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Performance against strategy | ESG review | Next: ESG review: Environment

ESG review

We are embedding ESG practices into our daily business activities so that we can proactively manage our impacts on people and planet, beyond compliance requirements.

This means investing in our employees; cultivating a diverse and inclusive work environment; serving our clients, principals and customers exceptionally and transparently; strengthening and investing in the communities in which we live and work; upholding human rights in the value chain; and promoting environmental stewardship. This underpins our industry, market and country legitimacy, and reputation as a trusted partner.

Our ESG strategy

Our ESG strategy furthers our ESG journey, with defined objectives against which we will measure our performance, and new prioritised targets for climate change mitigation. Our ESG reporting, participation in widely recognised ESG assessments and engagement with stakeholders helps us understand how external stakeholders are assessing our risks and performance. We are working to extend and integrate robust ESG processes and practices across the group and into strategic and daily operational decision making and business practice to ensure ESG is effectively managed as a business fundamental.

  • Formulation of the ESG strategy.
  • Undertook socioeconomic impact assessment studies for Nigeria and South Africa.
  • Participated in ESG thought leadership with National Business Initiative (NBI) and the CFO Forum.
  • Strategic partner of the World Economic Forum New Champions Chapter, South Africa
  • CEO Champion of the NBI Just Transition Pathways project.
  • ESG ratings include EcoVadis, CDP, FTSE4Good, ISS, IRAS and Risk Insights ESG GPS.
  • Alignment of ESG impacts with UN SDGs.
  • Won IRAS transport sector award and nominated for IRMSA ESG award.
  • Expanded assurance to 20 non-financial indicators.

Our ESG strategy

ESG approach

Creating sustainable value for our key stakeholders through integrating ESG to support people, planet and profit

Our guiding principles
  • We are a purpose-driven organisation that actively seeks opportunities and partnerships to create value for all our key stakeholder groups.
  • We continually seek to improve our performance in the pursuit of zero harm to people and the planet.
  • Our leadership visibly demonstrates a commitment to ESG.
  • We balance impacts on people, planet and profit by integrating ESG practices into our daily business activities and decision-making processes.
  • We proactively incorporate the principles of the UN Global Compact, UN SDGs, Women Empowerment Principles and other relevant global frameworks in our ESG practices.
  • We comply with applicable legal requirements in all countries in which we operate.
  • We respect human rights and engage our stakeholders respectfully and frankly, seeking their feedback.
  • We seek 'go green' opportunities to reduce our impact on the environment and climate change.
  • We proactively invest in enhancing and developing our communities.
  • Our ESG data can be trusted by our stakeholders because it is transparent, accurate and independently assured.
F2022
  • Define ESG metrics and set up ESG dashboard.
  • Set up priority projects.
  • Create ESG awareness.
  • Review 'One Imperial' ESG-related policies.
F2023
  • Execute priority initiatives.
  • Communication and training focus.
  • Tracking and reporting.
F2024
  • Execute priority initiatives.
  • Embed proactive practices.
  • Culture embedding focus.

F2025

  • Assess progress towards
    2030 targets.
  • Review 2030 targets.
  • Prioritise new initiatives.
Environment

Improve fuel efficiency and investigate alternative fuels

Logistics Africa fleet objective: achieve a year-on-year improvement in fuel emissions in gCO2e/km1, 2 for key businesses operating fleets in South Africa.

6% reduction in F20212

Reduce GHG emissions

Logistics Africa objective: increase renewable electricity supply annually to achieve an increase of at least 0,5% in demand met by renewables in South Africa operations in F2022.

3,1% of demand met by renewable electricity in F2021

Market Access objective: implement renewable energy systems in three sites by F2030

Group:
16 040 tonnes of Scope 1 and 2 emissions avoided in F2021

Increase waste recycling

Logistics Africa objective: explore opportunities to further improve recycling metrics.

68% general waste recycled in F2021


ESG aspiration

Striving for zero harm to people and the environment – transitioning towards net zero carbon by 2050

Social – workforce

Zero harm to people

Monitor and report lost-time injury frequency rate (LTIFR).

LTIFR externally assured for the first time in F2021

Improve diversity and inclusion

Group: achieve diversity targets across all businesses and board level.

Black representation at top, senior and middle management levels was 36%, 28% and 54% respectively, with senior management falling short of the 32% target

Black female representation at top, senior and middle management level was 12%, 11% and 18% respectively

50% black and 40% female representation achieved at board level

Develop talent

Group: develop a formalised programme to address skills gaps, continue to map talent and establish succession plans for leadership roles and critical positions.

Made progress in the roll out of the Imperial Talent Management Way

Social – community

Enhance inclusive supply chain performance

South Africa: achieve the Road Freight Sector Codes and generic dtic3 scorecard requirements for
B-BBEE.

Maintained Level 2 rating against Road Freight Sector Codes for F2021

Projected4 score against dtic Codes

Level 3 rating for F2021

Established centre-led procurement and enterprise development functions to enhance strategic planning and performance

Improve employee localisation

Group: meet country-specific localisation requirements.

New focus area requiring further definition in future

Strengthen corporate social investment (CSI) partnerships to increase impact

Group: sustain a CSI spend of 1% of profit after tax (PAT), and monitor and report societal impacts.

4,5% of group continuing NPAT net profit after tax (NPAT)

Governance

Integrate ESG into governance and risk management processes

Group: maintain a no-compromise approach to governance.

Zero instances of non-compliance with applicable laws

Group: maintain or improve key ESG ratings.

Mostly maintained in F2021

(see Overview of our ESG ratings and assessments)

Market Access and Logistics Africa: complete anti-bribery and corruption training with internal certification for targeted employees with access to email by the end of F2022.

