Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental, Social, and Governance (ESG) practices

Environmental Achievements

• Implemented Effluent Treatment Plants across subsidiary companies ensuring proper waste management.
• Energy conservation strategies (e.g., replacing fluorescent tubes with LED panels) resulting in energy savings.
• Paper Usage Discipline (PUD) Campaign to reduce paper consumption.
• Digitization of paper transactions through Microsoft SharePoint.

Social Achievements

• Corporate Social Responsibility (CSR) initiatives focused on alleviating the effects of the COVID-19 pandemic (financial contributions, donations of PPE, relief packs, meals for isolation centers).
• Commitment to diversity and inclusion in the workplace.
• Employee engagement initiatives (training, development plans, flexible working).

Governance Achievements

• Strengthening governance at the Board and Management levels of subsidiary companies.
• Compliance with anti-bribery and anti-corruption laws.
• Annual Code of Business Conduct program for employees and stakeholders.
• Implementation of a Securities Trading Policy.

Climate Goals & Targets

Environmental Challenges

• Operational disruptions, muted demand, and rising input costs due to the COVID-19 pandemic.
• Supply chain disruptions.
• Input cost pressure.
• ENDSARS protests and related disruptions.

Mitigation Strategies

• Price increases to offset higher input costs.
• Focus on executing growth strategies.
• Initiatives to mitigate supply chain disruptions.
• Optimising the business model to improve return on invested capital.
• Improving distribution coverage and route to market.

Supply Chain Management

Supplier Audits: Annual evaluations of supplier performance

Responsible Procurement

• Fair and ethical procurement practices.
• Opportunities for local community participation.
• Adherence to company standards, regulations, and labor laws.
• Annual Code of Business Conduct attestation by suppliers.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Transition to cleaner sources of energy
• Energy efficiency and minimisation of waste
• Minimise resource inputs, waste, water and pollution
• Social progress and human rights
• Diversity and inclusion
• Health, safety, and wellbeing in the workplace
• Community investment programs
• Transparent, regular, and clear stakeholder engagement
• Zero tolerance towards bribery and corruption
• Data privacy and cybersecurity
• Strict adherence to policies, regulations and laws

Environmental Achievements

• Installed solar panels in some Mr Bigg’s and Debonairs Pizza stores and central kitchen
• Installed a hybrid solar system at the SWAN water plant in Kerang
• Installed biomass boilers at Animal Feeds plant in Onitsha, reducing diesel use and energy costs by approximately 20%
• Grand Cereals and UAC Foods received the National Environmental Compliance Award

Social Achievements

• Community support projects: donated a transformer to Da Dahwol Chwaha-Sheku, Jos; provided potable water for 800 families in Mangu LGA; scholarships for 130 students; renovated a health center
• Implemented a diversity and inclusion policy and conducted employee training
• Various gender-focused initiatives: International Women’s Day event; partnership with ProjectLead; credit support for women; advocacy by Group MD and FD

Governance Achievements

• Strengthened boards of directors and management teams across the group
• Strictly adhered to anti-bribery and anti-corruption provisions
• Operated a whistleblowing policy, with 4 cases resolved in 2022
• Annual Code of Business Conduct program

Climate Goals & Targets

Environmental Challenges

• Rising inflation, escalating raw material costs
• Rising operating costs (power and distribution), threefold increase in diesel cost
• Wage pressure
• Naira devaluation and foreign exchange scarcity
• Interest rate hikes
• Heightened insecurity
• Wave of emigration, making talent retention and recruitment challenging
• Losses in Animal Feeds and Other Edibles segment
• Poor management decisions at Grand Cereals Limited

Mitigation Strategies

• Pricing strategies and cost management efforts
• Transitioning to alternative fuel sources (gas, biomass, solar)
• Streamlined recruitment and retention efforts, employee development programs
• Governance and leadership changes at Grand Cereals
• Operational improvements at Grand Cereals
• Aggressive inventory reduction and deleveraging
• Initiatives to lower finance costs
• Expansion of distribution and leveraging investments in pelletized feed mill

