Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility

Social Achievements

• Contributed ZAR 53.9 million to social initiatives, the largest annual contribution to date. Initiatives focused on Information and Communication Technology, partnering with organizations bringing technology and education to communities and businesses; aided upliftment of South Africa’s most vulnerable citizens.

Governance Achievements

• Management and Board changes: Serge Belamant retired as CEO, Herman G. Kotzé appointed as CEO, Chris Seabrooke appointed as Non-Executive Chairman, and Alfred Mockett joined the Board as an independent director. Closure of DOJ FCPA investigation.

Climate Goals & Targets

Environmental Challenges

• Challenges in South Africa due to intense media scrutiny of business practices, litigation with SASSA over interpretation of regulations, potential for litigation from third parties challenging payments received from SASSA, competitively sensitive information disclosed in AllPay litigation, counterparty risk from financial institutions holding government funds, risks associated with acquisitions and strategic investments, potential failure to achieve expected benefits from Cell C and DNI investments, significant indebtedness with restrictive covenants, competition from retail banks and SAPO, credit risk exposure from microlending and Mastertrading, competition from other companies offering similar technologies, potential economic slowdown in South Africa, potential loss of key executives, competitive employment market, system failures and security breaches, lengthy sales cycles, inadequate protection of proprietary rights, challenges in managing growth, pre-funding obligations, material losses from cash distribution, vulnerability to supply shortages and price fluctuations, shipment delays, risks associated with Smart Life insurance business, failure to achieve BEE objectives, fluctuations in the value of the South African Rand, high levels of poverty, unemployment and crime in South Africa, electricity supply disruptions in South Africa, high inflation and interest rates in South Africa, South African exchange control regulations, potential labor disputes, greater risks operating in emerging markets, tension in the Korean peninsula, potential cancellation of Moneyline’s registration as a credit provider, compliance with U.S. laws and regulations, including economic and trade sanctions, compliance with anti-corruption laws and regulations, changes in South African government regulations relating to social welfare grants, lack of a South African banking license, and substantial governmental regulation of payment processing businesses.

Mitigation Strategies

• Publicly refuted misleading statements, appointed a public relations firm, engaged in litigation to clarify SASSA regulations, vigorously defending litigation, implemented business continuity programs including back-up generators, developed policies and procedures for compliance with U.S. and international laws and regulations, regular employee training, managing growth through appropriate operational and financial systems, expanding technical and sales infrastructure, providing adequate training and supervision, maintaining credit risk policies, investing in cash equivalents and marketable securities, economic hedging of exchange rate and interest rate fluctuations, matching assets and liabilities denominated in other currencies.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental management
• Climate change
• Ethics management
• Responsible corporate citizenship
• Sustainable development
• Corporate Social Investment
• Consumer relationships
• Stakeholder engagement
• Social and economic development
• Safety and occupational hygiene
• Health and wellness
• Human rights
• Corporate governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact