Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Employee health and wellness
• Transformation and local economic development
• Community development
• Environmental performance
• Ethical performance
• Economic performance

Environmental Achievements

• 100% of operations are ISO 14001 certified
• Energy consumption decreased by 30% year on year
• Carbon footprint decreased by 16.5% year on year
• Significant decrease in hazardous waste

Social Achievements

• Record-low LTIFR of 0.52
• Significant reduction in serious injuries
• R144.2 million spent on training and development (93% on black employees, 29% on women)
• Level 3 BBBEE contributor status achieved in South Africa
• R20.5 million invested in community development programs

Governance Achievements

• Adherence to the UN Global Compact's 10 principles
• Compliance with OECD Guidelines for Multinational Enterprises
• No major findings of non-compliance reported in audit reviews

Climate Goals & Targets

Environmental Challenges

• One fatality in a work-related incident
• Declining business activity in South Africa
• Water usage increased by 5% due to improved data reporting and project phases
• Increased oil contaminated liquid hazardous waste

Mitigation Strategies

• Commitment to eliminate fatal incidents
• Various action plans to improve black representation in South Africa
• Implementation of water saving initiatives
• Initiatives to reduce oil contaminated liquid hazardous waste

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to BBBEE-compliant vendors in South Africa

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Carbon tax in South Africa

Opportunities

• Development of low-carbon concrete products

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001 (100% coverage), OHSAS 18001 (100% coverage)

Third-party Assurance: Deloitte & Touche (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low-carbon concrete products

Awards & Recognition

• Jack Cheetham and Letsema awards

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Employer of Choice
• Corporate Reputation
• Environmental Management

Environmental Achievements

• 36% decrease in energy use (year on year)
• 33% decrease in carbon emissions (year on year)
• 22% decrease in water use (year on year)
• 35% decrease in recycled solid waste (year on year)
• 102% increase in liquid waste recycled (year on year)

Social Achievements

• Zero fatalities
• Improved Lost Time Injury Frequency Rate (LTIFR) by 17% to 0.71
• Increased black representation in top management in South Africa by 15%
• Implemented a Neuroleadership programme to improve safety culture
• Invested R105 million in training and development

Governance Achievements

• Achieved a Level 2 BBBEE rating in South Africa
• Updated Code of Conduct
• No major issues of non-compliance found in internal audit

Climate Goals & Targets

Environmental Challenges

• Increased competition for skills in Australia and North America
• Scarcity of shaft sinking and mechanised mining skills in Southern Africa
• Project disruptions due to extreme weather
• Regulatory requirements related to energy and climate change
• Higher safety risks associated with significant growth in order book

Mitigation Strategies

• Proactive employment equity planning
• Neuroleadership programme
• Energy and water efficiency assessments
• Water recycling measures
• Integrating acquired businesses' best practices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to BBBEE-compliant vendors in South Africa
• Initiatives to assist SMMEs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Increased costs due to carbon pricing mechanisms

Opportunities

• Demand growth for certain commodities in a low-carbon economy
• Development of climate-smart solutions

Reporting Standards

Frameworks Used: GRI (Core level)

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Third-party Assurance: IBIS ESG Assurance (Pty) Limited (Limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Organica Water technology for wastewater treatment

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Human Capital
• Social Responsibility
• Environmental Management
• Ethical Conduct
• Climate Change

Environmental Achievements

• 21% decrease in energy use (year on year)
• 14% decrease in carbon emissions (year on year)
• Achieved a Leadership Level with an A-rating in CDP's Water Disclosure Project (2018: B-rating)
• Achieved a Management Level with a B-rating in CDP's Climate Change assessment (2018: C-rating)

Social Achievements

• Second consecutive year without fatalities across more than 100 projects
• Overall employee experience survey score of 3.7 out of 5
• Achieved a Level 1 BBBEE rating in South Africa
• Invested R19 million in community development initiatives

Governance Achievements

• Social & ethics committee oversees sustainability and ethical conduct
• No major issues of non-compliance found in internal audit reviews
• Code of Conduct and ethics applied consistently across the Group

Climate Goals & Targets

Environmental Challenges

• Deterioration in Mining platform's injury rates
• Impact of COVID-19 on employees and business
• Increased regulatory scrutiny on corporate responsibility for climate change
• Challenges in localizing operations in some regions

Mitigation Strategies

• Implemented a coordinated response plan for COVID-19
• Published Climate Change Position Statement
• Implemented enhanced CRM program
• Developed local partnerships and enterprise development initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferential procurement for BBBEE-compliant vendors and SMMEs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns impacting project delivery

Transition Risks

• Increasing carbon regulations, shift away from fossil fuels

Opportunities

• Growing service offerings in renewable energy sector

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (core application level)

Certifications: ISO 14001 (most businesses), ISO 9001 (all platforms), ISO 45001 (Mining, PIW platforms)

Third-party Assurance: IBIS ESG Consulting Africa (Pty) Ltd (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Clough received Workplace Gender Equality Agency’s Employer of Choice for Gender Equality citation

Environmental Metrics

ESG Focus Areas

• Education
• Skills Development
• Community Development
• Health Improvement

Social Achievements

• Supported 58 young people through Letsema Khanyisa Trust scholarships, covering primary to tertiary education.
• Partnered with TRAC to provide mobile science labs and teacher support to under-resourced schools.
• Supported Tomorrow Trust programs providing holistic support to orphaned and vulnerable children.
• Supported Jumping Kids, resulting in Paralympic medals for beneficiaries.
• Provided ex gratia donations to previous award winners due to pandemic challenges.
• Clough Foundation supported various non-profit organizations focusing on sustainability, indigenous engagement, diversity, and community health.
• Supported the Clontarf Foundation, MATES in Construction, Role Models and Leaders Australia, and Starlight Children’s Foundation.
• Murray & Roberts Cementation invested R856,000 in three community projects in South Africa (De Beers Trust, Minerals Education Trust Fund, borehole for Kraneburg Primary School).
• RUC Cementation Mining contributed R850,400 to the STEM United Programme.
• Cementation Americas spent R649,000 on various employee-supported charities.
• Supported Vorentoe High School running academy.
• Murray & Roberts Child Welfare Fund provided R290,700 to 11 organizations, with R153,000 in matched funds.

Governance Achievements

• Group CSR committee meets quarterly to review progress and approve new projects.
• Rigorous screening of funding applications and regular reporting from recipients.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted funds available for CSR programs.

Mitigation Strategies

• Reviewing strategy to ensure continued support for effective projects.
• Made ex gratia donations to previous award winners in lieu of awards ceremonies.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 10 (Reduced Inequalities)

Initiatives focus on providing education and skills development to disadvantaged communities.

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Safety
• Employee well-being
• Socioeconomic value creation
• Ethical culture
• Responsible business practices
• Climate change
• Resource efficiency
• Diversity, equity and inclusion
• Board diversity
• Human rights
• Community development

Environmental Achievements

• Achieved Management Level status in Climate Change CDP disclosures and Leadership Level status in Water CDP disclosures
• Reduced carbon footprint through various initiatives (details not quantified in the report)

Social Achievements

• Maintained a competitive employee value proposition
• Intensified talent development
• Met transformation targets in South Africa, maintaining a Level 1 BBBEE accreditation
• Established diversity policies across the Group
• Implemented employee mental health and wellness support (details not quantified in the report)

Governance Achievements

• Aligned remuneration policy with shareholder interests
• Implemented a mature and effective reporting process
• Rationalised board committee structure
• Maintained high ethical standards and global best practice in corporate governance
• Implemented a robust project delivery governance system

Climate Goals & Targets

Environmental Challenges

• Challenging year due to pandemic-related disruptions and cost inflation
• Loss of Energy, Resources & Infrastructure (ERI) platform, including Clough and RUC
• Liquidity constraints and debt exposure
• Global supply chain disruptions
• Skills shortages
• Geopolitical tensions and inflation
• Client cash constraints and risk aversion
• Community unrest
• Permit delays
• Slow pace of socioeconomic development in some countries
• Climate-related risks (extreme weather, unpredictable conditions)
• Onerous operating license conditions and environmental authorisations
• Increased HSE scrutiny from clients and regulators
• Increased socioeconomic development expectations from local communities
• Growing relevance of ESG and stakeholder expectations
• Demand for responsible corporate citizenship
• Mental health and morale issues among employees
• Cybersecurity risks

Mitigation Strategies

• Focus on capital and cost management to preserve liquidity
• Strong focus on cash management
• Disciplined management of project execution
• Self-funding platforms and projects
• Working closely with funders
• Streamlined governance structure
• Disciplined management of risk to achieve Zero Harm
• Embedded sustainability framework
• Competitive employee value proposition
• Focused succession planning
• Investment in community relations and development
• Transparent reporting
• Growing service offering in renewable energy sector
• Evaluating projects against climate change impacts
• Collaboration with clients and suppliers to reduce carbon emissions
• Focus on resource efficiency and sustainable procurement
• Developing and implementing a South African debt deleveraging plan
• Collaborating with clients to improve working capital
• Identifying and selling non-core assets
• Implementing mechanisms to accelerate cash transfer
• Considering new Group funding structure
• Improving capital management
• Securing new short-term facilities
• Considering alternative working capital financing mechanisms
• Optimizing cost base
• Management performance contracts
• Strategically repositioning the Group
• Ensuring a diversified order book
• Applying the Group’s established risk management framework
• Leveraging the Group’s reputation
• Leveraging presence across the engineering and contracting value chain
• Balancing Group oversight and control with platform accountability
• Supporting platforms in securing capacity
• Optimizing value potential from all phases of project life cycle
• Leveraging strategic partnerships
• Pursing regional expansion
• Growth strategy for Power, Industrial & Water platform
• Intensifying talent development
• Maintaining a responsible approach to retrenchments
• Continuing to focus on diversity and inclusion hires
• Expanding and improving existing employee mental health and wellness support
• Driving Engineered Excellence in safety and risk management
• Managing the impact of digital change
• Actively engaging suppliers to help reduce the carbon footprint of the supply chain
• Keeping pace with changes to the operating landscape due to raised ESG expectations
• Supporting stakeholder relationships
• Upholding reputation by adhering to policy and procedures
• Applying the Group’s diversity policy in management and Board appointments
• Understanding the impact of stakeholder ESG requirements on the Group’s funding and insurance requirements
• Supporting clients in their ESG objectives
• Assisting clients in implementing their climate change response plans
• Establishing a new entity to provide a global funding structure
• Establishing centres of excellence
• Leading the digital transformation strategy
• Developing processes for talent acquisition and development
• Developing customer relationships on a global level

Supply Chain Management

Responsible Procurement

• Local hiring and procurement
• Supplier development programmes

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in renewable energy sector

Reporting Standards

Frameworks Used: King IV, GRI Sustainability Reporting Standards (core application level), TCFD, UN Sustainable Development Goals

Certifications: ISO 14001, ISO 9001, ISO 45001, South African Institute of Welding ISO 3834

Third-party Assurance: PwC

Sustainable Products & Innovation

• Organica wastewater treatment technology

Awards & Recognition

• Group chief executive “Best Safety Performance at a Business Level” award

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safety
• Employee Value Proposition
• Socioeconomic Value for Communities
• Ethical Culture and Responsible Business Practices

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions from 8,430 tCO2e in FY2022 to 5,640 tCO2e in FY2024 (Note: Data for FY2022 and FY2023 restated due to change in reporting approach)
• Reduced Scope 3 emissions from 87,400 tCO2e in FY2022 to 52,470 tCO2e in FY2024 (Note: Data for FY2022 and FY2023 restated due to change in reporting approach)
• Reduced energy consumption from 54,890 GJ in FY2022 to 55,690 GJ in FY2024 (Note: Data for FY2022 and FY2023 restated due to change in reporting approach)
• Reduced water consumption from 47,560 ML in FY2022 to 42,230 ML in FY2024 (Note: Data for FY2022 and FY2023 restated due to change in reporting approach)
• 726kW solar PV plant at Bentley Park site covers around 54% of the facility’s energy needs, avoiding 820 tCO2e annually

Social Achievements

• Zero fatal incidents in FY2024
• Improved on all proactive safety metrics, including a reduced number of high-potential incidents
• Level 1 B-BBEE rating achieved in South Africa
• Diversity and inclusion policies established across the Group
• R2.6 million spent on enterprise and supplier development in South Africa

Governance Achievements

• ESG performance linked to executive remuneration
• No material incidents of non-compliance with laws and regulations
• 12 whistle-blowing reports received (one confirmed as partially legitimate)

Climate Goals & Targets

Environmental Challenges

• Global skills shortage
• Climate change impacts
• HSE risks
• Community discontent
• Cybersecurity threats
• Unethical conduct
• Liquidity constraints
• Maintaining learning and development during difficult business conditions

Mitigation Strategies

• Attractive employee value proposition
• Sustainable solutions across the project life cycle
• Effective leadership to drive Zero Harm
• Digitalisation initiatives
• Local recruitment and procurement
• IT security framework and data security controls
• Statement of Business Principles, Code of Conduct and Values
• Investment in digital technology and innovative equipment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supply chain standard specifying requirements for environmental protection and social matters

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting supply chains and impacting project delivery

Transition Risks

• Client expectations for carbon neutrality
• Impact of climate change policies and regulations

Opportunities

• Providing sustainable solutions across the project life cycle
• Supporting the transition to greener energy sources

Reporting Standards

Frameworks Used: King IV, GRI Standards 2021, TCFD, UN SDGs

Certifications: ISO 14001, ISO 45001

Third-party Assurance: GRIPP Advisory Pty Ltd (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Dry stack tailings systems
• Energy-efficient water treatment technology

Awards & Recognition

• Cementation Americas won the 2024 Ontario Mine Contractors Safety Association’s Safety Innovation Contest
• Murray & Roberts Cementation received an award from the Association of Mine Managers of South Africa