Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability

Governance Achievements

• Successful participation in the JSE’s Socially Responsible Investment (SRI) Index and the FTSE/JSE Responsible Investment Index.
• Minor amendments made to the Board charter to improve governance.
• Continuous monitoring of compliance with laws, regulations, and best practices.

Climate Goals & Targets

Environmental Challenges

• Non-compliance of Wispeco's board composition with King III independence requirements.
• Non-disclosure of the full details of Board committee terms of reference and Board evaluation process due to sensitivity.

Mitigation Strategies

• Remgro representatives on Wispeco's board ensure sound corporate governance and sustainability practices.
• Summary of terms of reference available on the company website.
• Ongoing monitoring and evaluation of the Board and its committees.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King III

Third-party Assurance: Internal audit and independent service providers (verification of key sustainability indicators, not full audit)

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Social Sustainability
• Environmental Sustainability
• Corporate Governance
• Ethics
• BBBEE (Broad-Based Black Economic Empowerment)

Environmental Achievements

• Stabilization of operational Greenhouse Gas (GHG) emissions
• 33% reduction in municipal and raw water consumption
• Full compliance with all environmental legislation across all operations
• Achieved an overall ‘A’ rating in its annual carbon disclosure CDP submission and received membership to the South African Climate Leaders list.
• Operational Scope 1 and 2 carbon emissions decreased from 862 288 tCO2e in 2016 to 822 126 tCO2e in 2017.

Social Achievements

• Successful participation in the FTSE/JSE Responsible Investment Index
• Continued participation in the Carbon Disclosure Project (CDP)
• Continued membership of the Ethics Institute of South Africa
• Obtaining level 8 contributor status in terms of the BBBEE scorecard
• Employee turnover rate of 5.2% (2017), compared to 5.3% (2016). Avoidable turnover reduced to 0.6% (2017) from 1.2% (2016).
• R23 million (2017) spent on Corporate Social Investment (CSI) initiatives (R24 million in 2016).

Governance Achievements

• Implementation of a Code of Ethics for all directors and employees.
• Establishment of an Ethics line managed by an independent third party.
• No material investigations concluded during the reporting period.
• No incidents of material non-compliance with any laws, regulations, accepted standards or codes, and no significant fines were imposed.

Climate Goals & Targets

Environmental Challenges

• Employment equity transformation challenge at Remgro and its subsidiaries.
• Low staff turnover and limited organic growth hindering employment equity progress.
• Increasing costs of energy and water.
• Severe water restrictions in the Western Cape.
• Increased waste to landfill reported by RCL Foods (due to inclusion of additional information).
• Low-cost imported copies of Wispeco's products posing a risk to long-term sustainability.

Mitigation Strategies

• Annual labour plan submitted to the Department of Labour outlining transformation objectives.
• RCL Foods implemented a revised Employment Equity five-year plan.
• RCL Foods initiated an Energy Roadmap to secure price certainty and long-term electricity supply.
• RCL Foods implemented waste-to-energy project and solar energy initiatives.
• Wispeco installed a CUBE powder coating plant and improved regulators at its melting facility to improve energy efficiency.
• Improved water metering systems and efficient irrigation practices at RCL Foods.
• RCL Foods set targets to reduce food waste by 30% and waste to landfill by 10%.
• Wispeco improved production efficiencies and developed competitive pricing structures to address low-cost imported competition.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchases more than half of its goods and services from BBBEE accredited vendors (Remgro)
• High-quality virgin billet procurement from four dedicated sources (Wispeco)
• Extensive procurement of second-hand aluminum (Wispeco)

Climate-Related Risks & Opportunities

Physical Risks

• Drought impacting RCL Foods’ agricultural activities
• Climate change impacting water availability

Transition Risks

• Impending carbon taxes and GHG reporting requirements
• Reputational risks related to climate change

Opportunities

• RCL Foods’ waste-to-energy project
• RCL Foods’ solar energy initiatives
• Wispeco’s energy efficiency improvements

Reporting Standards

Frameworks Used: King III, Integrated Reporting Guidelines, GHG Protocol

Certifications: BBBEE scorecard verification, Carbon Disclosure Project (CDP) verification, ISO 22000 and FSSC 22000 (RCL Foods), BS-EN755, SANS1796 and SANS999 (Wispeco)

Third-party Assurance: Combined assurance model incorporating management, internal audit and external assurance (e.g. BBBEE scorecard verification, Carbon Disclosure Project (CDP) verification).

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FTSE/JSE Responsible Investment Index
• South African Climate Leaders A-List (CDP)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability
• Stakeholder Relationships
• Risk Management
• Ethical Conduct
• Diversity and Inclusion

Social Achievements

• Promotes diversity in board membership across various attributes, including race and gender.
• Implements measurable corporate citizenship programs.

Governance Achievements

• Adopted and fully committed to applying the principles of the King IV Report on Corporate Governance for South Africa 2016.
• Established a formal Board Charter.
• Established a Social and Ethics Committee to ensure responsible corporate citizenship.
• Implemented a legal compliance policy and appointed a compliance officer.
• Developed a remuneration policy focused on fairness, responsibility, and transparency.
• Conducts annual self-evaluation of the Board and Committees.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV Report on Corporate Governance for South Africa 2016

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social Responsibility
• Environmental Sustainability

Environmental Achievements

• 1.6% decrease in purchased electricity
• 322% increase in generation of solar renewable energy at RCL Foods
• 181% increase in generation of biogas renewable energy at RCL Foods
• Purchase of 116 023 kWh of renewable (photovoltaic) electricity at Millennia Park (Remgro head office)
• 7.5% decrease in total water consumption (municipal and non-municipal)

Social Achievements

• Achieved a level 5 contributor status in terms of the BBBEE scorecard
• Employee turnover rate of 5.2% (compared to 10.6% in 2020)
• Various initiatives under the “Staying Future Fit” (SFF) change management program, including workshops on diversity, inclusivity, trust and teamwork; targeted functional and leadership development; formalized and efficient communication channels; and a robust personal development and performance management process.
• R22 million spent on Corporate Social Investment (CSI) initiatives

Governance Achievements

• Incorporation of ESG in all committee mandates and Board charter
• No material investigations involving Remgro, its employees or officers were conducted during the reporting period
• No alleged incidents involving Remgro, its employees or officers were reported through the Ethics hotline

Climate Goals & Targets

Environmental Challenges

• Employment equity transformation challenges at Remgro head office due to low staff turnover and limited organic growth
• Covid-19 pandemic impact on communities, businesses, and operations
• Alcohol sales restrictions in South Africa impacting Distell's financial stability and social initiatives
• Low percentage of recyclables being collected from landfills and at source (GreenUP initiative)
• High levels of poverty and unemployment in communities surrounding operations

Mitigation Strategies

• Implementation of a five-year Employment Equity plan
• Covid-19 preparedness and response plan, including remote work options and safety protocols
• Alcohol harm reduction programs and campaigns by Distell
• GreenUP initiative to formalize waste collection and recycling in the informal sector
• Various CSI initiatives focusing on community development, education, and economic empowerment

Supply Chain Management

Responsible Procurement

• BBBEE accredited vendors
• Updated Service Level Agreements reflecting expectations on environmental responsibility, human rights, and anti-corruption

Climate-Related Risks & Opportunities

Physical Risks

• Drought events and erratic rainfall

Transition Risks

• South African carbon tax
• Load shedding

Opportunities

• Renewable energy investments
• Energy efficiency measures

Reporting Standards

Frameworks Used: King IV Report on Corporate Governance for South Africa (2016), GRI, CDP (formerly Carbon Disclosure Project), UNGC

Third-party Assurance: PricewaterhouseCoopers Inc., AQRate Proprietary Limited, Carbon Calculated, EHS Green Leaf Consultancy

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 8
• SDG 9
• SDG 17

Various initiatives align with these goals through community development, health and wellbeing, economic growth, infrastructure development, and partnerships.

Awards & Recognition

• A- rating in 2020 CDP Climate Change

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social
• Environmental

Environmental Achievements

• 3% increase in rooftop solar PV power at RCL Foods
• Distell on track to meet all environmental efficiency targets, including GHG emissions, energy, water consumption and effluent load
• Wastewater treatment plants installed at Distell’s Worcester and Springs plants
• Additional four solar PV installations by Distell
• Water recycling plant installed at Distell’s Gqeberha plant
• Additional five solar PV installations at Mediclinic South Africa hospitals
• Volumes of waste diverted from landfill doubled by Mediclinic International

Social Achievements

• Continued membership of the Ethics Institute of South Africa
• Incorporating ESG in all committee mandates and Board Charters
• Continued participation in the CDP (formerly Carbon Disclosure Project)
• Obtaining our level 4 contributor status in terms of the BBBEE scorecard
• Established Board-level governance mechanisms for ESG
• Undertaken materiality analyses and assessments of selected investee companies
• Initiated a Strategic ESG Committee and Operational ESG Committee reporting to the Board
• Reviewed Remgro Investment Mandate and developed an Investment Policy and Investment Framework that includes ESG and sustainability considerations
• RCL Foods provided over 18 million meals in 2022 through the DO MORE FOUNDATION, of which 15.2 million were focused on food relief for communities affected by the unrest and flooding.
• Siqalo Foods launched its second Learnership for People Living with Disabilities.

