Climate-Related Financial Risk Disclosures

Climate-Related Financial Risk Disclosures. Published January 2026 in accordance with California Senate Bill 261.

AGI is one of the fastest-growing US-owned ground-handling companies in North America, with over 12,000 team members handling more than 1.8 billion kilos of goods per year across 62 airports. As a leader in the air transport and logistics industry, we are committed to environmental excellence, efficient operational practices, and innovating for a sustainable future. AGI offers distinct, complementary services through four sibling companies: AGI Cargo, AGI Ground, AGI Secure, and AGI Post. The four companies in the group are jointly held by AGI Holdings, which has no operations of its own. AGI Holdings is privately owned by the Audax Group and Greenbriar Equity Group, LLC.

This memo documents AGI’s work to identify, assess, and manage climate-related financial risks and opportunities in alignment with the 2017 recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). Alignment with the TCFD framework is one possible compliance route for California State Senate Bill (SB) 261, also referred to as the Climate-Related Financial Risk Act.

This document is intended to be an interim memo that includes the majority of the TCFD’s recommended disclosures (eight out of 11), with a section covering each of the TCFD’s four reporting pillars: governance, strategy, risk management, and metrics and targets. We intend to publish two of the remaining disclosures in early 2026, following the completion of our inaugural climate scenario analysis, which is underway with climate risk experts from TRC Environmental Corporation. AGI does not plan to disclose our greenhouse gas (GHG) emissions since the California Air Resources Board (CARB) clarified in its November 2025 minimum compliance guidance that such disclosures are not currently required for SB261 reporting.

Once completed, our climate scenario analysis will enable us to identify additional climate-related risks and opportunities, assess their potential financial impacts on AGI, prioritize specific risks and opportunities for further action, and assess the resilience of our business model across two plausible climate futures. We expect to update our disclosures and publish our inaugural full TCFD-aligned report sometime in early 2026. After that, we plan to publish appropriate disclosures regarding climate-related financial risks at least every two years, in alignment with SB 261.

Governance

Describe your organization’s governance structure, if any, for identifying, assessing, and managing climate-related financial risks. Include discussion of any executive management and Board oversight of climate-related risks and opportunities.

At AGI, we take a holistic, integrated approach to environmental topics, managing climate-related issues, employee health and safety, and corporate social responsibility (CSR) topics under the comprehensive umbrella of our Environment, Social, and Governance (ESG) Committee, which meets quarterly. The committee began in 2022 as a Safety Committee focused on assessing and mitigating Environmental, Health, and Safety (EHS)-related risks to our employees. The body has since grown in scope and mandate, reflecting our growing focus on sustainability, climate, and CSR. Currently, risk management topics are embedded throughout committee discussions, with segments each meeting on topics like claims, losses, environmental risks, regulatory requirements, and governance procedures. These regular comprehensive meetings enable AGI management to proactively track, discuss, assess, and manage environmental risks and opportunities, including those related to climate.

The ESG Committee is led by a chair and deputy chair, who are in regular contact with AGI leadership regarding our progress on environmental topics. There are also sub-committee chairs who actively lead specific initiatives and events to work towards our ESG goals, with the help of volunteers. The ESG Committee also has an executive sponsor and deputy executive sponsor, who champion and advocate for the committee’s interests and needs. The Committee chairs and sponsors are designated by AGI’s Chief Executive Officer (CEO) with input from our Chief Safety Officer (CSO).

In addition to the formal Committee members and employee volunteers, 10+ executive leaders attend the ESG Committee meetings. These leaders include AGI’s CEO, CSO, Chief Financial Officer (CFO), Chief People Officer (CPO), Chief Commercial Officer (CCO), Chief Information Officer (CIO), and three Chief Operating Officers (one each for AGI Post, Ground, and Cargo). The Vice President of Corporate Relations, Vice President of AGI Secure, and AGI’s Procurement Manager also attend ESG Committee meetings. If any of these executive leaders cannot attend a specific committee meeting, their deputy attends in their stead or the meeting is re-scheduled to ensure appropriate attendance.

