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About our report

Our ESG report provides an in-depth assessment of our environmental, social and governance performance for the reporting year 1 July 2020 to 30 June 2021. It assesses our ability to manage our ESG impacts to create or preserve value for our people and other stakeholders and guard against value destruction. The report is aimed at all stakeholders with an interest in how we manage our direct and indirect environmental impact, how we manage our people and ensure the health, safety and wellbeing of our employees and customers, how we contribute to community upliftment and how we govern our ESG impacts and ensure ethical business conduct.

Scope and boundary

The ESG report covers the businesses over which the Group had operational control during the reporting period, as well as our ESG risks and opportunities and the related issues that matter most to our stakeholders.

Motus

Frameworks

The ESG report has been prepared with consideration given to the principles of the Value Reporting Foundation's (formerly the International Integrated Reporting Council) International <IR> Framework (December 2019), the principles of King IV and South Africa's national development priorities. The GRI's Standards have guided the identification of the Group's key ESG indicators. In 2022, we will align our ESG activities to the United Nations Sustainable Development Goals, and their universal call to action to end poverty, protect the planet, and ensure prosperity for all by 2030.

Note: for the purposes of this report, Hyundai Automotive South Africa is referred to as Hyundai, KIA Motors South Africa as Kia, Motus Vehicles Distributor previously named Renault South Africa as Renault and Brietta Trading as Mitsubishi.

Materiality determination

Our material priorities are those factors most likely to influence the conclusions of our stakeholders when assessing how we create, preserve or may erode value over time within our operating context. They are the factors considered to be within the control of Motus' leadership and which we have identified for close and careful management over the short, medium and longer term, to deepen the Group's resilience, relevance and responsibility in pursuing sustainable value for our stakeholders. They reflect our plans to manage the risks and opportunities associated with the Group's strategy and meet the expectations of our stakeholders. How effectively we manage our material priorities is likely to influence the conclusions of our stakeholders in relation to the capital inputs they provide, and the outcomes they expect in return.

Our material priorities inform the content included in this year's integrated and ESG reports.

How our material priorities were determined: Leadership development.

The diagram below sets out the areas where this report provides an in-depth review of Motus’ material priorities.

Resilience
Resilience
circle
1.
Sustain capital management discipline

2.
Leverage competitive advantages to diversify and grow earnings streams

3.
Accelerate the implementation of new ways of working and maintain agility to grow the business

Relevance
Relevance
circle
1.
Deliver exceptional value to customers as their needs change

2.
Remain the strategic partner of choice for OEMs and suppliers

3.
Be an employer of choice in the automotive industry

4.

5.
Use technology to sustain the business
Responsibility
Responsibility
circle
1.
Demonstrate best-in-class governance

Governance chapter:

2.
Proactively manage the ESG consequences of our activities

3.
Consistently deliver on stakeholder expectations to protect our reputation


Materiality boundary

Environment report
Managing our environmental impact is material for all Motus entities.
People report, health, safety and wellbeing report, and ethical and compliant business conduct report
People management and embedding an ethical culture are material for all Motus entities, as is occupational health and safety (OHS). OHS is particularly material in our workshops and parts distribution centres where employees work with machinery.
High-quality and responsible products and services report
Quality control is material for our workshops, vehicle businesses, car rental business and the aftermarket parts business. Responsible financial services offerings and the protection of customer information are particularly material for our dealerships, car rental business and the Financial Services business
Transformation report
Broad-based black economic empowerment (B-BBEE) is an integral part of any South African business, which includes the transformation of the workforce, inclusive procurement, and support of socio-economic development, and is material for all Motus entities operating in South.

Statement of responsibility and approval

Interviews with senior leadership, together with internal sources of information, particularly board and management reports, and presentations to the audit and risk committee and the SES committee have been used to prepare this report. Relevant external research reports have also been used. The Executive of Corporate Affairs, Risk and Sustainability is responsible for the preparation and presentation of the report and the controls in place to gather information.

The independent controls to ensure the integrity of the ESG report include:

  • Limited assurance by Deloitte & Touche over the following non-financial performance indicators:
    • Safety: kilometres travelled, road accidents and road accidents per million kilometres.
    • Social: training hours, training spend and corporate social investment (CSI) spend.
    • Environment: diesel, petrol and electricity consumed, water purchased, and Scope 1, 2 and 3 emissions.
  • Verification of our B-BBEE scorecard by accredited rating agency, AQRate.

Independent limited assurance report.

B-BBEE certificate: https://www.motus.co.za/environmental-social-governance/our-people/.

The Group Chief Executive Officer, the Group Chief Financial Officer and other relevant executive committee members reviewed the report before it was submitted to the SES committee for approval.

Executive management and the SES committee have reviewed and approved the report. In the SES committee's opinion, the ESG report addresses all material priorities and matters relating to ESG, and provides a balanced and appropriate review of Motus' ESG performance.

On behalf of the committee

Johnson Njeke

Chairman of the SES committee

20 September 2021

Osman Arbee

Group Chief Executive Officer