CLS : DNV Assurance Statement - CLS Holdings Annual Report and Accounts 2023

Independent Limited Assurance Report

to the Directors of CLS Holdings plc

CLS Holdings plc ("CLS") commissioned DNV Business Assurance Services UK Limited ("DNV", "us" or "we") to conduct a limited assurance engagement over Selected Information presented in the Annual Report and Accounts 2023 (the "Report") for the reporting year ended 31

December 2023.

Our Conclusion: On the basis of the work undertaken, nothing came to our attention to suggest that the Selected Information is not fairly stated and has not been prepared, in all material respects, in accordance with the Criteria.

This conclusion relates only to the Selected Information, and is to be read in the context of this Independent Limited Assurance Report, in particular the inherent limitations explained overleaf.

Our observations and areas for improvement will be raised in a separate report to the Management of CLS. These observations do not affect our conclusion set out above.

Selected Information

The scope and boundary of our work is restricted to the sustainability metrics included within the Report for 2023 (the "Selected

Information"), listed below:

To assess the Selected Information, which includes an assessment of the risk of material misstatement in the Report, we have used the CLS

"Sustainability Metrics: Scope, Boundaries & Methodology" (the "Criteria"), which can be found on the CLS website in the 2023 Sustainability

Reporthere.

We have not performed any work, and do not express any conclusion, on any other information that may be published in the Report or on the CLS website for the current reporting period or for previous periods.

Standard and level of assurance

We performed a limited assurance engagement of specified data and information using DNV's assurance methodology VerisustainTM, which is based on our professional experience and international assurance best practice including the International Standard on Assurance Engagements (ISAE) 3000 - 'Assurance Engagements other than

Audits and Reviews of Historical Financial Information' (revised) issued by the

International Auditing and Assurance Standards Board. This methodology ensures compliance with ethical requirements and mandates planning and execution of the assurance engagement to obtain a limited level of assurance.

DNV applies its own management standards and compliance policies for quality control, which are based on the principles enclosed within ISO IEC 17029:2019 - Conformity Assessment - General principles and requirements for validation and verification bodies, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements.

The procedures performed in a limited assurance engagement vary in nature and are shorter in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained if a reasonable assurance engagement had been performed.

Disclaimers

The assurance provided by DNV is limited to the selected indicators and information specified in the scope of the engagement. DNV has not conducted an assessment of the reporting organisation's overall adherence to reporting principles or the preparation of the report. Therefore, no conclusions should be drawn regarding the reporting organization's compliance with reporting principles or the quality of the overall report. The assurance provided by DNV is based on the selected indicators and information made available to us at the time of the engagement. DNV assumes no responsibility for any changes or updates made to the indicators or information after the completion of the assurance engagement.

Use and distribution of our Independent Limited Assurance Report

This report is intended solely for the information and use of the Directors of CLS and is not intended to be and should not be used by anyone other than these specified parties. DNV expressly disclaims any liability or co-responsibility for any decision a person or an entity may make based on this Independent Limited Assurance Report.

DNV established policies and procedures are designed to ensure that DNV, its personnel and, where applicable, others are subject to independence requirements (including personnel of other entities of DNV) and maintain independence where required by relevant ethical requirements. This engagement work was carried out by an independent team of sustainability assurance professionals. DNV did not provide any services to CLS in the reporting period that could compromise the independence or impartiality of our work. Our multi-disciplinary team consisted of professionals with a combination of environmental and sustainability assurance experience.

DNV's assurance engagements are based on the assumption that the data and information provided by CLS to us as part of our review have been provided in good faith, is true, complete, sufficient, and authentic, and is free from material misstatements. Because of the selected nature (sampling) and other inherent limitations of both procedures and systems of internal control, there remains the unavoidable risk that errors or irregularities, possibly significant, may not have been detected. The engagement excludes the sustainability management, performance, and reporting practices of the Company's suppliers, contractors, and any third parties mentioned in the Report. We understand that the reported financial data, governance and related information are based on statutory disclosures and Audited Financial Statements, which are subject to a separate independent statutory audit process. We did not review financial disclosures and data as they are not within the scope of our assurance engagement.

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CLS Holdings plc published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 15:00:05 UTC.