Social Equity Initiatives – 2023 Progress Report

Matson continues to make steady progress in its journey to strengthen social equity and inclusion in the company, in our industry our communities. The updates on the progress we made last year, and the goals we have set for 2024 follow.

2023 GOALS

CONTINUING EDUCATION – Build on previous course offerings by adding two new courses in the second half of 2023.

• New Courses - Deferred to 2024 with implementation of new learning platform.
• Manager Training - Added focus on minimizing bias in evaluating employee performance.

LISTENING TOURS – Evolve these employee engagement meetings to provide a forum for employees to discuss relevant diversity, equity and inclusion issues and company efforts.

• Held three open meetings attended by 85 employees:
  • April 12 - Employee Resource Groups (ERGs)
  • Oct. 18 - Female mariner Capt. Samar Bannister
  • Dec. 19 - ERG next steps
• Surveyed employee interest in ERGs and established plan to pilot three topics in 2024:
  • Women
  • Diversity
  • Working Parents and Caregivers

COMMUNITY VOLUNTEERING – Add annual group events that support Matson community programs.

• Projects in Hawaii, Alaska, Guam and California supported community clean-ups, local food banks and other charities.

CULTURAL CELEBRATIONS – Sponsor lunches in regional offices to celebrate cultural observances.

• Events in Hawaii, California, Arizona and Washington included celebrations of Lunar New Year, Black History Month, Women’s History Month, Asian American and Pacific Islander Heritage Month, Hispanic Heritage Month, Global Diversity Awareness Month, and Diwali.

PROFESSIONAL PARTNERSHIPS – Establish new collaborations with minority professional organizations that can help promote careers at Matson.

• Did not pursue after strategy review.

INTERNSHIPS – Further align with Leadership Diversity Scholarship and Ambassador programs.

• Promoted Matson internships with Scholarship partner school faculty and administrators.
• Scholarship recipient highlight flag added to online application form to help identify high potential candidates.

DEMOGRAPHICS – Conduct biennial Equal Pay audits to identify and address any discrepancies correlating to race or gender.

• Race and Gender compensation audits completed in December with adjustments effective January 1, 2024.
• Advanced leadership training provided to nine high-potential employees - five women, four men (77.8% female and/or minority).
• In 2023, the percentage of females and racial minority employees in management positions was 39% and 35%, respectively.
• Among promotions and new hires into management roles, 39% were women and 39% were minority individuals.

EMPLOYEE RESOURCE GROUPS – Explore creation of gatherings for internal communities of like-minded employees to cultivate sharing, collaboration and support.

• Listening Tour open discussion on the purpose and mechanics of ERGs held in April.
• Employees surveyed in April to gauge employee interest in ERGs. Three topics identified for pilot groups in 2024: Women, Diversity, Working Parents and Caregivers.
• Listening Tour discussion of roles in ERGs and leadership for each group held in December.

ANNUAL PERFORMANCE REVIEWS – Implement process improvements that are responsive to employee feedback.

• Developed new approach that simplifies the process, provides more transparency, and gives employees more control.
•  Extensive manager training included updated guidance on facilitating employee career development.
• New process soft launched in Q3.

INDUSTRY EFFORTS

LEADERSHIP DIVERSITY SCHOLARSHIPS – Help build diverse talent pool by encouraging careers in transportation and logistics. Funded $86,664 in annual scholarships of either $2,500 or $5,000 awarded to high-achieving students attending partner institutions:

• California State University Maritime Academy
• U.S. Merchant Marine Academy
• Massachusetts Maritime Academy
• Maine Maritime Academy
• Great Lakes Maritime Academy
• Texas A&M Maritime Academy
• SUNY Maritime College
• University of Hawaii, Manoa – Tourism & Transportation Management
• University of California, Berkeley – College of Engineering
• California State University, Long Beach – Global Logistics
• Arizona State University – Global Logistics
• University of Washington – Supply Chain Transportation & Logistics
• University of Alaska, Anchorage – Global Logistics & Supply Chain Management
• University of Guam – Business Administration or Civil Engineering
• Loyola University Chicago – Supply Chain Management
• Georgia Tech – Operations & Supply Chain Management
• Webb Institute – Engineering

AMBASSADOR PROGRAM – Develop long-term working relationships with partner schools to increase value of Matson’s scholarships. Maintained program that pairs experienced Matson professionals with each partner school to further support scholarship recipients and develop long-term relationship with the school. 2023 Ambassadors:

• Kam Chun – University of Hawaii, Manoa
• Konner Edmiston – Great Lakes Maritime Academy
• Dylan Faber – University of Alaska, Anchorage
• Stephen Gatewood – University of Guam
• Tara Hopkins – Georgia Tech
• Sean Huisman – University of Washington
• Darel Jenkins – U.S. Merchant Marine Academy, Kings Point
• Elena Kong – UC Berkeley
• Kevin Krick – SUNY Maritime College
• Michelle Lukaszek – Loyola University Chicago
• Patty Novak – Arizona State University
• Jonathan Ogle – Maine Maritime Academy
• Emily Pahon – California State Long Beach
• Cathy Pitt – Texas A&M Maritime Academy
• Mike Shea – Massachusetts Maritime Academy
• Sam Thompson – California State University Maritime Academy

INTERNSHIPS – Integrate with scholarship program to help develop diverse and high-achieving candidates for future employment.

• Held discussions with Leadership Diversity Scholarship partner schools toward promoting internships at Matson to high potential candidates.

COMMUNITY EFFORTS

SOCIAL EQUITY COMMUNITY GRANTS – Support effective programs that work to advance social equity, diversity and inclusion in our communities. Completed third year of providing annual grants of $10,000 each to organizations promoting social equity in Matson communities. Partner organizations:

• Hawaii Appleseed Center for Law and Economic Justice, Honolulu – Programs promoting economic security for underserved communities.
• Alaska Humanities Forum, Anchorage – Programs designed to promote cultural understanding and personal growth.
• Manelu, Chalan Pago Ordot, Guam – Educational activities and support services for youth and families in communities facing adversity.
• Boys & Girls Clubs of Oakland – Afterschool and year-round youth development programs targeting underprivileged teens.
• Boys & Girls Clubs of Long Beach – Afterschool and year-round youth development programs targeting underprivileged teens.
• Tacoma Urban League – Healthcare, education, and unemployment services supporting underserved urban residents in achieving social equality and economic independence.
• Arizona Community Foundation’s Black Philanthropy Initiative – Programs serving African Americans in areas of health, education and workforce development.
• Voices of Youth in Chicago Education (VOYCE) – Programs supporting leadership development of young people of color, advancing safe and supportive school climates, and healing-centered approaches to teaching and learning.
• Georgia Black United Fund – Providing financial and organization resources to nurture and promote positive life opportunities, enhancing choices available to youth in underserved communities.
• Year Up (national) – Youth development programs focused on closing the “Opportunity Divide” for underserved minorities through workforce training and corporate internship placement.

ADDITIONAL MATSON GIVING SUPPORT – Regional employee committees directed more than $972,000 in Matson Giving funding to 123 programs that advance social equity and inclusion in our communities. Examples include:

• Special Olympics Hawaii, to support programs serving children and adults with intellectual disabilities - $15,000
• American Heart Association – Hawaii, to support its Healthy Mothers Healthy Babies-Maui Mobile Clinic for two years (2024-2025) - $50,000
• Residential Youth Services & Empowerment, Honolulu, to support its youth shelter and counseling programs - $10,000
• Big Brothers Big Sisters Hawaii, to support its programs on Oahu, Maui and Kauai designed that promote youth equity and empowerment - $10,000
• Daniel Kahikina Akaka Family Foundation, Honolulu, to support its literacy programs for children - $10,000
• Partners In Development Foundation, Oahu, to support its culturally based family education and workforce development programs - $5,000
• Native Hawaiian Education Association, Maui, to support the Festival of Pacific Arts & Culture event - $10,000
• American Red Cross Guam, Hagatna, to support its community safety education programs - $3,000
• Bookmobile Foundation of Guam, Hagatna, to support its literacy programs serving all villages of Guam - $2,500
• The Go’te Group, Hagatna, in support of local culture and arts festival - $2,500
• YMCA North, Auckland, to support its sports camps for children and youth - $12,500
• Rise+Shine Josiah Mika Foundation, Auckland, to support its programs designed to improve wellbeing equity for children and young people in Aotearoa -
  $5,000
• Oakland Ballet Company, to support its “Discover Dance” program aimed at disadvantaged youth - $5,000
• La Casa Norte, Chicago, to support its programs serving homeless and low-income youth and families - $4,500
• Arizona Helping Hands, Phoenix, to support its programs providing basic necessities to children in foster care - $4,000
• New Pathways for Youth, Phoenix, to support its programs providing resources for youth experiencing poverty - $4,000
• Coastal Children’s Advocacy Center, Savannah, to support its programs serving victims of child abuse - $4,000
• Community Resource Center, Long Beach, to support its homelessness prevention and intervention programs - $3,750
• Covenant House Alaska, Anchorage, to support programs serving at-risk youth - $25,000
• Food Bank of Alaska, Anchorage, to support services helping individuals and families in need - $25,000
• Special Olympics Alaska, Anchorage, to support its programs serving children and adults with intellectual disabilities - $18,000
• Abused Women’s Aid In Crisis (AWAIC), Anchorage, to support programs serving women in need - $15,000
• Unalaskans Against Sexual Assault & Family Violence, Dutch Harbor, to support its programs serving victims of abuse - $15,000
• Alutiiq Museum and Archaeological Repository, Anchorage, in support of its building renovation project - $15,000
• Beans Café, Anchorage, to support its Children’s Lunchbox pantry program for disadvantaged children - $15,000
• Big Brothers Big Sisters of Alaska, Anchorage, to support its programs for vulnerable youth - $15,000
• Kodiak Women’s Resource and Crisis Center, Kodiak, to support programs serving women in need - $15,000
• YWCA Alaska, Anchorage, to support programs designed to empower women and youth - $5,000

2024 GOALS

Matson is committed to taking concrete steps every year to advance social equity and inclusion in our company and our industry. In addition to maintaining annual Scholarship, Ambassador and Community grant programs, the following goals have been set for 2024:

CONTINUING EDUCATION: Offer new courses exploring cultural awareness and inclusivity in Q3 using Matson’s new Cornerstone learning platform.

CELEBRATING DIVERSITY: Broaden participation in cultural celebrations among office locations.

EMPLOYEE SUPPORT: Launch pilot ERGs. Each ERG will be responsible to create their own ERG structure, governing rules and activity calendar for 2024 (HR will be available for support)

EMPLOYEE ADVANCEMENT 1: Increase employee career empowerment through enhancements to the performance review process.

EMPLOYEE ADVANCEMENT 2: Further develop the Matson Leadership Academy management training and development program.