Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Resources
• Stakeholder Relationships
• Socio-Economic Development
• Supply Chain
• Safety, Health and Environment
• Intellectual Property

Environmental Achievements

• 7 percent decrease in Scope 1 emissions
• 174,228 metric tons of carbon dioxide sequestered in 2017/18
• 425,136 MWh electricity generated by Tongaat Hulett Sugar Mills

Social Achievements

• R217.6 million invested in SED initiatives
• R103.6 million invested in healthcare-related activities
• R20.8 million invested in education initiatives
• Improved safety performance with a reduction in fatalities
• Successful implementation of SANS 16001 wellness management system at three pilot operations
• Increased representation of African skilled employees, management, and leadership in South Africa
• Reduction in expatriate workforce in Mozambique
• Preferential appointment of women in mid-to-senior level positions in Zimbabwe

Governance Achievements

• Amendment of the Code of Business Conduct and Ethics to include human rights provision
• Drafting and dissemination of guidelines for human rights in the supply chain policy
• Introduction of a supplier human rights review process
• Better alignment of SHE practices with human rights
• Review of human resources policies to ensure compliance with human rights guidelines
• Successful completion of SAP ERP system rollout

Climate Goals & Targets

Environmental Challenges

• Single work-related fatality
• Increase in malaria cases (72% increase from 2016/17)
• Challenges in improving air emissions quality, particularly at the refinery
• Water stress in the uMhlathuze region
• HIV/AIDS prevalence
• Need to improve water management and reduce effluent discharge
• Need to reduce hazardous waste generation

Mitigation Strategies

• Fatality risk control protocols established and monitored
• Review of malaria control programs and exploration of public-private partnerships
• Improved process technology solution implemented at the refinery to reduce emissions (R90 million investment)
• Partnership with stakeholders in the uMhlathuze Water Stewardship Programme
• Comprehensive HIV/AIDS management program including VCT, ART provision, and wellness initiatives
• Target zero effluent disposal philosophy
• Target zero hazardous waste mindset with focus on waste reduction, reuse, and recycling

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Alignment with national B-BBEE agenda in South Africa
• Focus on local procurement from Black Owned and Black Women Owned entities
• Support for Qualifying Small Enterprises (QSEs) and Exempt Micro Enterprises (EMEs)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water availability

Transition Risks

• Tightening regulatory constraints on emissions

Opportunities

• Improved irrigation efficiency
• Drought-resistant crop varieties
• Carbon capture and storage potential

Reporting Standards

Frameworks Used: GRI Standards, CDP

Certifications: ISO 14001, OHSAS 18001, ISO 9001, FSSC 22000, ISO 22000, SANS 16001

Third-party Assurance: Environmental Resources Management (ERM); Terra Firma Solutions (limited assurance on Scope 1 and 2 GHG data)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 6 (Clean Water and Sanitation)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

The report mentions alignment with several SDGs throughout the various initiatives described.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2017 Investment Analyst Society Awards Winner: Consumer Products Sector
• GBCHealth Business Action on Health Awards (Hippo Valley Estates)

Environmental Metrics

ESG Focus Areas

• Safety
• Water Resources Management
• Small-scale farmer support
• Operational efficiency
• Market access
• Human Rights
• Climate Change
• Renewable Energy
• Food Safety
• Socio-economic development
• Biodiversity
• Land Management
• Waste Management
• Supply Chain Sustainability
• Employee Well-being

Environmental Achievements

• 7 percent reduction in Scope 1 carbon dioxide emissions
• High score rating in the CDP (Water Disclosure Project)
• Good score rating in the CDP (Carbon Disclosure Index)
• No significant environmental incidents were reported
• 174,228 metric tons of carbon dioxide sequestered

Social Achievements

• 5 percent reduction in Lost Time Injuries (LTIs) compared with 2017
• R217.6 million invested in Socio-Economic Development (SED) initiatives
• R103.6 million invested in healthcare-related activities
• R20.8 million invested in education initiatives
• 3,019 new jobs created through Jobs Fund partnership
• 1,285 community members trained through Jobs Fund partnership
• Hippo Valley Estates won GBCHealth Business Action on Health Award

Governance Achievements

• Level 3 B-BBEE status achieved in South Africa
• Independent third-party assurance provided by Environmental Resources Management (ERM)

Climate Goals & Targets

Environmental Challenges

• One fatality
• Depressed world sugar price
• Impact of prior year’s drought
• Impact of imports on local markets
• Increasing climate risk
• Water scarcity
• HIV/AIDS prevalence
• Malaria outbreaks
• Air emissions
• Waste management

Mitigation Strategies

• Focus on zero fatalities and improved safety performance
• Efficient water resources management
• Monitoring drought impact and assisting farmers
• Training and support for small-scale farmers
• Maximising capacity utilisation and reducing costs
• Improving market access
• Implementing SANS 16001 on wellness management systems
• Investing in improved irrigation efficiency and drought-resistant crops
• Reducing fossil fuel usage
• Implementing improved process technology to reduce emissions at the refinery
• Waste reduction, reuse, and recycling initiatives
• Public-private partnerships for malaria control

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strategic and preferential procurement
• Focus on localisation and support for SMMEs, BO, and BWO entities

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Extreme weather events

Transition Risks

• Regulatory changes related to emissions
• Market shifts

Opportunities

• Improved irrigation efficiency
• Development of drought-resistant crop varieties
• Carbon sequestration through sugarcane farming

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, UN Sustainable Development Goals (SDGs), South African National Development Plan (NDP), King Code on Corporate Governance (King IV)

Certifications: ISO 14001, OHSAS 18001, FSSC 22000, ISO 22000, ISO 9001, SANS 16001

Third-party Assurance: Environmental Resources Management (ERM)

UN Sustainable Development Goals

• SDG 1 (No Poverty)
• SDG 2 (Zero Hunger)
• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Tongaat Hulett's sustainability initiatives align with these SDGs through various programs and activities.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2017 Investment Analyst Society Awards Winner: Consumer Products Sector
• GBCHealth Business Action on Health Awards (Hippo Valley Estates)

Environmental Metrics

ESG Focus Areas

• Human Capital
• Social and Relationship Capital
• Natural Capital
• Intellectual Capital

Environmental Achievements

• 20% reduction in hazardous waste to 240 tons from 299 tons in 2019
• 97% of waste recycled
• 64% of total electricity used is self-generated by Tongaat Hulett’s sugar mills

Social Achievements

• R87.9 million invested in socio-economic development initiatives
• R51.5 million invested in healthcare
• R6.2 million invested in education
• Reduction in work-related fatalities to 1 from 5 in the previous year
• Established FarmCo, creating opportunities for third-party growers to farm company-owned land

Governance Achievements

• Strengthened governance processes and policies
• Implemented a Fraud Risk Management Strategy
• Disciplinary action taken against employees involved in misconduct identified in the PwC investigation

Climate Goals & Targets

Environmental Challenges

• Nine fatalities at our operations (one work-related, three non-work-related, five third-party)
• Rightsizing of the company
• Debt reduction and restructuring
• COVID-19 pandemic and impact of lockdown
• MAC dispute delayed sale of starch and glucose business
• Introduction of Carbon Tax in South Africa
• Currency instability and hyperinflation in Zimbabwe

Mitigation Strategies

• Focus on zero fatalities and improved health and safety performance
• Progress with debt reduction program
• Improving market access
• Investing in new capabilities
• Cost of Living Allowance in Zimbabwe to cushion employees against hyperinflation
• Voluntary severance packages and retrenchments
• Business Continuity Plans for COVID-19
• Changes to carbon emission calculation methodology to align with South Africa's regulations

Supply Chain Management

Responsible Procurement

• Stringent compliance measures
• Contracts management controls
• Increase spend with SMMEs
• Introducing Black Owned and Black Women Owned enterprises

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Extreme weather patterns

Transition Risks

• Carbon tax
• Climate change policies

Opportunities

• Renewable energy
• Water management
• Reduction of fossil-based inputs

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), King Code on Corporate Governance (King IV)

Certifications: ISO 14001, OHSAS 18001, ISO 9001, FSSC 22000, ISO 22000

Third-party Assurance: Catalyst Solutions (carbon emissions), Internal assurance on selected sustainability performance information

