Conduct profitable business in a responsible and accountable manner

In line with SDGs aimed at affordable and clean energy and climate action, the Group is focused on energy and water efficiency, responsible waste management, and innovative solutions to aid customer sustainability.

Bidvest's environmental footprint is largely concentrated in its Freight operations, Bidair Cargo, laundries and the businesses with extensive operational networks, which collectively represent the vast majority of Group emissions and water usage.

Bidvest became a signatory to and participant in the United Nation's Global Compact. Bidvest's Group chief executive was appointed to the board of the UN Global Compact Network SA and elected the chairman. Nominated employees are participating in the UN's Climate Ambition and Gender Diversity Accelerator programs.

		Topic	Our aim	We will	Measurement	FY2019 base	FY2025 target	FY2022 actual	%ch '19	Like-for- Like	%ch '19	% ch 's21
Environmental	E1	Own carbon footprint	To reduce the emission intensity of our operations by 20% by 2025 from the 2019 base	Continue to improve energy efficiency, shift our energy consumption to lower emission sources, invest in renewable sources and configure our properties to be environmentally-smart	Scope 1 and 2 emissions intensity	4.33	3.46	3.07	(29%)	3.05	(30%)	(14%)
	E1				% electricity sourced from renewables	1%		2%	100%
	E2	Resource use	To reduce the waste generated and water intensity in our operations by 20% by 2025 from the 2019 base	Step up waste recycling efforts	Quantum of recycled waste (ton)	511 413		2 117 298	314%
					% of waste generated recycled	3%		96%
				Increase recycled raw material content in products and packaging whilst also making it more environmentally friendly	% product and packaging content from recycled material			Refer to commentary
				Reduce the net quantum of water used taking into account recycling	Net water intensity	24.91	19.93	18.41	(26%)	18.53	(26%)	(13%)
			Source product from supply chain partners that are responsible in their dealings and achieve 100% compliance by 2025 and contribute to the circular economy	Engage with these tier 1 suppliers to ensure that they have adopted the commitments described in our Ethical Purchasing Code (industry standard or equivalent environmental assessment)	% offshore suppliers being compliant as measured by self disclosure		100%	66%
				Introduce the recovery/take-back of product at the end of life	Quantum of items recovered			Refer commentary

Bidvest's carbon footprint assessment was conducted using the operational control approach.

Emissions

The Group generated Scope 1 and 2 emissions of 295 414 tons in the financial year ended 30 June 2022, 3% less when compared to the financial year ended 30 June 2021. Group emission intensity decreased by 13% year on year. In reference to targets embedded in our ESG Framework, emissions reduced by 15% between FY2019 and FY2022. Emission intensity declined from 4.33kg/R000s revenue to 3.05kg/R000s revenue, on a like-for-like basis.

2 038MWh, or 2%, of electricity used was drawn from renewable sources

Konica Minolta retained its carbon neutral status, which it has held since 2013

Both Noonan and PHS have started new zero journeys

Emission intensity (kg/R000s)

Group scope 1, 2 emissions (ton CO₂)*

	FY14	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22
Scope 1	285 431	250 441	217 085	212 910	170 365	197 687	133 618	179 520	176 592
Scope 2			5 357	9 471	157 704	148 661	132 675	123 318	118 822
Total	285 431	250 441	222 442	222 381	328 070	346 349	266 396	302 838	295 414
Like-for-like								275 512	275 002

*	Ton of CO₂e are reported using government and international GHG conversion factors.

Bidvest made a climate change submission to the CDP. Please refer to www.bidvest.co.za.

Water

The Group used 1.8 million kilolitres of water, a decrease of 2% year on year. Also, 0.2 million cubic meters of industrial wastewater was treated and discharged. Water intensity decreased by 13% during the year to 30 June 2022.

In reference to targets embedded in our ESG Framework, 11% less water was used in FY2022 compared to FY2019. Water intensity declined from 24.91litre/R000s revenue to 18.53litre/R000s revenue, on a like-for-like basis, a 26% decrease.

Group water used and waste water treated (kilolitres)

	FY14	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22
Total water	2 935 642	2 391 110	2 367 121	2 423 291	2 048 674	1 994 158	1 778 043	1 802 576	1 771 759
Like-for-like								1 639 454	1 671 474
Waste water treated					402 149	518 614	285 180	574 628	166 449

Water intensity (litres/R000s)

The Group has a handful operations in water stressed municipalities, notably in the Eastern Cape, SA. Business continuity plans have been put in place.

Circular economy

The Group recycled 2 117 298 tons of waste. 96% of waste generated was recycled.

Product/service innovation examples:

PHS purpose designed a plastic-free biodegradable bag for users to dispose of their sanitary waste

PHS's range of AERAMAX and BIOZONE air purifiers remove harmful germs, allergens and particulates out of the air

PHS introduced ‘paper wrapped in paper' and utilise bamboo or sugar cane in the packaging of paper products

PHS launched an "on foot" washroom service in high density areas, aimed at a new employment market of those that only wanting 20 hours work per week, and which has significantly reduced the carbon footprint in these areas

Patented, water-efficient washroom water products, branded FLOWSAVER, save customers 3m³ water annually

Recycled material content, such as wheat grass, was introduced in several Interbrand branded handbag products

Croxley's popular counter book was redesigned and no longer requires plastic covering

Konica Minolta is elevating remote servicing through digital device log-in, which also improves technician efficiencies and customer satisfaction

Environmental management

During the year, two environmental grievances were received. One was a hexene leak at BTT which was contained to the bunded area and remedial action taken. The incident was reported to the Department of Environmental Affairs. No fine was issued and they requested an investigation report instead. At Manica Group Namibia, an external complaint was received from a neighbour relating to copper concentrate dust emissions. An inspection from the Municipal Health department took place, recommendations were received, implemented and closed out. Two social grievances related to general dust was received, one each at Bulk Connections and Manica.

No environmental fines or incidents occurred

During the year, Lufill received its FSSC supplier accreditation

Environmental management systems are in place at businesses, as listed below, representing 46% of Group revenue.

Entity	Certifications
Noonan	ISO 9001	ISO 14001	ISO 45001	ISO 22301	ISO 27001
First Garment Rental	ISO 9001	ISO 14001	ISO 45001	SANS 10146
Masterpack	FSSC 22000	IOS 22002	FSC-C031324	FSSI IBL
Bidvest Tank Terminals	ISO 9001	ISO 14001	ISO 45001	SANS 3000
Bidvest Facilities Management	ISO 9001	ISO 45001	ISO 14001	ESCo Tier 1
PHS	ISO 9001	ISO 14000	ISO 45001
Bidvest Steiner	ISO 9001	ISO 45001	ISO 14001
Bidvest Prestige	ISO 9001	ISO 45001	ISO 14001
Bidvest Catering Services	ISO 9001	SANS 10049	SANS 10156
Renttech	IOS 9001	ISO 45001
Rotolabel	ISO 9001	FSSC 22000
Lithotech	ISO 9001	FSSC 22000
S&N Labels	ISO 9001	FSSC 22000
Konica Minolta	ISO 9001	FSC
Manica Namibia Group	ISO 9001	ISO 45001
G Fox	NRCS accredited	SEDEX accredited
Bidvest Protea Coin	ISO 9001
P& I Associates	ISO 9001
Bidfreight Port Operations	ISO 9001
Rennies Ships Agency	ISO 9001
Bidvest International Logistics	ISO 9001
Academy Brushware	ISO 9001
Buffalo Tapes	ISO 9001
Burncrete	ISO 9001
Nu-Quip	ISO 9001
Cabstrut	ISO 9001
Electech	ISO 9001
Technilamp	ISO 9001
Home of Living Brands	ISO 9001
Silveray	ISO 9001
Cecil Nurse	ISO 9001
Hotel Amenities Supplies	ISO 9001
Vulcan	ISO 9001
Aluminium Foil Converters	ISO 22000
Bidair Cargo	ISAGO
Lufil	FSSC 22000
King Pie	FSSC 22000

Responsible supply chain

At the beginning of FY2022, a Group Code of Ethical Purchasing (Code) was published. This Code is intended to promote safe and fair working conditions, ethical business practices and the responsible management of environmental and social issues within the Group's supply chain. The principles are to uphold human rights, behave ethically and environmentally sustainable.

As a first step, all offshore suppliers were approached to sign the Code (or equivalent) as confirmation of adherence and commitment. Many of our businesses have already started to engage with the rest of their supplier base around the same. As included in the FY2023 short term incentive scorecard, we are widening the net to include multinational suppliers as well. We are also investigating further tools to strengthen oversight.

To date, 66% of Bidvest's offshore suppliers signed the Code (or equivalent)

Noonan and PHS are engaging with select suppliers to better understand the complete supply chain footprint

Task Force on Climate-related Financial Disclosures

The TCFD published recommendations to encourage companies to increase their disclosure of climate-related information, with a focus on governance, strategy, risk management and metrics and targets.

Bidvest is aware of the importance of addressing issues related to climate change as the impacts are far reaching. As a targeted first step towards contributing to restricting the increase in the global mean temperature in accordance with the Paris Agreement, we have set a target of reducing emission intensity by 20% by 2025.

To date, we have taken the following steps towards these recommendations:

Governance – Bidvest reiterated its commitment to conduct profitable business in an accountable manner and set objectives, which include representing responsibly made products. Management included an explicit Group emission reduction target of 20% by 2025 in the board approved ESG Framework which has been cascaded into the identified focus businesses as part of management's KPIs. Data gathered quarterly is presented to the Social, ethics and transformation committee;
Strategy – offering a continuously broadening basket of services and products that adds value to customers, means that we represent products and services that are responsibly made and delivered whilst preserving the environment for future generations. This is an ongoing process, incorporating innovation and investment;
Risk management – Climate risk is one of the key risks elevated at Group level. This is discussed in more detail in Material focus areas, risks and responses. Operationally, climate risks translate into, for example, damage to facilities at coastal level and disruptions to supply chains due to extreme weather conditions, escalating cost of service delivery, products and compliance as well as reputational damage; and
Metrics and targets – Bidvest has reported on its environmental footprint for several years. The need for specific measurement metrics and targets culminated in an ESG Framework released in FY2021. A 20% reduction in emission and water intensity between 2019 and 2025 has been committed to, together with measures to contribute to a sustainable supply chain and the circular economy.

Refer to www.bidvest.co.za for the Group's climate change response submitted to the CDP.

PHS innovations improve safety, reduce costs and decrease emissions

PHS is one of the largest hygiene services providers in Great Britain, Scotland, Wales and Ireland. Showing its commitment to ongoing innovation, it recently overhauled its transportation fleet, purchasing 44 new waste collection trucks and 260 vehicles in its washroom fleet.

The new trucks are fitted with state-of-the-art technology. This includes automatic braking (to help prevent low-speed collisions), proximity sensors (to detect cyclists and pedestrians in vehicle blind spots) and cameras with recording systems (to monitor, understand and improve driver performance). The trucks are fitted with on-board bin weighing equipment to accurately record individual collection weight. The safety features reduce insurance and repair costs and deliver extra protection for the fleet of drivers.

The PHS team says the overhauled washroom fleet will lead to a 30% reduction in fuel costs, a two-ton decrease in CO₂ emissions, and the smaller, more nimble vans will also reduce accidents saving replacement and repair costs. PHS has a fleet of 2 000 vehicles, 700 in the washroom unit and 1 300 in waste collection. At this stage, only the City of London operations have instituted similar technologies in waste collection trucks. However, given the project's positive impact, fleet modernisation may roll out to other areas.

The company has also placed an order for electric vehicles, the first of which was delivered in Hayes, West London at the end of May 2022. The electric vehicles will initially operate in four areas in the UK. PHS believes this pilot project will ultimately lead to most of its vehicles being electric, which will save fuel costs and significantly reduce the fleet's carbon imprint.

Noonan introduces "cobots" to enhance its services

Noonan has introduced cleaning robots in its operations. The collaborative robots, referred to as cobots, enhance the services the company provides to its customers.

"Leoscrub" and "The Rex" are two of the cobots which have helped the cleaning services company free up its staff to enable them to concentrate on value-adding tasks. The company is a pioneer in implementing the latest technologies to improve its performance, ensuring it provides the best solutions possible to its growing list of clients.

The robotic cleaning machines were introduced for the first time, four years ago, at the company's pharmaceutical client. Since then, the technology has improved, leading Noonan to invest in a new range of machines. The Rex, a larger machine, was put on trial in May 2022 and is expected to be deployed at the company's shopping centre clients in the coming months.

The cobots perform repetitive cleaning tasks over large areas. Since their introduction, Noonan has saved up to 80% in water usage. The cobots are also energy efficient as their mapping technology ensures efficient cleaning and they can work in darkness. For instance, The Rex is a powerfully built yet nimble machine, which uses the class-leading lidar mapping system, a depth camera mesh and sonar sensors to help it navigate and avoid collisions. The app technology attached to the machine provides intelligent data on square metres cleaned and energy consumption.

Leoscrub and The Rex have ensured that Noonan can realise cost savings and deliver a favourable return on its investment in the form of reduced labour hours. The company has managed to save between 16 to 20 man hours a week, making the introduction of the Leoscrub financially viable. An added benefit is the increase in staff motivation – unburdened from performing mundane and monotonous cleaning tasks, they can now focus on other critical functions.

By using energy efficient robots, Noonan is also able to make progress in achieving its net zero targets. The cobots have enabled Noonan to move closer to its vision of being a partner of choice, modernise its operations and reduce its carbon footprint.