The executive leaders present at ESG Committee meetings, particularly the CEO and CFO, determine whether any ESG or climate-risk-related matters should be brought to the attention of AGI’s Board of Directors. Our Board is comprised of our CEO and key executive stakeholders from our two private equity owners, Audex and Greenbriar. Our CFO regularly attends Board meetings as well. AGI’s Board meets at least quarterly to discuss our financial performance and other executive oversight topics. ESG- and climate-related topics are presented to the Board at least annually during the holistic year-end review, and at additional Board meetings if requested by Board members or determined to be relevant by our CEO.

AGI’s CEO is ultimately accountable for the quality of organizational performance, including initiatives related to operations, safety, security, sustainability, and risk management. The CEO’s authority to act and oversight accountability is supported by the other C-suite leaders, who are each responsible for managing performance in their specific oversight area. In this way, climate- and sustainability-related risks are managed holistically by AGI executives with relevant expertise, feeding into the ESG Committee’s work and reporting, which is overseen by our CFO, CEO, and Board.

Strategy

Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term (where material), as well as the impact of such on the organization’s operations, strategy, and financial planning. Additionally, describe the resilience of the organization’s strategy, if any, taking into consideration the future impacts of climate change under various climate scenarios. Where a qualitative scenario-based assessment is feasible and relevant for a particular company, CARB encourages its inclusion.

AGI already takes climate-related risks and opportunities into account in our operations, business model, and strategy, as will be discussed further in the Risk Management section. Some climate-related risks that we have preliminarily identified as applicable to AGI over the short- to long-term include potential disruptions to revenue-generating activities due to increasing frequency and/or intensity of physical climate-related hazards (such as hurricanes, heatwaves, wildfires, and severe winter weather), and transition-related risks from possible carbon pricing policies or sustainability-related customer pressures. Two climate-related opportunities that AGI is already pursuing include waste reduction and recycling efforts, as well as cost and carbon savings via increased equipment efficiency.

AGI has hired third-party expert climate risk consultants from TRC Environmental Corporation to help us understand our climate-related risks and opportunities in a more nuanced and comprehensive way, so that we can further mitigate these risks and seize these opportunities in our business strategy and financial planning. We are currently conducting a rigorous TCFD-aligned climate scenario analysis, which will cover three components in detail: physical risks, transition-related risks, and climate-related opportunities. We are in the process of gathering data and reviewing our existing risk management processes to identify relevant information and potential opportunities for improvement. We plan to publish the results of this climate scenario analysis in a full TCFD-aligned report in 2026, which will explore the possible financial impacts of priority climate-related risks and opportunities in more detail, while discussing the resilience of our organizational strategy under two plausible climate futures.

Our forthcoming climate scenario analysis will use robust, state-of-the-art methods to assess physical climate risks to our employees and operations, such as those arising from hurricanes, severe storms, wildfires, and other hazards, as well as transition-related risks, such as carbon taxes, lawsuits, shifting technologies, reputational risks, and supply chain disruptions, under a high-carbon and lower-carbon scenario. The assessment will also identify key climate-related opportunities for AGI to consider pursuing, such as resource efficiency, diversification of energy sources, sustainable products and services, market opportunities, and further resiliency investments. The analysis will identify the most-relevant climate-related risks and opportunities for AGI and will enable us to prioritize key risks and opportunities to emphasize in future mitigation efforts. We look forward to using the findings of this in-progress analysis to further improve our risk management, employee safety, and sustainability efforts, while taking a future-forward approach to our operations and services.

Risk Management

Describe how the reporting entity identifies, assesses, and manages climate-related risks, including the processes used and how those climate-related considerations and processes are integrated into the organization’s overall risk management.

As discussed in the Governance section of this memo, AGI’s ESG Committee oversees the identification and assessment of climate-related risks, in conjunction with other sustainability, employee safety, and CSR-related topics. This means that climate-related risks are managed holistically by the same body that is assessing and managing all other enterprise-wide risks. Therefore, climate-related risk management processes are inherently integrated into our overall risk management.

We also identify physical climate- and safety-related risks through an annual risk assessment conducted in partnership with one of our insurance providers, who visits our key airport operations to assess EHS and ESG-related risks and management controls. We also partner with a second insurance provider who performs a quarterly “spectrum” analysis of insurance claims to identify injury trends and focus areas for future improvement (e.g., cause of injury, higher-risk locations, and results of claims.) The insurance provider also performs additional detailed analyses every few years or as needed, if there have been any significant changes to our business model or operations.

