Integrated report

Introduction

Message from the Group chief executive

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"In FY2021, Bidvest established an ESG Framework which is a culmination of our sustainability ambitions, focused on the areas that we can make the biggest difference, with specific targets and metrics to measure our performance on this journey. These absolute medium-term targets were used to determine hurdles relating to the environmental, social and governance elements in the incentive scorecards, which was cascaded down from executive directors to operational managers throughout the organisation. The consistent, focused attention on six key metrics yielded great momentum and results during FY2022, particularly as it relates to diversity and environmental footprint. At the same time, new environmentally friendly products and services were introduced by several businesses.

Whilst we are proud of our achievements in such a short period of time, we recoginse that there is more to be done. As one of the largest employers in SA we have a responsibility to eradicating poverty and unemployment – an unfortunate reality that is still lived by many South Africans today. As such, a greater focus and weighting on the socio-economic components of the incentive scorecards are planned from FY2024 onwards."

Mpumi Madisa

People, planet, purpose

The impact of climate change and social inequality has become more and more evident, highlighting the need for common cause, understanding and purpose.

We recognise that people are the enabler of our business and a critical resource that needs to be empowered. As a Group that serves virtually all industry sectors, it is our responsibility to ensure that we contribute to the success of our host nations. We use the United Nation’s 17 SDGs, which provide a comprehensive definition of sustainability, as a guideline. We identified the SDGs that are most relevant to us: Good health and wellbeing; Gender equality; Decent work and economic growth; Industry, innovation and infrastructure; and Responsible consumption and production. Using these SDGs as guidelines, we are able to assess the impact we are making, through our basket of services and goods as well as our operations and corporate citizenship activities.

ESG Framework

Measuring our performance

Material focus areas, risks and responses

There are certain material matters that might disrupt Bidvest’s ability to continue creating value for its stakeholders. Bidvest has long acknowledged its duty to share the value created, fulfilling a responsibility to contribute to economic and social development among its group of stakeholders, including investing in the Bidvest team of people, and the environment. Our decentralised, assetlight and everyday essential products and service business model is, in itself, an effective risk management tool.

As external factors emerge and evolve, the key matters that may interrupt the operations of the Group’s business are carefully assessed through a controlled process, which includes the board’s Risk committee, divisional Risk committee and Internal Audit (IA). The meaning of material is defined and clarified across the Group. Those matters that may have an impact on the effective and successful future operations are assessed and the risk management thereof, including mitigating action, integrated into day-to-day activities. On an enterprise–wide level the key material matters are shown below, and discussed in more detail in Material focus areas and risk and highlighted in varying detail throughout this report:

Rapidly rising inflation;
Challenging economic outlook;
Supply chain constraints;
Cyber assaults;
Climate change; and
Impaired SA infrastructure.

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