Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Implemented various projects to reduce energy consumption, including changing to energy-efficient motors, recovering refrigeration heat, implementing a solar photovoltaic project, and changing to energy-efficient lighting.
• Pilot project using Light Straight Run (LSR) as an alternative energy source at Mountain Valley, proving to be energy efficient and a low-carbon source.
• Reduced bag weight by 20% through a packaging sustainability project, resulting in reduced environmental footprint and economic benefits.
• Increased recycled water as a percentage of total water to 9% from 6% in 2018.

Social Achievements

• 71.86% score on enterprise development in Broad-Based Black Economic Empowerment (BBBEE).
• 100% score in socioeconomic development due to the wellness program.
• Implemented a wellness program focusing on HIV/AIDS, hypertension, cholesterol, and diabetes, with 79% employee participation in wellness screening and 89% in voluntary counseling and testing.
• Decreased absenteeism rate from 1.72% to 1.12%, resulting in a saving of R3 million per annum.

Governance Achievements

• Implemented systems and procedures to record relevant data using an internet web-based data collection system.
• Established employment equity committees at every business unit to set and monitor progress.
• Applied a “zero tolerance” approach towards fraud and corruption, with investigations conducted through “Tip-Offs Anonymous”.

Climate Goals & Targets

Environmental Challenges

• Eskom's financial and operational unsustainability, posing risks of electricity tariff hikes and load shedding.
• The impact of the Carbon Tax Act and its potential strengthening in the second phase.
• High volatility in agricultural commodity markets leading to increased price risk.
• Water problems at Goldi Primary Processing due to deteriorating water infrastructure.

Mitigation Strategies

• Implementing innovative, sustainable, and value-adding solutions to mitigate climate change risks.
• Strategic and operational action plans to manage sustainability matters.
• Conservative approach to market exposure and access to knowledgeable suppliers to manage price risk.
• Commissioning a reverse osmosis water treatment plant for Goldi in 2020.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferential procurement, enterprise and supplier development, supplier vetting by RMG Forensics

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Carbon tax, Eskom's instability

Opportunities

• Implementing renewable energy solutions, using LSR as an alternative fuel source.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 22000, ISO 9001, FSSC 22000, Halal

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lighter weight chicken bags

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Corporate governance
• Accountable social engagement

Environmental Achievements

• Recycled 0.9 billion litres of water
• Treated 0.3 billion litres of water to potable standards
• Recycled 679 tons of packaging material
• Reduced coal usage by 986 tons
• Reduced electricity usage by 6,501,000 kWh

Social Achievements

• CSI spend of R5.6 million (increase of 7.7%)
• Supported 15 children's homes and 32 feeding schemes, supplying over 500,000 meals
• Expanded employee assistance program (EAP)
• Provided coronavirus vaccinations to 72% of employees
• Trained 120 unemployed youths and 35 unemployed people with disabilities

Governance Achievements

• Established an ESG Committee
• Enhanced ESG reporting with an ESG Summary Table on the website
• Annual performance assessments completed for each director, Board committees, Chairman, CEO, and Group Company Secretary

Climate Goals & Targets

Environmental Challenges

• Outbreak of HPAI (Avian Influenza)
• High cost of raw materials (maize, soya meal)
• Load shedding and water supply constraints
• Unregulated import of poultry products
• High fuel prices
• Deteriorating water infrastructure
• High unemployment and decreased disposable income
• Weakening of the local currency

Mitigation Strategies

• Economies of scale following capacity expansion
• Higher input costs recovered through increased selling prices
• Alternative energy sources (backup generators, solar panels)
• Water savings initiatives and recycling
• Additional biosecurity measures
• Training and induction programs
• Production contingency plans for HPAI
• Insurance cover
• Participation in industry bodies to advocate for protection against imports and dumping
• Responsible expansion and production programs
• Continuous improvement in nutrition and feeding programs
• Focused on-farm management practices

Supply Chain Management

Responsible Procurement

• Diversified and reputable supplier base
• Adherence to laws and regulations
• Regular training of staff
• Pre-screening of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods

Transition Risks

• Increased energy costs
• Carbon tax

Opportunities

• Development of energy-efficient products
• Renewable energy sources

Reporting Standards

Frameworks Used: IFRS, Companies Act, JSE Listings Requirements, King IV™, International Integrated Reporting Framework

Certifications: ISO 22000:2018, ISO 9001:2015, FSSC 22000

Environmental Metrics

ESG Focus Areas

• Animal welfare
• Consumer protection
• Environmental impact
• Enterprise Supplier Development (ESD)
• Transformation

Environmental Achievements

• Maintained South African Poultry Association’s (SAPA’s) Code of Practice for animal welfare.
• Maintained ISO 9000 and 22000 food standards in processing operations.
• Achieved goals set for gaseous emissions.
• Achieved goals set for wastewater and effluent discharge.

Social Achievements

• Achieved transformation goals set for ESD.
• Maintained Astral’s integrated wellness program.

Governance Achievements

• King IV™ compliance
• Independent reward audit
• Revised and broadened Remuneration Policy
• Established an ESG Committee

Climate Goals & Targets

Environmental Challenges

• Energy and water shortages
• Worst HPAI outbreak in South Africa’s history
• Subdued trading conditions

Mitigation Strategies

• Interim business turnaround incentive scheme
• Reviewed remuneration policies to align rewards with the turnaround strategy
• Risk mitigation strategies implemented across operations

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: King IV™, IFRS, JSE Limited Listings Requirements

Certifications: ISO 9000, ISO 22000

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Corporate governance
• Accountable social engagement

Environmental Achievements

• Carbon emission reduction of 5625 tons (coal) and 16359 tons (diesel)
• 97% of total waste generated was diverted from disposal (2023: 90%)
• 13% improvement on plastic material recycled during FY2024, with 768 tons of plastic recycled (2023: 678 tons)
• Total direct and indirect energy consumed decreased by 7.5% to 3 124 292 GJ (2023: 3 378 604 GJ)

Social Achievements

• Astral Cares CSI spend increased by 10.4% to R5.3 million (2023: R4.8 million)
• More than 20% of the total workforce benefited from training programmes (R18.4 million spent on training)
• 49% of employees are female
• Various wellness programmes for employees and their families

Governance Achievements

• ESG Committee established in 2022
• Alignment of ESG Sustainability Report to IFRS S1 and S2
• Annual self-evaluation of the Board
• Zero-tolerance approach in terms of fraud and corruption

Climate Goals & Targets

Environmental Challenges

• Highly pathogenic avian influenza (HPAI)
• Water and electricity infrastructure constraints
• Raw material availability and/or price
• Food safety
• Imbalance of poultry supply and demand
• Critical skills shortages

Mitigation Strategies

• Additional biosecurity measures and training programmes
• Investment in emergency power generation and water storage
• Prudent procurement and import programmes
• Stringent quality controls and audits
• Production cutbacks to manage supply and demand
• Talent acquisition, skills development and succession planning

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferential procurement programme
• Supplier vetting procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and processes
• Renewable energy projects

Reporting Standards

Frameworks Used: IFRS, Companies Act, Listings Requirements, King IV™, International Integrated Reporting Framework, JSE Sustainability Disclosure Guidelines

Certifications: ISO 22000:2018, ISO 9001:2015, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed