Climate Change Data

Environmental Metrics

ESG Focus Areas

• Broad-Based Black Economic Empowerment (B-BBEE)
• Employment Equity
• Enterprise Development
• Socio-economic Development
• Environmental Responsibility
• Supply Chain Sustainability
• Ethical Trading
• Governance

Environmental Achievements

• Reduced carbon footprint by 2.9 million Kwh (2,871 tons CO2 emissions)
• Improved recycling rates at Distribution Centres (95%)
• New store designs 30% more energy efficient than 5 years prior

Social Achievements

• Improved B-BBEE status from Level 6 to Level 5
• Launched RedCap Foundation's JumpStart Manufacturing Programme to develop skills in local clothing and footwear manufacturing
• Assisted 717 previously unemployed youth to find job placements
• Store associate turnover of 20.1% (substantially below industry norms of 30.9%)
• Increased investment in learning and development (R33.8 million)

Governance Achievements

• Enhanced strategic risk appetite policy
• Published King III Application Register
• Updates to key Governance policies
• Joined the Ethical Trading Initiative (ETI) and Supplier Data Exchange (SEDEX)

Climate Goals & Targets

Environmental Challenges

• Challenging retail environment in South Africa (slowing wage growth, currency weakness, rising inflation, tightening credit)
• Supply chain challenges in new markets (under-developed supply chains, corruption, lack of infrastructure)
• Economic and socio-political landscape of South Africa
• Lack of competitiveness of local manufacturing industry
• Potential for supplier code of conduct breaches
• Insufficient engagement with or consideration of business input into new or changed legislation

Mitigation Strategies

• Focus on fashion-value business model
• International expansion strategy (cash-based)
• Cautious approach to credit
• Investment in systems, processes, and supply chain capabilities
• Enterprise Development Strategy and participation in dti-approved competitiveness clusters
• Enhanced supplier code of conduct and supplier engagement (ETI, SEDEX)
• Continuous involvement in national and retail forums

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (aligned with ETI Base Code)
• JumpStart Manufacturing Programme
• Participation in dti-funded competitiveness clusters

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, King Code of Governance for South Africa, 2009 (King III)

Third-party Assurance: Internal Audit (Our People and Corporate Citizenship reports); Ernst & Young Inc. (Annual Financial Statements). No external assurance for the entire Integrated Report.

Awards & Recognition

• Finalist in World Retail Awards ‘emerging Market retailer of the Year’ 2013
• 3rd in Financial Mail Top Companies 2013
• 6th in Sunday Times top 100 companies
• Sheet Street achieved 1st place in the Daily News Your Choice Awards Best Linen Store
• Sheet Street was Industry winner in The Times Sowetan Retail Awards Accessory and Home Décor Category
• Mr Price Home was recognised for great customer service in the Homeware category through the Orange Index
• Mr Price Home was identified as the Most Iconic Homeware brand by the TGI Icon Brands Survey

Environmental Metrics

ESG Focus Areas

• Sustainability
• Transformation
• Employment Equity
• Ethical Business Practices
• Corporate Social Investment

Environmental Achievements

• Reduced carbon footprint by 38.5m kWh (38.3m tons CO2 emissions) since 2013 baseline year despite operational footprint growth
• Head office recycling rate of 79%, DC recycling rate of 92%
• PV systems generated 565,249 kWh

Social Achievements

• Achieved Level 8 B-BBEE compliance
• 94% of associates employed are from previously disadvantaged backgrounds
• MRP Foundation donation up 27% to R28.1m
• Jump Start retail programmes – 4,194 delegates completed work experience, 1,870 subsequently employed by the group

Governance Achievements

• Successfully challenged National Credit Regulator (NCR) affordability regulations
• Improved performance evaluations of board and committees
• Established a Risk & IT Committee

Climate Goals & Targets

Environmental Challenges

• Weak and volatile markets, particularly in South Africa
• Poor economic growth and political uncertainty
• MRP Sport underperformance due to merchandise issues
• Restrictive credit regulations
• Delays in re-platforming merchandise planning and ERP IT systems

Mitigation Strategies

• Renewed values and disciplines
• Refocused Miladys on core customer needs
• Successfully transitioned to new distribution centre
• Legal challenge against credit regulator
• New approach adopted for IT systems re-platforming

Supply Chain Management

Supplier Audits: 914 suppliers with Sedex membership

Responsible Procurement

• Supplier code of conduct
• Responsible Sourcing Guide

Climate-Related Risks & Opportunities

Reporting Standards

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

Third-party Assurance: Ernst & Young Inc. (financial statements); Internal audit (social, ethics, transformation & sustainability committee report)