Once risks are identified by the ESG Committee and/or our ongoing insurance analyses, we have several policies that we use to assess and mitigate enterprise-wide risks, including those related to climate change. Our Ground Operations Policy & Process Manual outlines a standardized methodology for our annual risk assessment, which grades risks based on the likelihood and severity of the hazard. Corrective or preventative risk mitigation actions (with a designated responsible employee) are then assigned for any risks that rate below the “green” or acceptable category. Depending on the hazard, risk mitigation plans may need to be approved by our CSO and/or CEO, in order to continue the applicable activity. We then apply a change management process to track and implement any shifts in procedures, operations, or oversight, as needed to manage risks. These enterprise-wide risks and mitigation actions are tracked in a corporate risk register.

Climate-related risk mitigation is currently considered in several of our existing risk management documents: · Our Ground Operations Policy & Process Manual includes employee safety considerations relevant to a variety of climate events, from extreme temperatures to inclement weather to high winds.

· Our Inclement Weather Plan describes actions to take in adverse weather conditions such as blizzards, dangerous winds, and hurricanes.

· Our Emergency Action Plan Program, developed in accordance with OSHA regulation 29 CFR 1910.38, helps ensure the protection of employees, aircraft, baggage, and equipment in an emergency, which can include those caused by wildfires or extreme weather.

· Our Emergency Response and Crisis Management Manual focuses on best-practice leadership actions to reduce the operational consequences from any high-impact hazards to our headquarters and operations. Several climate-related hazards (and associated risk reduction measures) are discussed within the “Natural Disasters” section of this plan, including hurricanes, flooding, high heat, intense winter storms, and wildfires.

In addition to these enterprise-wide plans, we also have a headquarters-specific Disaster Preparation and Recovery Plan, which details extensive employee safety and business continuity procedures to take in the event of a hurricane striking the greater Miami region. Certain actions within the plan are triggered when a relevant hurricane watch or warning is issued. We also have an Emergency Response Plan specific to each of our operational locations, which covers flooding, hurricanes, high winds, severe thunderstorms and lightning, winter storms, and power outages.

Each of these risk management plans are reviewed at least annually, with a more in-depth refresh every two years, or as needed based on changing circumstances. We are currently working to build out additional location-specific and/or hazard-specific plans, with the goal of covering each of our highest-priority facilities over the next two years. We are also prioritizing plans for our operational geographies with unique regulatory or infrastructure challenges, such as Canada and Puerto Rico.

To reduce some of our identified operational risks from physical climate hazards, we have backup generators in place at some locations to maintain critical business functions during power outages. We also have staffing systems in place to reroute Temporary Duty Employees to other airports as needed during operational constraints or weather-related challenges at specific airports. We also conduct an annual tabletop in-person risk mitigation exercise, with focused involvement from at least 15 AGI executive leaders across various business functions. In 2024, the exercise analyzed our corporate response to a hypothetical plane crash during a blizzard event at Chicago O’Hare International Airport (one of our key operational locations). These types of tabletop exercises help us prepare proactively to implement a more seamless and well-planned response to serious risk events and/or climate-related physical hazards. Additional climate risk mitigation initiatives will be discussed in more detail in the full-length climate risk report, to be published in early 2026.

Metrics and Targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities adopted to reduce and adapt to climate-related risk, where such information is material.

AGI tracks a wide variety of sustainability metrics that can be used to assess and manage climate-related risks, including Scope 1 and 2 GHG emissions, energy consumption, equipment idling time, open-door durations, percentage of products recycled after use, and percentage of our fleet vehicles suitable for electrification. We have progressively ramped up our sustainability initiatives since 2021, focusing first on areas with the greatest emissions and therefore, greatest opportunity for reduction. Our AGI Cares 2028 goal is to reduce our waste to landfills by 50%, which will also reduce our GHG emissions. We currently have several initiatives in progress to work toward this target.

Since 2022, we have partnered with EcoVadis to assess our sustainability metrics and performance. The EcoVadis method assesses ESG performance across four key themes— Environment, Labor and Human Rights, Ethics, and Sustainable Procurement— using seven indicators per theme (such as relevant policies, certifications, and reporting). Then, an overall score is calculated from a weighted average of these indicators. Our current score is 33 out of 100, reflecting that we are in an emerging stage of our ESG journey. By theme, we achieved a score of 30 for environment, 40 for labor and human rights, 40 for ethics, and 20 for sustainable procurement. Participating in the Ecovadis assessment has helped us track and report on additional quantitative CSR-related indicators and metrics. Additionally, in 2023, we first achieved Sedex’s 4 Pillar Certification, which assessed our operations across Environment, Labor Standards, Health & Safety, and Business Ethics. Participation in both Sedex and Ecovadis in the subsequent years has helped us identify several opportunities for continued growth of our ESG program, which we are discussing and working towards.

Although we have conducted a corporate carbon footprint analysis and are calculating our annual Scope 1 and Scope 2 GHG emissions, we are not yet ready to publish those preliminary estimates. We may consider doing so in the future, once we have improved our data sources and data accuracy. However, our preliminary calculations show that about 75% of our Scope 1 and Scope 2 emissions come from our mobile ground support equipment. Reducing our fleet’s emissions is therefore a current focus area, and although we don’t yet have formal GHG-related targets, we have several fleet-related initiatives in place.

One such effort is leveraging vehicle telemetry, or the automated collection of real-time data from a vehicle’s engine, GPS, and other sensors, using the Samsara platform, to identify opportunities to increase efficiency and reduce emissions. As of November 2025, we have achieved about 25% telemetry coverage across our fleet, and AGI Cargo has achieved approximately 50% coverage of vehicles. We also use Samsara to identify equipment that would be suitable for electrification, which is currently estimated at ~92% of our

One such effort is leveraging vehicle telemetry, or the automated collection of real-time data from a vehicle’s engine, GPS, and other sensors, using the Samsara platform, to identify opportunities to increase efficiency and reduce emissions. As of November 2025, we have achieved about 25% telemetry coverage across our fleet, and AGI Cargo has achieved approximately 50% coverage of vehicles. We also use Samsara to identify equipment that would be suitable for electrification, which is currently estimated at ~92% of our fleet. We are exploring every avenue to convert our fleet to alternative energy sources, including working with original equipment manufacturers to discuss needs and possibilities. We also partner with our host airports to encourage them to build the necessary electrical and logistical infrastructure needed to support a green fleet, since airports are responsible for establishing the enabling conditions.

We also leverage an AI-based video analysis platform, Voxel, to track and reduce GHG-emitting activities proactively in real-time. We originally implemented the technology to assess employees’ safety habits and actions and reduce or prevent any unsafe working conditions on-site. However, we have now expanded Voxel’s usage for decarbonization purposes, helping us identify when equipment is idling or airplane doors are left open, each of which wastes energy and fuel. The technology has enabled us to reduce open-door duration by 76% over the last 12 months, which increases energy efficiency and reduces our GHG emissions.

We also implement several other programs focused on sustainability and waste reduction. For example, in 2023, we successfully converted all plastic sheeting used by our Cargo division to BioNatur Plastic products, which biodegrade in only 8 to 12 years, making it one of the most sustainable plastic options available. This switch has saved over 777,000 pounds of traditional plastic annually, which is the equivalent of almost 39 million 16-ounce water bottles per year. We have also implemented water filling stations for employees, to prevent single-use plastic waste. Additionally, we introduced paperless screening processes from 2023 to 2024 to reduce operational paper generation. We have an aspirational goal of recycling 100% of paper products, vehicle batteries, used tires, computers and other technology components, and used oil/oil filters/parts washer solvent. We have several policies to this end, stating that we will return these items to their suppliers to be recycled or deliver them to appropriate local recycling facilities. Altogether, these programs, policies, and initiatives help us make a significant impact and innovate for a sustainable future.

As discussed in this section, we already track various climate- and sustainability-related metrics. We are currently assessing the coverage of our climate- and climate-risk-related metrics, and we may publish additional metrics and indicators in our full-length TCFD-aligned report, expected in 2026.

About Alliance Ground International (AGI)

Alliance Ground International is one of the fastest-growing, U.S.-owned ground handling companies in North America, providing cargo, ground, mail handling, security, and hospitality services. Headquartered in Miami, AGI employs more than 12,000 team members and operates at over 60 airports in the United States and Canada.