Abridged ESG and Sustainability Report

Strategy

For Remgro, Environmental, Social and Governance (ESG) is a strategic priority which is centred around our continued journey to lead sustainable businesses and invest responsibly. As a responsible investor we continue to be committed to doing the things that we believe are right to improve the sustainability of our business and our portfolio.

Our strategy is anchored in three pillars which are sustainable investment stewardship, ESG implementation across our Group, and unlocking shared value for South Africa and her people.

Remgro’s commitment to improving sustainable investment stewardship:

• We continue to demonstrate our commitment and efforts to improve stakeholder engagement, through better communication. For example our non-executive members of the Remgro Board also undertake an annual governance roadshow to engage with the investor community resulting in some tangible changes. For example, as it relates to alignment on remuneration philosophy.
• Impact investing has been core to the DNA of Remgro and preceded the ESG and impact investment trend.
• We recognised that more regular and voluntary reporting provides transparency to shareholders. For instance, although Mediclinic is no longer listed, we continue to publish results.

When it comes to ESG action across our portfolio:

• We are partnering with our investee companies to monitor the implementation of initiatives across the Group to improve ESG performance in the key focus areas. We acknowledge that there’s still much work to be done to provide what shareholders would want to see in terms of quantitative targets, so this continues to be work in progress and a priority for us.
• We are working with investees to roll out a set of key performance indicators and to improve reporting and disclosure on those.

The last pillar is centred around unlocking shared value for communities:

• We continue to invest our resources and energy towards upliftment through different social initiatives. We actively partner with all social partners on initiatives and solutions to drive growth and development with the view of alleviating the multiple threats of inequality, unemployment and poverty. This is work we are extremely proud of.
• On other elements of this social pillar, we have more work to do, for instance on driving the transformation of our talent pool along all dimensions of diversity. This is a priority that the leadership team is fully committed to.

In pursuance of its strategy, the Group continues to focus on exerting stewardship on ESG matters within its portfolio. Each year it targets a core group of its companies that includes the wholly owned subsidiaries and other companies from the portfolio, typically where Remgro has operational control or those that are a material investment, and these companies collectively cover approximately 80% of INAV.

Governance and oversight

During the financial year significant progress was made in ESG governance matters, strengthening policies and the charters of the relevant governance committees, as well as encouraging each of the companies in the portfolio to do the same. Additional focus has been given to strengthening ESG risk management and improving the quality of performance metrics and data, which are tracked by Remgro at the centre and in its wholly owned subsidiaries. Work continues with companies in which it holds a strategic stake; many of these are listed companies and companies with international exposure, which have maturing approaches to ESG.

The Social and Ethics Committee oversees ESG strategy and policy, with the Operational ESG Committee reporting to it. For more details on governance structures, refer to the ESG and Sustainability Report or the Social and Ethics Committee Report.

Risk management

Within our suite of reports we have a Climate Report covering climaterelated issues and an ESG and Sustainability Report. Detailed and topic relevant ESG risk management coverage is contained within these two reports.

Progress

Over the past three years, our ESG efforts have concentrated on the areas that matter most to our stakeholders and are relevant across our diverse portfolio. This year’s report demonstrates a greater understanding of ESG and the value brought by enhanced governance, increased risk management, water and energy efficiency, and more use of renewable energy. Clear indicators have now been established to measure progress on these environmental priorities, as well as several social factors, providing a solid foundation for Remgro’s ongoing reporting and drawing on the insights of key data from our subsidiaries and portfolio companies.

These reports also cover the social aspects including issues of ethics, diversity and empowerment. In this year’s report there has been further emphasis on creating baseline analyses for future reporting on diversity and inclusion issues.

Looking forward

Looking ahead, the primary objectives for the coming year include streamlining the process for gathering ESG data and enhancing the ability to measure progress – both within Remgro and across investee companies – as ESG capabilities mature. Greater collaboration with investees will support the development and agreement of meaningful ESG indicators and increased buy-in. The selection of an effective ESG tool for data collection is a priority. The focus will remain on identifying and embedding climate-related risk scenarios and opportunities to strengthen future resilience.

Corporate Social Investment

Remgro’s Corporate Social Investment programme is detailed in the ESG and Sustainability Report. Ongoing networking and collaboration with the companies in the portfolio is aimed at maximising the Group’s development impact.

For more information on the Corporate Social Responsibility of the Company, visit for the full ESG and Sustainability Report.