Annual Integrated Report 2019

Ethical code Bidcorp’s code of ethics sets the standard for our behaviour. Quarterly declarations from each business confirms application and compliance to this code. http://www.bidcorpgroup.com/ code-of-ethics.php “The future is what you BAKE of it” It was a proud day for both the school and its wider community at the launch of the Chipkins Puratos Bakery School South Africa, at Masisebenze Secondary School in Tembisa on February 11 2019. The Bakery School – an industry first for South Africa – will now empower an annual intake of twenty-five grade 11 learners at the school, as they begin a two-year programme that arms them with an NQF Level 2 qualification at the same time as they complete their matriculation certificate. The Bakery School is a non-profit company supported by Chipkins Puratos. Globally, Belgium-based Puratos has helped to open three similar schools in India, Brazil and Mexico. Food safety The food industry navigated the outbreak of many food related viruses and illnesses during 2019. This is an inherent risk of the foodservice industry. What sets Bidfood apart is the proactive, engaging and educational approach adopted. With epidemics of foot and mouth, African swine flu, listeriosis and others, the global operations were equipped and able to respond. There were no material supply interruptions, illnesses or fatalities reported. This is not without thanks and acknowledgement to our health and safety teams around the world, and their tireless efforts to maintain the highest levels of food quality and food safety. Transformation Bidcorp, as a JSE listed company, is committed to transformation in South Africa. The board reiterates its unequivocal message that diversity is a strategic imperative, and is committed to its policy on gender and race diversity. Bidcorp achieved a level 4 rating in 2018. The 2019 Bidcorp rating is still under review. Bidfood SA’s and Crown Food have not finalised their 2019 ratings. Chipkins-Puratos has achieved a preliminary 2019 rating of level 4, hopefully finalised at a level 3, once their participation in the “YES” programme has been factored in. We do anticipate challenges in maintaining our ratings under the revised BBBEE codes. Bidcorp Food Africa continues to invest significantly in its transformation journey. The impact of the Preferential Procurement requirements within the revised BBBEE codes has proven to be a challenge. An increasing number of our larger suppliers have been negatively impacted by the revised codes, many of them even now non-compliant, with limited alternate suppliers available in the market. We are actively investing in the development and transformation of our supply chain, however these initiatives take time. We anticipate this procurement challenge to worsen before we are likely to be able to reap the benefits of a transformed supply chain through enterprise and supplier development initiatives, not just of our own, but of the broader sector and allied disciplines. People development is supported by substantial training investment and in 2019 a growing number of previously disadvantaged employee candidates were selected and prepared for higher responsibility. These initiatives continue to contribute significantly to our succession planning efforts and material improvements in workforce diversity. The YES programme has been successfully implemented by all three South African businesses. Bidfood took on forty-nine YES candidates for a one year learnership, upskilling them in wholesale and retail operations, as well as a specialised sales training module. The programme allowed each candidate to immerse themselves in the business and various aspects of its operations. Forty-five of these candidates successfully completed the programme, with twenty-seven candidates accepting full time positions in the business post completion. Similar approaches were employed in both Crown Food and Chipkins-Puratos. Socio-economic development remains an area within which the Bidcorp Food Africa businesses excel, recognised for their efforts by far exceeding the expectations of the BBBEE scorecard. Bidcorp’s goal remains the implementation of a sustainable long-term transformation programme, embracing commercially impactful solutions beneficial to our stakeholders, for continued business growth. Transformation is a work in progress and is a top priority for Bidcorp. http://www.bidcorpgroup.com/transformation.php Bidcorp empowers people, builds relationships and improves lives. A job well done Bidfood UK, the first foodservice company to achieve The Planet Mark™, has held this award since 2016. SteveMalkin SirTimSmitKBE Founder,ThePlanetMark Co-founder, theEdenProject ThePlanetMark SustainabilityCertificate www.theplanetmark.com info@planetfirst.co.uk @ThePlanetMark 10.4% 57,955 Total carbon footprint reduction Measure Period:1 st July201730 th June2018 Certified:UKOperations • Scope1: naturalgas, fleet, refrigeration • Scope2: electricity • Scope3:waste Total carbon footprint: 57,955 tCO 2 e Carbonperemployee: 12.4 tCO 2 e Comparison topreviousperiod: (normalised) Total change: -10.4 % Peremployee: -11 % Next carbon reduction target: 2.5 % Direct contribution to 7 Sustainable DevelopmentGoals This is to certify thatBidfoodhasachieveda reduction in its carbon footprintand is committed to continuous improvement in sustainability Valid to:30 th September2019 Bidfood tCO 2 e total carbon footprint AchievingThePlanetMark demonstrates: Leadership in raisingawarenessof businesssustainabilityby communicating your achievements,bestpracticesand continuouscommitmentby carryingThe PlanetMark logoand through the disseminationofpress releases,case studiesandothermedia. Communicate Engage AchievingThePlanetMark demonstrates: • Participation inworkshops, use of toolkits and green teammobilisation to engage employeesand supply chain to drive improvements in sustainability • Donation to theEdenProject to support educationon climatechange • Donation to theaward-winning charity CoolEarth toprotectoneacreof endangered rainforestand the communitieswithin it. The Planet Mark Sustainability Certificate 10.4% 57,955 Total carbon footprint reduction Measure Period: 1 st July 2017 30 th June 2018 Certified: UK Operations • Scope 1: natural gas, fleet, refrigeration • Scope 2: electricity • Scope 3: waste Total carbon footprint: 57,955 tCO 2 e Carbon per employee: 12.4 tCO 2 e Comparison to previous period: (normalised) Total change: -10.4 % Per employee: -11 % Next carbon reduction target: 2.5 % Direct contribution to 7 Sustainable Development Goals This is to certify that Bidfood has achieved a reduction in its carbon footprint and is committed to continuous improvement in Bidfood tCO 2 e total carbon footprint Engage Achieving The Planet Mark demonstrates: Bidfood UK has been acknowledged with 37 awards from differing industry organisations for their sustainability efforts and reporting thereof. Bid Corporation Limited Annual integrated report 2019 / 63 ESG review