Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Health & Safety

Environmental Achievements

• Implemented energy-saving lighting in five subsidiary companies.
• Installed solar panels on the new head office building.
• Developed waste management plans to reuse and recycle materials.
• Implemented a printer program to track and manage printing.

Social Achievements

• Provided on-site exercise facilities and sponsored monthly health challenges.
• Offered health programs covering occupational safety, medical benefits, smoke-free workplace, physical exercise, nutrition, and mental wellbeing.
• Established an Employee Assistance Programme (EAP) for stress and depression.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions from indirect sources (supply chain, business travel).
• Water scarcity risk.

Mitigation Strategies

• Working with key suppliers to promote energy efficiency and renewable energy use.
• Planning initiatives to reduce emissions from business flights and leased company cars.
• Setting targets and objectives to reduce water consumption by 5% by 2022.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with key suppliers to promote energy efficiency and renewable energy use.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Transformation
• B-BBEE
• Employee wellbeing
• Environmental, health and safety

Environmental Achievements

• Improved waste recycling by 5% at supply chain manufacturing facility
• Implemented energy savings LED lighting project, on track to reduce total consumption by at least 10% by 2022
• Introduced a “GREEN CULTURE” programme

Social Achievements

• Achieved a verified level 1 broad-based black economic empowerment (B-BBEE) rating for 2019, improving from level 5 in 2018
• Staff turnover 6.7% (2018: 8.3%)
• R4 million invested in training and skills development
• Learnership programmes for 97 employees and 70 unemployed individuals
• 100 Youth Employment Services (YES) programme participants employed
• Employment equity candidates accounted for 71% of new recruits
• Corporate social investment (CSI) programme focusing on education and healthy lifestyles

Governance Achievements

• Governance structures overhauled
• New chairman and CEO appointed
• Improved board governance practices
• Created the position of lead independent non-executive director
• Established an investment committee
• Renamed remuneration and nominations committee to human capital committee
• Expanded the role of the social and ethics committee to the social, ethics and transformation committee

Climate Goals & Targets

Environmental Challenges

• Extremely challenging year with disappointing financial and operational performance
• Tough macro-economic and consumer environment in South Africa
• High debt levels, liquidity constraints and related supply challenges
• Higher operating expenses and significant once-off costs
• Impairments totalling R4.2 billion
• Exchange rate exposure
• Attracting and retaining scarce and skilled talent
• Poor economic conditions in South Africa
• Regulation impacting revenue and margin
• Poor product quality
• Inadequate data protection
• Breaches of stakeholder privacy

Mitigation Strategies

• Decisive action taken by board and management to clean up balance sheet
• Divestment of selected assets
• Moratorium on acquisitions
• Reduction in head office cost structure
• Regular and accurate measuring of cash flow forecasts
• Weekly and monthly working capital management targets and tracking
• Free cash flow targets for each business unit
• Management of the dividend policy
• Management’s focus on major projects, disposals and restructuring
• Proactive communications and engagement with shareholders
• Engage key staff to support retention
• Ensure new strategy is developed
• Forward cover hedging policy
• Oversight by Group Treasury
• Assess competitiveness of remuneration packages
• Conduct annual salary benchmarking surveys
• Increased investment in leadership training and development
• Introduce retention plan for key staff
• Revised incentive schemes
• Preventative care being promoted
• Geographic diversification
• Ongoing engagement with regulators
• Focus on high quality of products and production processes
• Outsourced manufacturing to Good Manufacturing Practice (GMP) compliant third parties
• GMP focus, certification and quality assurance programmes
• Policies implemented to address data security risks
• Robust IT security governance and processes
• Data security and IT audits
• Secure data management and control processes
• Cyber insurance cover
• Centralisation of IT controls and systems

Supply Chain Management

Responsible Procurement

• Ensure suppliers comply with international quality, health and safety standards, and ethical practices
• Regular site visits and audits of third-party supplier facilities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV, International Integrated Reporting Council’s Framework, IFRS

Certifications: ISO 9001, ISO 14001, ISO 45001