Environmental Metrics

ESG Focus Areas

• Safety
• Socio-economic development
• Transformation
• Environmental sustainability
• Governance

Environmental Achievements

• 20% reduction in hazardous waste to 240 tons from 299 tons in 2019
• 64% of total electricity used was self-generated by Tongaat Hulett’s sugar mills
• 97% of waste was recycled

Social Achievements

• R87.9 million invested in socio-economic development initiatives
• R51.5 million invested in healthcare
• R6.2 million invested in education
• Created the biggest empowerment sugarcane farming enterprise in South Africa
• Began the biggest farming initiative in Zimbabwe since independence

Governance Achievements

• Strengthened governance and financial control
• Improved governance and reporting processes
• Appointed a strong leadership team and Board
• Implemented a new Enterprise-Wide Risk Management (ERM) system and embedding of a new risk management policy, ERM framework
• Appointment of an experienced Chief Risk Officer

Climate Goals & Targets

Environmental Challenges

• High debt burden
• Poor financial shape
• Financial mismanagement
• Challenging economic environment
• Rapidly changing regulatory dynamic
• COVID-19 pandemic
• Cyclone Idai damage
• Hyperinflation in Zimbabwe

Mitigation Strategies

• Turnaround and restructuring process
• Asset disposals
• Debt reduction plan
• Cost reduction initiatives
• Improved operational efficiency
• Strategic partnerships
• Comprehensive operational response to COVID-19
• Timely adjustments of local sugar prices in Zimbabwe

Supply Chain Management

Responsible Procurement

• Strategic sourcing initiatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV Report on Corporate Governance for South Africa 2016, International Integrated Reporting Council’s (IIRC) Integrated Reporting () Framework, UN Sustainable Development Goals (SDGs), GRI Standards

Certifications: NOSA, OHSAS 18001, ISO 14001, ISO 9001, FSSC 22000, ISO 22000

Third-party Assurance: Deloitte & Touche, KPMG, Catalyst Solutions

Sustainable Products & Innovation

• Ethanol
• Bio-plastics
• Power generation

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 23% reduction in hazardous waste to 184 tons from 240 tons in 2020
• 505,575 tons CO2-e scope 1 carbon emissions (2020: 704,989 tons)

Social Achievements

• COVID-19 assistance R84 million
• R122 million invested in socio-economic development initiatives (2020: R88 million)
• 20,174 small-scale farmers supported
• Improved safety performance LTIFR 0.093 (2020: 0.107)

Governance Achievements

• Strengthened financial discipline, oversight and assurance with the appointment of key positions such as a Chief Audit Executive (CAE), Chief Risk Officer, Chief Information Officer (CIO), Human Resource (HR) Executive and Group Legal Counsel
• Strengthened policies and procedures
• Implementation of a new Sustainability Management framework
• Review of all Safety, Health and Environment (SHE) policies, procedures, systems and controls
• Development of a sustainability data management system
• Rejoined the United Nations Global Compact (UNGC)
• Transitioned its public disclosure to the Task Force on Climate-related Financial Disclosure framework
• Produced its first climate change report

Climate Goals & Targets

Environmental Challenges

• Legacy operational issues
• COVID-19 pandemic
• Delays and cancellations of land sales
• High debt levels
• Sugar loss at South African refinery
• Hyperinflation in Zimbabwe
• Geopolitical instability in Mozambique
• Inefficient IT platforms

Mitigation Strategies

• Debt refinance agreement renegotiated
• Successful completion of starch disposal transaction
• Cash flow improvements
• Improved governance and reporting processes
• Cost optimisation
• Automation, systems enhancements, and advancements in technology
• Strengthened stakeholder relations
• Implementation of performance management and talent management framework

Supply Chain Management

Responsible Procurement

• Supplier code of conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV™, International Integrated Reporting Council’s (IIRC) Integrated Reporting () Framework, UN Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 14001, ISO 45001, FSSC 22000, ISO 22000, ISO 9001: 2008

Third-party Assurance: Deloitte & Touche, BDO, Catalyst Solutions, Networx

Awards & Recognition

• Gold in the Mobile Video category at the Mobile Marketing Association’s Smarties Awards