Corporate Governance Policy

In compliance with Cabinet Resolution No. 241670/T59793 dated 27/12/1401 AH, regarding the criteria for determining the pollution level of polluting production, industrial, mining, and service units, and in accordance with Article 2 of the aforementioned regulations, Iran Polyacryl Company is exempt from the provisions of this resolution as it is officially recognized as a green industry in the country.
Over the past several years, Iran Polyacryl Company has undertaken extensive environmental initiatives, including the plantation and ongoing maintenance of 110 hectares of trees. These efforts, along with other environmental measures, have been consistently reported to the Environmental Protection Organization. Consequently, the company has been awarded the "Certificate and Statue of Green Industry" by the Environmental Protection Organization in recognition of its commitment to sustainable product development and eco-friendly production processes.
The company's remaining environmental activities are outlined as follows:

Corporate Sustainability Report

Environmental Performance and Future Outlook

The company's environmental performance report for the fiscal year under review, along with future trend forecasts, is presented in detail below. The company has undertaken various initiatives and submitted its report to the Environmental Protection Organization, ultimately earning the Green Industry Certificate and Statue in recognition of its green production processes and environmental activities. Additionally, the company maintains and irrigates 110 hectares of trees planted in previous years, reflecting its long-standing environmental commitments.

Environmental Impact and Compliance Measures

The company actively monitors and mitigates the environmental impacts of its activities, particularly in the areas of waste management, water resources, and air pollution. All necessary measures are taken to comply with environmental regulations, ensuring the protection and preservation of the environment.

Energy Consumption and Conservation Initiatives

The company currently consumes approximately 5.7 million cubic meters of gas per month to meet its energy needs, with plans to reduce consumption through energy management initiatives. Key measures include:

• Repairing and replacing numerous factory steam traps to prevent steam energy loss.
• Installing Dionysian water spraying systems on the outlet of the Acrylic 2 factory's condensate tank to reduce water and energy waste.
• Adjusting excess air in thermal furnaces to improve efficiency at the power plant.
• Gradual replacement of traditional lamps with ultra-low-energy SMD lamps.
• Servicing the 63 kV power transmission line and replacing insulators to minimize power losses.

Compliance with Environmental Regulations

The company's wastewater is treated in dedicated treatment plants and used to irrigate over 100 hectares of forest surrounding the factory. The quality of the treated wastewater fully complies with the Environmental Protection Organization's regulations. Additionally, air emissions from the factory's furnaces are regularly monitored and meet all applicable environmental standards.

Tax Incentives and Environmental Benefits

Through efficient energy management and cooperation with the electricity department during peak seasons, the company has received approximately 30 billion rials in cooperation bonuses, credited to consumer bills.

Long-Term Environmental Goals

The company aims to optimize water resources and reduce chemical consumption by implementing a reverse osmosis system on incoming raw water with a capacity of 160 cubic meters per hour.

Corporate Governance Compliance

In line with the Corporate Governance Guidelines approved by the Securities and Exchange Organization, the company implements the following measures:

• Article 5: The company's organizational ethics charter promotes constructive interaction, customary values, and shareholders' rights.
• Article 8: An Audit Committee conducts regular monitoring and reviews the Internal Audit Unit's performance.
• Article 9: The internal control system is annually reviewed and continuously strengthened.
• Article 10: Confidential information holders are identified, and their identities are registered.
• Article 11: Suggestion boxes are installed, and direct access to senior management is facilitated.
• Article 15: Regular meetings of the Audit Committee are documented in detailed minutes.
• Article 16: Quarterly and monthly performance reviews are conducted according to the company's strategic goals.
• Article 17: Board members are regularly informed of their duties and corporate governance responsibilities.
• Article 18: The CEO oversees shareholder communication through the Stock Affairs Unit and the company website.
• Article 19: The Board of Directors Charter outlines the duties, authorities, and decision-making processes of board members.
• Article 20: The CEO implements board resolutions and provides transparent reports, all documented in meeting minutes.
• Articles 21-23: The Board Secretariat maintains records of meeting minutes and board approvals.
• Article 24: Monthly board meetings are scheduled, and meeting outcomes are reported to shareholders.
• Article 31: All reports are disclosed in accordance with information disclosure regulations on the Kodal and Polyacryl Iran websites.

Confidential Information Management

The company has implemented the following measures to manage confidential information:

• Identifying confidential information holders within 15 days of their appointment.
• Issuing guidelines to familiarize confidential information holders with compliance requirements.
• Obtaining signed declarations (Form No. 1 and Form No. 3) and submitting them to the Stock Exchange Organization.
• Registering holders' information in the Kodal system and submitting supporting documents to the Stock Exchange Organization.

These initiatives ensure compliance with regulatory obligations and promote transparency in the company's operations.

Board of Directors Information

Board Composition

The structure of the Board of Directors comprises five members in accordance with the Company's Articles of Association. The Board consists of the CEO, one executive member, and three non-executive members who participate in Board meetings.

Board Actions and Effectiveness

The following summarizes the key actions and effectiveness of the Board of Directors, along with the most significant issues discussed during Board meetings:

• Reviewing the auditor's report for the fiscal year 1400-1401 and making decisions to fulfill the duties of the General Assembly of Shareholders.
• Special focus on the review and approval of the Company's interim and annual financial statements.
• Revising and updating the Company's regulations and executive instructions.
• Planning, reviewing, and discussing the overall status and activities of the Company.
• Assessing the performance of receivables collection and monitoring legal case processes.
• Implementing corporate governance across all levels of the Company.
• Reviewing and approving the charters of the Board's specialized committees.
• Approving employee and senior executive salaries and benefits.
• Determining the disposition of unresolved legal cases from previous years.
• Appointing members of the Board's specialized committees.
• Holding numerous meetings with the governorate and the Provincial
• Natural Resources Directorate to determine the disposition of the Company's land.
• Reviewing and approving performance reports.
• Approving welfare and incentive grants, as well as special employee-related payments.
• Following up on the disposition of the Company's shares.
• Approving the job classification plan after 35 years to enhance employee motivation and productivity.
• Reviewing and approving the minutes of the domestic and foreign exchange transactions and purchases commission.
• Reviewing and approving the minutes of the Company's product pricing and sales committees.
• Planning to secure liquidity and essential raw materials for the long term.