Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Environment
• Community Development
• Employment Equity
• Black Economic Empowerment
• Sustainability

Environmental Achievements

• Increased use of recyclable materials (packaging, oils, steel offcuts)
• All products meet European eProjects standards

Social Achievements

• Workforce of 3,294 is back to pre-recession levels
• One of the largest accelerated training programmes in its sector with 236 apprentices and 144 trainees
• Completed Mphephose School project (R260,000)
• Supported Zululand/Investec Rugby Academy (R83,000+)
• Partnered with Thanda Royal Zulu Football Club and Izulu Orphan Project
• 60% medical contribution for scheduled employees
• World-class medical facility in Richards Bay

Governance Achievements

• First integrated report in accordance with King III Report on Governance for South Africa 2009
• Self-appraisal review process of board and committees
• Group-wide compliance programme
• Updated Code of Business Conduct
• Established Risk and Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• High inventories and trade receivables
• Strike at Richards Bay plant and intimidation
• Need to improve working capital management
• European industrial recovery still looks a little way off
• Potential developments with the Deere shareholding may provide further opportunities

Mitigation Strategies

• Management is endeavouring to address high inventories and trade receivables
• Plans to improve relations with NUMSA and Solidarity
• Much progress has been made by management over the past year in identifying new sources of supply for the products required in our production processes with a view to constantly seeking out cost savings and reducing supply lead times
• Greater attention is being given to health and safety issues in the workplace
• Various alternative strategies have been evaluated to re-launch the Bell products into this significant and recovering market.

Supply Chain Management

Responsible Procurement

• Identifying new sources of supply for cost savings and reduced lead times

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines (version 3.1)

Sustainable Products & Innovation

• New 30-tonne category ADT
• EU-IIIB/Tier4i compliant ADTs

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Strategic alliance partners and key supplier relations
• Business continuity due to power supply
• Business continuity due to supply chain failure
• Human capital
• Global competitiveness
• Niche product dependence
• Information security and digital disruption
• Climate change and environmental
• Occupational health and safety
• Transformation
• Broad Based Black Economic Empowerment (BBBEE)

Environmental Achievements

• Reduced environmental impact across the group with emphasis on energy consumption, water usage, waste reduction and recycling
• Implemented water harvesting programme at Richards Bay facility
• Thinners recycling plant significantly reduced volume of contaminated thinners requiring disposal
• Machining coolant recycled before disposal
• Bell Equipment Germany partnered with bicycle leasing company to promote bicycle commuting

Social Achievements

• No retrenchment drive despite economic downturn
• Continued investment in IP and dealer development
• Improved BBBEE scorecards for BECSA and BESSA
• Successful application for access to APDP II
• Successful application to participate in AIS
• Continued investment in employee training and development
• Implemented various initiatives to support employee mental health and well-being
• Partnered with Gift of the Givers Foundation for disaster relief
• Joined Rebuild Zululand initiative to support small businesses
• Awarded SACEEC 2021 Exporter of the Year Award

Governance Achievements

• Continued commitment to high standards of corporate governance
• Material compliance with King IV principles
• Implemented comprehensive group approvals framework
• Established fraud working group
• Implemented anonymous tip-off reporting line
• Improved internal financial controls
• FSCA closed investigations against Bell Equipment
• JSE closed investigation of Bell Equipment

Climate Goals & Targets

Environmental Challenges

• Ongoing impact of COVID-19 pandemic
• Supply chain challenges and logistics issues
• Civil unrest in KwaZulu-Natal and Gauteng
• Weak market conditions in South Africa and other African markets
• Supply chain constraints and meeting machine delivery dates
• Power supply disruptions in South Africa
• Global competitiveness due to increased cost of doing business in South Africa
• Dependence on niche products
• Information security and digital disruption risks
• Climate change and environmental risks
• Occupational health and safety risks

Mitigation Strategies

• Commitment and resilience of global team
• Focus on sales, efficiency improvement, working capital management, and cost containment
• Continued investment in IP and strong alliances
• Managed supply chain challenges and logistics issues
• Implemented back-up power generators at strategic operations
• Dual supply from international service providers
• Increased buffers to insulate against potential increase in supplier and shipping lead times
• Adjusted safety stock levels
• Continuously evaluate component country sourcing
• Monitor productivity and evaluate mechanisation
• Evolve design philosophy to incorporate new technology
• Grow diversified revenue streams
• Implement various actions plans to improve cyber security
• Redesign of enterprise architecture
• Implement environmental management systems
• Reduce environmental impact
• Implement risk based health and safety management system
• Comprehensive behaviour based health and safety training programme

Supply Chain Management

Supplier Audits: Ongoing regular direct engagements; service level agreements and audits; Quest for Gold supplier improvement initiative

Responsible Procurement

• Quest for Gold supplier improvement initiative
• BBBEE scorecard evaluation for South African suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Companies Act, JSE Listings Requirements, King IV, IIRC’s International Framework

Third-party Assurance: Deloitte & Touche (financial statements only); Accredited service providers (selected non-financial metrics)

Sustainable Products & Innovation

• Tracked carrier
• Low profile ADTs for underground mining
• Upgraded B45E 4x4 ADT

Awards & Recognition

• SACEEC 2021 Exporter of the Year Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Focus on diversity and inclusion in the workplace
• Meaningful outreach initiatives with a focus on education, training and development both internally and externally

Governance Achievements

• Comprehensive internal system of policies and procedures to ensure sound governance, compliance with legal requirements, and payment of relevant taxes

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Supporting and developing local suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Responsible environmental stewardship
• Helping our people thrive
• Principled governance

Environmental Achievements

• 10% improvement in utilisation across the Richards Bay factory in FY2023
• Installation of a 1MW solar power project at Richards Bay factory
• Completion of a 770KW grid-tied solar system at Jet Park operations
• Significant reduction in the volume of contaminated thinners needing disposal through thinners recycling plant
• Recycling of machining coolant before disposal

Social Achievements

• 7.2% increase in the number of employees in Bell Equipment’s South African operations in 2023
• Implementation of Wellness Week 2023 reaching 870 employees
• Completion of four houses for indigent families in the Govan Mbeki Local Municipality
• BECSA contributed R2.9 million towards supplier development beneficiaries
• BESSA invested R3.2 million in supplier development grants through Tectonic

Governance Achievements

• Review and re-profiling of all non-scheduled positions
• Review of remuneration policy for South African operations
• Board composition reflecting diversity in skills and experience

Climate Goals & Targets

Environmental Challenges

• Increased generator usage due to load shedding resulting in higher carbon footprint
• Higher LTIFR and TIFR compared to 2022 due to increased production, new employees, and increased rework

Mitigation Strategies

• Initiation of various energy-saving strategies, including installation of energy-efficient equipment and solar power projects
• Implementation of behaviour-based safety programme to improve safety culture

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Bell Equipment subscribes to the SDGs, reflecting commitment to responsible business practices and global citizenship.

Sustainable Products & Innovation

• Bell tracked carrier
• Pedestrian detection system (PDS) solutions
• Fully autonomous ADTs
• Bell motor grader
• Bell 2204E harvesting attachment