Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability (environmental, social, governance)

Environmental Achievements

• Reduced total carbon footprint to 273,348 tonnes CO2e (Scope 1: 56,100 tonnes CO2e; Scope 2: 217,248 tonnes CO2e)

Social Achievements

• Opened 428 new stores, creating 2,500+ new jobs
• Social investment strategy integrated into business, focusing on education and community building
• PEP Academy helped more than 16,000 learners since 2008
• Ububele social responsibility initiative focusing on early childhood development

Governance Achievements

• Strengthened board independence with new appointments and reclassification of directors
• Successfully refinanced Steinhoff shareholder funding and cancelled related guarantees, achieving financial independence
• Renegotiated commercial agreements with Century Capital, terminating the relationship in a commercially responsible manner
• Improved segmental disclosure of business and results for better transparency

Climate Goals & Targets

Environmental Challenges

• Tumultuous year with numerous extraordinary matters creating major challenges
• Challenging economic circumstances and deflationary environment in South Africa
• Lagging effect of low commodity prices, foreign exchange shortages, and high inflation rates in Africa
• Significant deflation in clothing, footwear, and homeware product departments
• Unprecedented mass resignation of over 100 key people at Tekkie Town
• Subdued economy with low business confidence and a highly competitive environment in the building industry
• Repatriation of cash from Zimbabwe remained a challenge

Mitigation Strategies

• Implemented cash retention agreement to retain senior management
• Assembled an interim management team to stabilize Tekkie Town
• Renegotiated commercial agreements with Century Capital
• Opened new stores and expanded retail footprint
• Optimized product mix and drove sales volumes to counter deflation
• Improved efficiencies to enhance profitability
• Launched customer centricity and values program in building materials segment
• Increased selling prices in Zimbabwe to preserve margins
• Secured trading license for cellular products in Angola

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV Report on Corporate Governance for South Africa, 2016, International Integrated Reporting () Framework

Third-party Assurance: PricewaterhouseCoopers Inc. (limited to audited financial statements and B-BBEE status)

Awards & Recognition

• Ackermans voted best brand in terms of value for money (94% of respondents in Ask Afrika survey)
• Ackermans awarded ‘icon brand’ status at Ask Afrika’s 2018/2019 Icon Brands insights awards
• Ackermans voted number one children’s clothing brand for four years running
• Ackermans named Disney retailer of the year during 2018
• Bradlows named best furniture and bedding retailer by the Sunday Times/Sowetan retail awards
• Incredible Connection awarded best Microsoft retail partner of the year
• Shoe City voted best shoe store and awarded golden crown status by Die Burger newspaper

Environmental Metrics

ESG Focus Areas

• Health, Wellbeing and Safety
• Shaping Our Culture and Developing Effective People Who Respect and Care
• Respecting Host Communities
• Mitigating Environmental Impacts

Environmental Achievements

• 44% of water consumed at operations was recycled water against a target of 40%
• Recycled 69% of non-mineral waste generated against a group target of 60%
• No major (level 5) or significant (level 4) environmental incident at any of our operations since 2013

Social Achievements

• 20% year-on-year improvement in LTIFR performance
• New three-year wage agreement at Impala Rustenburg and Marula operations
• Implats Gini coefficient of 0.266 compares favourably with the national coefficient of 0.436 and mining industry coefficient of 0.416
• Provided extensive Covid-19 support to host communities where it was most needed
• South African operations extend Covid-19 testing and treatment facilities to community members
• R113 million in socio-economic development spend including Covid-19 community relief initiatives in South Africa

Governance Achievements

• Six out of 13 (46%) Implats board members are female, compared to 38% in 2019
• Full compliance with government policy and legislative requirements in South Africa and in Zimbabwe
• Good performance against most of the Mining Charter III targets

Climate Goals & Targets

Environmental Challenges

• Five safety-related fatalities at managed operations
• Achieving the Mining Charter III target for female representation at junior management remains challenging
• The judicial review of the Mining Charter III is yet to be completed; provisions relating to empowerment and procurement remain a concern
• Regulatory changes in South Africa enabling mining companies to generate their own energy for self-use
• Achieving significant energy savings will require substantial capital investment, which has been further constrained by Covid-19 impacts
• Electricity security of supply remains high risk in South Africa and Zimbabwe
• Water supply risk at Zimplats due to persistent extreme drought
• Levels of mineral waste reclamation and reuse at our operations are currently limited
• Delays in the resettlement of families residing in the zone of influence of our Zimplats TSF

Mitigation Strategies

• Strengthened our safety risk-management interventions
• Promoting female representation especially at junior management level
• Continue to proactively engage government in South Africa and Zimbabwe to help create a consistent and stable regulatory environment
• Develop a decarbonisation and renewable energy strategy
• Increase the target of water recycled to 44% in 2021 and 50% by 2025 and reduce the volume of water withdrawn
• Conclude the construction of replacement tailings dam facility at Marula
• Finalise and implement a minimum requirement protocol for management of Implats TSFs
• Zimplats plans to extend its SMC TSF

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• Local procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Changes in ambient temperature, precipitation and prolonged droughts

Transition Risks

• Rising energy costs and carbon tax

Opportunities

• Renewable energy opportunities
• Hydrogen economy

Reporting Standards

Frameworks Used: GRI, FTSE/JSE SRI, UNGC

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

Third-party Assurance: Nexia SAB&T

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 13
• Goal 15

Our initiatives aimed at achieving ESG excellence are aligned with the United Nations Sustainable Development Goals