Governance Achievements

• Incorporating ESG in all committee mandates and Board Charters
• Established Board-level governance mechanisms for ESG
• Initiated a Strategic ESG Committee and Operational ESG Committee reporting to the Board
• Reviewed Remgro Investment Mandate and developed an Investment Policy and Investment Framework that includes ESG and sustainability considerations

Climate Goals & Targets

Environmental Challenges

• Low staff turnover and limited organic growth remain limiting factors in employment equity at Remgro.
• Recurring loadshedding and power outages damaged some smaller network devices, and prevented some devices from rebooting at Stellenbosch Schools Broadband Initiative.
• Increased uptake of digital and online teaching and learning increased internet bandwidth usage at Stellenbosch Schools Broadband Initiative.
• Covid-19 pandemic and subsequent lockdown had a devastating effect on communities and learners in Remgro Schools Project.
• Severe space challenge at Ikaya Primary School.
• Management and cooperation issues at Kayamandi Primary School.
• Challenges brought about by the Covid-19 pandemic highlighted the urgent need for digital upskilling for both teachers and learners at MiDO Foundation.
• Schools were focused on catching up with learning lost during the Covid-19 pandemic, aggravated by further challenges such as storm damage, cable theft and loadshedding at Reading Eggs.
• The Covid-19 pandemic and resultant restrictions limiting most social events at Lokxion Foundation.
• The need for mental health services escalated significantly during the year, with increases in suicide and instances of children suffering from anxiety and feelings of being overwhelmed at Good Hope Psychological Services.
• Low percentage of recyclables being collected from landfills and at source at Distell.
• Severe economic environment impacting RCL Foods.
• Pressure on food systems at RCL Foods.
• Food insecurity at RCL Foods.
• Changing consumer behaviour at RCL Foods.
• Need for improved and more sustainable returns at RCL Foods.
• Concerns that an unbundled RCL Foods will be smaller and its shares more illiquid.
• High commodity costs at RCL Foods.
• Low-cost imported copies of Wispeco’s products represent the main risk area to the long-term sustainability of Wispeco’s manufacturing business.
• Loadshedding impacting all Remgro’s businesses.
• South Africa is a “water stressed” country.
• South Africa’s landfill sites are fast approaching maximum capacity.

Mitigation Strategies

• Remgro follows a combined assurance model, incorporating management, internal audit and external assurance.
• Stellenbosch Schools Broadband Initiative installed surge protection and worked closely with the Stellenbosch municipality to upgrade the UPS systems at various high sites.
• Stellenbosch Schools Broadband Initiative provided best practice guidelines on streaming devices.
• Remgro Schools Project implemented a 3-Level approach to provide support to schools.
• Remgro arranged a teambuilding workshop for the management team at Kayamandi Primary School.
• MiDO Foundation implemented teacher training on digital platforms.
• Extensive planning, onsite and remote support at Reading Eggs.
• Good Hope Psychological Services launched a Mental Health Awareness Campaign.
• Distell implemented a Group-wide short-term incentive (STI) scorecard that includes non-financial measures based on its selected SDGs.
• Distell partnered with MeMeZa to introduce community policing patrollers.
• Distell is partnering with SANCA to implement a targeted youth behaviour change programme.
• RCL Foods maintained strict Covid-19 health and safety protocols.
• RCL Foods provided food relief for communities affected by the unrest and flooding.
• RCL Foods implemented multi-stakeholder social and economic development initiatives.
• RCL Foods implemented co-created sourcing strategies.
• RCL Foods communicated progress with the managed separation and value-added growth strategy.
• RCL Foods initiated development of a new, focused ESG sustainability strategy in 2022.
• RCL Foods employed hedging instruments to manage exposure to raw material and currency fluctuations.
• Wispeco improved its production efficiencies and developed competitive pricing structures.
• RCL Foods continues to generate much of its own electricity from the burning of bagasse waste.
• RCL Foods increased its solar rooftop photovoltaic (PV) self-generation programme.
• Siqalo Foods implemented a thermal insulation project and a heat recovery project.
• Distell installed four solar PV solutions.
• Distell is generating biogas energy.
• Mediclinic installed additional solar PV in five of its South African hospitals.
• RCL Foods is currently only sending 9% of its waste to landfill.
• Distell is a founding member of the SA Plastics Pact.
• Distell is strengthening GreenUP in the Western Cape and introducing it into areas of Gauteng.
• Mediclinic is running feasibility studies on innovative approaches to reuse and recycling of medical devices and services.
• Siqalo Foods implemented an effluent chemical dosing upgrade project.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Remgro requires ethical behaviour from its suppliers and business partners.
• Distell undertakes third-party social and ethics audits of its grape and wine suppliers.
• Distell published an updated Responsible Sourcing Policy.
• RCL Foods spent R11.6 billion with BBBEE compliant suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding in KwaZulu-Natal and Eastern Cape
• Drought in Gqeberha

Transition Risks

• South Africa’s carbon tax regime

Opportunities

• Generating or purchasing private supply of electricity
• Developing renewable energy, energy efficiency and carbon abatement opportunities

Reporting Standards

Frameworks Used: King IV, GRI, CDP, PCAF, TCFD, UNGC, GHG Protocol, SBTi

Certifications: ISO, FSSC, OHSAS, SANS

Third-party Assurance: PricewaterhouseCoopers Inc., AQRate Proprietary Limited, Carbon Calculated, EHS Green Leaf Consultancy, Deloitte’s Tip-Offs Anonymous division, Independent Competent Person’s Report, Makro Safe

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 8
• SDG 12
• SDG 13
• SDG 17

Remgro's CSI strategy continues to take guidance from the 17 Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• RCL Foods’ plant-based products
• Distell’s recyclable packaging, premium non-alcoholic and low-alcohol brands and beverages with less sugar

Awards & Recognition

• FTSE4Good Index Series constituent

Environmental Metrics

ESG Focus Areas

• Sustainable investment stewardship
• ESG action across Remgro
• Unlocking shared value for South Africa
• Climate change and energy
• Water management
• Waste management
• Diversity and inclusion
• Social impact
• Employee relations
• Health and safety
• Supply chain and procurement
• Governance

Environmental Achievements

• Increased scope of carbon reporting to include six investee companies
• RCL Foods’ co-generation, Waste-to-Value (W2V) and solar plants produced over 180GWh of renewable energy, improving its renewable energy usage intensity 18%
• Air Products installation of a methane stripper at its Natref CO2 plant, lowering Scope 1 process GHG emissions by 30%
• Refurbishment of Siqalo Foods’ Boksburg boiler house, largely replacing coal and gas with biomass
• 66% increase in on-site renewable energy across Mediclinic hospitals
• Installation of reverse osmosis (RO) water treatment plant at RCL Foods’ Randfontein grocery facility
• RCL Foods achieved 2023 target of 30% improvement in water efficiency in sugar production
• Mediclinic achieved 2022 water consumption target of 544 litres per bed-day sold
• 92% of RCL Foods’ waste output was used as energy, converted into fertiliser or reused

Social Achievements

• ESG training rolled out to all investment managers
• Full-time ESG and sustainability expert appointed
• Group-wide collaboration on social impact and CSI initiatives
• Remgro’s employee turnover rate was 6.7% (2022: 8.0%)
• Facilitated a workshop for investee companies to engage on social impact initiatives and CSI plans
• Numerous ESG processes implemented since June 2022 across Remgro and its investee companies (e.g., reduced Scope 1 and 2 emissions, improved BBBEE ratings, enhanced ESG governance structures)
• Initiated an Investment Managers’ Conference and implemented a series of Investments Portfolio Managers’ Workshops to engage on ESG

Governance Achievements

• Developed strategic ESG framework
• Implemented ESG investment framework and policy, including Standard Operating Procedure (SOP)
• ESG baseline report completed across Remgro’s investee companies
• Inaugural climate change disclosures published aligned to TCFD framework recommendations
• Implemented several initiatives to integrate ESG across the Group and its investee companies
• Reviewed and updated Remgro ESG Risk Management Framework, Operational ESG Committee terms of reference, Strategic ESG Committee Charter, ESG Investment Framework and Board and Committee Charters

Climate Goals & Targets

Environmental Challenges

• Severe economic constraints (weaker rand, inflation, interest rates, unemployment, high energy and food prices)
• Pressure on food systems (environmental degradation, climate change, population growth, malnutrition)
• Food insecurity (rising food costs, unemployment, flooding, dumped imports)
• Changing consumer behavior (value emphasis, demand for convenience and sustainable products)
• Need for technology and platforms to remain competitive
• Load shedding impacting all sectors
• Low staff turnover and limited organic growth limiting factors in employment equity
• Overcrowding and insufficient educators at Kayamandi High
• Declined learner performance due to storm damage, cable theft, load shedding, and Covid-19 remnants
• Escalation in ESG challenges locally and globally

Mitigation Strategies

• Revised Sustainability Strategy with three Pillars (People, Product and Practices) and ten Focus Areas with ambitions for 2040
• Multi-stakeholder social and economic development initiatives in eight communities
• Innovating to offer greater convenience and affordability
• Complying with regulatory requirements and engaging with regulators
• Offering plant-based products
• Investing in technology
• Implementing a five-year Employment Equity Plan
• Targeted recruitment and succession plans
• Implementing co-created sourcing strategies
• Strong partnership-based supplier relationships
• Implementing a “Safety – a way of life” programme
• Providing employee assistance programme
• Implementing an agile, hybrid working model
• Exploring options for value transfer to employees
• Implementing a new emergency response plan and induction video
• Implementing a combined assurance model
• Proactively flagging risks on the Remgro website and scanning for incidents to alert potential victims
• Registering criminal complaints with SAPS and supporting investigations
• Continuous risk and opportunity scanning, identification and assessment, and embedding internal control as well as risk reduction and insurance strategies
• Establishing Kigeni Ventures to house investments and assist with feasibility studies for solar PV systems
• Conversion of overhead irrigation systems to subsurface drip systems
• Green harvesting
• Installing a 605kl backup storage tank filled with rainwater
• Implementing sustainable packaging journey
• Mitigation project to address excess levels of phosphate and nitrogen in effluent
• Paving the gravel road at Randfontein site

Supply Chain Management

Responsible Procurement

• Use of BBBEE accredited vendors
• Service Level Agreements reflecting expectations regarding environmental responsibility, human rights, and anti-corruption policies
• Co-created sourcing strategies
• Developing domestic farmers through inter-connected business models
• Focusing on growing opportunities for QSE and EME suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (impacting food production and market access)

Transition Risks

• South Africa’s carbon tax regime
• Regulatory changes

Opportunities

• Generating or purchasing private supply of renewable electricity
• Energy efficiencies
• Developing products, technologies and services that help address global warming

Reporting Standards

Frameworks Used: TCFD, Principles for Responsible Investment (PRI), International Finance Corporation (IFC) Environmental and Social Performance Standards, International Sustainability Standards Board (ISSB), BBBEE, King IV, GHG Protocol, PCAF, Science-based Targets initiative (SBTi)

Certifications: ISO 14001 (RCL Foods), FSSC (RCL Foods), OHSAS (RCL Foods), SANS (RCL Foods), Qualicoat (Wispeco), Qualanod (Wispeco)

Third-party Assurance: PricewaterhouseCoopers Inc. (financial reporting), AQRate Proprietary Limited (BBBEE), Carbon Calculated (carbon footprint), EHS Green Leaf Consultancy (Safety, Health and Environmental procedures)

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 10
• SDG 13
• SDG 17

Remgro's CSI initiatives contribute to these goals through various programs focused on education, health, community development, and environmental sustainability.

Awards & Recognition

• Top Employer (RCL Foods)
• Gender Mainstreaming Awards (RCL Foods)

Environmental Metrics

ESG Focus Areas

• Climate change
• Waste to landfill reduction
• ESG risk and opportunities analyses
• Diversity, equity and inclusion
• Responsible sourcing and procurement
• Disclosure

Environmental Achievements

• Scope 1 and 2 emissions of 182 898 tonnes CO2e (Mediclinic)
• Scope 1 and 2 emissions of 1 000 652 tonnes CO2e (RCL Foods and Rainbow)
• Scope 1 and 2 emissions of 103 528 tonnes CO2e (Heineken Beverages)
• Scope 1 and 2 emissions of 31 034 tonnes CO2e (Siqalo Foods)
• Total energy of 6 387 tonnes CO2e across distilleries, blending and bottling operations (Capevin)
• Scope 1 and 2 emissions of 857 tonnes CO2e (TotalEnergies)
• Scope 1 and 2 emissions of 35 262 tonnes CO2e (Wispeco)
• Scope 1 and 2 emissions of 9 638 tonnes CO2e (eMedia Investments)
• Scope 1 emissions (tonnes): 5 956, Scope 2 emissions (tonnes): 2 438 (CIVH)

Social Achievements

• CSI spend: R191 million (Mediclinic)
• CSI/Training spend: R55 million (RCL Foods and Rainbow)
• CSI spend: R50 million (Heineken Beverages)
• CSI spend: R4.77 million (Siqalo Foods)
• CSI/Training spend: R2.5 million (Capevin)
• CSI/Training spend: R55 million (TotalEnergies)
• CSI spend: R9.8 million (Air Products)
• CSI spend: R25.2 million (KTH)
• CSI spend: R0.8 million (SEACOM)
• CSI spend: R120 million (eMedia Investments)
• CSI/Training spend: R35 million (CIVH)
• Various CSI initiatives aimed at creating sustainable ecosystems in the communities in which the business operates (CIVH)
• Various initiatives for community and enterprise development, cultural, sporting, and educational opportunities (Chairman's message)

Governance Achievements

• ESG goals included in executive remuneration structure
• Responsible Sourcing Policy published
• Tax Transparency Policy published
• Climate-related risks identified and scenario analysis conducted
• Implementation of the Remgro ESG strategy across the portfolio of businesses

Climate Goals & Targets

Environmental Challenges

• Unsatisfactory performance of some key investments
• Difficult operating environment, particularly for Heineken Beverages
• Geopolitical instability
• Load shedding
• Infrastructure and logistics challenges
• Foreign exchange volatility
• Political uncertainty
• Water, energy and health crises
• Potential slow response by investee companies to disruptive technology risks and opportunities
• Inadequate capacity and ability to innovate in response to emerging industry risks and opportunities
• High interest rates
• High inflation
• Volatile commodity prices and exchange rates
• Tough economic environment
• Aggressive competitor behaviour
• Supply chain challenges
• Ongoing geopolitical and macroeconomic uncertainty
• High inflation and interest rates
• Economic slowdown in China
• Higher natural perils claims at Youi
• Large increase in the share-based payments expense
• Start-up loss incurred by OUTsurance Ireland
• Sustained downward pressure on trading margins
• Generally competitive market conditions and inflationary cost increases
• Continued load shedding
• Decline in television advertising spend
• Hollywood actors’ and writers’ strike
• Legal battles against MultiChoice

Mitigation Strategies

• Disciplined and long-term approach in deploying and managing resources
• Portfolio repositioning and optimisation
• Active engagement at a deeper level with investee companies
• Fit for purpose approach
• Piloting a new process for measuring and driving the improvement of return on investment capital
• Conservative approach to the utilisation of capital
• Reduction of preference share debt
• Share repurchases
• Disposal of non-core assets
• Embedding sustainability in new investments
• Upholding Remgro values in market disclosures and shareholder engagements
• Implementing various measures to restore both market share and margins (Heineken Beverages)
• Introduction of the returnable glass bottle of Heineken
• Increased investment in support of the Heineken returnable glass bottle launch and revitalisation of the other beer brands
• Price increases to recover margin from prior commodity cost drivers and to offset the impact of inflation and continued cost pressure (Siqalo Foods)
• Savings initiatives to improve margins (RCL Foods)
• Implementing various measures to restore both market share and margins (Heineken Beverages)
• Transitioning the distribution of Wine and Amarula back to Heineken Beverages (Capevin)
• Launching new products and targeted marketing initiatives (Business Partners)
• Pivoting capital allocation to reinvest any excess operating cash flow and capital into increasing its uptake (CIVH)
• Debt refinance (SEACOM)
• Enhanced cost efficiencies (Air Products)
• Investing in health, safety, and environmental initiatives (TotalEnergies)
• Focus on speed of delivery with sufficient manufacturing capacity to sustain short lead times and class-leading customer service levels (Wispeco)
• Various programmes already implemented at various group companies (Diversity, equity and inclusion)
• Formalising policy and strategy for responsible sourcing and procurement

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, King IV Report on Corporate Governance for South Africa (2016), Companies Act (No. 71 of 2008), as amended, JSE Limited Listings Requirements, TCFD recommendations, GRI Standards, JSE Sustainability Disclosures, JSE Climate Disclosure Guidance, CDP

Third-party Assurance: Ernst & Young Inc. (EY)