Currently viewing: Performance review: ESG / Next: Remuneration report
Currently viewing: Performance review: ESG / Next: Remuneration report
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Stakeholders increasingly expect organisations to participate in a circular economy that limits environmental impact, contains the waste of resources and uses resources efficiently. Successfully delivering on our new strategy will enable us to meet these stakeholder expectations. |
Imperial's strategy, sustainability and social responsibility unquestionably impact human lives. In addition to our critical role in the supply of essential services and products, our extensive experience in safety practices and quality control measures, enables us to quickly adapt our practices to safeguard our employees, stakeholders and business. Beyond our day-to-day operations, the initiatives in which we invest and actively participate are chosen based on their ability to tangibly impact access to healthcare and better education, and to drive equality and community development, producing sustainable benefits for those in our regions of operation. |
Governance structures, including the board, group SES committee, executive management and the ESG/CSI subcommittee of the SES, are tasked with ensuring that ESG is given the right level of attention and that responsible ESG practices extend across the organisation and into strategic and daily operational decision making and business practice. |
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Through our ESG governance structures we aim to ensure that capital allocation decisions are considerate of national priorities and are socially relevant and environmentally responsible.
Group-wide ESG policies and guidelines, including CSI and climate change, have been developed and approved by the group executive and SES board committees – a first for the group. These policies and guidelines are being implemented across all operations.
EcoVadisGroupTransportation and LogisticsSilver status scoring 48 out of 100 pointsLogistics International
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London Stock Exchange FTSE4GOOD Index SeriesA global sustainable investment index series3,8 overall score out of five(F2019: 3,7) 3,2 environmental score(F2019: 3,1) 3,4 social score(F2019: 3,2) 5,0 governance score(F2019: 5,0) |
CDP (group)B+ rating This is higher than the global average (C) and the Africa regional average (B-). Our next submission is due in August 2020. |
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UN Global CompactBecame a signatory to the UN Global Compact Imres has been a signatory since 2016. The group's code of conduct and the SES committee's annual work plan have been informed by the 10 principles of the UN Global Compact for over 10 years. |
An immediate priority for Imperial is to initiate processes to help us understand the direct and indirect impacts of our business, ESG and community activities on our industry, society and stakeholders. A socioeconomic impact assessment study is scheduled for the second half of the 2020 calendar year. The initial study will encompass South Africa and Nigeria (two of our major markets). In addition, we will demonstrate our commitment to ESG practices by advancing our scores in global ESG indices and ratings.
Covid-19 has highlighted that Imperial's strategy, sustainability and social responsibility unquestionably impact human lives. In addition to our critical role in the supply of essential services and products, our extensive experience in safety practices and quality control measures, enabled us to quickly adapt our practices to safeguard our employees, stakeholders and business during this unprecedented time. Up to the end of July 2020, 385 employees had tested positive for the virus, with the majority making a full recovery. Sadly, 11 of our colleagues succumbed to the virus and we extend our heartfelt condolences to their families and colleagues.
In addition, we reported one employee fatality in an accident caused by a third-party vehicle towards the end of the financial year. We deeply regret the death of our colleague Mr TJ Thupaemang, and again offer our deepest sympathies to his family and friends. All fatal accidents are thoroughly investigated, including by an external independent accident investigator, or an authority in the case of Logistics International, to provide an unbiased view.
Healthcare is one of Africa's critical development challenges and needs. Over the past 20 years, mainly through our Market Access and Logistics Africa businesses, we have developed a wide distribution network, efficient service delivery and strong governance and compliance practices, enabling us to access better pricing and ensure a reliable supply of quality medicine into Africa. We assist governments to grow local pharmaceutical logistics and supply chain capacity as well as healthcare service networks. We also work to find ways to use cheaper infrastructure and enterprise development models to extend the reach of healthcare services to smaller and hard to serve markets, including rural areas.
Beyond our day-to-day operations, the initiatives in which we invest and actively participate are chosen based on their ability to tangibly impact access to healthcare and better education, drive diversity as well as community and sports development and raise road safety awareness, producing sustainable benefits for those in our regions of operation.
A key focus for the group is leveraging our memberships in organisations such as Business Leadership South Africa, Business for South Africa (B4SA), the National Business Initiative and Business Engage to build strong relationships with government. Going forward, we will actively support South Africa's development and growth plan
post-Covid-19 through various stakeholder engagements, including membership in the World Economic Forum and Africa Economic Forum.
The Global Women's Forum (GWF) aims to create an enabling culture for the women of Imperial and provides a platform for networking across the group.
The GWF was officially constituted on 3 October 2019 with group chairman, Phumzile Langeni, as a guest speaker at the inaugural meeting. The forum promotes development and advancement opportunities for women, focusing on mentoring and training, graduate programmes, ensuring gender parity when promoting and appointing external candidates, and setting targets for women in senior leadership roles. The GWF reports on key issues to the group executive committee and SES committee.
Most group companies have approved budgets ring-fenced to develop and mentor women. Focus is also being placed on dedicated facilities for women, including rooms to express breastmilk for new mothers and separate dedicated changing rooms and bathrooms for female drivers. Another critical focus is ensuring a safe work environment for women, particularly those working night shifts.
The GWF celebrated International Women's Day by participating in a number of initiatives, including preparing 600 care packages for child rape victims in South Africa, the collection of clothing, shoes, cosmetics and hygiene products for homeless women and victims of domestic abuse in Germany and raised gender awareness in our African businesses.
Product safety No material incidents of non-compliance with laws and regulations concerning the health and safety impacts of products and services(F2019: none) |
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Market Access 0,063 road accidents per million kilometres(F2019: 0) 0 road injuries per million kilometres(F2019: 0) 0 road fatalities per million kilometres(F2019: 0) |
Logistics Africa 0,246 road accidents per million kilometres(F2019: 0,210) 0,066 road injuries per million kilometres(F2019: 0,047) 0,004 road fatalities per million kilometres(F2019: 0,006) |
Logistics International 0,399 road accidents per million kilometres(F2019: 0,423) 0,041 road injuries per million kilometres(F2019: 0,172) 0 road fatalities per million kilometres(F2019: 0) |
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Expected BBBEE ratings1
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Developing black employees
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Learnerships (South Africa)174 unemployed learners participating in a learnership, apprenticeship or internship, gaining work experience and receiving a stipend while they learn. |
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Enterprise development spend
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Total CSI spend (group)R21,1 million |
1 | The BBBEE scorecard will be published online at the end of September 2020. |
2 | Revised from the reported level 3 rating in the 2019 integrated report following the final verification after publication. |
Unjani Clinics (South Africa)
Funded four new Imperial Unjani
Clinics. The network of 75 primary healthcare clinics serves more than
39 900 patients a month. More than
265 permanent jobs have been
created. In 2020, the network
celebrated its millionth patient
engagement.
Tulsi Chanrai Foundation
(Nigeria)
Invested USD1 million (to 2021) in
the world-class eye hospital in Abuja,
which has served over 16 120 underserved patients and performed
over 3 220 subsidised eye surgeries since opening in January 2019.
* | Partnership between the Nigerian Federal Ministry of Health, the Clinton Health Access Initiative, Inc, the American Cancer Society, Pfizer, Inc, Worldwide Healthcare and EMGE Resources, Limited. |
Sinawe Fund
R20 million invested in the Sinawe
Fund (June 2017 to June 2022).
Our investment supports the
sustainability and growth of three
SMMEs who employ 134 people
between them. While difficulties
have been experienced, the
beneficiaries have been able to
sustain their activities during the
Covid-19 pandemic. One SMME will
exit the fund agreement in the
coming year.
Covid-19 support (South Africa)Donated R5 million to the Solidarity Fund, R5 million to the Giving for Hope Foundation in support of SMMEs and R500 000 to Gift of the Givers humanitarian organisation to support Covid-19-related initiatives in South Africa. We also worked with charitable organisations to provide vehicles and resources to deliver food parcels and other basic needs to communities most impacted by the crisis. For example, we facilitated grocery deliveries from Durban to Johannesburg for Gift of the Givers. |
Imperial and Motus Community Trust (South Africa)45 libraries and resource centres in Johannesburg, reaching over 50 000 learners. Five school libraries were established during F2020 with two still to be handed over in September 2020 to Phephane and Intokozo primary schools#. |
Be safe, Be smart Covid-19 roadshow (South Africa)Delivers Covid-19 and hygiene education at primary and secondary schools. 23 schools have been visited to date with 5 125 learners reached. 575 litres of sanitiser and 230 dispensers have been distributed. |
SOS Children's Villages (Hungary)Supporting the basic needs of children and young adults - most of whom are orphans - in Kecskemét. |
The Be safe Be smart Campaign delivers road safety awareness at schools, helping secondary school students, mostly from disadvantaged communities, prepare for their K53 learner's licence test, and educates them on pedestrian safety, and the importance of wearing safety belts when travelling in taxis and other vehicles. The campaign has received numerous compliments from learners and teachers, and is supported by the Gauteng Department of Education, school and safety management division. The Ekurhuleni Metro Police Department has also joined the roadshows to demonstrate its support. Although the Covid-19 pandemic interrupted our mandated target to reach 85 schools nationwide before the Easter school holidays in April, we reached 66 schools (including the 20 reached in 2019) across six provinces - reaching 58 931 (2019: 15 122) aspirant drivers. As K53 is part of the school curriculum and the sizes of these classes are small, the Department of Basic Education believes that we will be able to reach our target by December 2020.
# Handover delayed due to school closures as a result of Covid-19.
Our Market Access business has invested USD100 000 (R1,7 million) in the Kenyan Refugee Schools Undertaking, a partnership with the Caring Women’s Forum and the United Nations High Commissioner for Refugees (UNHCR). The UNHCR has the mandate to protect refugees, forcibly displaced communities and stateless people – and assist in their voluntary repatriation, local integration or resettlement to a third country. Project deliverables include the delivery of schoolbooks, teacher training, new school desks and enabling refugee students to write their high school exams.
Imperial Wanderers Stadium has partnered with POWA (People Opposing Women Abuse), an NGO that advocates for women’s rights and provides shelter, counselling and legal advice for victims of abuse. POWA’s vision is “a safe and equal society intolerant of all forms of violence against women and girls in all our diversity, where we are all treated with respect and dignity and our right promoted”. Imperial is a proud partner of this initiative and will leverage our relationships with schools to maximise this partnership, educating boys on how to treat girls and teaching girls how to receive assistance.
Contract logistics and freight management activities are main contributors to environmental threats such as air pollution, global warming and resource depletion. Stakeholders increasingly expect organisations to participate in a circular economy that limits environmental impact, contains the waste of resources and uses resources efficiently. Successfully delivering on our new strategy will enable us to meet these stakeholder expectations.
As a first step, a group-wide climate change and environmental sustainability strategy framework has been developed and approved by the executive committee. It confers responsibility for addressing climate change and other environmental issues on the CEOs of each division. The strategy framework is presented as a set of policies and implementation plans to guide divisions on the group's approach to climate change and waste, water and biodiversity management. It also includes a social and environmental responsibility code of conduct for the supply chain. There is still significant scope for improvement in our environmental performance and this will continue to be a focus going forward.
Market Access |
Logistics Africa |
Logistics International |
Group |
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Fuel consumed |
6 355 622 litres(F2019: 8 037 483 litres) |
112 698 911 litres(F2019: 131 304 857 litres) |
81 369 062 litres(F2019: 74 796 891 litres) |
200 423 595 litres(F2019: 214 139 231 litres) |
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Electricity purchased |
6 356 603kilowatt hours(F2019: 6 649 859 kilowatt hours) |
35 307 912kilowatt hours(F2019: 64 613 178 kilowatt hours) |
28 428 430kilowatt hours(F2019: 35 615 290 kilowatt hours) |
70 092 945kilowatt hours(F2019: 106 878 327 kilowatt hours) |
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Carbon footprint1 |
20 171 tCO2(F2019: 24 827 tCO2) |
338 668 tCO2(F2019: 421 108 tCO2) |
216 082 tCO2(F2019: 205 797 tCO2) |
574 921 tCO2(F2019: 651 732 tCO2) |
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Water purchased |
19 307 kilolitres(F2019: 22 005 kilolitres) |
326 109 kilolitres(F2019: 397 801 kilolitres) |
60 689 kilolitres(F2019: 68 214 kilolitres) |
406 105 kilolitres(F2019: 488 020 kilolitres) |
1 Scope 1, 2 and 3 emissions.
Spills (group)28 000 litres of
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Environmental incidents (group)No fines or penalties incurred for environmental incidents(F2019: none) |
* Safe disposal materials are unlikely to be recycled as their reuse has not been fully researched.
Testing vehicles that are less emission intensive |
In Hungry, we are testing a 24-tonne electrically powered truck on our shuttle services between our warehouse and the plant of a major automotive manufacturer. The 236 kilowatt electric motor abates around 1,7 tonnes of CO2 emissions a day when compared with a conventional diesel-powered truck. In the UK, we are moving towards a road transport fleet that is powered by liquified natural gas (LNG). LNG trucks have been successfully trialled in the UK and Germany over the past year, with good results and positive driver feedback. The trials have enabled us to accommodate a request from a major client in the UK to switch to low-emissions vehicles on its supply routes between 19 component manufacturers and its main assembly plant. |
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Looking forward
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