Annual Integrated Report 2019

Unpacking the Bidcorp Value-add processing continued Warehousing and distribution ef ciencies Climate change Extreme weather patterns and environmental degradation have the potential to signi cantly impact the entire value chain, from production through to distribution and sales. How we respond We are serious about the impact and role we have to play in reducing our impact on climate change. Each of our businesses have engaged with local stakeholders and have set targets and goals to minimise emissions and impact on their environment. At a group level, quarterly monitoring of the operational ESG reports is reviewed and improvements monitored. Best practice is rolled out among our businesses as quick wins for each to minimise their impact. Inclusion of sustainability targets in each operation’s annual strategy is in place. We engage supportively with our businesses sharing best practice to ensure we are continually improving our emissions ef ciencies thereby diminishing our impact on the environment. Timely infrastructure investment The development of robust infrastructure is key to creating the capacity demanded by growth ahead of the demand curve. How we respond Growth requires that depots be large enough to be economically viable, yet small enough to ensure we remain agile and customer focused. Through timely investment we are equipped and able to facilitate growth and capitalise on market opportunities as they arise. To remain ahead of the demand curve, we invest in assets with state-of-the-art sustainable capabilities, all designed to lessen our environmental impact and improve our operating ef ciencies. Cost of compliance Compliance is non-negotiable. We face a broad range of ever-changing legislative and regulatory requirements that are managed by each local teams, being positioned close to the speci c and relevant authorities. However, the cost of compliance remains signi cant, and increasing. How we respond We invest in assurance teams, compliance tools and engage outsourced professionals to guide and direct us in our efforts to promote the highest levels of compliance to food quality and health and safety standards in the market. Quarterly reporting of material non-compliances against the group standards is monitored by the divisional audit and risk committees, in line with the Bidcorp code of ethics and as a quarterly management representation. Entity level targeted training is rolled out, appropriate policies, systems, procedures and reporting is in place. Appointment of skilled technical resources and consultation with subject matter experts where required ensures that Bidcorp is operating within the legal and regulatory boundaries in each geography globally. http://www.bidcorpgroup.com/code-of-ethics.php What it may mean to us • Lack of product availability • Product pricing increases • Constraints in energy and water supply • Regulatory risks associated with environmental legislation eg carbon taxes What it may mean to us • Personal injury to stakeholders if non-compliant • Fines and penalties for non-compliance • Reputational brand damage What it may mean to us • Strategic proactive capex into the right business and market • Loss of opportunity or customers due to capacity constraints What it may mean to us • Reduces operating ef ciencies • Margin erosion • Product availability Fuel and energy costs Increasing fuel and energy costs drive up the cost of servicing the customer, increasing product prices and distribution costs. In addition, higher fuel costs often negatively affect consumer con dence and discretionary spending, dampening demand for food consumed out-of- the-home. How we respond Continued investment into the latest technology, energy and transportation equipment to improve operating ef ciencies. We have a successful track record of proactive engagement and problem-solving with our customers to identify mutually bene cial solutions. This stands us in good stead with customers, strengthens relationships and builds trust. 11 / Bid Corporation Limited Annual integrated report 2019