Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Capital
• Transformation
• Environmental Management
• Quality Management

Environmental Achievements

• Successfully planted 200 River Bush Willow trees at Kaalfontein Primary School.
• KZN Division achieved ISO 14001:2015 compliance.

Social Achievements

• Increased group provident fund contributions to 9%.
• Implemented a performance management system for top, senior, and professional levels.
• Rolled out an Employee Self-service System and enhanced recruitment platform.
• Invested R18.7 million in skills training.

Governance Achievements

• Board composition aligned with King Codes.
• Established various forums to improve group effectiveness and standardization (Sustainability Committee, Transformation Forum, Quality Forum, Procurement Forum, OHS Forum).

Climate Goals & Targets

Environmental Challenges

• Maintaining Founder's Mentality and Stefanutti Stocks Way culture.
• Tough economic conditions impacting skills development investment.
• Decreased B-BBEE score due to Generic Codes measurement.
• Engaging local contractors and employing local workforce.
• Transitioning to ISO 9001:2015 and ISO 14001:2015 standards.

Mitigation Strategies

• Implemented initiatives to recapture Founder's Mentality and Stefanutti Stocks Way.
• Continued investment in skills development despite economic challenges.
• Actively engaging with Construction Sector Charter Council.
• Developed robust ED programs and partnered with emerging companies.
• Initiated ISO Transition Project to guide business units in standard conversion.

Supply Chain Management

Responsible Procurement

• Encouraging B-BBEE compliant vendors.
• Preference for vendors with Level 6 or better B-BBEE rating.
• Established Procurement Forum to centralize supplier data and analysis.

Climate-Related Risks & Opportunities

Physical Risks

• Drought impacting water resources and dust suppression.

Reporting Standards

Frameworks Used: Global Reporting Initiative Guidelines

Certifications: OHSAS 18001:2007 (all operations), ISO 14001 (various business units), ISO 14001:2015 (Building KZN Division)

Awards & Recognition

• Overall Winner and Commercial Architectural Category Winner: Eastgate Phase 2 Refurbishment
• Safintra Factory and Warehouse Category Winner: Mr Price Distribution Centre
• Diamond Arrow Award (Building)
• SAICE 2016 awards (Structures)
• SAFCEC Presidential Award (Civils)
• Construction World Highly Commended Senqu River Bridge Project (Civils)

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Transformation
• Governance

Environmental Achievements

• Achieved ISO 14001:2015 certification in 75% of business units and divisions.
• Reduced total injuries by 33% year on year.
• Developed in-house mobile kidney oil filtering process to extend hydraulic component life by up to 300%
• Implemented a hydraulic oil recycling plant.
• Implemented a workshop wash bay water recycling program saving up to 1,200,000L of water per annum.
• Implemented a bulk fuel tank kit to reduce site establishment requirements and environmental impact.

Social Achievements

• Launched employee wellness program with 5.7% engagement rate (2018: 3.4%).
• Maintained 100% return-to-work rate after parental leave.
• Invested R20.8 million in skills development and training.
• Improved B-BBEE rating from Level 4 to Level 2.
• Supported Enterprise Development (ED) partners, including Axsys Projects, Pamco, Izazi Mining, and Siyozimela Trading.

Governance Achievements

• Improved B-BBEE scorecard across various elements (Ownership, Management Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development, Socio-Economic Development).
• Implemented ISO 9001:2015 across all divisions.
• Centralized data capturing and reporting of client contract performance surveys.

Climate Goals & Targets

Environmental Challenges

• Challenging operating conditions impacting skills development and training.
• Community unrest and unlawful disruptive activities.
• Lack of long-term business continuity planning with suppliers.
• Limited data on supply chain sustainability.

Mitigation Strategies

• Ongoing focus on Founders’ Mentality and employee engagement programs.
• Implementation of performance management.
• Engagement with communities prior to and during projects.
• Employment of Community Liaison Officers.
• Dedicated supplier engagement process.
• Development of a vendor management system (VMS).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to B-BBEE compliant vendors.
• Minimum B-BBEE Level 6 Contributor rating preferred.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: South African Companies Act, No. 71 of 2008, JSE Listings Requirements, King IV Report on Corporate Governance, International Integrated Reporting Council’s International Framework, Global Reporting Initiative Guidelines and Standards

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Kingdom of Eswatini Quality Awards
• National Master Builder Association awards
• Regional Master Builder Association awards

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Transformation
• Governance

Environmental Achievements

• Achieved ISO 14001:2015 certification.
• Significantly reduced water use from 3 703 171kℓ in 2019 to 1 582 045kℓ in 2020.
• Recycled a higher percentage of waste compared to previous years.
• Successfully completed a four Green Star rated contract for an office block.

Social Achievements

• Implemented an employee engagement template to measure performance and drive the Stefanutti Stocks Way.
• Continued efforts to achieve employment equity (EE) targets and improve broad-based black economic empowerment (B-BBEE) level.
• Invested R17.6 million in skills development and training.
• Improved employment equity score from 51.00% to 69.84%.

Governance Achievements

• Achieved ISO 9001:2015 certification for quality management.
• Implemented a vendor management system (VMS), buyer’s forum, and vendor days to professionalize supply chain relationships.
• Improved B-BBEE rating from Level 2 to Level 1 Contributor.

Climate Goals & Targets

Environmental Challenges

• Tough trading conditions.
• Reduced spend on training and development due to tough economic climate.
• Fatality at one of its operations in Mpumalanga.
• Water scarcity in South Africa.

Mitigation Strategies

• Postponed certain internal programs to save costs.
• Focused on essential training, programs, and bursaries.
• Participated in investigation with mine and government authorities to establish facts surrounding the fatality and avoid recurrence.
• Focused on decreasing water use across all sites and reusing good quality water.

Supply Chain Management

Responsible Procurement

• Preference given to B-BBEE compliant vendors
• Vendor management system (VMS)

Climate-Related Risks & Opportunities

Transition Risks

• Carbon Tax Act and its regulations

Reporting Standards

Frameworks Used: King IV, International Integrated Reporting Council’s International Framework, Global Reporting Initiative Guidelines and Standards

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Awards & Recognition

• Various MBA KZN region and national awards for excellence in construction and safety
• SAICE Highly Commended for Technical Excellence
• SAISC Category Winner and Fulton Award for Innovation in Concrete Projects

Environmental Metrics

ESG Focus Areas

• Governance and Leadership
• Going Concern, Solvency and Liquidity
• Earnings Growth
• Human Capital
• Operational
• Health, Safety and Environment
• Anti-Competitive Behaviour
• B-BBEE

Environmental Achievements

• Reduced environmental impact through initiatives like energy-saving products, fuel optimization, and resource recycling.
• Implemented measures to contain the COVID-19 pandemic, including work-from-home arrangements and provision of hand sanitizers.
• Achieved ISO 14001:2015 certifications.
• Improved score to 120% for the socio-economic development (SED) element, investing over R1,2 million on SED initiatives.

Social Achievements

• Maintained B-BBEE Level 1 Contributor status.
• Offered 58 bursaries (31% female, 59% from designated groups) and 20 apprenticeships.
• Stefanutti Stocks Academy trained 452 operators (440 from designated groups, 53 female).
• Employs 299 professionally registered individuals (78 from designated groups, 26 female).
• Improved employment equity score to 70.63%.

Governance Achievements

• Board-appointed committees (ARCO, S&E, REMCO, NOMCO) ensure adherence to King IV principles.
• Implemented codes of conduct and ethics across the group.
• Leadership pipeline identified to ensure proper succession.
• Implemented a combined assurance model aligned with King IV recommendations.
• No incidences of corruption identified during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Challenging operating environment and substantial impact of the COVID-19 pandemic, leading to reduced contract revenue and operating losses.
• Liquidity challenges due to contractual claims and compensation events on the Kusile power project.
• Community unrest and disruptive activities in certain parts of South Africa.
• COVID-19 impact on operations, including reduced man-hours and turnover.
• Impact of COVID-19 on the VRP Settlement Agreement.

Supply Chain Management

Responsible Procurement

• Engagement with suppliers and vendors
• Encouragement of open feedback from suppliers
• ED strategy to develop black-owned companies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV, International Integrated Reporting Council’s International Framework, IFRS

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Safety
• Broad-Based Black Economic Empowerment (B-BBEE)
• Sustainability

Environmental Achievements

• ISO 14001:2015 certified

Social Achievements

• Level 1 B-BBEE contributor with a Black Economic Interest score of 81.3%
• LTIFR at 0.03 (Feb 2020: 0.02) and RCR was 0.35 (Feb 2020: 0.29)

Governance Achievements

• King IV compliant remuneration policy and implementation report

Climate Goals & Targets

Environmental Challenges

• Substantial impact of COVID-19
• Continued adverse market conditions
• Disruptive and unlawful activities by certain communities and informal business forums in certain areas of South Africa
• Resolution of contractual claims and compensation events on the Kusile power project taking longer than anticipated
• Current liabilities exceeded current assets by R1 358 million as of 28 February 2021
• Material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern in the short term

