Super Group has taken a decision to incorporate all governance and sustainability-related matters into a consolidated ESG Report for the year ended 30 June 2020. This has been an extraordinary year given the Covid-19 pandemic, resulting in various forms of lockdowns across the world. The Group had to adapt to the “new normal” of doing business whilst ensuring that the environment in which our employees worked adhered to the necessary Covid-19 health and safety protocols. The cost of compliance to these Covid-19 protocols amounted to approximately R22.3 million. The Group had 261 employees who tested positive for Covid-19. The majority of employees self-isolated and were a-symptomatic. We unfortunately had two fatalities as a result of this devastating pandemic and our sincere condolences to their families.
Our value creation is closely connected to improving the lives and wellbeing of societies in the regions in which we operate. Across both our African and international operations, Super Group continues to invest in its people. Our employees are key to the success of our Group. Although the Group had to retrench employees as a direct result of Covid-19, our workforce increased by 1 279 employees across all regions on the back of the various acquisitions concluded during the year. Retrenchment costs, mostly associated with Covid-19, amounted to approximately R31.4 million. Despite retrenchments, we recruited 172 (2019: 222) unemployed Black learners as well as 32 (2019: 20) disabled Black ladies to participate in learnership programmes this past year. No bursaries were awarded during the year, however, the learnership programme currently has 184 students of which 104 are in the employ of Super Group.
Super Group’s capacity to act as a responsible corporate citizen is directly impacted by its financial performance. The Group continues to focus on initiatives to significantly improve the lives of previously disadvantaged South Africans through training and mentorship.
Our total number of accidents increased to 481 (June 2019: 332) mainly due to the unacceptable condition of our road infrastructure, the increasing criminal attacks on trucks and the lawlessness of drivers on our roads. We had two fatalities, both in Supply Chain Africa, during the year and our condolences go out to their families and colleagues. We continue to strive for a zero-rate fatality level.
Super Group actively contributes to the social upliftment of previously disadvantaged communities as well as where there is a real need. We are aware of the devastating effect Covid-19 has had on the communities we operate in and as a result, we increased the Group’s total CSI contribution for the financial year ended 30 June 2020 to R20.6 million, an increase of 31.2% on the prior year’s R15.7 million. The various CSI initiatives undertaken by Supply Chain, Fleet Solutions and Dealerships are set out in more detail in Our Social Involvement.
Corporate governance within Super Group is managed and monitored by a unitary Board, the Group Audit Committee and several sub-committees of the Board. The Board’s responsibilities and terms of reference are detailed in the Board Charter. This charter has been developed to enable the directors to maintain effective control over strategic, financial and compliance matters, and is reviewed annually. Further, the charter is updated when required to ensure compliance with the Companies Act, King IV™ and the JSE Listings Requirements.
In line with our overall approach to ESG principles, we have put in place a number of environmentally-friendly business practices across the Group, many of which also make good financial sense as they drive improved efficiencies at the same time. The Group reported a 10.5% decline in its carbon emissions from 390 134 tonnes (2019) to 349 107 tonnes mainly as a result of less travelling on the back of the various Covid-19 lockdowns. We also ensure that all vehicles are properly maintained and are not overloaded. Along with frequent driver training, this ensures that carbon emissions from all our vehicles meet manufacturers’ specifications. This in turn contributes to reduced pollution as well as better driving habits.
Despite Covid-19 and the dire impact it is having on world economies, Super Group acknowledges that there is more that can be done in the ESG arena. The following imperatives, forming part of the Group’s strategy, will provide the context for setting the Group’s sustainability targets going forward:
- actively contributing to the success of emerging entrepreneurs and supporting local initiatives;
- continuing to firmly embed sustainability management in all businesses;
- setting clear transformation and gender diversity targets;
- retention of key talent and succession planning; and
- enterprise and socio-economic development.
I’d like to take this opportunity to sincerely thank my colleagues in management as well as all Super Group employees. Your ongoing support and commitment has not only enabled us to be an “Employer of Choice” but helps ensure that we continue to make a very real difference in the countries in which we operate, whether by improving our communities, ensuring employment opportunities are created and, by contributing significantly to the economies concerned. In spite of everything we have faced, especially during the challenging and uncertain time created by Covid-19, your resilience and dedication is much appreciated and I have no doubt that together, we will ensure Super Group’s continued success into the future.
Peter Mountford
Chief Executive Officer
9 November 2020