Climate Change Data

Environmental Metrics

ESG Focus Areas

• environmental impact
• social responsibility
• employee engagement
• corporate governance
• community engagement

Environmental Achievements

• Energy from renewables 707 077 kWh (FY23: 585.1MWh)
• E-waste recycled 136t (FY23: 322t)

Social Achievements

• Conducted a series of employee and client engagement initiatives, including 51 interviews across various operating companies, a leadership strategy session, and Chief Executive Officer’s (CEO’s) Coffee Mornings with 196 participants over 26 sessions, contributing to the development of our purpose statement.
• During the year, our procurement spend on black-owned businesses totalled R2.19 billion (FY23: R2.65 billion).

Governance Achievements

• Comprehensive Board evaluation
• Appointment of Mr Grigoris Kouteris as an Independent Non-Executive Director

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions and macroeconomic volatility
• Energy instability issues in South Africa
• Divestment of specific business units
• Loss of Gauteng Broadband Network contract
• Unsuccessful sale attempt of Altron Document Solutions
• Slow-moving inventory and financial difficulties faced by key customers
• Talent retention challenges in technology
• Supply chain disruptions
• Loadshedding in South Africa
• Water scarcity in South Africa
• Logistical hurdles in South Africa
• Skills gap and brain drain in South Africa
• Cybersecurity attacks
• Platform modernisation risks
• Mass generative AI risks
• Socio-economic pressures (inflation, societal unrest, macroeconomic downturn)
• Critical skills risk
• Third-party risk
• Divestiture risk
• Maintaining consistency and reliability with third-party service providers
• Scarcity of skilled resources
• Systemic infrastructure risks (loadshedding, telecommunications failures)
• Economic constraints leading to a behavioural shift in healthcare consumption
• Technology adoption among healthcare professionals
• Resource attrition and skill shortages
• Macroeconomic headwinds impacting the broader IT services sector
• Reduction in demand from major clients
• Changes in Microsoft's engagement and incentive models
• Employee retention challenges
• Semiconductor shortage resolution impacting pricing dynamics
• Grey market competition
• Sourcing and securing engineering expertise
• Losses and constricted cash flow
• Debtor and inventory risks
• Workforce adjustments

Mitigation Strategies

• Strategic realignment
• Disciplined approach to capital allocation
• Focus on core IT services and platform businesses
• Raising provisions to address impacts on revenue and profitability
• Aligning the business’ structure with its anticipated future operations
• Realigning operational strategy to better suit market conditions and Altron’s strategic direction
• Providing R95 million related to inventory, debtors, and finance lease assets
• Investing in talent retention and upskilling initiatives
• Offering solutions that enhance supply chain transparency and reliability
• Offering energy-efficient technologies and services
• Adapting operations to meet preferences for flexible work arrangements
• Implementing a comprehensive zero-trust cybersecurity model
• Robust business continuity planning
• Implementing a critical skills plan and a revitalised critical communications plan
• Refining operational models to be adaptable and robust against inflationary and macroeconomic pressures
• Investing in alternative energy solutions and infrastructure optimisation
• Maintaining a flexible and anticipatory stance to navigate political uncertainties
• Strategic management and execution of divestitures
• Appointing new management with experience in profit improvement strategies
• Implementing targeted operating models to deliver improved performance
• Strict working capital management
• Investing in backup power solutions
• Intensifying focus on corporate deals
• Implementing comprehensive training and education initiatives
• Scaling outsourcing, infrastructure, and workforce management
• Implementing a new sales strategy
• Reducing costs through efficiencies
• Enhancing recruitment in the middle and junior tiers
• Promoting internal talent
• Comprehensive review of remuneration packages
• Leveraging vendor consolidation opportunities
• Refocusing efforts on growth opportunities in South Africa, the rest of Africa, and the Middle East
• Diversifying revenue streams
• Shifting towards managed security services
• Renewed focus on customer experience and value
• Cost reductions through efficiency gains
• Working capital optimisation
• Risk mitigation
• Restructuring and right-sizing
• Refocusing on mission-critical communications
• Implementing a Culture of Helpfulness
• Rejuvenating sales engine and culture
• Focused training and apprenticeships
• Pursuit of operational efficiencies
• Implementing a robust, integrated team dedicated to managing partner distribution channels
• Shifting towards digitisation and adopting AI-enabled document workflows
• Investing in customer success management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• B-BBEE procurement requirement

Climate-Related Risks & Opportunities

Physical Risks

• Loadshedding

Transition Risks

• Not disclosed

Opportunities

• Investing in renewable energy solutions

Reporting Standards

Frameworks Used: King IV Report on Corporate Governance for South Africa, IFRS Foundation’s Integrated Reporting and Connectivity Council, Johannesburg Stock Exchange (JSE) Sustainability Disclosure Guidance, Companies Act (Act 71 of 2008), Listings Requirements of the JSE (JSE Listings Requirements), IFRS Accounting Standards

Certifications: ISO 9001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers Inc. (financial statements only), VOS Quantum Solutions (B-BBEE), Empowerdex (B-BBEE ownership), Trialogue (e-waste recycling)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NuCash
• HealthONE Oncology solution
• Point-to-Point Encryption (P2PE) Terminal Tracking App
• Buy-now-pay later (BNPL) options
• Multi-acquiring bank DebiCheck solution
• SigningHub
• BioTrust
• AI-powered tools such as the CEO dashboard

Awards & Recognition

• Pax OEM Partner of the Year Award