Climate Change Data

Environmental Metrics

ESG Focus Areas

• B-BBEE
• Occupational Health and Safety
• Stakeholder Engagement
• Corporate Social Investment
• Environmental Sustainability

Environmental Achievements

• Reduced carbon emissions (though specific figures are not provided in a readily quantifiable format, a reduction is implied by comparison to the previous year's figures and initiatives like Warm Mix Asphalt and recycled plastic in asphalt)
• Generated over 85 MWh of renewable energy at Estoire and over 180 MWh at Cleveley

Social Achievements

• Maintained Level 1 B-BBEE rating
• R3.8 million spent on CSI initiatives
• R23.8 million spent on training and development
• Implemented Covid-19 risk mitigation strategy to ensure workforce safety
• Retained all employees during the pandemic

Governance Achievements

• Compliance with King IV principles
• Strong, stable, and independent board
• Formal risk management processes in place
• Combined assurance model implemented

Climate Goals & Targets

Environmental Challenges

• Local community unrest causing work stoppages
• Competitive conditions leading to low margins
• Loss of critical skills
• Bitumen supply instability
• Tender award corruption
• Inflationary pressure on input costs
• Credit risk
• Changes in B-BBEE legislation
• Volatility in commodity prices
• Delays in REIPPPP rollout
• Foreign currency exposure
• Cyber-attack risk
• Impact of load shedding
• Covid-19 pandemic impact

Mitigation Strategies

• Policy on responding to labour and community unrest
• Close review of contract pricing and focus on synergies
• Risk assessments and retention policies for key personnel
• Adequate bitumen supply through storage and importation
• Strict controls over tendering processes and legal challenges to irregularities
• Selective tendering and escalation clauses
• Credit risk management processes, credit insurance, payment guarantees, and advance payments
• Level 1 B-BBEE score and proactive monitoring of legislation
• Due diligence procedures and diversification of commodity exposure
• Monitoring of REIPPPP rollout and participation in South Africa’s Economic Reconstruction and Recovery Plan
• Currency selective payment options, hedging, and forward exchange contracts
• IT policy, risk assessments, vulnerability tests, firewalls, and reporting of attacks
• Contingency plans including backup power supplies
• Covid-19 risk mitigation strategy including communication, hygiene measures, and reporting protocols

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, Companies Act, 71 of 2008, JSE Listings Requirements, King IV, International Integrated Reporting Framework

Certifications: ISO 9001, SANS 4001-BT4, ISO 17025, ASPASA, ISO 14001, SABITA, BS OHSAS 18000, SARMA, SANS 4001-BT3

Third-party Assurance: PricewaterhouseCoopers Inc. (financial statements); DEKRA, NQA, SABS, Empowerlogic (others, but not the sustainability report as a whole)

Sustainable Products & Innovation

• High strength modified asphalt mix using recycled HDPE plastic
• Warm Mix Asphalt (WMA) technologies
• EcoNat (local green WMA technology)

Awards & Recognition

• 2018 Most Empowered Construction Company (Empowerdex)
• Certificate of Excellence (Top Empowerment)

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Completed twelfth annual carbon footprint assessment

Social Achievements

• Continued rollout of employment equity implementation plan
• Provided learning programmes, bursaries and training to employees
• Making a positive social contribution in communities affected by poverty, unemployment, and inequality

Governance Achievements

• Established a governance framework between Raubex Group Limited and its subsidiaries
• Developed a code of business conduct, ethics, fraud and corruption policies
• Implemented an ESG approach integrating governance, sustainability, health and safety, and CSI initiatives

Climate Goals & Targets

Environmental Challenges

• Skills shortages
• Transformation and gender equality

Mitigation Strategies

• Rollout of employment equity implementation plan
• Learning programmes, bursaries and training

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV Report on Corporate Governance for South Africa 2016, United Nations Global Compact 10 Principles

Environmental Metrics

ESG Focus Areas

• Climate change
• Water stewardship
• Waste management
• Biodiversity management
• Human capital
• Human rights
• Occupational health, safety and well-being
• Community health and safety
• Anti-bribery and corruption
• Sustainable and responsible sourcing

Environmental Achievements

• Reduced carbon emissions (CO2e) by 1.2% to 171,951t (2023: 175,303t)
• Recycled 70% of water in sand processing at Alfa Sand Quarry
• Recycled 78,991 tonnes of Reclaimed Asphalt (RA) back into asphalt mixes (2023: 42,959 tonnes)
• Recycled 2,995 tonnes of rubber crumbs into rubber bitumen binder (2023: 2,832 tonnes)
• Reduced manufacturing and production temperatures of NCRT by more than 300°C
• Installed rooftop PV system on several office buildings

Social Achievements

• Increased women in total workforce by 70 basis points to 17.5% (2023: 16.8%)
• Implemented a new talent management strategy
• Appointed a new learning and development manager
• Implemented performance review processes
• Expanded Training Centre services
• Continued implementation of the retention strategy
• Increased training and development spend to R35.3 million (2023: R31.6 million)
• Supported several CSI initiatives totaling R5.4 million (2023: R6.0 million)

Governance Achievements

• Finalised and rolled out the five-year ESG strategy
• Published a TCFD report
• Worked towards the implementation of IFRS S1 and S2
• Maintained B-BBEE Level 1 rating
• Implemented a Group policy on responding to labour and community unrest
• Established a Group fraud hotline

Climate Goals & Targets

Environmental Challenges

• Impact of loadshedding on operations
• Climate action and the reduction of carbon footprint
• Local community unrest causing work stoppages
• Loss of critical skills
• Accurate and timeous data collection for waste management

Mitigation Strategies

• Contingency plans in place to make up for lost production
• Back-up systems in place to secure business information and business continuity
• Back-up electricity supply such as generators, solar power, UPS systems
• Appointed a dedicated ESG manager
• Continued monitoring of ESG verifiable data
• Established Data Point Baseline and ESG targets for the next five years
• Reporting aligned with IFRS S1 and S2
• Group policy on responding to labour and community unrest
• Continual engagement with local labour and communities
• Risk assessments performed before the start of contracts
• Engage with key personnel and implement retention policies
• Long-term retention scheme implemented
• Talent management processes implemented

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ethical Supplier Agreement

Climate-Related Risks & Opportunities

Physical Risks

• Climate change events

Transition Risks

• Carbon Tax and associated emerging legislation

Opportunities

• Investigating more fuel-efficient plant and machinery
• Investigating fuels that are more efficient and produce less CO2
• Renewable energy sources

Reporting Standards

Frameworks Used: JSE Guidance, TCFD, SDGs, IFRS S1 and S2

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Empowerlogic (B-BBEE), Ensafe (Internal Audit Process)

UN Sustainable Development Goals

• Not disclosed

Raubex understands the significance of sustainable development and supports the global drive towards achieving the SDGs. We have thus applied the SDGs that are relevant and applicable to the Group

Sustainable Products & Innovation

• Reclaimed Asphalt (RA)
• Bitumen rubber
• Warm Mix Asphalt (WMA)
• EcoNat WMA technology

Awards & Recognition

• ASPASA awards (Raumix Aggregates)
• Greenstar award (Newinbosch Neighbourhood)

Environmental Metrics

ESG Focus Areas

• Environment
• Health and safety
• Skills shortages, transformation and gender equality
• Board composition, governance and King IV™
• ESG Strategy

Environmental Achievements

• Reduced carbon emissions by 1.2% (171,951t CO2e)
• Reduced total electricity consumed by 0.1% (26,917,129 kWh)
• Reduced total water consumed by 8.1% (7,660,815 KL)

Social Achievements

• Increased workforce diversity: 17.5% women in total workforce (2023: 16.8%)
• Invested R35.3 million in training and development (2023: R31.6 million)
• Maintained Level 1 B-BBEE rating

Governance Achievements

• Board changes and reconstitution of Board committees
• Finalised and rolled out a five-year ESG strategy
• Published a TCFD report
• Worked towards implementation of IFRS S1 and S2

Climate Goals & Targets

Environmental Challenges

• Local community unrest causing work stoppages
• Loss of critical skills
• Tender award corruption/delay in tender awards
• Inflationary pressure on input costs
• Impact of loadshedding on operations
• Competitive conditions leading to low margins
• Impact of previous delays in the future REIPPPP roll-out
• Quality of local bitumen and availability of local supply
• Volatility in commodity prices
• Credit risk
• Growth and expansion into new markets
• Foreign currency exposure risk
• Supply chain delays affecting logistics and the procuring of machinery
• Cyber-attacks including data fraud or theft
• Cash flow risk due to increased business operations

Mitigation Strategies

• Group policy on responding to labour and community unrest
• Engagement with local labour and communities
• Community engagement before site establishment
• Ongoing engagement with professional bodies, Government and SAPS
• Retention policies and long-term retention scheme
• Talent management processes
• Anti-fraud and corruption policy
• Key controls over tendering processes
• Firm stance against tender award irregularities
• Drive to attain a more balanced portfolio of work
• Selective tendering based on contract’s exposure to input costs
• Qualification of tenders based on material input price
• Contingency plans for lost production
• Back-up systems for business information and continuity
• Back-up electricity supply
• Focus on tenders where synergies can be realised
• Effective project execution and close out
• Engagement with key stakeholders regarding REIPPPP
• Addressing excess capacity with private sector opportunities
• Adequate supply to execute projects
• Bitumen storage facilities
• Regular imports
• Three-stage quality assurance process
• Alignment with reliable international suppliers
• Due diligence procedures before contracts
• Capital employed spread across various commodities
• Credit risk management processes
• Strict credit approval and review procedures
• Credit risk insurance, payment guarantees and advance payments
• Extensive research and due diligence in new markets
• Experienced teams and project managers in new markets
• Policies and approval procedures for new markets
• Currency selective payment options
• Forward exchange contracts
• Dedicated ESG manager
• Continued monitoring of ESG verifiable data
• Establish Data Point Base line and ESG targets
• Reporting aligned with IFRS S1 and S2
• IT policy with password protocols
• IT risk assessments and vulnerability tests
• IT systems and data secured by firewalls
• Reporting cyber-attacks to relevant authorities
• Comprehensive insurance programme
• Rebuild programmes and facilities for plant and equipment
• Regular updates to cash flow projections
• Strengthened controls over working capital management

Supply Chain Management

Responsible Procurement

• Sustainable and responsible sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, Companies Act, Listings Requirements, King IV™, International Framework of the IIRC, GRI Sustainability Reporting Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, SANS 4001-BT1, SANS 4001-BT3, SANS 4001-BT4

Third-party Assurance: KPMG (internal audit), PwC (financial statements), Empowerlogic (B-BBEE)