Supply Chain Management

Responsible Procurement

• Suppliers screened and onboarded using predetermined, non-discriminatory standards
• Annual performance reviews to encourage compliance
• Pre-registration evaluation to ensure ethical principles align with UACN's

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNPRI, UN SDGs, UNGC

UN Sustainable Development Goals

• Goal 8

Alignment with Goal 8 (promoting inclusive and sustainable economic growth, employment and decent work for all)

Awards & Recognition

• National Environmental Compliance Award (NECA) for Grand Cereals and UAC Foods

Environmental Metrics

ESG Focus Areas

• Transition to cleaner sources of energy
• Energy efficiency and minimisation of waste
• Minimise resource inputs, waste, water and pollution
• Social progress and human rights
• Diversity and inclusion
• Health, safety, and wellbeing in the workplace
• Community investment programs
• Transparent, regular, and clear stakeholder engagement
• Zero tolerance towards bribery and corruption
• Data privacy and cybersecurity

Environmental Achievements

• Installed biomass boilers at Grand Cereals and Livestock Feeds Plc’s manufacturing plants, reducing diesel usage and improving energy efficiency.
• Livestock Feeds installed a hammer mill at its Aba plant, improving grinding energy efficiency and capacity.
• UAC Foods Limited transitioned its ice cream facility to natural gas, reducing carbon emissions and improving energy efficiency.
• CAP Plc expanded its sustainable energy infrastructure with perimeter solar lights, resulting in a 23% carbon emission reduction and 11% energy cost reduction.
• Optimized power-generating plant and implemented hybrid solar power systems at UAC head office, reducing carbon emissions and costs.

Social Achievements

• Established a Talent Strategy department to improve talent acquisition, retention, and leadership development.
• Merged Spring Waters Nigeria Limited with UAC Foods Limited, streamlining operations and increasing efficiency.
• Supported host communities through donations and projects focused on pediatric healthcare, education, and community development.
• UAC Foods Limited awarded scholarships to 20 students.
• Chemical and Allied Products Plc renovated 2 orphanages in Lagos and painted schools.

Governance Achievements

• Streamlined Group governance, with the Group Managing Director chairing the boards of four subsidiary companies.
• Transitioned from an outsourced internal audit function to an in-house function.
• Implemented a cost-of-living adjustment to alleviate the impact of inflation on employees.
• Introduced flexible work hours and remote work arrangements for employees.
• Enhanced employee benefits packages, including parental leave and childcare facilities.

Climate Goals & Targets

Environmental Challenges

• Low growth, record high inflation, currency depreciation, energy cost escalation, fuel scarcity, and insecurity in the Nigerian economy.
• Disruptions to distribution and trading hours during the election period and cash scarcity.
• Higher input costs, production costs, and borrowing rates.
• Volatility in the Nigeria foreign exchange market.
• Increasing costs of input materials due to high inflation and fuel subsidy removal.

Mitigation Strategies

• Unlocked N 9.2 billion through the sale of low-yielding non-core assets to strengthen liquidity.
• Implemented cost-saving initiatives to reduce conversion costs and improve production efficiency.
• Deployed bulk purchases as a cost-savings mechanism.
• Implemented proactive pricing strategies to mitigate input cost escalation.
• Focused on operational efficiency initiatives to limit the impact of higher distribution and haulage costs.

Supply Chain Management

Supplier Audits: Yearly performance evaluations

Responsible Procurement

• Thorough evaluation and onboarding of suppliers based on predetermined criteria.
• Fair and equitable treatment of suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNPRI, UN SDGs, UNGC

Certifications: Great Place to Work (UAC Foods)

UN Sustainable Development Goals

• Goal 8

Labor practices align with Goal 8: promoting inclusive and sustainable economic growth, employment, and decent work for all.