Climate Change Data

Calgro M3 Holdings Limited

Climate Impact & Sustainability Data (2019, 2020)

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Community Development
  • Employee Well-being
  • Environmental Sustainability
  • Ethical Conduct
  • Broad-Based Black Economic Empowerment (B-BBEE)

Environmental Achievements

  • Implemented water-saving devices ('Save a Flush') resulting in water neutrality within three months of occupancy for new units.
  • Reduced electricity requirement per residential unit from 3.5 kVA to approximately 1.5 kVA in some developments through energy-efficient design and gas reticulation.
  • Implemented rainwater harvesting systems in several developments.
  • Achieved zero fatalities in the workplace.

Social Achievements

  • 91 individuals received training through skills development programs.
  • 70%+ of on-site workforce from local communities.
  • Level 1 B-BBEE contributor.
  • Significant investment in community development initiatives (crèches, clinics, parks, community centers).
  • Supported various educational and youth development programs.
  • Implemented mentorship and learnership programs.
  • Average conflict resolution time of 72 hours.

Governance Achievements

  • Signatory to the UN Global Compact Principles.
  • Implemented a formal HSE management system (ISO 45001:2018 and ISO 14001:2015).
  • Established a 24-hour Ethics Hotline managed by Deloitte.
  • Implemented a Code of Good Conduct and Ethics.
  • Zero tolerance approach to fraud and corruption.

Climate Goals & Targets

Environmental Challenges

  • Housing shortages and illegal land invasions.
  • Skills shortages.
  • Energy and water shortages.
  • Government assistance and regulatory approvals.
  • Community acceptance and social integration.
  • Strikes and activism.
Mitigation Strategies
  • Increased security and collaboration with government to address housing shortages.
  • Skills development programs, subcontractor incubator program, internal coaching.
  • Water and energy saving initiatives, alternative solutions.
  • Relationship building with public sector, demonstrating effectiveness of integrated development.
  • Stakeholder engagement, community development initiatives, corporate social investment.
  • Proactive stakeholder engagement and community development.

Supply Chain Management

Responsible Procurement
  • Preferential procurement for local SMMEs.
  • 96.5% procurement spend from empowering suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, King IV

Certifications: ISO 14001:2015 (planned), ISO 45001:2018 (planned), ISO 9001:2015 (started)

Sustainable Products & Innovation

  • Energy-efficient buildings
  • Rainwater harvesting systems
  • Gas reticulation

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • human rights
  • labour standards
  • environment
  • anti-corruption
  • sustainability
  • corporate governance
  • community development
  • upliftment
  • empowerment
  • health and safety

Environmental Achievements

  • ISO 14001:2015 certification achieved
  • invest in eco-friendly energy and water solutions
  • rehabilitate disturbed land
  • support long-term environmental stewardship
  • saving water and energy and reducing carbon footprint

Social Achievements

  • Top empowerment award received in recognition of contribution to growth and sustainability
  • The Sustainable Cities and Human Settlements Award received from the UN
  • target across the Group is to employ 50% of our on-site workforce from local communities with associated training. We are currently achieving in excess of 70% across the Group
  • constructs crèches, clinics, parks and community centres within its developments
  • various Covid-19 initiatives including donations of hand sanitizer and other safety supplies to staff, families, and communities; price reductions in Memorial Parks; and a moratorium on house price increases

Governance Achievements

  • Attained United Nations Global Compact advanced level status
  • King IV™ Application Register available on website
  • ISO 45001:2018 certification achieved
  • 99.87% shareholder approval for remuneration policy and implementation report at 2019 AGM

Climate Goals & Targets

Long-term Goals:
  • Targeted return on equity (“ROE”) of 30% over the medium to long-term
  • Equal profit contribution from each of the businesses
  • Securing annuity income stream sufficient to cover all operating expenses for the Group
Medium-term Goals:
  • Return to a 30% ROE in line with strategy
  • Consistent, predictable cash flow from the Memorial Parks business to stabilise lumpy cash flows originating from the Property Development business
  • Continuous reassessment to determine optimal timing to reinvest in the Residential Rental Investment business
  • Ensure long-term sustainability
  • Secure additional pipeline projects with no or limited immediate impact, on the Group’s liquidity – commencement after the roll-out of our existing pipeline.
Short-term Goals:
  • Cash preservation and liquidity of balance sheet
  • Debt maturity restructure
  • Maximise cash generation and roll-out of the existing project pipeline
  • Continued focus on variable cost model
  • Greater brand awareness and the creation of an aspirational brand
  • Ensure the Calgro M3 team remains passionate about serving the people of South Africa by Building legacies, changing lives while staying true to our core principles.

Environmental Challenges

  • Covid-19 pandemic impact on operations, financial outlook, and strategic planning
  • housing shortage and land invasions
  • macroeconomic factors (political uncertainty, junk status downgrade, impact on end-user finance)
  • cash flow and liquidity constraints
  • public vs. private sector exposure
  • BBBEE compliance (finding qualified senior empowerment management candidates)
  • energy and water shortages
  • land expropriation without compensation
Mitigation Strategies
  • Covid-19 response: safety and hygiene measures, cash flow management, risk-based plan for return to full capacity
  • land invasion mitigation: enhanced community relations, partnership with local government and private sector to address housing shortage, increased security
  • macroeconomic response: regular reviews and updates of economic and affordability data, cautious approach to new investments
  • cash flow mitigation: strict budget control, cash flow monitoring, working capital preservation, prioritization of existing projects, centralized cash flow control
  • public sector exposure mitigation: hands-on approach to measuring exposure against Board-approved tolerance levels
  • BBBEE mitigation: empowerment as a standard agenda item, pursuit of qualified empowerment candidates, supplier empowerment plan
  • energy and water mitigation: eco-friendly solutions, alternative water and energy solutions, environmentally friendly designs
  • land expropriation mitigation: focus on projects less susceptible to risk, engagement with government

Supply Chain Management

Responsible Procurement
  • Focus on local labour and enterprise development

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV™, GRI G4 Sustainability Reporting Guidelines, UN Global Compact Principles

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: PricewaterhouseCoopers Inc. (“PwC”)

Sustainable Products & Innovation

  • Eco-friendly energy and water solutions

Awards & Recognition

  • Top empowerment award
  • UN Sustainable Cities and Human Settlements Award