Awards & Recognition

• MRP Apparel: GenNext 2017 – ‘Coolest store’
• Miladys: Ask Afrika Orange Index Awards
• Sheet Street: Daily News Your Choice Awards
• MRP Home: Kasi Star Brands Awards

Environmental Metrics

ESG Focus Areas

• Sustainability
• Transformation
• Ethics
• Social Impact
• Human Rights
• Climate Change
• Supply Chain Responsibility

Environmental Achievements

• Reduced carbon footprint to 115,820 tons CO2e (continues to reduce from FY2016)
• Eliminated 42 million polybags through improved supplier packaging
• 2.5 million units of cushion, duvet and pillow inners made from recycled plastic
• 1,036,375 kWh of power derived from solar energy
• 13% of Mr Price Home timber products FSC approved
• 4% recycled polyester (RPET) incorporated into polyester products
• 90 tons of paper saved in stores through e-docket adoption

Social Achievements

• R39 million combined corporate social investment
• 3,523 participants in Jump Start programmes, 2,315 employed in the group
• Achieved employment equity targets
• 71% of management appointments internal, 62% promotions/recruits ACI associates
• R2 million donation to South African Solidarity Response Fund
• Supported 376 small-scale cotton farmers with R10.1 million input loan facility
• 791 entrepreneurs supported by The Clothing Bank

Governance Achievements

• Achieved B-BBEE level 7 accreditation
• Implemented a new long-term incentive plan (LTI) with no shareholder dilution
• Established Mr Price Advance team to become an insight-driven organization
• Implemented Empowered Enterprise from KPMG for enhanced financial controls
• Improved supplier grading tool for transparent communication

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on supply chain and local demand
• Declining economic growth and uncertainty exacerbated by COVID-19
• Weakened consumer spending power
• Increased retail competition
• Supply chain disruptions due to COVID-19
• Undisclosed financial sustainability of key suppliers
• Insufficient local competitive production capacity
• Product lead times longer than desired

Mitigation Strategies

• Capitalized on sourcing agility to lessen COVID-19 supply side impact
• Emphasis on Every Day Low Pricing, value and customer experience
• Agile resourcing strategy, including local production to shorten lead times
• Improved demand forecasting to optimize inventory levels
• Supply chain financing initiatives to strengthen relationships with key suppliers
• Engaged with landlords to take advantage of opportunities
• Implemented austerity measures, including salary reductions for executives and non-executive directors
• Utilized Government’s temporary employment relief fund and tax concessions
• Equity raise to fund growth opportunities

Supply Chain Management

Supplier Audits: 70 social compliance audits (SADC); 179 social compliance audits (Asia)

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• Supplier Grading Tool
• Supplier Development Framework
• SEDEX
• ETI membership

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changing climate patterns
• Increasing climate change regulations

Opportunities

• Changing consumer needs and demands

Reporting Standards

Frameworks Used: King IV, International Council’s Framework, GRI, UNGC, TCFD

Third-party Assurance: Ernst & Young Inc. (financial statements); Internal audit (Social, Ethics, Transformation and Sustainability committee report)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

MRP Foundation programmes, sustainable sourcing initiatives, reduction of environmental impact, and stakeholder partnerships

Sustainable Products & Innovation

• Miladys water-wise denim collection
• Products with recycled polyester (RPET)
• Products with sustainably sourced cotton

Awards & Recognition

• Awards for innovative funding solutions and partnership with Khula Credit Guarantee (SACC)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Transformation
• Ethical Culture
• Responsible Corporate Citizenship
• Stakeholder Engagement

Environmental Achievements

• Carbon footprint reduced by 20.3% over the last 5 years
• 3.1 million units of recycled plastic used as inners for cushions, duvets and pillows
• 28.0% of total building energy (head office) generated from renewable energy (PV solar panels)
• Purchases of single-use shopper bags reduced by 35.0% since FY2019
• Sustainably grown cotton represents 47.0% of total cotton inputs
• Paperless administration saved 2,311 km of paper

Social Achievements

• 98 primary schools supported, 64,649 learners and 1,560 educators impacted
• 1,462 youth benefited from JumpStart program, 963 employed
• R407,678 raised through the sale of fabric masks donated to Solidarity Fund
• Mr Price Sport donated R458,714 of feather-filled cushions, duvets and pillows to Mr Price Foundation
• 92.0% of all promotions are from previously disadvantaged backgrounds
• 1,778 new people engagements from previously disadvantaged backgrounds

Governance Achievements

• Achieved employment equity targets
• B-BBEE Level 8 achieved
• New long-term incentive (LTI) schemes launched

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on supply chain and local demand
• Declining economic growth and uncertainty exacerbated by further lockdowns
• Increasing COVID-19 cases and multiple waves of infection amidst a slow vaccination roll-out
• Slow delivery of government reforms to stimulate economy
• Currency volatility impacting import businesses
• Rolling power blackouts limiting business activity
• Local textile manufacturing limitations
• Weakened consumer spending power
• Increased retail competition

Mitigation Strategies

• Engaging transparently with all stakeholders
• Frequent and open communication with all associates
• Swift call to action to ensure that the shopping environment adheres to safety protocols
• Strong balance sheet and disciplined approach
• Acquiring Power Fashion
• Organically launching three new departments in Mr Price Apparel
• Focus shifted quickly to using this relative position of strength to capitalise on opportunities

Supply Chain Management

Supplier Audits: 1,778 production sites mapped (estimated 95.0% of total sites globally)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Responsible sourcing incorporated into the resourcing strategy
• Strategic supplier partnerships
• Procurement of locally manufactured products

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV™ Report on Corporate Governance for South Africa 2016, International Council’s Framework

Third-party Assurance: KPMG (Social, Ethics, Transformation and Sustainability Committee report); Ernst & Young Inc. (financial statements)

UN Sustainable Development Goals

• 1
• 3
• 4
• 5
• 8
• 10
• 12
• 13

The group aligns its approach to SDG implementation to global best practice, pulling from various sources to ensure it is innovative and fit for business purpose.

Sustainable Products & Innovation

• Milady’s Wonder Fit denim collection
• Products with recycled polyester (RPET)
• Products with sustainably sourced cotton

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Reduction of single-use plastic in stores
• Further assessment of the group’s scope 1, 2 and 3 carbon emissions

Social Achievements

• Additional wellness support for associates
• No large-scale retrenchments or reduced salaries
• Flexible benefits in the form of flexible retirement savings

Governance Achievements

• Continued monitoring and overseeing the appropriateness of management’s response to the operating and financial impact of COVID-19
• Overseeing the appropriateness of management’s response to the operating and financial impact of the July civil unrest
• Supporting management with the closing and integration of the group’s acquisition of Power Fashion and Yuppiechef
• Supporting management with the negotiations of the group’s acquisition of Studio 88

Climate Goals & Targets

Environmental Challenges

• Continued disruptions arising from the COVID-19 pandemic
• Impact of the July 2021 civil unrest in KwaZulu-Natal and Gauteng
• Rising inflation
• Supply chain constraints
• A weaker currency

Mitigation Strategies

• Consistent application of and continued commitment to the group’s beliefs
• Ensuring timely insurance claims and respective recoveries arising out of the July 2021 unrest
• Associates were provided with additional wellness support and no large-scale retrenchments or reduced salaries occurred

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV™

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenges arising from the Oracle Retail ERP implementation
• Control deficiencies in key operational processes reliant on the IT environment – specifically inventory and creditors

Mitigation Strategies

• A financial control enhancement project plan was presented to address known control gaps

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, King IV™

Certifications: Null

Third-party Assurance: Ernst & Young Inc (FY2023), Deloitte and Touche (FY2024)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable procurement
• Reduction of plastic and carbon emissions
• Transformation
• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Continued investment in associates at all levels
• Positive impact on education, internships, job creation and supplier development

Governance Achievements

• Maintained financial disciplines, resulting in a strong balance sheet, robust cash flows and low gearing
• Increased ACI diversity to 42% (from 27%)
• Met original gender and ACI diversity targets
• Increased voluntary gender diversity target to 40% (from 30%)
• Increased voluntary ACI diversity target to 50% (from 30%)
• NED independence increased to 90% (from 67%)
• Full board independence increased to 75% (from 55%)

Climate Goals & Targets

Environmental Challenges

• Tough economic conditions in South Africa, including elevated inflation and interest rates
• Loadshedding (power outages) impacting performance and growth
• Durban port delays

Mitigation Strategies

• Robust retail disciplines and cash-generative business model
• Mitigation activities to reduce the impact of loadshedding
• Group’s energy response plan
• Investment in backup power solutions in stores

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Commitment to sustainable procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: King IV™

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed