Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions to 8.7 million tonnes of CO2e, consistent with last year despite increased production output. 71% of waste was recycled.
• 49% of energy used came from renewable sources. Exported 850 GWh of electricity (11% increase).

Social Achievements

• Created new opportunities for local communities in Australia by offering stable employment to Karen refugees.
• Implemented a wellbeing program for employees, focusing on physical, emotional, and financial health.
• Increased proportion of women in workforce to 48%.

Governance Achievements

• Revised remuneration policy to align more closely with business strategy, receiving 97% shareholder approval.
• Completed a board performance evaluation, confirming the board's effectiveness.

Climate Goals & Targets

Environmental Challenges

• Difficult trading environment in the UK bread market.
• Higher input costs due to sterling weakness against the US dollar.
• Increased employee lost time injury rate (20% increase).
• Received 80 environmental complaints and 10 environmental fines.
• Lower EU sugar prices impacting Sugar business profitability.

Mitigation Strategies

• Continued investment in brands and working with customers to improve bakery business profitability.
• Effective input-margin mitigation strategies to offset US dollar strength.
• Targeted action plans to reduce injuries and regular performance reviews.
• Liaising with stakeholders to address environmental complaints and maintain good relations.
• Higher volumes and lower costs to partially mitigate lower EU sugar prices.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on ILO Fundamental Conventions and ETI Base Code

Climate-Related Risks & Opportunities

Awards & Recognition

• Coles Supplier Awards - Supply Chain Excellence

Environmental Metrics

ESG Focus Areas

• Sugar market leadership
• Sustainable agriculture
• Value and quality-driven industry
• Community connectedness

Environmental Achievements

• 91% of energy production from renewable sources
• 1.5% decrease in scope 1 & 2 emissions (2019/20 to 2020/21)

Social Achievements

• R123.9m spent on community projects (education, healthcare, infrastructure)
• 17,145 COVID-19 voluntary vaccinations
• 13% women in Illovo Sugar Africa’s workforce with 20% in management

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Climate-related disasters (flooding, droughts)
• Rising costs of chemical inputs
• Increased pests and diseases
• Challenges financing irrigation systems
• Increasing women’s participation in agricultural businesses
• Access to finance for growers

Mitigation Strategies

• Product diversification
• Capitalisation on key operational efficiencies
• Water-saving efficiencies (drip irrigation)
• Climate-resilient seed varieties
• New pest control methods
• Flood-resistant infrastructure
• Extension support programmes for growers
• Investing in safety training and a Lost Time Accident Frequency rate of 0.07
• Investing in training, with 12,270 employees trained
• Investing in employee benefits including support for healthcare, pension funds and counselling

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 88% of spending on local suppliers; active policy to procure locally from small-scale businesses where feasible

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, droughts, increased pests and diseases

Transition Risks

• Not disclosed

Opportunities

• Increased energy generation capacity; exporting surplus energy to the grid

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed