Annual integrated report 2018

Sustainability governance The board’s social and ethics committee meets quarterly to review the results of the monthly reporting of the group’s sustainability activities. While the decentralised business model promotes appropriate responses from our companies, the committee is guided by a group-wide materiality assessment and stakeholder impact analysis. Key among these, include responsible product sourcing, environmental impact, employee wellbeing, and our responsibility as a corporate entity to support social investment programmes. Bidcorp, while embracing the decentralised structure, guides best practice standards and zero-tolerance standards through group-wide policies on bribery, corruption, fair labour practices, environmental management and critical sustainability metrics that businesses are required to report on. Environmental commitment We view our environmental reporting as an ever-developing strategic focus. Environmental management equates to sound business management as much as it relates to protection of our planet. Management’s commitment to this key driver is evident in the expanded environmental measurement reporting structures implemented across our group. Monthly reporting of a growing base of metrics is providing greater insight and information to our team, enabling us to embrace the efficiencies and opportunities identified through this much-improved process. Improved information provides not only insights but highlights previous errors and omissions. These have been restated where necessary. Our ability to present a more complete picture of our global carbon footprint and wider environmental impact is improving. In this report we have included emissions from air-conditioning and refrigerant equipment, acknowledging the material scope 1 emissions from this vital element in our business. Embracing new technologies and cooling systems such as the ammonia cooling plants has started to deliver significant reduction in these air- conditioning and refrigerant gas omissions. These upgrading projects continue as maintenance requirements as investment resources come available. Bidcorp is committed to reporting relevant contributors to scope 3 emissions such as waste management. Waste is an important and relevant issue to Bidfood. Most of our waste is associated with packaging materials and food waste. While substantial environmental impacts from food occur in the production phase (agriculture, food processing), households influence these impacts through their dietary choices and habits. We try to manage these issues by encouraging recycling (often promoting enterprise development as a result) and partnering with charitable food banks to ensure waste is minimised, as well as using our stakeholder communication channels to support and advise on healthy food choices and eating habits. Although our own operations are not significant water consumers, we acknowledge that many of our suppliers are reliant on suitable quantities of good quality water to produce our products and they may be located in water stressed areas. Climatic change will have an impact on these operations and we need to be cognisant of how water is managed in our value chain. See: Carbon Footprint report 2018 53 Bid Corporation Limited Annual integrated report 2018 Bidcorp’s response to 2018 Western Cape water crisis The 2018 Western Cape drought saw the imminent approach of “Day-Zero” water shortage for the region. Businesses were faced with the challenge of operating without access to water. Initiatives to identify alternate water sources were somewhat successful including rainwater tanks, recycling water where functionally possible and the installation of borehole water facilities to ease the load on municipal water supplies. Cleaning processes embraced the use of chemical and steam technologies to reduce dependency on water resources. Research into filtration systems to purify recycled and borehole water for the ammonia plant cooling towers was investigated. Behavioural changes were implemented through the “water-wise” campaign, limiting ablution flushing, using waterless hand sanitisers and limiting travel in efforts to reduce water consumption. Water was trucked into the Western Cape branches from neighbouring areas during the height of the crisis. “Day-Zero” was averted this time, however management continue to drive the behaviours and projects implemented over this time. Responsible consumption and committed water reduction is a vital key in ensuring the sustainability of our business and planet. Comments Netherlands had to empty, repair and refill two significant water tanks on their site; contributing to the increased consumption reported. Australia’s increased water usage relates to the full year effect of 2017 acquisitions. 5% increase in scope 1 emissions is due to 12% increase in vehicle numbers, however efficiencies are noted. Increased emissions in line with growth reported in Europe; impacted further by long cold winter which used more gas to heat work environments. Increased group scope 2 emissions is in line with reported increase in depot size, through acquisition and ongoing investment. Solar panels installed in Australia and Belgium have had the biggest contribution to the increased renewable electricity reported in 2018. Investment in this process continues and improved results are expected for 2019. Refrigerant and aircon gases were not reported in 2017, therefore it is separately disclosed in 2018. Those businesses able to gather this information reported it for the scope 1 + emissions calculation. Gas usage reported was gathered from all larger operations in the group; smaller businesses will gather and report this in the coming year. Emissions from indirect activities are not fully recorded at this stage. Operations have identified waste management as an opportunity to responsibly ensure this is actively managed and impact minimised. Reporting of this information has begun; and scope 3 emissions will be accounted for in future. This is Bidcorp Ifc – 13 Leadership review 14 – 23 Divisional reviews 24 – 47 ESG review 48 – 59 Financial statements 60 – ibc