Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on ECL assessment, fair value measurement, and going concern

Mitigation Strategies

• Improved collections and credit impairment charges in the second half of 2021 due to better operating conditions

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers Inc (PwC)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Allegations of financial misconduct relating to persons and/or entities who had been clients of Sasfin’s foreign exchange business unit going back to 2014.
• Errors affecting prior periods that required restatement.
• Current and forecast challenging economic conditions and the subdued financial performance.

Mitigation Strategies

• Sasfin is cooperating with the relevant authorities in their investigations and has terminated relationships with implicated clients.
• Sasfin commissioned an investigation by a leading international audit firm to thoroughly investigate the allegations and determine whether any employees or clients were involved, and how the alleged financial misconduct had occurred.
• All implicated employees have been dismissed, and criminal cases have been opened where appropriate.
• Sasfin has progressively taken significant steps to strengthen the Group’s lines of defence and continues to enhance these further.
• Sasfin implemented actions to address the root causes and to enhance the control environment.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers Inc (PwC)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption
• Reduced water consumption
• 347 loans valued at R96 million provided in energy efficient financing to our clients via our Asset Finance pillar
• Completed an initial climate change gap analysis

Social Achievements

• Maintained Level 1 B-BBEE contributor status
• 707 employees trained through the Sasfin Learning Academy
• 222 jobs created through the Sasfin and RBN partnership
• Sasfin Wish List disbursed R146,000 to support employees
• Women employees make up 63% of the workforce
• ACI employees make up 69% of our workforce

Governance Achievements

• Strengthened combined assurance model
• Enhanced control environment
• Implemented a formal change management programme
• Maintained a strong focus on credit quality
• Exited the FX business

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment
• High interest rates and inflation
• Deteriorating infrastructure
• Load shedding
• Geopolitical tensions
• Regulatory complexity
• Reputational risks
• Financial crime
• Administrative sanctions from SARB
• Civil summons from SARS
• Talent acquisition and retention
• Increased credit impairments and NPLs

Mitigation Strategies

• Strategic reset
• Divestment of non-core activities
• Strengthening core businesses (Wealth and Rental Finance)
• Delisting from the JSE
• Tightening credit criteria
• Enhanced risk management
• Improved internal controls
• Remediation programmes
• Change management initiatives
• Proactive engagement with regulators
• Investment in compliance systems and processes
• Retention schemes for key employees
• Focus on operational efficiency
• Cost containment initiatives

Supply Chain Management

Responsible Procurement

• Diversified supplier base
• Leveraged advanced logistics planning

Climate-Related Risks & Opportunities

Opportunities

• Growth opportunities in financing renewable energy assets

Reporting Standards

Frameworks Used: Companies Act, No. 71 of 2008, Banks Act, No. 94 of 1990, International Financial Reporting Standards (IFRS®), Integrated Reporting Framework of the IFRS Foundation, King Report on Corporate Governance for South Africa, 2016 (King IVTM), B-BBEE Act, No. 46 of 2013, Basel Framework, JSE Listings Requirements

Third-party Assurance: PricewaterhouseCoopers Inc.

Sustainable Products & Innovation

• Energy efficient financing
• Financing renewable energy assets
• Financial solutions for SMEs

Awards & Recognition

• CISO of the Year 2024 (Del van Rooyen)
• CISO of the Year 2024 (Finnovex Summit)
• Digital Innovation Award (Josh Souchon)
• IT Project of the Year Award (Josh Souchon)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Increased regulatory complexity, compliance requirements and associated costs
• Competitive dynamics and economic conditions
• Administrative sanctions from the South African Reserve Bank’s Prudential Authority (PA) totaling R160.64 million (R209.69 million total, R49.05 million suspended)
• Civil summons for R4.9 billion plus interest and costs from the South African Revenue Services (SARS)

Mitigation Strategies

• Strategic reset, including disposing of non-core businesses
• Commissioning of a forensic report
• Proactive sharing of information with regulators
• Closing relevant accounts
• Reporting suspicious transactions
• Laying criminal charges
• Exiting the Forex business
• Strengthening compliance and control environments
• Obtaining legal opinion from ENS concluding that the SARS claim has a remote likelihood of success
• Detailed remediation program

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers Inc (PwC)