The world in which we operate

The Group’s entrepreneurial spirit is evidenced by growth. This is achieved by exploring new opportunities and taking calculated risks. Risk and opportunity are two ends of the same spectrum. To proactively respond to change and achieve growth, there is a strategic need to explore new opportunities and directions, while managing attendant risks.

In our highly diversified business environment, our key material issues are sometimes difficult to consistently define as our businesses span a wide spectrum of industries and geographies. Bidvest’s decentralised structure forms the basis of the Group’s business continuity plan. This decentralised risk management approach provides an effective, robust and integrated risk model. Another fundamental risk management mechanism is Bidvest’s diversified business model, making entrepreneurial managers accountable for all aspects of performance and delivery. The following strategic issues have been identified as having a significant impact on the long-term sustainability of our business.

People		MATERIAL ISSUES	KPI	TARGETS	GENERAL
Our human and intellectual capital is our people’s competencies, their experience and business knowledge.		Safety	Fatalities Safety in the workplace for employees Employee financial health	Ensure applicable compliance is achieved within our various industries over a five-year period Indicator to be updated so tracking of compliance can be achieved beginning 2015 Tough economic conditions can be devastating. Bidvest endeavours to have adequate support systems such as counselling in place	Although we track injury rate, the definition varies across geographies, for example Mauritius includes Insect bites. Reporting this indicator therefore would not be material from a Group perspective. QUICK LINK: Operational reviews http://www.bidvest.com/ar/bidvest_ar2014/ops-overview.php
		Skills and retain talent	Training	Continued investment in training Career pathing Graduate programmes Update indicator to allow reporting on training spend per person	Due to diverse nature of the Group each division and company will have their own targets in place. QUICK LINK: Operational reviews http://www.bidvest.com/ar/bidvest_ar2014/ops-overview.php
		Health and wellness	HIV/Aids reporting	Improve reporting on this indicator set from the divisions over the next two years Offer education to the divisions on HIV/Aids via sustainability champions	Applicable to Bidvest South Africa
		Labour relations	Wage-related issue Strikes and strike days Unionisation B-BBEE	Indicators to be updated to track the effect of days lost due to absenteeism, strike action and injuries on the bottom line. Ensure ongoing communications with unions and our businesses Management aims to grow talented individuals with a B-BBEE emphasis Better reporting of the numbers via online data collation tool	Due to diverse nature of Group each division and company will have their own targets in place. EE only applicable to Bidvest South Africa. See operational reviews.   QUICK LINK: Operational reviews http://www.bidvest.com/ar/bidvest_ar2014/ops-overview.php Above-inflation wage increases place pressure on competitiveness and margins.
		Community investment	CSI spend	Report by type of CSI involvement	Due to diverse nature of Group each division and company will have their own targets in place. QUICK LINK: Operational reviews http://www.bidvest.com/ar/bidvest_ar2014/ops-overview.php
		GROUP PERSPECTIVE 2012 2013 2014 PEOPLE NUMBERS 105 103 106 371 143 828 International 15 992 16 731 18 093 Southern Africa 89 111 89 640 125 735 Male 60 587 60 959 85 713 Female 44 516 45 412 58 115 SAFETY       Lost-day rate 14 18 16 Number of fatalities (during work or as a result of work) 5 2 3 SKILLS       Training – Total costs (excluding learnerships and bursaries to employees) (R’m) 154,0 170,2 206,7 HEALTH AND WELLNESS       Number of employees participating in HIV/Aids training and awareness campaigns 20 709 48 516 78 309 LABOUR       Unionised employees as percentage of total eligible employees 34,1 32,0 32,2 COMMUNITY INVESTMENT       Community CSI spend (R’m) (including bursaries) 65,2 112,2 106,1

“Sustainability is how we view the Bidvest business mindset. It is all about creating value in the short, medium and long term. Value not only for our investors, the providers of capital, but value for all our stakeholders and importantly our 143 828 strong Proudly Bidvest family.”

Brian Joffe, Group chief executive

Performance		MATERIAL ISSUES	GENERAL
Our financial capital		Financial controls	Financial controls including pursuing efficiencies, cost savings and responsible asset management remains a critical focus area.
		Exchange rate volatility	Remains a challenge for many of our businesses with overseas suppliers and principals.

Product		MATERIAL ISSUES	KPI	TARGETS	GENERAL
Our social and relationship capital goes to brand reputation and working together with our customers and suppliers to find value adding solutions.		Minimise product impact Ensure food safety Ensure supply chain integrity Technology Supplier and customer communication	Subscribe to regulatory requirements within various industries Ensure technology is kept updated Ongoing stakeholder engagement	Indicator set to be updated according to the various industries for 2015 reporting Group policy to be updated Stakeholder engagement is ongoing and regular feedback from sustainability champions to be tracked Fostering positive long-term relationships with key suppliers and customers	Companies will have their own policies. Due to diverse nature of the Group each division and company will have its own targets in place QUICK LINK: Operational reviews http://www.bidvest.com/ar/bidvest_ar2014/ops-overview.php QUICK LINK: Stakeholder table http://www.bidvest.com/ar/bidvest_ar2014/stakeholder.php Technology is an enabler of business initiatives to strategically align business and IT. Globally legislative requirements create an increasingly complex business environment.
		Data is not available from a Group perspective, but something that each company/division deals with individually. 2015 will see new indicators being implemented on our sustainability data collection tool to enable additional Group reporting.

Planet		MATERIAL ISSUES	KPI	TARGETS	GENERAL
Defining our natural capital we strive to minimise our environmental impact.		Ensure the future of our planet Minimise impact of rising costs of fuel and electricity	Fuel usage Electricity usage Water usage Waste monitoring Paper usage	Continued monitoring and reporting on energy and fuel usage Changes to indicators for 2015 made according to new regulations and divisional feedback Evaluate the implications of the UN global compact Subscribe to CDP water and climate change in relevant industry sectors Subscribe to GRI : G4	Due to major acquisitions by Bidvest, GHG increased Due to diverse nature of the Group each division and company will have its own targets in place QUICK LINK: Comparative sustainability data http://www.bidvest.com/ar/bidvest_ar2014/sus-com-data.php Although water usage across the Group is low, it is continually monitored.
		TOTAL CARBON 2012 2013 2014 GHG emissions (tonnes of CO2) 725 828 697 653** 795 133* COMPARISON OF EMISSIONS INTENSITY PER PERSON AND BY REVENUE Unit 2012 2013 2014           Full-time employees FTE 105 103 106 371 143 828 Million rand revenue R’m 137 235,0 156 533,2 187 776,0 Fuel use including diesel; petrol; coal and gas (carbon) (Scope 1) tCO2 397 674,0 383 033,9 427 084,0 Fuel use per person including diesel; petrol; coal and gas (Scope 1) tCO2/FTE 3,6 3,6 3,0 Fuel use per revenue including diesel; petrol; coal and gas (carbon) tCO2/R’m 2,9 2,4 2,3 Energy use in GJ GJ 1 367 407,4 1 332 488,2 1 598 976,0 Energy use in carbon (Scope 2) tCO2 309 031,0 291 374,3 340 172,0 Energy use per person (carbon) tCO2/FTE 2,9 2,7 2,4 Energy use per revenue (carbon) tCO2/R’m 2,3 1,9 1,8 WATER USAGE 2012 2013 2014 Total water usage (megalitres) 2 929,3 2 849,8 3 712,1

		* Total GHG excludes out-of-scope emissions **Restated
			QUICK LINK: Bidvest greenhouse gas inventory http://overendstudio.com/online_reports/bidvest_ar2014/pdf/greenhouse-carbon-footprint.pdf

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			QUICK LINK: Bidvest greenhouse gas inventory http://overendstudio.com/online_reports/bidvest_ar2014/pdf/greenhouse-carbon-footprint.pdf