Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability Governance
• Developing our People
• Products and Services
• Towards a Prosperous Society
• Natural Environment

Environmental Achievements

• 7% reduction in total carbon emissions since 2010
• 11% reduction in total annual electricity consumed since 2010
• 12% reduction in total airline kilometres travelled since 2010
• 44% reduction in total annual water consumption at Sanlam Head Office
• Recycled 50% of all waste at Sanlam Head Office
• Achieved a CDP disclosure score of 96%

Social Achievements

• Top performer in the financial services category of the South African Business Ethics Survey (SABES), with Effectiveness of Ethics scoring 90%
• 62% of all staff completed our online ethics and compliance survey
• Turnover of office staff decreased to 10.9% (2012: 11.6%)
• Our proportion of black staff increased by 7.7%. The overall black:white ratio is 65%:35%
• 25% increase in total training and development spend to R144.4 million
• 89% of all staff received training during the year
• Achieved a verified Level 2 B-BBEE status against the Financial Sector Code
• Distributed R119.6 billion to our policyholders in the form of insurance claims, dividends and reserves
• Total corporate social investment spend increased by 88% to R64 million (1% of NPAT)
• 32.5% of total procurement spend spent on small and micro-enterprises (2012: 15.5%)

Governance Achievements

• 100% King III compliant with Stakeholder Strategy implemented
• Sanlam was included in the JSE’s Socially Responsible Investment (SRI) Index for the eighth consecutive year
• Sanlam was included in the Robecom SAM Dow Jones Sustainability Emerging Market Index for the first time
• A special unit established to embed sustainability across all boards within the Group

Climate Goals & Targets

Environmental Challenges

• Transformation at senior management level remains a challenge
• Building an appetite for savings products within the entry-level market remains an industry-wide challenge
• The growth market is highly susceptible to the economic pressure of rising living costs
• The cost pressure of escalating regulatory requirements
• Ensuring the viability of small black-owned enterprises remains a significant challenge

Mitigation Strategies

• A centrally managed initiative with a focus on high-potential and specialist black staff being groomed for senior management
• Developing cost-efficient products that deliver real value, and finding distribution models that can effectively deliver these products to the market
• Implementing actions required to reach our target state in terms of how we interpret the proposed TCF regulation
• Streamlining and automating some of the current manual systems and procedures to improve the service offering to brokers
• Three primary enterprise development programmes to which we allocate a total of R10.2 million per year

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing from B-BBEE-accredited suppliers, black-owned businesses, and suppliers incorporating ESG best practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: King III, GRI G4, UNGC, UNPRI, CRISA

Certifications: Null

Third-party Assurance: Ernst & Young Inc. (limited assurance on Scope 1 and 2 carbon emission data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Second place in SABES 2013
• Sanlam Life rated best life insurer in South Africa by SAcsi

Environmental Metrics

ESG Focus Areas

• Sound governance
• People development
• Responsible products and services
• Prosperous society
• Environmental impact

Environmental Achievements

• Carbon emissions decreased by 1.8% per full-time employee in 2015
• Electricity reductions achieved in 2015
• Water consumption reduced by 53% over the last five years

Social Achievements

• FSC score for employment equity up from 7.71 in 2014 to 8.15 in 2015
• Training spend increased threefold in five years, to R17 171 per employee
• R9.4 million spent on financial literacy initiatives, benefiting over 17,502 South Africans

Governance Achievements

• No material breaches of business ethics reported
• King III compliant
• Well prepared for implementation of the Protection of Personal Information (POPI) Act

Climate Goals & Targets

Environmental Challenges

• Challenging market and socio-economic conditions, including economic slowdown, inequality, and unemployment
• Growing insurance gap between need and cover
• Uncertainty around party due diligence (PDD) legislation
• Meeting waste management targets

Mitigation Strategies

• Refining underwriting approach, initiating interventions in high-risk municipalities, and allocating capital for societal benefit
• Supporting government's retirement fund industry reform
• Preparing for POPI Act implementation
• Intensifying focus on waste reduction and recycling, staff training

Supply Chain Management

Responsible Procurement

• Preferential procurement spend on SMMEs (37.32% in 2015)
• Prompt Payment Code (30-day payment terms, shorter for black-owned SMMEs)

Climate-Related Risks & Opportunities

Physical Risks

• Floods and droughts

Reporting Standards

Frameworks Used: IIRC Framework, Financial Sector Code (FSC), JSE’s SRI Index Requirements, Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines

Third-party Assurance: EY Inc (limited assurance)

