Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable business
• Social transformation through digital empowerment
• Advancing UN SDGs in SA and Africa
• Ethical governance
• Talent and skills development

Environmental Achievements

• Grid-tied solar car park
• Smart Small Data Centre reducing power consumption
• Responsible water and electricity usage
• Green star buildings rating
• Carbon-neutral operations

Social Achievements

• AYO Academy: nurturing talented young ICT professionals from historically disadvantaged ethnic and gender groups
• Investment of more than R6.2 million in Enterprise Development (ED) initiatives
• Pioneered a supplier development programme
• Invested R100 million in the establishment of a FinTech Fund
• Spent R3.6 million on transformation programmes

Governance Achievements

• Improved corporate governance
• Formal audit and risk constitution and risk management charter approved by the Board
• Appointment of new executive team and Board
• Appointment of an internal audit team and IFRS specialist

Climate Goals & Targets

Environmental Challenges

• Economic uncertainty in South Africa
• Reputational impairment due to media scrutiny
• Talent and skills shortage
• Legal and compliance risks
• Market consolidation and changes in the competitive environment
• Negative media portrayal impacting brand reputation
• Shortage of critical skills
• Rapid technological advancements
• Over-reliance on specific customers
• Unplanned legal actions

Mitigation Strategies

• Diversifying portfolio with operations in foreign economies
• Entry into new industry verticals
• Modular restructuring of core managed services offerings
• Investment in capabilities to drive growth through innovation
• Targeted acquisition strategy
• Careful monitoring of subsidiaries’ performance
• Stringent due diligence on potential acquisitions
• Decisive response strategy for legal actions
• Proactive corporate communication strategy
• Pursuing a diversified project mix and customer base
• Expanding portfolio into new industry verticals and geographies
• Acquiring businesses with an established client base
• Proactive corporate communication strategy
• Focus on delivering improved employee value proposition
• Development of critical scarce technical skills through AYO Academy
• Appointment of new executive team and Board
• Appointment of an internal audit team and IFRS specialist
• Active monitoring of ongoing B-BBEE programmes
• Assessing potential acquisition’s B-BBEE score

Supply Chain Management

Responsible Procurement

• Preferential procurement policy supporting local entrepreneurs and SMEs
• Supplier development programme offering business development and financial assistance to black-owned SMEs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IIRC Integrated Reporting Framework, IFRS, Companies Act No.71 of 2008, JSE Listings Requirements, King IV Report on Corporate Governance, GRI G4 Guidelines, Department of Trade and Industry’s B-BBEE Regulations

Certifications: Level 3 B-BBEE contributor

Third-party Assurance: BDO South Africa Inc.

UN Sustainable Development Goals

• Several UN Sustainable Development Goals

Contribution through digital empowerment and social transformation initiatives.

Environmental Metrics

ESG Focus Areas

• Ethical leadership
• Corporate governance
• Sustainability
• Responsible corporate citizenship
• Quality education
• Gender equality
• Reduced inequality

Social Achievements

• Implemented 5 social development projects with strategic partners (QuadPara Association of South Africa, SA Medical and Education Foundation) to the value of R2.4 million.
• Donated food vouchers, masks, and thermometers to various charities and aid organizations in response to the COVID-19 pandemic.
• Carried out 28 integration projects between the NHLS and independent privately-owned laboratories to enable real-time testing and reporting of PCR test statistics, free of charge.

Governance Achievements

• Reviewed and updated 12 of 21 policy documents.
• Added two directors to the Board (Khalid Abdulla and Prof Louis Fourie) to maintain balance and independence.
• Implemented a new Diversity at Board Level policy.
• Established a formal internal audit department.
• Adopted a Decision-Making Framework to clarify roles and responsibilities.
• Implemented a combined assurance model.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted operations and social development projects.
• Susceptibility of technology and information security systems to compromise due to the urgent adoption of remote working protocols.

Mitigation Strategies

• Shifted social development focus to assist communities in need during the COVID-19 pandemic.
• Sourced an IT audit specialist to evaluate the effectiveness of technology and information security systems and make recommendations for improvement.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IVTM Code, Integrated Reporting Framework, International Financial Reporting Standards (IFRS), Companies Act, JSE Listing Requirements, Global Reporting Initiative (GRI) Guidelines, B-BBEE Regulations

Third-party Assurance: Internal and external auditors; accredited B-BBEE assessors for select data

UN Sustainable Development Goals

• Quality Education (SDG 4)
• Gender Equality (SDG 5)
• Reduced Inequalities (SDG 10)

AYO's social development initiatives focus on quality education, particularly amongst marginalized groups such as disadvantaged girls and the disabled.