in partnership with the Arts Council of Mongolia. These efforts were further supported by the Ministry of Culture, the National Centre for Cultural Heritage, as well as domestic and international monument restoration specialists and advisors.

Project objectives	To provide students with the opportunity to systematically build their careers, gain real-world work experience, and foster personal development while immersing in corporate culture.
Duration	Since 2022
Program intake	February
Project impact	The internship program aims to prepare students for their professional careers by offering opportunities to develop practical skills in real-world settings while experiencing corporate culture firsthand. Students also have the chance to attend personal development courses at MCS Academy and participate in mentorship meetings, expanding their professional network. Since the launch of the program in 2022, 230 students from domestic and overseas universities have participated in the program and received job offers from MCS Group, kickstarting their professional careers.

Project Purpose	Develop 3×3 basketball game in Mongolia and promote Mongolian teams and players internationally
Duration	Since 2005
Collaborating organization	MCS Coca-Cola LLC, Energy Resources LLC, Mongolia 3×3 Basketball Association
Results	Mongolian 3×3 team players qualified for the Tokyo Olympics 2020 – the first time Mongolians have qualified for a team sport competition in the . Mongolia also hosted international basketball competitions such as the UB Challenger, Asian Champion and U18 World Championship in Ulaanbaatar.

Project objective	Creating forest belt in the Gobi region to reduce desertification
Duration	Since 2011
Investment amount	Over 100 million MNT
Collaborating organization	Local communities and organizations
Results	Forest belt created in Tsogttsetsii soum is expanding every year, now covering area of about 20 hectares, and planted over 10 thousand trees, bushes and shrubbery with survival rate of over 82 percent. Opportunity for vegetable gardening activities is available for local communities and organizations. In 2021, over 70 local resident and 2 organizations have combined harvest yield of 95 tons over 20 types of vegetation.

Project objective	Improving access to information technology and narrowing the digital education gap between urban and rural areas.
Duration	Since 2022
Collaborating organizations	Unitel Group, UNFPA, The Ministry of Labour and Social Protection of Mongolia, Women in Tech program
Project impact	The company opened Unitel HUB in 12 rural provinces, each equipped with high-speed internet and desktop computers to provide comfortable and modern learning environments for local communities. Additionally, the centers host introductory electronics and robotics training for children aged 8-14, helping to provide foundational knowledge in technology and encouraging in STEM subjects. In 2023, more than 30 participants enrolled in these courses, bringing the total number of graduates to 323 since the program’s inception.

Project objective	Model roadside rest area
Duration	2022
Investment amount	1 billion MNT
Results	Equipped with a washroom and public shower, a convenience store, and a café, the Rest area 240 provides a cozy place to rest for travelers. The facility is powered using innovative and environment friendly solar, gas, and electric energy and provides ten locals with stable employment. The facility is also equipped with a traveler’s corner, promoting tourism in the historic area.