Mitigation Strategies

• Restructuring Plan including sale of non-core assets, underutilised plant and equipment, and certain operations; internal restructuring initiatives; securing additional short-term funding; restructuring of short-term funding into a term loan; and evaluation of an optimal business model
• Management made considerable progress in reconfiguring the group’s organisational structure to improve operational performance and decrease overhead costs, including the reduction of the group’s overall headcount
• Continued guarantee support from Lenders for current and future projects
• Agreement with Lenders to extend the current capital repayment profile of the loan

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, King IV

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Safety
• B-BBEE
• Community Investment

Environmental Achievements

• ISO 14001:2015 certified

Social Achievements

• Lost Time Injury Frequency Rate (LTIFR) at 0.03 (Feb 2021: 0.03) and the Recordable Case Rate (RCR) was 0.28 (Feb 2021: 0.35)
• Level 1 B-BBEE contributor
• Commitment to Corporate Social Investment projects in the Cape Town district

Governance Achievements

• King IV compliant remuneration policy and implementation report
• Independent non-executive directors on the board

Climate Goals & Targets

Environmental Challenges

• Net loss of R415 million for the year ended 28 February 2022
• Current liabilities exceeded current assets by R1 462 million
• Total liabilities exceeded total assets by R90 million
• Accumulated loss of R1 225 million
• Delays in resolving contractual claims and compensation events on certain projects
• Slower than anticipated sale of certain operations
• Non-implementation of the Materials Handling and Tailings Management sub-divisions transaction
• July 2021 civil unrest in Gauteng and KwaZulu-Natal negatively impacted operations
• COVID-19 pandemic
• Disruptive and unlawful activities by certain communities and informal business forums

Mitigation Strategies

• Restructuring Plan (including sale of non-core assets, underutilised plant and equipment, and certain operations; internal restructuring; securing additional short-term funding; reaching favourable outcomes on contractual claims; and evaluating an optimal business model)
• Negotiations with Lenders to extend capital repayments
• Reconfiguring the group’s organisational structure to improve operational performance and decrease overhead costs
• Insurance claims for damages incurred due to civil unrest and flooding
• Amicable settlement with the City of Cape Town regarding a civil claim

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, King IV

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Mazars

Environmental Metrics

ESG Focus Areas

• B-BBEE
• Safety
• Sustainability

Environmental Achievements

• ISO 14001:2015 certified

Social Achievements

• Level 1 B-BBEE contributor with a Black Economic Interest score of 72.76%
• LTIFR of 0.05 (Feb 2022: 0.03) and RCR of 0.44 (Feb 2022: 0.28)

Governance Achievements

• King IV compliant remuneration policy and implementation report
• Independent non-executive directors on the board and committees

Climate Goals & Targets

Environmental Challenges

• Current liabilities exceeding current assets by R1 141 million
• Total liabilities exceeding total assets by R66 million
• Accumulated loss of R1 209 million
• Material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern
• Disruptive and unlawful activities by certain communities and informal business forums
• Weakened post-COVID-19 economy exacerbated by the Russia and Ukraine conflict
• Increased inflation and interest rates
• Increased raw material and fuel costs
• Continuous power supply disruptions
• Disruptive floods in KwaZulu-Natal

Mitigation Strategies

• Restructuring Plan including sale of non-core assets, underutilised plant and equipment, and identified operations
• Extension of loan repayment profile to 29 February 2024
• Pursuing contractual claims and compensation events on the Kusile power project
• Implementation of the Restructuring Plan
• Continued support from Lenders
• Improved cash position to R561 million
• Recovery of 90% of property damage from insurers

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Disruptive floods in KwaZulu-Natal

Reporting Standards

Frameworks Used: IFRS, King IV

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Safety
• Broad-Based Black Economic Empowerment (B-BBEE)
• Health

Environmental Achievements

• Reduced Lost Time Injury Frequency Rate (LTIFR) to 0.03 (from 0.05 in 2023) and Recordable Case Rate (RCR) to 0.24 (from 0.44 in 2023).

Social Achievements

• Maintained Level 1 B-BBEE Contributor status with a Black Economic Interest score of 70.49%.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Disruptive and unlawful activities by certain communities and informal business forums in several areas of South Africa.
• Material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern due to current liabilities exceeding current assets and total liabilities exceeding total assets.
• Delays in the sale of non-core assets, underutilized plant and equipment, and identified operations due to current market conditions.
• Uncertainty surrounding the contingent liabilities and the outcome of contractual claims and compensation events on the Kusile power project.

Mitigation Strategies

• Restructuring Plan, including the sale of non-core assets, underutilized plant and equipment, and identified operations; extension of loan repayment profile to June 2025; pursuing contractual claims and compensation events on the Kusile power project; evaluation of capital structure, including potential for raising new equity.

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: IFRS Accounting Standards, International Accounting Standard IAS 34

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 27001:2022

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed