2024

INTEGRATED REPORT

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Creating value through sustainability

The Group is committed to sustainable business operations and responsible environmental, social and governance (ESG) practices, and recognises its responsibility to enhance reporting on sustainability to assist investors in assessing the risks and impact of its sustainability programme on enterprise value.

The Group welcomed the inaugural sustainability reporting and disclosure standards of the International Sustainability Standards Board published in June 2023. The introduction of IFRS S1, which covers sustainability-related risks, opportunities and financial disclosures, together with IFRS S2 on climate-related disclosures, collectively create a much-needed global standard that will benefit companies and investors alike.

The adoption of the standards is not yet mandatory in South Africa. The Group has commissioned an independent review of its sustainability reporting, including an assessment of the disclosure requirements of IFRS S1 and S2 relative to current reporting. The board has delegated responsibility for the adoption of the new standards to the Group's finance function, supported by the Sustainability Committee.

Sustainable Development Goals

The Group seeks to balance, meeting its business needs with those of the environment and society. The Truworths sustainability strategy is aligned with seven of the United Nations (UN) Sustainable Development Goals (SDGs), the global objectives developed by the UN member states to be achieved by 2030. These selected SDGs can be categorised as follows:

Enterprise value impact, being the SDGs which impact on the assessment of the Group's enterprise value.

Sustainability impact, being the SDGs where the Group can have the most impactful societal role.

Enterprise value impact

Sustainability impact

The fashion industry globally contributes significantly to carbon emissions, waste to landfill and water consumption. The Group is encouraging a circular economy and addressing its negative environmental impact by tracking energy and water use, and actively promoting waste reduction through reuse and recycling, while engaging suppliers to reduce resource consumption and costs. At the same time, the Group is addressing social sustainability by ensuring a positive contribution to employee wellbeing and development and improving living conditions for local communities.

By supporting these SDGs, the Group is advancing the sustainability of the business and contributing towards a better society.

Shareholders will note that the sustainability activities addressed in this report relate primarily to Truworths. Office UK has developed an ESG strategy and as its sustainability activities are progressed, the scope of the Group's reporting will be extended to include Office.

SELECTED SDGs
TRUWORTHS’ ROLE IN SUPPORTING SDGs
PROGRESS IN SUPPORTING SDGs IN 2024
SELECTED SDGs

End poverty in all its forms everywhere

TRUWORTHS’ ROLE IN SUPPORTING SDGs

… supporting direct and indirect job creation and facilitating unemployed women to become self‑sustaining through social programmes.

PROGRESS IN SUPPORTING SDGs IN 2024
  • Donated more than 425 000 garments and 189 000 metres of fabric with a value of R44 million to community programmes
  • Over 740 000 garments donated to Taking Care of Business since 2019 in support of creating self-employment opportunities for women in townships
  • Small and medium-sized black-owned businesses supported through the Truworths Enterprise Development Trust
SELECTED SDGs

Ensuring healthy lives and promote wellbeing for all at all ages

TRUWORTHS’ ROLE IN SUPPORTING SDGs

… supporting the health and wellbeing of employees, as well as funding community health facilities for disadvantaged South Africans.

PROGRESS IN SUPPORTING SDGs IN 2024
  • R23 million invested in upgrading 24 public healthcare facilities since 2010
  • Funded the upgrade of the paediatric ward at Greys Hospital in KwaZulu-Natal in partnership with Smile Foundation
  • Through a long-standing partnership with The Reach for a Dream Foundation, funded Dream Rooms for critically ill paediatric patients at four hospitals
  • 67% of Group employees covered by a healthcare plan
SELECTED SDGs

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

TRUWORTHS’ ROLE IN SUPPORTING SDGs

… supporting education through training and skills development of employees and social investment in educational institutions.

PROGRESS IN SUPPORTING SDGs IN 2024
  • Invested R129 million in employee skills development and learning
  • 11 706 employees participated in 253 training programmes in South Africa
  • 2 610 employees participated in leadership development programmes
  • 50 employees on bursary programme
  • Funded upgrades at two LEAP Science and Maths Schools in Gauteng and Limpopo (South Africa) totalling R1.7 million over the past two years
SELECTED SDGs

Achieve gender equality and empower all women and girls

TRUWORTHS’ ROLE IN SUPPORTING SDGs

… supporting the empowerment of women and actively countering gender-based violence (GBV).

PROGRESS IN SUPPORTING SDGs IN 2024
  • 76% of employees are female, including 30% of top management
  • Zero tolerance policy to any form of GBV
  • Supporter of 16 Days of Activism against GBV in South Africa
  • Financial support provided to charities nationally that support victims of GBV
SELECTED SDGs

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

TRUWORTHS’ ROLE IN SUPPORTING SDGs

… supporting sustainable growth through all economic cycles, employing over 12 000 people and creating thousands more jobs indirectly.

PROGRESS IN SUPPORTING SDGs IN 2024
  • 12 007 employees across the Group
  • 45% of Truworths' apparel produced by local manufacturers
  • Signatory to Retail - Clothing, Textile, Footwear and Leather Master Plan to support the sustainability of the local manufacturing sector in South Africa
  • Funded electricity generators for nine cut-make-trim (CMT) operators to enable them to continue production during load shedding and preserve employment
  • Loan funding provided to a strategic CMT partner to fund expansion
SELECTED SDGs

Ensure sustainable consumption and production patterns

TRUWORTHS’ ROLE IN SUPPORTING SDGs

… supporting responsible consumption and production, and applying the environmental principles of reduce, reuse and recycle.

PROGRESS IN SUPPORTING SDGs IN 2024
  • 4.4 million plastic clothing hangers reused
  • Recycled 99 tonnes of plastic
  • Recycled 585 tonnes of cardboard cartons
  • Volume of cardboard boxes purchased decreased by 26% to 217 tonnes
  • Paper and stationery consumption decreased 36% to 208 tonnes
  • Truworths shopping bags made from at least 50% recycled materials
SELECTED SDGs

Take urgent action to combat climate change and its impacts

TRUWORTHS’ ROLE IN SUPPORTING SDGs

… supporting the reduction of carbon emissions across our business and throughout the international and local supply chain.

PROGRESS IN SUPPORTING SDGs IN 2024
  • Total carbon emissions increased by 5.1% to 75 936 tCO2e
  • Store electricity consumption reduced by 0.02% to 59 966MWh
  • Electricity meters installed in 564 stores, approximately 73% of the South African store base
  • Saved approximately R8 million through LED lighting which is currently in 36% of South African stores
  • Water consumption decreased by 6.9% to 154 459Kl
  • New distribution centre (DC) certified to EDGE (Excellence in Design for Greater Efficiencies) Advanced green building standards
  • Emissions-reducing water, energy and packaging features have been incorporated into the new DC

2024

INTEGRATED REPORT