ESG

A regenerative approach to business that focuses on creating both social and economic value.

KAP’s strategic intent is to build exceptional businesses that create lasting economic and social value.

As part of our commitment to this goal, we follow an approach that aims to integrate sustainability principles and practices into our business and to create a common framework that we can use to communicate the contributions we make to creating a sustainable world.

R41.1 million invested in enterprise and supplier development (2021)

R14 million contributed
to social development
projects (2021)

Zero waste to
landfill goal

Launched ‘Lets Plastic Responsibly’ campaign

Planted more than
3.5 million trees

Invested R125 million in training and development

R41.1 million invested in enterprise and supplier development (2021)

R14 million contributed
to social development
projects (2021)

Zero waste to
landfill goal

Launched ‘Lets Plastic Responsibly’ campaign

Planted more than
3.5 million trees

Invested R125 million in training and development

R41.1 million invested in enterprise and supplier development (2021)

R14 million contributed
to social development
projects (2021)

Zero waste to
landfill goal

Launched ‘Lets Plastic Responsibly’ campaign

Planted more than
3.5 million trees

Invested R125 million in training and development

United Nations Sustainable Development Goals (‘UN SDGs’)

In October 2020, we committed to making the United Nations Global Compact (‘UNGC’) and its principles an integral part of our strategy.

As a business, we are therefore undertaking a process of aligning to the UN SDGs, 17 goals that are aimed at addressing a number of global issues such as ending poverty, working to improve education and healthcare, reduce inequality, support economic growth, and protect and sustain the natural environment on a global basis. We believe these are the most comprehensive set of goals related to the environmental, social, and governance (‘ESG’) issues that we face in business and society today.

The SDGs can be mapped to other reporting frameworks and we consider them
as the lens through which our strategy is integrated with our purpose, values, operations, and story. The SDG focus areas we have identified are articulated in the graphic below.

FTSE4Good

We have continued to use the FTSE4Good assessment as the company’s ESG benchmark as it remains the methodology adopted by the JSE.

FTSE4Good published its final assessment in June 2021 and KAP scored 3/5 based on
the ESG information that was in the public domain as of December 2020. The company again scored 5/5 for corporate governance, and our overall FTSE4Good score remains above the industrial sub-sector average as well as the South African country average for industrial companies.

In April 2021, MSCI, a leading provider of investment tools and services to the global investment community, published their ESG assessment of KAP and their rating improved to ‘AA’. Performance against ESG goals is monitored by the board and the social and ethics committee, and ESG measures are incorporated into management incentive measurement criteria.

The social and ethics committee reviews the company’s ESG targets in the context of FTSE4Good and also monitors its standing in terms of:

United Nations Sustainable Development Goals (‘UN SDGs’)

In October 2020, we committed to making the United Nations Global Compact (‘UNGC’) and its principles an integral part of our strategy.

As a business, we are therefore undertaking a process of aligning to the UN SDGs, 17 goals that are aimed at addressing a number of global issues such as ending poverty, working to improve education and healthcare, reduce inequality, support economic growth, and protect and sustain the natural environment on a global basis. We believe these are the most comprehensive set of goals related to the environmental, social, and governance (‘ESG’) issues that we face in business and society today.

The SDGs can be mapped to other reporting frameworks and we consider them
as the lens through which our strategy is integrated with our purpose, values, operations, and story. The SDG focus areas we have identified are articulated in the graphic below.

FTSE4Good

We have continued to use the FTSE4Good assessment as the company’s ESG benchmark as it remains the methodology adopted by the JSE.

FTSE4Good published its final assessment in June 2021 and KAP scored 3/5 based on
the ESG information that was in the public domain as of December 2020. The company again scored 5/5 for corporate governance, and our overall FTSE4Good score remains above the industrial sub-sector average as well as the South African country average for industrial companies.

In April 2021, MSCI, a leading provider of investment tools and services to the global investment community, published their ESG assessment of KAP and their rating improved to ‘AA’. Performance against ESG goals is monitored by the board and the social and ethics committee, and ESG measures are incorporated into management incentive measurement criteria.

The social and ethics committee reviews the company’s ESG targets in the context of FTSE4Good and also monitors its standing in terms of:

United Nations Sustainable Development Goals (‘UN SDGs’)

In October 2020, we committed to making the United Nations Global Compact (‘UNGC’) and its principles an integral part of our strategy.

As a business, we are therefore undertaking a process of aligning to the UN SDGs, 17 goals that are aimed at addressing a number of global issues such as ending poverty, working to improve education and healthcare, reduce inequality, support economic growth, and protect and sustain the natural environment on a global basis. We believe these are the most comprehensive set of goals related to the environmental, social, and governance (‘ESG’) issues that we face in business and society today.

The SDGs can be mapped to other reporting frameworks and we consider them
as the lens through which our strategy is integrated with our purpose, values, operations, and story. The SDG focus areas we have identified are articulated in the graphic below.

FTSE4Good

We have continued to use the FTSE4Good assessment as the company’s ESG benchmark as it remains the methodology adopted by the JSE.

FTSE4Good published its final assessment in June 2021 and KAP scored 3/5 based on
the ESG information that was in the public domain as of December 2020. The company again scored 5/5 for corporate governance, and our overall FTSE4Good score remains above the industrial sub-sector average as well as the South African country average for industrial companies.

In April 2021, MSCI, a leading provider of investment tools and services to the global investment community, published their ESG assessment of KAP and their rating improved to ‘AA’. Performance against ESG goals is monitored by the board and the social and ethics committee, and ESG measures are incorporated into management incentive measurement criteria.

The social and ethics committee reviews the company’s ESG targets in the context of FTSE4Good and also monitors its standing in terms of:

Issue

Issue description

Profitability and sustainable growth

Profitability and growth are important so that we can deliver on our growth strategy and maintain and improve our competitive position. This creates the ability to reinvest in technology, our people, and the communities to ensure we remain competitive and create lasting economic and social value.

Investor sentiment and market outlook

Investors are important to KAP. We need to continue to grow and deliver good returns for our investors. Our customers are key to our long-term success. We value customer centricity and revisit our processes and product and service offering continuously to improve on delivering exceptional customer experiences. We focus on our value proposition and establish and maintain strong customer relationships to improve the market outlook.

Diversity

KAP promotes diversity and equal inclusion. We require skilled people to manage and grow our business and identify the need to create a culture that prioritises racial diversity, gender inclusion, and that focuses on women in the community, which will further improve sustainability.

Social unrest and reducing unemployment

The rise in social unrest and the consequences thereof are important issues for KAP. We acknowledge the important role we play in society in reducing unemployment to alleviate poverty.

Health and well-being

Health and well-being of society is important, both for our people and for our customers. Managing the ongoing impact of the Covid-19 pandemic, mental wellness, creating a safe place to work, and creating products and services that support well-being in the community are integrated into our culture and strategy.

Road safety

South Africa has a high rate of road traffic incidents. The safety of our drivers, passengers and of society is important and has been recognised as a focus area for KAP.

Responsible use of plastic

Plastic is a wonderful product with many applications. However, plastic waste does not belong in the environment. The reduction of single-use plastics, the recycling and repurposing of plastic waste, reducing plastic waste in the environment, and managing perceptions about plastic, is key to KAP.

Climate change

Climate change has become the great defining issue of our time. We recognise that it is a fundamental responsibility to understand its effects on our business and how it may impact on our value chain in the long-term. We are committed to reducing our Green House Gas (‘GHG’) emissions.

Reduction in use of natural resources

We recognise that it is important to focus on and develop ways to reduce the use of natural resources. We are actively mapping and monitoring our use of natural resources with the aim to reduce water usage, and we are targeting zero waste to landfill. We also recognise the need to reduce dependence on coal for energy in order to reduce our impact on the environment.

Government infrastructure

The South African business environment faces increasing uncertainty regarding the ability for state institutions to provide the required government infrastructure for businesses to operate effectively. KAP is aware of the need to mitigate against the risk of failing infrastructure.

Profitability and sustainable growth

Profitability and growth are important so that we can deliver on our growth strategy and maintain and improve our competitive position. This creates the ability to reinvest in technology, our people, and the communities to ensure we remain competitive and create lasting economic and social value.

Investor sentiment and market outlook

Investors are important to KAP. We need to continue to grow and deliver good returns for our investors. Our customers are key to our long-term success. We value customer centricity and revisit our processes and product and service offering continuously to improve on delivering exceptional customer experiences. We focus on our value proposition and establish and maintain strong customer relationships to improve the market outlook.

Diversity

KAP promotes diversity and equal inclusion. We require skilled people to manage and grow our business and identify the need to create a culture that prioritises racial diversity, gender inclusion, and that focuses on women in the community, which will further improve sustainability.

Social unrest and reducing unemployment

The rise in social unrest and the consequences thereof are important issues for KAP. We acknowledge the important role we play in society in reducing unemployment to alleviate poverty.

Health and well-being

Health and well-being of society is important, both for our people and for our customers. Managing the ongoing impact of the Covid-19 pandemic, mental wellness, creating a safe place to work, and creating products and services that support well-being in the community are integrated into our culture and strategy.

Road safety

South Africa has a high rate of road traffic incidents. The safety of our drivers, passengers and of society is important and has been recognised as a focus area for KAP.

Responsible use of plastic

Plastic is a wonderful product with many applications. However, plastic waste does not belong in the environment. The reduction of single-use plastics, the recycling and repurposing of plastic waste, reducing plastic waste in the environment, and managing perceptions about plastic, is key to KAP.

Climate change

Climate change has become the great defining issue of our time. We recognise that it is a fundamental responsibility to understand its effects on our business and how it may impact on our value chain in the long-term. We are committed to reducing our Green House Gas (‘GHG’) emissions.

Reduction in use of natural resources

We recognise that it is important to focus on and develop ways to reduce the use of natural resources. We are actively mapping and monitoring our use of natural resources with the aim to reduce water usage, and we are targeting zero waste to landfill. We also recognise the need to reduce dependence on coal for energy in order to reduce our impact on the environment.

Government infrastructure

The South African business environment faces increasing uncertainty regarding the ability for state institutions to provide the required government infrastructure for businesses to operate effectively. KAP is aware of the need to mitigate against the risk of failing infrastructure.