2 680 trained in F2021

Embed information security and data privacy

Group: no incidents of material successful cyber security attacks.

One occurrence, with no material data or financial loss

Ensure high supply chain standards are upheld

Market Access: no material deviations from client supply chain standards.

No material deviations of non-compliance for health and safety impacts of products and services


1 Grams of carbon dioxide equivalent per kilometre travelled (gCO2e/km).
2 For vehicles >3 500 kilograms in seven targeted operating company fleets.
3 Department of Trade, Industry and Competition's Broad-based Black Economic Empowerment Codes of Good Practice (dtic Codes).
4 Our B-BBEE performance for F2021 will be available in October 2021.

Socioeconomic impact assessment study (F2020)

900 000 m2

total warehousing
under coverage

R9 billion

procurement spend, 70% with
B-BBEE compliant suppliers

R3,5 billion

employee-related
expenditure

Over

13 000

employee

3,2%

of operating profit
spent on CSI

Patients saved

R49 million

on healthcare costs via Unjani Clinics

95%

principal contract
renewal rate

10 teaching hospitals

supplied with chemotherapy
treatments

Access to
pharmaceuticals saved

~35 800 lives

 

Travelled 360x

South Africa’s road length
for customer deliveries

Recycled

12,8 million

litres of water

Avoided

5 700 tonnes

of greenhouse gas emissions

R483 million

taxes contributed

R23 million

training spend,
900 000 training hours

1 266 tonnes

of waste recycled

Fairly priced medicines
saved patients

NGN59,5 billion

Global Women’s Forum
for development and
advancement of women

More than

200 jobs

supported in supply chain

969 jobs

supported with
NGN2,8 billion
employee benefits


During the year, we furthered our ESG journey, conducting an ESG maturity assessment across Market Access and Logistics Africa, and a socioeconomic impact assessment of our operations in South Africa and Nigeria. These exercises have enabled a better understanding of where our activities directly and indirectly impact our stakeholders, industries and societies; and what stakeholders need and where improvements can be made in our ESG practices and performance. Through this process we crystallised our ESG strategy and identified our key focus areas, critical implementation enablers and key measures.

Our socioeconomic impact

Accenture's independent SEIA for Imperial covered the 2019 and 2020 financial years. The objective was to quantify and understand the direct and indirect value we create for our stakeholders and communities in two of our key markets, and our socioeconomic impact against the UN SDGs and the African Union's (AU's) aspirations for Africa.

Estimated socioeconomic value we created

South Africa
R98,1 billion
(USD6,3 billion)
Nigeria
R145,9 billion
(NGN3,6 trillion; USD9,3 billion)

2021 performance review

  • Approved our first ESG strategy and implementing specific, measurable targets and KPIs.
  • Published our first UN Global Compact communication on progress: https://www.imperiallogistics.com/pdf/sustainability-reports/imperial-ungc-cop-july-2021.pdf.
  • Won IRAS transport sector award and nominated among the top four finalists for the Risk Insights IRMSA ESG Sustainability Award.
  • We are developing a dashboard to monitor progress against our ESG strategic objectives, and engaging with businesses on integrating ESG practices in their day-to-day activities and identifying action plans to meet our ESG objectives and targets.
  • Improved and maintained ESG ratings and assessment scores.
  • KPIs informed by the ESG strategy are being included in the short-term incentives for the executive committee.

Outlook

Guided by our aspiration to strive for zero harm to people and the environment, we will continue to progress our ESG strategy, performance and disclosures. As a purpose-led organisation, our ability to execute on our ESG strategy and aspirations serves multiple purposes by:

  • Further securing our reputation as a trusted, credible brand and business partner.
  • Strengthening our value proposition for future employees and enabling us to attract and retain the best talent by positioning
    us as a brand that cares for its people, communities and the environment.
  • Bolstering our employee value proposition by reshaping us as a more diverse and inclusive organisation.
  • Creating opportunities to access new pools of capital, particularly green finance and sustainability-linked bonds.
  • Increasing our local relevance in our markets of operation through initiatives targeting local development and strategy marked a key step in our ESG journey this year; we must now drive implementation of local hiring practices.
  • Formulating our ESG across the group and each of our businesses to ensure that we continue to improve on our performance and disclosures, and take steps towards making our aspiration a reality for Imperial and our stakeholders.

Overview of our ESG ratings and assessments

Imperial's ESG ratings

EcoVadis

An international rating agency that evaluates the sustainability performance of global supply chain companies in 200 industries across 160 countries.

Latest rating date: October 2020 (valid to October 2021)

Silver status and placed among the top 25% of companies assessed (2019: 48)

EcoVadis
Imperial score

CDP

Assesses climate change disclosure.

Latest rating date: October 2020

Imperial
B
(F2019: B)
Intermodal transport and
logistics
D
Africa
C
Global
C

ISS

Provides investors with in-depth insight to effectively incorporate sustainability in their investment decisions. Ratings are taken monthly.

Latest rating date: August 2021

FTSE4Good

A global sustainable investment index series.

Latest rating date: June 2021

3,4 out of 5
(F2020: 3,8)

Risk Insights ESG GPS

An ESG rating which considers local market factors in the weighting and scoring.

Latest rating date: May 2021

4 out of 4
Excellent rating
(F2019: 3)

2021 IRAS Report

The 2021 IRAS report provides a comprehensive review of ESG reporting in South Africa, using its research and sustainability data transparency index.

Latest rating date: 2020

70,1%
The highest ranking
in the transportation
sector

Our previous rating in the last IRAS report published in 2016 was 44,5%. The average score for the sector in 2020 was 47,3%.

INTEGRATED REPORT 2021

Imperial company website