Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Ethical Business Practices
• Client Centricity
• Employee Health and Safety
• Leadership Development
• Supporting Local Economies
• Environmental Footprint

Environmental Achievements

• Implemented energy meters at top energy-consuming sites in South Africa.
• Implemented energy-saving initiatives such as LED lighting, motion sensors, and photovoltaic plants.
• Consolidated four warehouses into a new resource-efficient facility in Kenya (LED lighting, solar heating, energy-efficient AC, photovoltaic system).
• Piloted cryo-fridge units in South Africa, reducing fuel consumption and noise levels.
• Implemented water recycling units at wash bays in several operating companies.
• Replaced 25 obsolete vehicles with fuel-efficient ones, resulting in a 15% reduction in fuel usage.
• Implemented video conferencing to reduce business travel.

Social Achievements

• Successfully concluded three-year wage agreement with employees in Logistics South Africa.
• Launched ILC3 program to improve client relationships.
• 79% of training spend in South Africa allocated to black employees.
• R478,800 invested in training for employees with disabilities.
• Maintained Level 3 BEE rating in South Africa.
• Spent over R10 million on enterprise and supplier development in South Africa.
• Provided capital funding to two SMMEs.
• 504 unemployed black learners appointed, meeting the 2.5% target in South Africa.
• Sponsored seven wellness centers under the Trucking Wellness program in South Africa (R805,000 contribution).
• Imperial Health Sciences Supply Chain Academy trained 364 people.

Governance Achievements

• Zero tolerance policy for non-compliance.
• Regular compliance audits.
• Compliance and policy training provided to employees.
• Whistle-blowing hotlines in place across all regions.
• Adherence to the Foreign Corrupt Practices Act.
• All executives of Logistics ARM confirmed understanding of the Act and anti-corruption policy.
• Compliance reviews completed in Mozambique, Namibia, Nigeria, and Zambia with no significant issues.

Climate Goals & Targets

Environmental Challenges

• Decline in exported commodities leading to lower road transportation volumes in South Africa.
• Uncertainties in bulk fuel logistics and sluggish economic activity in South Africa.
• Increasing competition in South Africa.
• Collapse in commodity prices and declining capital flows in some African countries.
• Currency volatility and unpredictability in Africa.
• Severe weather conditions impacting sub-Saharan markets.
• Threat of disintermediation as multinationals look to buy local distributors.
• Fragmentation of unions in South Africa and their political involvement.
• Increasing electricity costs in South Africa.

Mitigation Strategies

• Client restructuring and cost reduction assistance.
• Offering more services to clients.
• Focus on vehicle utilization, vehicle specification, and driver ability to reduce fuel usage and emissions.
• Purchasing highest Euro-rated vehicles.
• Route optimization software for efficient fleet planning.
• In-house electricity metering at top energy-consuming sites.
• Energy-saving initiatives.
• Waste management focus.
• Driver training programs for fuel efficiency.
• Communication campaigns for electricity, water, and waste management.
• Building union relationships in South Africa.
• Working with in-country regulators and local chambers of commerce.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procuring goods and services locally.
• Preference given to BEE-compliant suppliers in South Africa.
• Supplier development initiatives (interest-free loans, shorter payment terms).
• All suppliers to Imperial Health Sciences required to confirm adherence to the Foreign Corrupt Practices Act.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions impacting sub-Saharan markets.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2008 (Imperial Health Sciences)

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

• Delivering quality products and services to support a full customer value proposition
• Developing effective leadership and empowered people
• Accelerating transformation progress in South Africa
• Ensuring regulatory compliance
• Minimising the environmental footprint

Environmental Achievements

• Reduced water consumption from 857,675 kilolitres in 2016 to 694,956 kilolitres in 2017
• Reduced road fuel consumption from 26,703 kilolitres in 2016 to 26,169 kilolitres in 2017
• Reduced electricity purchased from 97,188 megawatt hours in 2016 to 86,317 megawatt hours in 2017
• Reduced total Scope 1 and Scope 2 emissions from 161,992 tonnes of CO2 in 2016 to 147,693 tonnes in 2017
• Zero environmental incidents in 2017 (compared to six in 2016)

Social Achievements

• Launched 58 Fleet (Pty) Ltd, a 51% black-owned fleet management business
• 85% of training spend allocated to black employees
• 70% of 406 employees participating in a management development program were black
• Increased black representation at all management levels
• R37 million spent on enterprise and supplier development (compared to R32 million in 2016)
• R7.9 million spent on Corporate Social Investment (CSI) with a primary focus on education and skills development, and road safety

Governance Achievements

• Consolidated into one division with one leadership team
• Established FRCS committees in all business units to report material issues
• Strengthened group’s oversight of foreign exchange controls and policies

Climate Goals & Targets

Environmental Challenges

• Slowing vehicle market and higher cost of inventory in Vehicle Import and Distribution
• Aggressive competition for market share
• New competitors entering the market
• Currency volatility
• Increasing regulation
• Brexit uncertainty
• Negative consumer sentiment and constrained spending
• Tighter credit approvals by banks
• Slow improvement in the transformation of executive and senior management

Mitigation Strategies

• Participation in all aspects of vehicle ownership, use and maintenance to grow revenue beyond vehicle sales
• Cross-selling and leveraging synergies across businesses
• Anticipating changes and implementing necessary innovations
• Refined dealership footprint in South Africa and disposed of non-strategic businesses
• Concluded Regent transaction, acquiring the VAPS business
• Acquired 75% of SWT Group in Australia and 100% of Pentagon Motor Holdings in the UK
• Employment equity plan and targets
• Training and development initiatives
• Robust regulatory compliance framework
• Contribution to regulatory development through industry bodies

Supply Chain Management

Responsible Procurement

• Strict service level agreements for suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• People are our greatest asset
• Integrating ESG practices

Environmental Achievements

• Road fuel usage decreased 15% due to smaller fleets and fewer kilometers travelled.
• Electricity purchased dropped 45% in South Africa mostly due to the consolidation of businesses.
• Scope 3 emissions were 46% lower as a result of travel restrictions and the increased use of video-conferencing.
• Solar PV installations in South Africa produced 763,006 kilowatt hours of solar energy.
• Logistics International achieved EcoVadis Gold status for the automotive and chemical businesses.
• IBL installed a 200.64 kilowatt peak (kWp) solar photovoltaic (PV) system, which is expected to achieve estimated carbon emissions savings of around 351 tonnes of carbon dioxide (CO2) annually.

Social Achievements

• R10.5 million donated to various initiatives to help communities and small businesses impacted by the Covid-19 crisis.
• Sourced and delivered thousands of cubic meters of personal protective equipment (PPE) and medical-grade hand sanitizers for public and private sectors in South Africa and Europe.
• Resolve Solution Partners won a Platinum Award at the 30th Annual Logistics Achiever Awards for the 239 medicine stores deployed across Malawi.
• Unjani Clinics in South Africa celebrated its millionth patient engagement.
• 174 unemployed learners participated in a learnership, apprenticeship or internship.
• 66 schools reached, including 20 reached in F2019, and 58,931 scholars educated on road safety and the K53 method of driving.
• Made a number of key black and female management appointments in South Africa.

Governance Achievements

• Became a formal signatory to the UN Global Compact.
• Of the 41 whistle-blowing reports, five tip-offs concerned Market Access and 34 concerned Logistics Africa. One tip-off was received for Logistics International and one was a miscellaneous report. Of the three alleged corruption reports, one was confirmed and the individual concerned dismissed.
• No public legal cases regarding corruption were brought against Imperial or its employees during the reporting period.
• No legal actions are pending or were completed during the reporting period regarding anti-competitive behaviour and violations of anti-trust and monopoly legislation.
• Compliance audits have not identified any material concerns and Imperial did not incur any significant fines or non-monetary sanctions for regulatory non-compliance.
• There were no substantiated complaints or loss of client data.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impact on workforce, operations, and supply chains.
• Economic downturn impacting business operations and employment.
• Meeting employment equity targets in South Africa.
• Maintaining BBBEE rating.
• Road safety incidents.
• Environmental legislation compliance across multiple jurisdictions.
• Managing hazardous substances and preventing environmental contamination.
• Reducing environmental footprint (fuel consumption, electricity, water usage, waste management).

Mitigation Strategies

• Implemented Covid-19 safety protocols and support measures for employees.
• Undertook business restructuring and consolidation.
• Accelerated talent development and strategic sourcing initiatives.
• Implemented Project Blue Fleet to proactively avoid road accidents.
• Developed group-wide climate change and environmental sustainability strategy framework.
• Implemented various environmental projects (green financing facility, solar PV installations, energy-efficient lighting, water recycling).
• Improved waste management practices and recycling initiatives.
• Engaged with stakeholders (clients, regulators, communities) to address concerns and collaborate on solutions.

Supply Chain Management

Supplier Audits: 11 large dedicated sub-contractor audits in South Africa (around 25% coverage).

Responsible Procurement

• Supplier contracts requiring adherence to ethical practices; supplier code of conduct in Europe; BBBEE compliance requirements in South Africa.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions impacting operations and supply chains.

Transition Risks

• Changes in environmental regulations and carbon taxes.

Opportunities

• Development of energy-efficient products and services; access to green finance facility.

Reporting Standards

Frameworks Used: GRI Standards (G4, core application level)

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001:2015

Third-party Assurance: Deloitte & Touche

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• In-a-Box™ modular solutions, cold chain containers, electric powered truck, LNG trucks.

Awards & Recognition

• Platinum Award (Resolve Solution Partners), Silver Award and Environmental Award (Resolve Solution Partners), Second place in the Women Empowerment in the Workplace category of the 2020 Business Engage Awards.

Environmental Metrics

ESG Focus Areas

• Climate change
• Environmental contamination
• Waste management
• Water management
• Biodiversity
• Resource efficiency
• Hazardous substance management
• Supply chain sustainability
• Green transport

Environmental Achievements

• South Africa Interstate Bus Lines (IBL) installed a 200.64 kilowatt peak (kWp) solar photovoltaic (PV) system, achieving estimated annual carbon emissions savings of around 351 tonnes of CO2.
• Solar PV installations at four sites produced 763,006 kilowatt hours of solar energy in 2020.
• Waste generated and recycled data reported for the first time.
• Nigeria pharmaceutical business moved to a new warehouse, reducing reliance on diesel generators and improving energy efficiency.
• Logistics International achieved ISO 50001 (energy management system) and ISO 14001 (environmental management system) recertification.
• Road fuel usage decreased 15% in Logistics Africa due to smaller fleets and fewer kilometers travelled.
• Electricity purchased dropped 45% in Logistics Africa due to business consolidation and closure.
• Scope 3 emissions were 46% lower in Logistics Africa due to travel restrictions and increased video conferencing.
• Water purchased decreased by 18% in Logistics Africa due to consolidation, closures, and increased alternative water sources.
• Imres opened a hub in Dubai, reducing environmental footprint and travel times.
• Imres installed an energy-efficient LED system in its Netherlands warehouse.
• WP Transport started converting its truck fleet to Scania's new generation trucks, aiming for a 15% emissions reduction by 2022.
• Logistics International road fuel usage decreased 9% due to fewer kilometers and lower employee travel.
• Logistics International biodiesel use increased 211% due to a complete switch by Food Tankers in Sweden.
• Reduced the number of printers in the German operation by 25%, aiming to reduce paper and electricity consumption.

Social Achievements

• Renovated the pharmaceutical warehouse facility in Lagos, Nigeria, introducing energy-efficient lighting and air conditioning, creating a nicer and safer working environment for employees.
• Resolve Solution Partners won the Silver Award and the Environmental Award in the Logistics Achiever Awards.

Governance Achievements

• Developed and approved a group-wide climate change and environmental sustainability strategy framework.
• Conferred responsibility for addressing climate change and other environmental issues on the CEOs of each division.
• Implemented a social and environmental responsibility code of conduct for the supply chain.
• Working with ING Bank to access a green finance facility.

Climate Goals & Targets

Environmental Challenges

• Lack of charging infrastructure in South Africa limits the introduction of electric vehicles.
• New European legislation on nitrous oxide and particulate matter emissions impacts road operations.
• Carbon taxes in South Africa and Europe impact cost structures.
• Load shedding in South Africa increases reliance on generators, raising emissions and operating costs.
• Capital constraints limit the extent of solar PV projects.
• In South Africa, limitations in national infrastructure and availability of 50ppm diesel for Euro 5 engines constrain the ability to use more fuel-efficient trucks.
• In Europe, newer, more powerful trucks often use more fuel, making it challenging to balance performance and fuel consumption.
• Increasing incidence of prolonged droughts exacerbates water shortages in some African countries.
• Most waste in South Africa is treated according to client requirements, limiting recycling strategies.
• Managing the storage and distribution of hazardous substances while protecting employees and guarding against spills and environmental contamination.

Mitigation Strategies

• Testing alternative vehicles (electric trucks in Italy, LNG trucks in the UK).
• Implementing a vehicle replacement program in Logistics Africa to ensure trucks are not older than 10 years.
• Strict truck service and maintenance programs, driver training on fuel conservation, and route optimization software.
• Vehicle management systems to measure mileage, fuel consumption, and maintenance.
• Regular testing of alternative fuel-efficient trucks.
• Modern truck fleet with Euro 6 engines in Logistics International.
• Driver training on fuel conservation and route planning systems.
• Energy meters to identify energy-saving opportunities, energy-efficient lighting, motion sensors, and air-conditioning timers.
• Solar PV installations.
• Rainwater harvesting systems.
• Wastewater recycling units.
• Formal waste management system in Logistics Africa, collaboration with waste management service providers, and employee education on recycling.
• Tracking waste per site and collaborating with recycling service providers in Logistics International.
• Robust SHEQ practices, specialized training, journey management, and periodic compliance verification.
• Customised advanced dispenser technology to minimize fuel contamination.
• Automated system to brief and debrief drivers, ensuring adequate rest and medication.
• SQAS third-party assessments to evaluate performance in transporting hazardous products.
• Membership in the Responsible Care® initiative.
• State-of-the-art fire prevention systems, automatic fire doors, and resistant floor coating in European hazardous material warehouses.
• Specialized high-security gas cylinder chambers and sophisticated gas warning systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Social and environmental responsibility code of conduct for the supply chain.
• Working with accredited waste management service providers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions, road accidents, and delays in the supply chain.

Transition Risks

• Environmental legislation compliance across multiple jurisdictions.
• New environmental regulatory requirements.

Opportunities

• Supporting the transition to renewable energy sources.
• Developing energy-efficient products.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Limited assurance by external independent service providers on selected indicators.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Resolve Solution Partners won the Silver Award and the Environmental Award in the Logistics Achiever Awards.
• Logistics International achieved EcoVadis Gold status for the automotive and chemical businesses.

Environmental Metrics

ESG Focus Areas

• Improve fuel efficiency and investigate alternative fuels
• Reduce GHG emissions
• Increase waste recycling
• Zero harm to people
• Improve diversity and inclusion
• Develop talent
• Enhance inclusive supply chain performance
• Improve employee localisation
• Strengthen CSI partnerships to increase impact
• Integrate ESG into governance and risk management processes
• Embed information security and data privacy
• Ensure high supply chain standards are upheld

Environmental Achievements

• 6% reduction in fuel efficiency for Logistics Africa’s commercial fleet
• 16,040 tonnes of Scope 1 and 2 emissions avoided
• 68% general waste recycled
• 3.1% of electricity demand met by renewable sources in Logistics Africa

Social Achievements

• Launched My Imperial People Way model
• Launched a driver learnership for unemployed women
• Implemented flexible working hours
• Launched a leadership development programme for supervisors and managers in South Africa
• 17 new Unjani Clinics established, including two mobile clinics

Governance Achievements

• Developed and approved an ESG strategy and framework
• 2,680 employees received anti-bribery and corruption training
• Zero material financial or data losses from cyberattacks

Climate Goals & Targets

Environmental Challenges

• Changing market demands for environmentally friendly goods and services
• Technological advances changing the logistics industry
• Extreme weather events interrupting operations
• Reputation risks from environmental non-compliance
• Lack of standardized HR processes
• High-risk activities resulting in incidents
• Attracting and retaining scarce skills
• Industrial and social unrest
• Failure to meet transformation targets
• Failure to be seen as a good corporate citizen
• Compliance with legislation across multiple jurisdictions
• Maintaining ethical business conduct
• Meeting product safety expectations
• Managing cybersecurity risks

Mitigation Strategies

• Developing low-carbon products and services
• Digitizing the business and partnering with technology providers
• Improving processes to reduce resource use
• Implementing change management processes
• Implementing stringent health and safety practices
• Building strong relationships with organized labor
• Increasing black ownership and achieving a favorable B-BBEE rating
• Adopting high governance and ethics standards
• Implementing best practice quality management and supply chain standards
• Proactively managing and investing in ESG

Supply Chain Management

Supplier Audits: 11 SHE audits of key subcontractors in South Africa

Responsible Procurement

• B-BBEE compliance
• Ethical conduct
• Health and safety standards
• Environmental considerations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing
• Changing client preferences

Opportunities

• Developing low-carbon products and services
• Improving fuel efficiency

Reporting Standards

Frameworks Used: King IV Report on Corporate Governance, UN Sustainable Development Goals, GRI Sustainability Reporting Standards (core application level), Task Force on Climate-related Financial Disclosures

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001, ISO 22000, ISO 27001 (in progress), RTMS

Third-party Assurance: Deloitte & Touche

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 17

Contributions to SDGs highlighted in socioeconomic impact assessment study.

Awards & Recognition

• Accenture Gender Mainstreaming Awards
• Ghana Pharma Awards
• IRMSA ESG Sustainability Award (nominee)