Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Social Development
• Environmental Sustainability

Environmental Achievements

• Achieved carbon neutrality through the purchase of carbon credits
• Reduced operational GHG emissions (details in report)
• Implemented energy-efficient lighting and waste reduction initiatives

Social Achievements

• Maintained Level 1 B-BBEE contributor status
• 64% of employees are black, 51% are women
• 42% of AUM managed by black investment professionals
• Various training and development programs for employees and communities (details in report)
• Won several awards for diversity and transparency in gender reporting

Governance Achievements

• Established a Sustainability Committee
• Conducted inaugural client ESG survey
• Board provides oversight over climate-related risks and opportunities
• Social, Ethics & Transformation Committee actively monitors ESG performance

Climate Goals & Targets

Environmental Challenges

• Shrinking South African savings pool due to low economic growth and unemployment
• Increased pace and volume of ESG-related regulations
• Talent sourcing and retention in a scarce-skills environment
• Meeting evolving client needs for ESG-focused products and technology
• Systemic socioeconomic inequality and potential for social unrest

Mitigation Strategies

• Active engagement with policymakers and industry peers to advocate for policy changes
• Continuous monitoring of the regulatory environment
• Investment in employee development and wellness programs
• Deepening stewardship activities and engagement with investee companies on ESG matters
• Development of specific engagement strategies based on understanding key issues affecting companies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferential procurement to support B-BBEE accredited suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Stranded assets, regulatory changes

Opportunities

• Development of sustainable investment products

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Details of alignment provided in the report

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2023 European Pensions Awards – Diversity Award
• 2023 Irish Pensions Awards – Diversity Award
• 2023 Gender Mainstreaming Awards – JSE-Listed Company Reporting
• 2023 UN-Women Empowerment Principles Awards – Transparency and Reporting

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG) issues
• Climate Change
• Diversity and Inclusion
• Responsible Investing
• Stewardship

Environmental Achievements

• Achieved a carbon-neutral footprint via partnership with Walker’s Recycling.
• Published fourth Carbon Footprint Assessment.
• Joined the CDP (formerly Carbon Disclosure Project).

Social Achievements

• Retained Level 1 B-BBEE status.
• 31% black-owned.
• 64% of employees are black, 51% are women.
• Launched Coronation Catapult Work Readiness Programme.
• Over R1 million spent on graduate training and R2.7 million on salaries.
• 99% of clients satisfied with overall service.
• >90% of clients very satisfied with presentation quality.

Governance Achievements

• Successful reviews by various regulatory authorities with no significant negative findings.
• No material governance breaches.
• Revised Stewardship and Sustainability Policy.
• Established a Sustainability Committee.
• Conducted inaugural client ESG survey.
• 94.95% shareholder vote in favor of Remuneration Policy at the AGM.

Climate Goals & Targets

Environmental Challenges

• Tax dispute with SARS impacting profits and dividend payments.
• Shrinking SA savings pool due to low economic growth and low confidence.
• Increased competition for market share.
• Talent war and resource-intensive compliance requirements.
• Geopolitical uncertainty.
• Loadshedding in South Africa impacting operations.
• Scarcity of skills across functions, including IT and IS resources.
• Emigration of skilled workers.

Mitigation Strategies

• Full provision made for tax dispute; case to be heard by Constitutional Court.
• Active engagement with policymakers and industry peers to lobby for policy implementation.
• Continued investment in talent retention, client service, global investment capabilities, information systems, data management, and cybersecurity.
• Cost control measures.
• Investment in employee development and wellness, with a sharp focus on young talent.
• Post-pandemic embedding of greater flexibility for employees.
• Introduction of robust transformation programmes, internally and externally.
• Increased black ownership.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferential procurement process supporting black-owned businesses.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: IFRS, Companies Act, No. 71 of 2008, King IV™, JSE Listings Requirements, Integrated Reporting Framework, Global Reporting Initiative Standards, TCFD reporting guidelines, JSE Sustainability and Climate Disclosure Guidelines

Certifications: Null

Third-party Assurance: KPMG Inc.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 ICGN Global Stewardship Disclosure Award
• 2023 Accenture Gender-Reporting Award
• 2023 European Pensions Diversity Award
• 2023 Irish Pensions Diversity Award
• 2023 UN Women Empowerment Reporting Award