Awards & Recognition

• Top Employer for 2016

Environmental Metrics

ESG Focus Areas

• Serving our clients
• Empowering our people
• Supporting our communities
• Embedding an ethical culture
• Protecting and preserving resources
• Recognising the value of sustainable investment

Environmental Achievements

• Achieved an A- CDP climate change 2020 score
• Reduced electricity used to 188.42 kWh/m² (from 237.49 kWh/m² in 2019)
• Reduced water used to 0.65 kl/m² (from 1.04 kl/m² in 2019)
• Reduced paper consumed to 13.88 kg/FTE (from 38.85 kg/FTE in 2019)
• Increased head office recycled waste to 59% (from 30% in 2019)

Social Achievements

• Contributed over R1.5 billion to support customers and national imperatives across various countries
• Santam paid R1 billion in early relief payments to nearly 2,500 small and medium-sized businesses
• Created three impact funds (Investors’ Legacy range) with a committed investment of R2.25 billion
• Maintained a level 1 B-BBEE contributor status
• 71% of employees participated in a culture survey
• Launched a new digital sales and client service platform for tied agents

Governance Achievements

• Conducted ethics awareness initiatives and training across all business clusters
• Continued to combat financial crime and manage the Group’s tax affairs in line with good corporate governance
• Improved overall Sanlam security posture according to the 2020 Sanlam Cyber Controls Self-Assessment
• No major breaches of ethics or human rights incidents reported

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on clients, employees, and communities
• Risk of clients not paying premiums
• Pressure on Sanlam’s ability to meet client expectations
• Need to re-assess client service experience and engagement needs due to lockdown restrictions
• Increased risk of malicious cyberactivity and attacks
• Challenges in achieving employment equity targets due to the pandemic

Mitigation Strategies

• Provided direct support such as reduced premiums, premium holidays, and structured payment relief
• Expanded criteria for eligible claims for COVID-19
• Launched communication initiatives to ensure clients are aware of self-service options
• Automated processes through the use of robotics
• Developed a pandemic response plan and work-from-home policy
• Provided extensive IT support and a special COVID-19 leave category for employees
• Provided total support of R255 million to intermediaries
• Implemented a robust cyber-resilience and information governance framework
• Focused on recruiting for and filling only critical roles

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given for goods, products, or services that conserve natural resources, protect the environment, and are energy efficient

Climate-Related Risks & Opportunities

Physical Risks

• Flood and fire risks

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of new products and services

Reporting Standards

Frameworks Used: SASB, TCFD, UNGC, GRI, King IV

Certifications: Top Employers certification for South Africa

Third-party Assurance: Verify CO2

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 4 (Quality education)
• Goal 8 (Decent work and economic growth)
• Goal 1 (No poverty)
• Goal 10 (Reduced inequalities)
• Goal 6 (Clean water and sanitation)
• Goal 11 (Sustainable cities and communities)
• Goal 14 (Life below water)

Various initiatives contribute to these goals as detailed in the report

Sustainable Products & Innovation

• MSCI World and Emerging Market ESG Enhanced exchange traded fund

Awards & Recognition

• Top Employers certification for South Africa

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Education
• Shared Value
• Employment Opportunities
• Environmental Stewardship
• Climate Change Adaptation
• Partnerships for Impact
• Transformation
• Diversity, Equity and Inclusion

Environmental Achievements

• Achieved a 9% energy-use reduction at Sanlam Head Office in Bellville compared to 2021.
• 10% reduction target in Scope 1 and 2 GHG emissions (for South African operations) declared in 2021.

Social Achievements

• Met 2022 female representation targets at all management levels.
• Women representing 33% of the board by year-end 2022.
• Launched a new diversity, equity and inclusion framework.
• Certified as a Top Employer for 2022 for the seventh consecutive year.
• Paid R62.5 billion in gross insurance benefits in 2022.
• Paid an estimated R4.4 billion in claims related to the KwaZulu-Natal floods in April 2022.
• Launched Imali Zam (My Money) member initiative for financial education.
• Increased member contactability by 79% through improved marketing and communication.

Governance Achievements

• Established an ESG committee in 2022.
• From 2023, 10% of Group Exco short-term incentives are linked to ESG and culture KPIs.
• Maintained a level 1 B-BBEE status.

Climate Goals & Targets

Environmental Challenges

• Increased frequency of extreme weather events impacting general insurance businesses.
• Eskom's low energy availability factor causing business interruption and increased costs.
• Water shortages increasing insurance risk.
• Global macro trends of higher inflation, rising interest rates and market volatility.
• Increased geo-political conflict creating uncertainty.
• Cyber-risk due to growing digitalisation and reliance on cloud services.
• Regulatory and compliance risk due to operating in diverse jurisdictions.
• Human capital and future-fit talent management due to global competition for skilled employees.
• Diversity, equity and inclusion (DEI) challenges.
• Political and social instability in some operating regions.

Mitigation Strategies

• Reviewing business strategies to accommodate the difficult economic climate.
• Investing in digital transformation of the business.
• Implementing long-term renewable solutions for main operational centres.
• Implementing strategic workforce planning.
• Enhancing talent acquisition and onboarding practices.
• Driving group-wide DEI as a strategic initiative.
• Proactively engaging in stakeholder consultation with regulating and industry bodies.
• Leveraging technology to improve data management capabilities.
• Implementing strategic partnerships to mitigate risks and enhance resilience.

Supply Chain Management

Responsible Procurement

• Enterprise Supplier Development (ESD) initiatives
• Loans to suppliers to support business growth

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Investment in renewable energy projects

Reporting Standards

Frameworks Used: SASB, TCFD, SDGs, UNGC

Third-party Assurance: Verify CO2

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 10
• SDG 11
• SDG 13
• SDG 17

Sanlam's initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Renewable energy insurance products
• Consolidated funeral and life cover product

Awards & Recognition

• Top Empowered Company: Business of the Year
• Top Empowered Company: Education and Skills Development

Environmental Metrics

ESG Focus Areas

• Financial strength, resilience and consistent performance
• Trust and reputation
• Financial inclusion
• Investing for good in people and planet
• Partnerships for impact
• Thought leadership

Environmental Achievements

• Reduced GHG emissions; 10% reduction target by 2025 (against 2019 baseline)
• Reduced water consumption by 30% (borehole water usage)
• Increased waste recycling to 74% (from 56% in 2022)
• Planted 6,280 trees in Malaysia
• Planted 200 trees in Kenya
• CDP Climate change score of B (industry average C)

Social Achievements

• Reached 69 million clients in Africa and Asia
• Invested R4.4 billion in SMMEs
• Spent R139 million on CSI
• Improved employee turnover rate to 15.95% (from 24.31% in 2022)
• Invested R321 million in employee training and development in South Africa
• Launched the Sanlam ESG Barometer
• Launched the third Sanlam Socio-economic Transformation Gauge report
• Supported 21,120 beneficiaries through WageWise workshops
• Supported 14,370 beneficiaries through Money Fo’Sho workshops
• Reached over 700 youth through Youth for Tourism funding
• Reached 60,000 people with disaster information through P4RR

Governance Achievements

• Level 1 B-BBEE status in South Africa
• FTSE4Good Index Series constituent
• MSCI ESG Index rating of AA
• Sanlam Investments awarded 2023 Sustainable Asset Manager Award
• Sanlam Kenya awarded Kenya’s number one Transparency and Accountability trailblazer

Climate Goals & Targets

Environmental Challenges

• Economic and geopolitical headwinds
• Implications of digitalisation
• Load shedding in South Africa
• Infrastructure deficiencies
• Water shortages
• Climate change impacts
• Cybersecurity threats
• Regulatory changes
• Skills gaps

Mitigation Strategies

• Diversified offerings
• Robust risk management
• Digitalisation strategy
• Strategic partnerships
• ESG integration
• Climate Change Position Statement
• Energy and water management programme
• Reskilling initiatives
• Compliance frameworks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• SMME support programmes
• Sanlam SANParks Rural SMME Fund

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes
• Extreme weather events
• Flooding
• Water shortages
• Load shedding

Transition Risks

• Regulatory changes
• Market shifts
• Increased demand for renewable energy

Opportunities

• Sustainable infrastructure investments
• Green finance
• Renewable energy projects
• Development of climate-resilient products

Reporting Standards

Frameworks Used: GRI, TCFD, PRI, PSI, UNGC, King IV, JSE Sustainability Disclosure Guidance, SASB

Certifications: ISO 14064-3:2006

Third-party Assurance: Verify CO2, AQRate, FTSE Russell

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Initiatives aligned with SDGs through financial inclusion, education, health, environmental sustainability, and economic empowerment

Sustainable Products & Innovation

• Sustainable infrastructure investments
• Financial inclusion products
• Climate-resilient insurance products

Awards & Recognition

• 27four Sustainable Asset Manager Award
• Top Empowered Company awards (finalist)
• South Africa Loyalty Awards