Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety, health, and environment
• Employment Equity
• Broad-Based Black Economic Empowerment
• Risk Management
• Stakeholder Engagement
• Socio-economic development

Environmental Achievements

• 8.5% reduction in water consumption
• 5.3% reduction in hazardous waste generated
• 16,588 tonnes of waste recycled (12% increase year-on-year)
• Improved "B" performance band in CDP Climate Change Program

Social Achievements

• 26% increase in Group financial assistance through the Employee Study Assistance Scheme
• R21 million invested in socio-economic development initiatives impacting 128,000 beneficiaries
• Good progress made in implementing a new performance management system
• Improved representation of designated groups in terms of the Group’s Employment Equity Plan

Governance Achievements

• Appointment of three new Independent Non-executive Directors
• Annual review of the effectiveness of the Board and its Committees
• Development of a compliance universe detailing legislative imperatives in African countries of operation
• Revised Dealing in Securities and Price Sensitive Information policy

Climate Goals & Targets

Environmental Challenges

• Safety incidents (TRIR of 0.45)
• Attracting and retaining skilled and diverse resources
• Threat of new products/market disruptors
• Local and international competitor activity
• Political, economic and regulatory uncertainty
• Major supply disruptions
• Extreme weather events
• Global commodity price and currency fluctuations

Mitigation Strategies

• Comprehensive safety, health and environmental management systems
• Succession planning and talent mapping
• Innovation initiatives, R&D, market intelligence
• Value-adding product and service solutions
• Country risk monitoring, financial risk management policies
• Supply contingency agreements and plans
• Geographic diversification of businesses
• Detailed policy on exposure to foreign exchange rates, cost transfer to customers, monitoring key commodity prices

Supply Chain Management

Responsible Procurement

• Centralised Strategic Sourcing function established in 2016

Climate-Related Risks & Opportunities

Physical Risks

• Extreme and unpredictable weather events (drought, flooding)

Reporting Standards

Frameworks Used: International Integrated Reporting Council’s International Framework, King III, Companies Act, No. 71 of 2008, JSE Listings Requirements, IFRS, CDP Climate Change and Water Programs, Responsible Care

Certifications: ISO 14001, OHSAS 18001, NOSA 5 star, Responsible Care

Third-party Assurance: KPMG Services (Pty) Ltd (limited assurance on selected sustainability information)

Awards & Recognition

• Two CHIETA Best Companies Awards (R150,000 each)

Environmental Metrics

ESG Focus Areas

• Safety, Health, Environment and Quality (SHEQ)
• Sustainability
• Human Capital, including Transformation
• Ethical Business Conduct
• Good Corporate Citizenship

Environmental Achievements

• No Major or Serious environmental incidents occurred and the rate of Moderate incidents continued to improve
• Good progress has been made in matters of environmental compliance, specifically in relation to the South Africa Minimum Emissions Standards. Compliance was tested several times during the year, with planned and unannounced visits from enforcement agencies. No non-compliance issues were raised by them
• Remediation of land contaminated by historical activities continued. Targeted sites were cleaned up successfully and other areas of interest were assessed

Social Achievements

• AECI formed a COVID-19 Task Team in March 2020 to support employees and communities
• Finalisation of AECI’s inaugural dedicated sustainability report
• AECI Group was recognised for its achievements in the SHE arena and for its promotion of gender equality

Governance Achievements

• Revised Code of Ethics and Business Conduct to align with global market practices
• Roll-out of the Code and associated Guidelines was largely completed during 2020
• Investigation of 19 reports originated through Tip-offs Anonymous whistle-blowing line; none of the allegations were verified

Climate Goals & Targets

Environmental Challenges

• Subdued economic growth in South Africa resulted in a slowdown in the manufacturing sector and consumer spending
• Impact of the COVID-19 pandemic compounded challenges, with economic and industry forecasts revised downwards
• Dispute in West Africa claiming CFA1 652 000 000 (US$2,8m) and penalties up to CFA44 546 724 967 (US$76m)

Mitigation Strategies

• Integration of Food & Beverage and Chemicals segments to reduce costs and improve efficiencies
• Decision to exit non-performing businesses
• COVID-19 Response Plan implemented, including a Task Team and relief efforts
• Business realignment initiatives undertaken

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV

UN Sustainable Development Goals

• 6 UN SDGs

Environmental Metrics

ESG Focus Areas

• Zero Harm and Sustainability
• Climate Change
• Water
• Broad-Based Black Economic Empowerment (B-BBEE)
• Responsible Care®

Environmental Achievements

• Reduced TRIR to 0.23 (lowest on record), a 40% year-on-year improvement
• 30% decrease in potable water consumption
• 16% decrease in effluent discharged to sea and sewer
• 34% decrease in Scope 1 GHG emissions
• 14% decrease in Scope 2 GHG emissions

Social Achievements

• Improved B-BBEE compliance from Level 8 to Level 3
• Launched Khula app, a digital trading platform for emerging farmers (6450 farmers registered)
• Spent R34.9 million on Socio-economic Development (SED), impacting more than 380,000 beneficiaries
• Certified as a Top Employer in South Africa for the second consecutive year

Governance Achievements

• Implemented a combined assurance model
• Enhanced Enterprise Risk Management (ERM) framework
• Published first Tax Transparency Report
• Strengthened Board composition with the appointment of Patricia O'Brien

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions
• Global supply chain disruptions
• Higher commodity prices
• Stronger rand exchange rate
• Unstable infrastructure in South Africa

Mitigation Strategies

• COVID-19 task team and vaccination mandate
• Diversification of supply sources
• Business continuity plans
• Investments in working capital
• Generator back-up and solar self-generation projects

Supply Chain Management

Responsible Procurement

• Onboarding of new raw material suppliers in Europe and China
• Strategic management of inventories to ensure supply

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• More stringent product, import, and tax regulations

Opportunities

• Development of energy-efficient products
• Green hydrogen and green ammonia production
• Investments in Origin Materials and Clariter

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS), Framework of the International Integrated Reporting Council (IIRC), The Companies Act, No. 71 of 2008 (South Africa), JSE Listings Requirements, King Report on Corporate Governance for South Africa (King IV™), GRI Standards, UN Global Compact, Greenhouse Gas Protocol, TCFD

Certifications: Top Employer South Africa

Third-party Assurance: PwC (limited assurance on safety, health, and environmental data)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

AECI's initiatives contribute to these goals through investments in renewable energy, emissions reduction, and sustainable products.

Sustainable Products & Innovation

• Green anti-bacterial and antiviral surface disinfectants
• PowerBoost™ explosive booster
• Greener chemicals for homecare and F&B segments

Awards & Recognition

• Top Employer South Africa

Environmental Metrics

ESG Focus Areas

• Zero Harm
• Sustainability
• Climate Change
• Responsible Operations
• Gender Equality
• Enterprise and Supplier Development
• UN Sustainable Development Goals (SDGs)

Environmental Achievements

• Achieved zero major or serious environmental incidents.
• Reduced Scope 2 emissions by 4%.
• Reduced moderate environmental incidents by 57%.
• Completed first quantification of Scope 3 emissions.
• Initiated construction of several solar energy installations.

Social Achievements

• Achieved lowest ever TRIR (Total Recordable Injury Rate) of 0.15.
• Increased female representation at board and top management levels to 40%.
• Increased learnerships, internships, and bursaries by 100%.
• Increased Corporate Social Investment (CSI) to R 36.2 million.
• Won Gender Mainstreaming Awards in multiple categories.
• Won CSI Legacy Awards in the Best Corporate Category.

Governance Achievements

• Established a group-wide sustainability dashboard.
• Integrated five ESG KPIs into the long-term incentive (LTI) schemes.
• Formally adopted a group-wide sustainability policy.
• Initiated the process to formulate a group-wide climate change policy.

Climate Goals & Targets

Environmental Challenges

• Contractor employee fatality in Ghana in March 2023.
• Progress to be made in meeting gender equality targets and Enterprise and Supplier Development (ESD) initiatives.
• Load shedding in South Africa impacting electricity usage and increasing reliance on diesel generators.
• Complexity of Scope 3 emissions quantification due to the scale and complexity of the value chain.
• Challenges in achieving 2025 targets for effluent discharge volumes and electricity generated from renewables.

Mitigation Strategies

• Full collaboration with authorities and stakeholders to investigate the root cause of the fatality and implement corrective actions.
• Continued focus on Zero Harm initiatives and comprehensive incident management.
• Initiated several zero effluent liquid discharge projects and transitioned to at-source effluent treatment.
• Completed a process to quantify Scope 3 emissions and will continue to engage with stakeholders to improve accuracy.
• Initiated a four-phase solar programme to generate renewable energy.
• Implemented energy conservation measures at AECI Schirm Germany.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferential procurement policies to support Black-owned and SMME businesses.
• Good Chemistry Fund to invest in ESD.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increasing carbon prices
• Increased legislative developments mandating accurate reporting of GHG emissions
• Increased focus on reporting of Scope 3 emissions

Opportunities

• Development of energy-efficient products and processes
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO/IEC 17025:2015, EcoVadis Gold Medal, FFSC 22000, ISO 22000, ISO 9001:2015, FAMI-QS v6

Third-party Assurance: Deloitte & Touche

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

AECI's initiatives contribute to these goals through various programs and projects.

Sustainable Products & Innovation

• Emulsion Vertical Drop System (EVDS)
• PowerBoost® booster technology
• COOL-D33 biodispersant
• Mega-Inliner supply chain system
• Nyonga® Pack range of crop specific input packs

Awards & Recognition

• South African Top Employer (three consecutive years)
• Gender Mainstreaming Awards (multiple categories)
• CSI Legacy Awards (Best Corporate Category)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Stewardship
• Waste Management
• Diversity & Inclusion
• Occupational Health & Safety
• Community Engagement
• Governance
• Anti-corruption
• Tax Transparency
• Supply Chain Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Data availability challenges for Scope 3 emissions and certain social and environmental metrics.
• Not disclosed

Mitigation Strategies

• AECI is committed to improving data collection and reporting in subsequent reports.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Limited assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed