Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Capital
• Employment Equity
• B-BBEE
• Corporate Social Investment
• Health and Safety
• HIV/AIDS
• Environment
• Quality

Environmental Achievements

• Implemented procedures to collect environmental data to better assess its environmental impact year on year.
• Implemented office-focused initiatives to minimize electricity and energy usage, water usage, and promote paperless operations.

Social Achievements

• Launched a Learnership Programme for social upliftment and skills development, with 25 learners involved and 22 graduates retained.
• Launched an Induction Training and Development (ITD) Programme for top university graduates, providing intensive training and mentorship.
• Improved employee wellness with Wellness Days and participation in various wellness events.
• Improved HIV/AIDS testing rates at Wellness Days.

Governance Achievements

• Subscribed to the Governance Assessment Instrument of the Institute of Directors to assess its application of King III principles.
• Prepared a King III Compliance Register.
• Adopted a Board Charter and reviewed it annually.
• Established an Audit and Risk Committee, a Remuneration and Nominations Committee, and a Social and Ethics Committee.

Climate Goals & Targets

Environmental Challenges

• Intense domestic competition based predominantly on pricing in South Africa.
• Slowdown in economic growth in Australia.
• Fluctuating shipping costs impacting margins in the United Kingdom.
• Skills shortages in designated groups in South Africa.
• Pressure on margins and revenue due to increased competition in South Africa.

Mitigation Strategies

• Centralized selective operational activities and decentralized marketing structures in South Africa to improve efficiency.
• Invested further in “front-end” new business development capabilities and sought opportunities for an office in Melbourne, Australia.
• Focused on differentiating its service offering and adding value to increase customer retention and loyalty.
• Implemented internal programmes to address skills shortages in South Africa.
• Improved Supply Chain capability and offering.

Supply Chain Management

Responsible Procurement

• Procurement of environmentally friendly products

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King III

Certifications: ISO 9001:2008 (Santova Logistics)

Environmental Metrics

ESG Focus Areas

• Human Capital
• Social Responsibility and Investment
• Health, Safety, Environment and Quality

Environmental Achievements

• Reduced paper usage through duplex printing project and Employee Self Service (ESS) IT system.
• Recycled stationary, paper, printer cartridges.

Social Achievements

• Launched a number of Personal Development training courses.
• Improved employee wellness through formal employee wellness and fitness days, sporting events.
• Reduced employee turnover slightly (from 30% in 2015 to 28% in 2016).
• Increased number of employees trained (216 in 2016).

Governance Achievements

• Maintained ISO 9001:2008 certification for Santova Logistics.
• Timely reporting to the Department of Labour for employment equity.

Climate Goals & Targets

Environmental Challenges

• Skills shortages amongst designated groups in logistics and insurance industries.
• Reduction in the number of South African employees year-on-year stifled employment equity efforts.
• Limited environmental impact as a largely office-based company.

Mitigation Strategies

• Relied almost exclusively on internal programs to address skills shortages.
• Utilized restructuring as an opportunity to promote B-BBEE.
• Implemented Group Environmental Policy to manage carbon footprint and promote environmental responsibility.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consider third party suppliers who have a “culture of environmental concern and promotion”.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Framework

Certifications: ISO 9001:2008 (Santova Logistics)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Highest Sustainability Data Transparency Index (SDTI) score in the Transportation Sector on the Johannesburg Stock Exchange (JSE)
• Merit Award for the Fledgling and AltX Category at the JSE and Chartered Secretaries Southern Africa Integrated Reporting Awards

Environmental Metrics

ESG Focus Areas

• Human Capital
• Social Responsibility and Investment
• Safety, Health, Environment and Quality

Environmental Achievements

• Reduced paper usage through various initiatives including duplex printing, electronic invoicing, and cloud-based systems.
• Implemented recycling plans in several offices.
• Installed low-energy lighting in some offices.

Social Achievements

• Increased percentage of Historically Disadvantaged South Africans among employees.
• Various corporate social investment projects supporting education, basic needs, and enterprise development.
• Wellness programs implemented globally, though with varying approaches.

Governance Achievements

• Successfully transitioned from ISO 9001:2008 to ISO 9001:2015 in South African operations.
• Timely submission of B-BBEE Compliance report to the Commission.
• Ongoing monitoring of health and safety compliance through a Group Health and Safety Committee.

Climate Goals & Targets

Environmental Challenges

• Skills shortage in the industry impacting employment equity efforts.
• Maintaining consistent wellness programs across globally diverse offices.
• Data limitations in some regions for environmental metrics.

Mitigation Strategies

• Reliance on internal skills development programs to address employment equity needs.
• Flexible wellness program approach tailored to individual regional needs.
• Use of average 'per head' usage for missing environmental data in non-material regions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Framework

Certifications: ISO 9001:2015 (Santova Logistics, South Africa)

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

• Corporate Governance
• Social Responsibility
• Environmental Sustainability

Social Achievements

• Improved employee wellbeing initiatives, though specific metrics are not provided.

Governance Achievements

• Continued implementation of King IV™ principles.
• Refreshed Whistle Blowing Policy.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on global supply chains and economic conditions.
• Brexit complexities.
• Economic downturn in South Africa.
• Competitive pressures in the logistics industry.
• Credit risk management.

Mitigation Strategies

• Decentralized communication strategies.
• Local Champions appointed in each country.
• Operational restructuring and consolidation.
• Conservative approach to credit risk management.
• Increased credit loss allowance.
• Focus on technology and service differentiation.
• Acquisition of new clients.
• Implementation of key account management team.
• Revised client visit plan.
• Client focused KPIs and Quality initiatives.

