Climate Change Data

Environmental Metrics

Social Achievements

• Implemented procedures to ensure employee safety due to the COVID-19 pandemic, adding work from home flexibility, adjusting attendance policies, increasing cleaning protocols, initiating communication regarding impacts of the COVID-19 pandemic, implementing temperature screening of employees, establishing new physical distancing procedures, providing additional personal protective equipment and cleaning supplies, implementing protocols to address actual and suspected COVID-19 cases and potential exposure, prohibiting all domestic and international non-essential travel for all employees, and requiring masks to be worn in all locations where allowed under local law.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disrupted business and financial performance, impacting revenues, profitability, and workforce.
• Cybersecurity threats.
• U.S. and global market and economic conditions.
• Difficulty securing additional financing.
• Restrictive covenants in Credit Facility.
• Integration challenges with future acquisitions.
• Responding to rapid technological changes.
• Highly competitive markets.
• Customer retention and upselling challenges.
• Strain on personnel resources and infrastructure.
• Lengthy product development and sales cycles.
• Protecting intellectual property.
• Managing geographically dispersed workforce.
• Inflation.
• Uncertainties in foreign operations.
• Political and economic volatility in money transfer regions.
• Disruption in international migration patterns.
• Phasing out of LIBOR.
• Changes in U.S. or foreign taxation.
• Fluctuations in currency exchange rates.
• Rapid spread of contagious illnesses.
• Potential for consumer fraud.
• Increased regulatory scrutiny.
• Uncertainty regarding internet users' personal information.
• Potential liabilities under the Foreign Corrupt Practices Act.

Mitigation Strategies

• Amend Credit Facility, reduce salaries, furlough employees, eliminate positions, defer expenditures (in response to COVID-19).
• Investments in data protection and information technology.
• Strengthening financial position.
• Continued efforts to develop new products and services.
• Investments in internal infrastructure, data center capacity, research, customer support, and development.
• Improving operational, financial and management controls.
• Expanding India operations as a learning center of excellence.
• Monitoring developments related to COVID-19 and remaining flexible in response.
• Using a variety of tools to protect against fraud.
• Evaluating liquidity requirements and considering potential business acquisitions or the development of new products or services.
• Intending to refinance credit facility during fiscal year 2022 with debt and/or equity securities.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Reversed salary cuts from 2020 and offered raises of 15% to 20% to software developers in India.
• Met government guidelines in India for CSR social work spend.

Climate Goals & Targets

Environmental Challenges

• Second wave of COVID-19 impacting Brazil and India, leading to business standstills.
• Staff shortages due to COVID-19 in the U.S. and other countries.
• Elevated health insurance costs due to COVID-19.
• Higher bank interest costs.
• Elevated costs associated with banks, legal, and accounting firms.
• Government guidelines in India requiring CSR social work spend.

Mitigation Strategies

• Reversed salary cuts and provided raises to retain employees.
• Addressed resource issues as COVID-19 impact lessened in India.
• Reduced total debt by over $40 million.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Restored employee salaries in India and increased software developer salaries after COVID-19 related cuts; Met Indian government guidelines for CSR social work spend.

Governance Achievements

• Strengthened audit function and SOX processes; engaged independent accounting firms for forensic analysis and audits of EbixCash business; added diversity to EbixCash board.

Climate Goals & Targets

Environmental Challenges

• Continued effects of COVID-19 on various businesses (U.S. product consulting, travel, foreign exchange, remittance, financial technologies, e-learning); higher bank interest costs; elevated legal and accounting expenses; employee turnover and staffing challenges in development; supply chain disruptions (implied).

Mitigation Strategies

• Increased software developer salaries to reduce turnover; diversified bank portfolio for prepaid cards; training recently hired development staff; restructuring CRM exchange; pursuing new AEPS opportunities in India; opening offices to improve employee culture and reduce attrition; developing alternative sourcing strategies (implied).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Social Achievements

• Maintained COVID related safety measures and hybrid work schedules in 2022.
• Company believes that its rich culture of diversity and inclusion enables it to create, develop and fully leverage the strengths of its workforce to exceed customer expectations and meet its growth objectives.

Climate Goals & Targets

Environmental Challenges

• Maturity of Credit Facility in May 2023.
• Potential inability to complete EbixCash IPO.
• Continuing impact of COVID-19 pandemic.
• Adverse U.S. and global market, economic, and geopolitical conditions.
• Decline in gift card business revenue.
• Highly competitive markets.
• Price-sensitive market and customer pressure to decrease fees.
• Potential for customer churn and lack of additional purchases.
• Strain on personnel resources and infrastructure.
• Lengthy product development and sales cycles.
• Difficulty protecting intellectual property.
• Dependence on senior management and key personnel.
• Challenges managing geographically dispersed workforce.
• Impact of increased inflation.
• Potential impact of new U.S. Federal excise tax and other tax legislation.
• Increasing cybersecurity threats and security incidents.
• Risks associated with cloud-based implementations.
• Risks in transmitting health-related and personal information.
• Potential for internet connection disruptions.
• Risk of consumer fraud.
• Uncertainty regarding use of internet users' personal information.
• Risks related to international operations.
• Political and economic volatility in regions with money transfer transactions.
• Disruption in international migration patterns.
• Potential adverse effects of changing U.S. dollar rates and currency exchange rate fluctuations.
• Potential for impairment of goodwill or other intangible assets.
• Potential for internal control deficiencies.
• Complexity of revenue and expense recognition rules.
• Risks related to the resignation of the prior registered public accounting firm.
• Costs and effects of litigation and investigations.
• Potential liabilities under the Foreign Corrupt Practices Act.

Mitigation Strategies

• Pursuing multiple capital raising strategies to address refinancing requirements of the Credit Facility.
• Forming a special committee to evaluate alternatives to address capital needs.
• Implementing cost-cutting measures in 2020 (salary reductions, employee furloughs, position eliminations, and deferral of non-essential expenditures).
• Returning salaries to pre-COVID-19 levels in 2021 (with increases for certain IT professionals).
• Suspending share repurchase program.
• Investing in internal infrastructure, data center capacity, research, customer support, and development.
• Improving operational, financial, and management controls.
• Strengthening financial position in 2020.
• Engaging counsel and accounting experts to assist with matters raised by the former auditor's resignation.
• Retaining KPMG for valuation work and Ernst & Young for tax advice, tax provisioning and SOX internal control evaluation work for the years 2021 and 2022.
• Employing internal security controls, undergoing regular third-party security audits, complying with external information control mandates, having disaster recovery and backup plans, utilizing 24/7 monitoring, and undergoing governance audits.
• Implementing stringent data access policies, using VPNs and firewalls, and requiring HIPAA and GLBA compliance training.

Supply Chain Management

Climate-Related Risks & Opportunities