Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic performance
• Social responsibility
• Environmental performance

Environmental Achievements

• Increased percentage of paper recycled through several initiatives (Shredding Bins, small shredding machines, outsourced bulk recycling, newspaper donations).

Social Achievements

• Brait Foundation activities: refurbishment of PACE Commercial Secondary School library, partnerships with Moletsane Secondary School (library restructuring, entrepreneurship programs, HIV/AIDS workshops, school hall construction), GIBS scholarships, participation in Cell C's "Take a Girl Child to Work Day", sponsorship of JSE/Liberty Life Investment Schools Challenge, Thuthuka Bursary Fund sponsorship, Rally to Read participation, Student Sponsorship Programme, support for LEAP Science and Maths School, PUSH HIV/AIDS awareness workshops, MaAfrika Tikkun sponsorship, Pace Incubator Programme, Men on the Side of the Road support, Lapdesk distribution.
• Significant cost savings from outsourcing salaries payroll.
• Formally defined staff performance appraisal process.

Governance Achievements

• Stringent guidelines for Private Equity Funds to ensure compliance with environmental laws and regulations.
• Regular workforce analysis to monitor achievement of employment equity targets.
• Reviewed and monitored employee health and safety.

Climate Goals & Targets

Environmental Challenges

• Increased paper usage despite encouragement of electronic communication.
• Cost-prohibitive to install a stand-alone resource measurement system to accurately monitor energy and water usage.
• Difficulties in ascertaining the impact of energy and water saving initiatives due to pro-rata resource consumption allocation as a tenant.
• Challenges in achieving diversity at all levels, particularly within senior management.
• Challenges with respect to females and black Africans in senior roles.

Mitigation Strategies

• Review and revision of targets for reducing energy and water usage based on 2006/2007 baseline figures.
• Implementation of a glass recycling initiative.
• Focus on energy-saving initiatives in support of the Eskom National Accelerated Demand Side Management (DSM) program.
• Strategies put in place to identify professional female talent in the marketplace.

Supply Chain Management

Responsible Procurement

• Procedures to increase procurement from black-owned and black-staffed enterprises.
• Suppliers required to submit employer and employee profiles and employment equity strategies.
• Sourcing suppliers with appropriate environmental policies.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Guidelines (2002), JSE Limited’s Socially Responsible Investment (SRI) Index

Environmental Metrics

ESG Focus Areas

• Economic performance
• Social responsibility
• Occupational health and safety
• Environmental performance
• Black Economic Empowerment (BEE)

Environmental Achievements

• Increased glass recycling to 11,889 units (2008: 6,216 units)
• Substantial reduction in newspaper and magazine subscriptions
• Increased paper recycling – 30 trees saved (2008: 25 trees)
• Installation of energy-efficient lighting

Social Achievements

• Achieved an "A" rating for BEE initiatives
• Brait South Africa board has six black directors
• Two of four Executive Committee members of Brait South Africa are black
• Over 70% of discretionary spend utilized BEE suppliers (R9.9 million of R14.1 million)
• 0.5% of profits invested in corporate social investment
• Full-time employment of 12 sponsored trainees
• Upgrading of classrooms at Warburton School
• Support for various educational and community initiatives (PACE Commercial College, GIBS, Rally to Read, Thuthuka, Christel House, LEAP School)

Governance Achievements

• Participation in the JSE SRI Index
• Brait's Chairman, Prof Mervyn E King SC, is the Chairman of the GRI Board of Directors
• Implementation of a Long-Term Incentive Plan (LTIP)

Climate Goals & Targets

Environmental Challenges

• Increased demand for electricity in South Africa
• Prospect of clean water supply shortages
• Indirect environmental impacts from clients, investors, and business partners

Mitigation Strategies

• Investigation of energy-efficient systems for office refurbishment
• Investigation of initiatives to reduce business travel
• Stringent guidelines for private equity funds to ensure compliance with environmental laws and regulations
• Environmental impact assessments and due diligence processes using World Bank/IFC safeguard policies

Supply Chain Management

Responsible Procurement

• Screens suppliers for BEE compliance
• Sources suppliers meeting minimum environmental requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Guidelines, JSE Limited’s Socially Responsible Investment (SRI) Index

Environmental Metrics

ESG Focus Areas

• Employment Practices
• Black Economic Empowerment (BEE)
• Environmental Responsibility
• Ethical Business Conduct
• Corporate Social Investment (CSI)

Environmental Achievements

• Successful implementation of a paperless policy in some areas of operation.
• Recycling of paper and glass.
• Lights switched off at night.
• Supported Earth Hour 2009.

Social Achievements

• Customised wellness program for all staff and their families.
• HIV/AIDS awareness seminar.
• Regular workplace safety inspections.
• Mentorship and coaching program.
• Study bursary scheme (R539,331 spent).
• Two-year internship initiative for black South Africans.
• BEE rating of Level Four Contributor (A rating from Empowerdex).
• Over 30 BEE transactions and initiatives concluded.
• Launched Medu Capital, an independent black-owned private equity company.
• 26% shareholding of Brait South Africa Limited sold to a black consortium.
• Provided financing for Afena Capital, a black-owned asset management firm.
• Corporate social investment through the Brait Foundation.

Governance Achievements

• Commitment to sound governance principles.
• Engagement with authorities to ensure proper regulation.
• Membership in SAVCA and adherence to ILPA principles.
• Founding sponsor of the annual South African private equity conference.
• Strict boundaries maintained between hedge fund operations.
• Maitland appointed as administrator to separate back-office function.

Climate Goals & Targets

Environmental Challenges

• Challenging target of spending 3% of total payroll on training black staff (Empowerdex rating of 6.67 out of 15).

Mitigation Strategies

• Continued efforts to improve training and skills development for black staff.
• Introduction of a two-year internship initiative to develop young black South African investment professionals.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King III, Global Reporting Initiative Sustainability Guidelines, JSE Socially Responsible Index

Environmental Metrics

ESG Focus Areas

• Food security
• Full and productive employment
• Quality education
• Gender equality
• Reduced inequalities
• Responsible consumption and production
• Climate action

Environmental Achievements

• Virgin Active completed location based Energy audit, and Scope 1 and 2 emissions assessment. Scope 1 and 2 emissions were reported as 28 497 TCO2 and 143 809 TCO2 respectively.
• Premier reduced energy consumption through upgrading technologies, plant consolidation, installation of occupancy sensors and LED alternatives.
• New Look reduced Scope 1 and 2 emissions by 18%, while Scope 3 emissions reduced by 22%

Social Achievements

• Premier continued Unemployed Disabled Learnership programme, Bake-for-Profit course, and various holiday camps.
• Virgin Active South Africa continued its objective to achieve 50% female representation across middle to senior management levels.
• New Look improved visibility of employees' demographic data from 24% to 80%, established wellbeing and ED&I calendars, and launched minority group development programmes.

Governance Achievements

• Brait implemented a Recapitalisation, meaningfully reducing debt and strengthening the balance sheet.
• New incentive mechanism for Investment Advisor, capped at R50 million, based on market capitalisation growth.
• New Look submitted and had approved its Science Based Targets (SBTs), including a near-term goal of reducing carbon emissions by 42% by 2030 and a long-term objective to achieve Net Zero by 2040.

Climate Goals & Targets

Environmental Challenges

• Exchange rate fluctuations
• Underperformance by portfolio companies
• Economic outlook
• Key risks identified at the portfolio company level
• Insufficient capital
• Inadequate IT system processes
• Insufficient protection from malicious IT attacks
• Non-compliance with legislation
• Loss of key individuals
• Financial risk management
• Unseasonal weather and rapidly changing competitive landscape in UK retail market

Mitigation Strategies

• Hedging strategies for currency exposures
• Appropriate gearing levels for portfolio companies
• Regular monitoring of portfolio company performance
• Recapitalisation to reduce debt and strengthen balance sheet
• Disaster recovery plans and IT security reviews
• Independent cybersecurity advisors
• Legal advisors in various jurisdictions
• Succession plans in place for key personnel
• Annual financial statements and external audit plan
• Representation on portfolio company boards

Supply Chain Management

Responsible Procurement

• Virgin Active: Engaging with suppliers to meet sustainability challenges.
• Premier: Supporting certified suppliers of sustainable essential ingredients.
• New Look: Mapping lower-tier sites, increasing visibility to Tier 2 and 3, driving adoption of Higg FEM.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, JSE Sustainability Disclosure Guidance, JSE Climate Disclosure Guidance

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 1 (No Poverty)
• SDG 2 (Zero Hunger)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Brait and its portfolio companies' initiatives contribute to these goals through various social and environmental programs.

Awards & Recognition

• New Look: Leader in Diversity 2023 by The Financial Times and Statista