Supply Chain Management

Responsible Procurement

• Utilizing a global panel of specialized external service providers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS), South African Companies Act, No. 71 of 2008, JSE Limited Listings Requirements, Integrated Reporting Framework (IIRC), King IV™ report on Corporate Governance for South Africa

Third-party Assurance: Moore Johannesburg Inc. (Financial Statements), accredited external verification entity (B-BBEE), independent stakeholder intelligence consultant (shareholder analysis)

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Business Continuity: Smaller clearing and forwarding companies face threats from shipping lines integrating basic services and commoditization due to a failure to embrace technological advancements and automation.
• Economic, environmental, and socio-political instability in SA and internationally impacting financial stability and profitability.
• IT system failures impacting communication, operations, and reputation.
• Pricing/tariff pressure from competitors lowering margins and potentially leading to profit and client loss.
• Credit counterparties/debtors defaulting on contractual obligations.

Mitigation Strategies

• Develop diverse products, invest in technology, focus on end-to-end solutions, build unrelated businesses, partner with clients, and focus on niche offerings.
• Maintain close relationships with clients, banks, and government institutions; monitor industry and country trends; diversify geographically, by currency, service, product, industry, and trade route; and anticipate and control controllable elements.
• Invest in capital expenditure on new hardware and ensure closer management of associated risks.
• Monitor margins and client financial analysis; build volumes and market share; focus on business model and value-add; and train staff in modern supply chain theory.
• Centralized oversight over credit risk; debtor's book insurance; strong relationships with credit insurers and bankers; use of signed contracts; anticipate poor government service; use of a Board-controlled Delegation of Authority; and regular internal debtor meetings.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Utilizing a global panel of specialized external service providers with agreed service level agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Integrated Reporting Framework (IIRC), King IV™ Report on Corporate Governance for South Africa, 2016, Companies Act of South Africa, No. 71 of 2008

Certifications: Null

Third-party Assurance: Moore Johannesburg Inc. (Financial Statements), accredited external verification entity (B-BBEE), independent stakeholder intelligence consultant (Shareholder Information)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weakening of the Group's financial stability and profitability due to violence/terrorism, nationalisation; looting/civil unrest, bribery/corruption, hyperinflation; greylisting of banks; currency weakness; reducing margins; increased funding costs; increased operational costs; cash flow issues due to bad debts, increased interest rates and supplier force majeure; unreliable/unsafe/underperforming government institutions; underperforming/biased legal systems/judiciary; and emigration of talent to safer jurisdictions offshore.
• Potential loss of profit and clients due to loss of margins and pricing/tariff pressure from competitors.
• Potential loss of profit due to business interruption and temporary lack of leadership. Likely additional costs of recruitment. Remaining senior management being ‘stretched’ and having to focus on problem areas to the detriment of the greater part of the business. Potential loss of client base due to poor servicing and failure to maintain relationships.
• Ineffective recruitment policies and procedures, lack of/poor incentivisation/recognition, failure to maintain competitive remuneration policies and lack of internal growth paths. Inadequately qualified, inexperienced employees or demotivated employees resulting in inefficient operations, loss of revenue, loss of employees to other organisations and loss of clients.
• Failures in communicating with business-critical IT operating systems/software. Includes failures of the cloud-based systems themselves or due to failure of WLAN networks, lack of backup lines and bandwidth, software issues, poor system performance, unauthorised access/ breach of security, hacking, viruses, inadequate IT support skills and any IT system failures resulting in an inability to operate business software, loss of clients, loss of revenue and reputational damages.

Mitigation Strategies

• Maintain close relationships with clients, banks, credit underwriters and government institutions necessary for trade; Continually monitor sources of information on industry and country trends; Continue to diversify the business in terms of geographies, currencies, services/products, industries and trade routes; Develop backup plans and alternatives to controllable risks; and Anticipate and control the elements that are controllable and develop natural hedges against these risks by expanding offshore offices in multiple jurisdictions.
• Ongoing monitoring of margins and client financial analysis; Gradual building of volumes and market share to lower buying rates and in turn selling rates; Internal processes and experience when dealing with clients approached by competitors; Focus on business model and value-add so as to make the Group less likely to lose a client solely due to a quoted rate; General measures to steer clients away from the ‘rates chase’ towards a broader service offering; and Staff awareness and training of staff in modern supply chain theory.
• Invest in capital expenditure on new hardware and to bolster and broaden the leadership base; Clear key performance indicators (which includes backup and quality control of colleagues), performance development reviews and regular performance coaching of management, to promote a 'team spirit' culture that will support management when capacity is limited; Move away from traditional emphasis on formal structures and hierarchy to a more consultative, collaborate effort with limited barriers and fewer key personnel; Growth and development of senior leadership within smaller regions to assist in the leadership of those regions; Continued development of the global executive forum to provide support to leadership regardless of region size; and Growth of the management teams at all levels and growth of the various management forums to alleviate succession ‘bottlenecks’.
• A formalised interview process with detailed, practical training of interviewers; Implementation of an enhanced performance development review process (with clearly defined and achievable key performance indicators) to better manage internal performance; Performance coaching/training of senior management; and Carefully structured remuneration packages and bonus and incentive structure (remuneration mix) to promote employee ‘stretch’ and inspire employees to go ‘above and beyond’.
• Invest in capital expenditure on new hardware and software; Ensure closer and more direct management of associated risks by the Group's IT Risk Management and Steering Committee in consultation with the Risk Management Committee.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Integrated Reporting Framework (IIRC), King IV™

Certifications: Null

Third-party Assurance: Moore Johannesburg Inc.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed