Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Business
• Socially inclusive investments
• Low carbon and resource efficient investments
• Environmental sustainability (waste, water, energy management)
• Financial inclusion

Environmental Achievements

• Reduced waste sent to landfill to 52% from 38% in 2018
• Produced 133 million liters of recycled drinking water
• Generated 2.1 million kWh of energy from solar panels
• Mutualpark achieved a 6-star green building rating
• Banned plastic bags and straws in Mutualpark and 1 Mutual Place

Social Achievements

• Invested more than R300 million in education intervention programs since 2013
• Disbursed R80 million from the R500 million Enterprise Development Fund
• Old Mutual Rewards program with over 500,000 members and 500 million points earned
• Fourleaf Estate residential development providing affordable housing
• Launched #NoMoreSHH sexual harassment awareness campaign

Governance Achievements

• Implemented the Maadili charter (code of ethics)
• Achieved Level 1 B-BBEE certification
• Improved BBBEE ownership scores
• Strengthened regulatory relationships in Rest of Africa
• Implemented the Three Manager Model framework

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic conditions in South Africa and Rest of Africa
• Low consumer confidence
• Competition from new market entrants
• Eskom's loadshedding
• High unemployment rates
• Hyperinflationary conditions in Zimbabwe
• Political instability in South Sudan
• Climate change impacts (extreme weather events)
• Negative shareholder vote on 2018 remuneration report

Mitigation Strategies

• Focus on operational improvements and cost efficiency
• Disciplined capital allocation
• Tactical reinsurance
• Hedging program to mitigate asset-liability mismatches
• Conservative asset class allocation
• Improvements in credit risk models
• Simplification and modernization of IT infrastructure
• Adoption of new technologies
• Engagement with shareholders to address concerns
• Refined remuneration policies and practices

Supply Chain Management

Responsible Procurement

• Use of certified compostable packaging
• Partnerships with responsible suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, drought, cyclones)

Transition Risks

• Regulatory changes related to climate change

Opportunities

• Development of climate change mitigation and adaptation solutions

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, King IV™ Governance code, JSE Listings Requirements, South African Companies Act, 71 of 2008

Certifications: Level 1 B-BBEE

Third-party Assurance: KPMG Inc. and Deloitte & Touche (unmodified audit opinion on financial statements, report not audited)

Sustainable Products & Innovation

• Old Mutual Protect
• FutureInvest
• Flexi Funeral Plan
• Mlera Life Cover

Awards & Recognition

• BCX Corporate Innovation Award for Robotics and Cognitive Automation
• BCX Digital Innovation award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Investment
• Financial Education & Inclusion
• Community Development
• Governance

Environmental Achievements

• Joined the Net Zero Asset Owner Alliance and the Net Zero Asset Management Initiative, committing to net-zero emissions in investment portfolios by 2050 or earlier.
• Reported South African Scope 1, Scope 2, and part of operational Scope 3 greenhouse gas emissions to the Carbon Disclosure Project, achieving a B score.
• Completed the construction of a water treatment plant in MutualPlace, Johannesburg offices.

Social Achievements

• Financial education initiatives reached over 22 million people across Africa.
• Invested R60 million in education initiatives, reaching over 650,000 young people.
• Supported communities through various initiatives, including investment in primary and secondary school education, skills development, community rebuilding, food relief, and COVID-19 vaccination programs.
• Launched the SMME Accelerator Programme to enable funding of SMEs through SMEgo.
• Improved customer satisfaction from 78.9% in 2020 to 82.5% in 2021.
• Old Mutual Insure retained Level 1 B-BBEE accreditation.
• Old Mutual Investment Group named Best ESG Responsible Investor – Africa 2021 by Capital Finance International.

Governance Achievements

• Enhanced Board composition with the appointment of Jaco Langner and Nomkhita Nqweni as independent non-executive directors.
• Maintained Level 1 B-BBEE accreditation.
• Embedded a new market conduct framework.
• Strengthened compliance capabilities to mitigate regulatory changes.

Climate Goals & Targets

Environmental Challenges

• Muted medium-term economic growth in South Africa impacting profitability and customer retention.
• Slow digital adoption rates among advisors and customers.
• Increased regulatory capital requirements in several African countries.
• COVID-19 pandemic impacting mortality experience and claims.
• Civil unrest in South Africa.
• Hyperinflationary conditions in Zimbabwe.
• Legacy IT infrastructure posing risks to efficiency and security.
• Increased competitor activity.
• Climate change risks impacting operations and investments.

Mitigation Strategies

• Increased alternative distribution channels (brokers, franchise, digital, and direct).
• Digital transformation and automation initiatives.
• Inorganic growth opportunities through strategic alliances and partnerships.
• Pandemic provisions and management actions to mitigate COVID-19 impact.
• Strengthening of persistency and mortality provisions.
• Control improvement programs.
• Investment in artificial intelligence and robotics.
• Strengthening of risk oversight of key third parties and service providers.
• Portfolio tilts to reduce sovereign risk exposure.
• Climate change strategy including decarbonisation of investment portfolios and management of carbon footprint.

Supply Chain Management

Responsible Procurement

• Maintaining a diverse supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns (droughts, flooding, severe storms)

Transition Risks

• Policy shifts leading to stranded assets

Opportunities

• Development of climate-related products and services

Reporting Standards

Frameworks Used: Integrated Reporting Framework (2021), King IV Report on Corporate Governance™ for South Africa, 2016, Johannesburg Stock Exchange (JSE) Listings Requirements, South African Companies Act, 71 of 2008, Insurance Act, 18 of 2017, International Financial Reporting Standards (IFRS)

Third-party Assurance: KPMG Inc. and Deloitte & Touche (unmodified audit opinion on financial statements; report itself not audited)

Sustainable Products & Innovation

• Digital will solution
• Usage-based motor insurance offering
• CommaInsure and Stackit
• Old Mutual DigiLife

Awards & Recognition

• CEO’s Choice Pinnacle Award EMEA from Blue Prism
• Best fund of the funds over 5 years awarded to Old Mutual MultiManagers Long Short Equity FoHF
• Top Empowerment Lifetime Achiever Award (Chairman)
• Best ESG Responsible Investor – Africa 2021 (Old Mutual Investment Group)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investment
• Financial Inclusion
• Education and Skills Development
• Entrepreneurship
• Diversity, Equity, and Inclusion
• Governance
• Humanitarian and Disaster Support

Environmental Achievements

• Group operational footprint decreased by 23% against 2019 baseline
• R146.2 billion of funds under management invested in the green economy
• 5.1 million tonnes reduction of CO2 equivalent through direct investment
• Total carbon emissions reduced by 23% against 2019 baseline
• Own electricity usage down 22% from 2019 baseline due to renewable energy and hybrid working

Social Achievements

• Bula Tsela transaction (R2.1 billion B-BBEE deal)
• Financial education initiatives reached 36.6 million people
• R42.3 million invested in employee training and development
• Enhanced Parental Leave Policy
• 5 270 SMMEs reached
• Humanitarian and disaster support initiatives valued at R53 million

Governance Achievements

• 16% reduction in recorded financial crime incidents
• Maintained level 1 B-BBEE status in South Africa
• All ESG funds in Old Mutual Wealth rated as leader by MSCI ESG Research

Climate Goals & Targets

Environmental Challenges

• Climate change as a systemic risk
• Skills shortages and war for talent
• Limited access to funding for SMMEs
• Economic pressure on customers due to inflation
• Regulatory changes in data and privacy

Mitigation Strategies

• Net zero asset owner and asset manager commitments
• Investment in talent pipeline and upskilling/reskilling
• Masisizane Fund and ESD Fund for SMMEs
• Streamlined and enhanced products and services for customers
• Working closely with regulators on data and privacy regulations

Supply Chain Management

Responsible Procurement

• Procurement Policy and Procurement Standards
• Supplier code of conduct (in development)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV Code on Corporate Governance, United Nations Principles for Responsible Investing (PRI), Code for Responsible Investing in South Africa (CRISA), JSE Sustainability Disclosure Guidance, UN Global Compact, TCFD

Third-party Assurance: Group internal audit (limited assurance process for numeric disclosures)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 1 (No Poverty)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 7 (Affordable and Clean Energy)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals

Awards & Recognition

• Best Sustainable African Investment Manager (Old Mutual Investment Group)
• Most watched Masterclass (Institutional) (Futuregrowth)

Environmental Metrics

ESG Focus Areas

• Responsible investment
• Financial inclusion
• Climate action

Environmental Achievements

• 5.5 million tonnes reduction of CO2 equivalent, through direct investment by Old Mutual Alternative Investments’ portfolio
• Old Mutual Alternative Investments’ are funders into 39% of South Africa’s installed renewable energy capacity in 2022
• Group operational carbon emissions footprint has decreased by 22% against 2019 baseline

Social Achievements

• 10 035 SMMEs reached (2022: 5 270)
• Additional grant of 5 million shares to the value of R60.1 million to black employees through our Bula Tsela Employee Share Scheme
• Launched Old Mutual Health Solutions, providing affordable access to high-quality private health care
• R119.7 million invested in training intermediaries (2022: R100.3 million)
• R23.2 million invested in leadership training (2022: R42.3 million)

Governance Achievements

• 31% of Board members are female (2022: 29%) exceeding our target of 30%
• Key sustainability metrics included in the Group scorecard to link sustainability performance to executive pay (ESG has a 20% weighting)

Climate Goals & Targets

Environmental Challenges

• Geopolitical polarisation and polycrisis hindering progress on global challenges
• Aftermath of COVID-19 pandemic, Russia/Ukraine war, and hostilities in the Red Sea fueling instability, supply chain disruptions, inflation, and cost-of-living crisis
• Structural deficiencies in South Africa exacerbating socio-economic risks (load shedding, unemployment, economic stagnation)
• Tough reinsurance market due to increased frequency and severity of natural disasters
• Decreased number of listed companies on the JSE, limiting investment choices

Mitigation Strategies

• Proactive, resilient, and forward-thinking approaches
• Focus on financial inclusion and education
• Developing alternative reinsurance options and new products
• Investing in low-carbon and climate solutions
• Engaging with high-carbon emitters on disclosing emissions, creating transition plans, and setting net-zero targets
• Enhancing modelling and analytics to support adaptation initiatives and risk management
• Participating in private renewable energy investments
• Developing an integrated Group strategy for SMMEs
• Implementing a monitoring and reporting tool to enhance the integration of ESG standards into the governance framework across Old Mutual Africa Regions

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• ESG considerations
• Preferential procurement for black-owned and black women-owned businesses

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Hailstorms
• Droughts
• Fires

Transition Risks

• Regulatory changes
• Market shifts
• Tough reinsurance market

Opportunities

• Development of energy-efficient products
• Investment in renewable energy

Reporting Standards

Frameworks Used: Companies Act, Financial Sector Charter (South Africa), Employment Equity Act, 55 of 1998 (South Africa), King Report on Corporate Governance™ for South Africa, 2016 (King IV), JSE Limited (JSE) Sustainability and Climate Disclosure Guidance, United Nations (UN) Principles for Responsible Investment (PRI), Second Code for Responsible Investing in South Africa (CRISA 2), Global Reporting Initiative Standards, Task Force on Climate-related Financial Disclosures (TCFD) framework

Third-party Assurance: AQRate Proprietary Limited (B-BBEE data), Management review, Group internal audit (limited assurance process)

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Our impact cuts across several SDGs, addressing poverty eradication; quality education and skills development; responsible employment; transformational infrastructure; diversity and economic empowerment; financing and supporting sustainable cities and communities; climate action (including through responsible investment into affordable and clean energy); and industry, community and national and international partnerships.

Sustainable Products & Innovation

• Renewable energy insurance product
• Old Mutual Health Solutions

Awards & Recognition

• Asset Owner of the Year
• Strongest insurance brand in South Africa
• Best Sustainable Investment Manager
• Best ESG Responsible Investor (Africa)