Letter from the Chairman of the social, ethics and sustainability committee

I am pleased to present Motus’ first ESG report. While we have been reporting our sustainability performance for a number of years, this year, we have responded to the escalating stakeholder expectations of business – which in essence is to harmonise the interests of all relevant stakeholders in the pursuit of profit-making. Purpose-led and values-driven organisations which can demonstrate such inclusivity have been shown to be more resilient and relevant. In a world grappling with global sustainability risks and finding the most equitable ways to embrace associated opportunities – key global challenges – Motus is one of the organisations that is embracing ESG opportunities.

Reporting within ESG-aligned frameworks better reflects our longstanding commitment to measured accountability to our stakeholders and society at every level and across all activities of the Group. It also provides readers with a deeper view of our governance structures to ensure we maintain high levels of ethics and good business conduct, and manage our environmental and social impacts responsibly. We are now applying Motus’ core business principles to our ESG disclosure and reporting. This consistency aims to maintain stakeholder trust, which is the underpin of sustainable profit-making.

As we align to global standards, we need to highlight that numbers without context can skew perceptions. No analyst could, for example, accurately interpret South Africa's wage gaps without an appreciation of historical inequity and current socio-economic challenges. International stakeholders might also not fully appreciate the complexity of local tradeoffs between employment creation, socio-economic recovery and growth, versus its likely environmental impact.

These are not excuses for inaction but rather alerts for readers of this report to be circumspect about the context in which we operate; and the factors that are within our control and those we can only influence by being a credible voice around the table in relevant business and sector forums and associations.

It would also be misleading to consider our ESG reporting without appreciating the foundation on which we are building these improvements. Our sustainability investments over many years underpin our current ESG progress. Motus’ internal functions and systems relating to the SES committee's mandate are well established and our commitment to an inclusive conception of value is culturally entrenched. Significantly, elements of executive remuneration are now linked to the achievement of selected and relevant ESG targets. Our ESG-related achievements reflect this commitment. Not only did we meet all our material targets, we continue to show increasing support and contributions to broader societal stakeholders.

Motus' values are central to our commitment to equitable shared value creation. As much as our entrepreneurial hardwiring compels us to provide our customers with solutions that are contextually relevant, innovative and engender loyalty, the mobility we help our customers achieve unlocks socio-economic opportunities for them and benefits for South Africa’s economic progress. Internal good governance not only protects Motus against risks, but its corporate citizenship aspect also ripples through society, with benefits that multiply.

Our ethical and compliant business conduct report describes our commitment and activities on this front. In our home market, the headlines relating to endemic corruption are inescapable and engender unfavourable perceptions about the ethical environment in which we conduct the majority of our business. Requiring a more robust focus in ensuring that we maintain our ethical tone, we have introduced a formal ethics declaration framework and reporting tool. All senior managers have completed their annual declarations using the updated tool and we are now extending the tool to business segments. The committee monitors ethics and governance closely and has not found any grounds for concern about corruption within Motus or in our dealings with stakeholders. Unethical behaviour is not tolerated, and we have the systems in place to ensure this is understood. Any contraventions are swiftly brought to book. In addition, increased focus has been placed on compliance training and reporting, with over 16 000 training modules completed in preparation for new regulations.

As discussed in our environment report, we have benefitted from institutional investors' insights and are implementing measures to reduce our impact on the environment. Pleasingly, we were able to reduce our overall carbon footprint, including Scope 3 emissions, by 7% and our investments in alternative power supply and alternative water sources continue to reduce our use of these resources. Our ability to make a more meaningful impact is constrained by reliance on the availability of OEM products which support environmental improvement in our markets. While we were able to increase our ability to offer these technologies in the UK and Australian markets, unfortunately South Africa's infrastructure is not in place to support the large-scale introduction of lower-emission vehicles, and must at this time take a back seat to more pressing requirements to grow the economy, put many more people in decent jobs, redress the persistent imbalances of our history, and attend to social cohesion.

The committee is comfortable that measures are in place to help Motus anticipate ESG-related risks. Those risks, as well as our responses are summarised in the ESG risks and opportunities section.


FTSE4Good Index Series
(overall score)

3,8 out of five (2020: 3,8 out of five)

Carbon footprint
(Group)

109 892 tCO21

Scope 1 and Scope 2

(F2020: 116 667 tCO2)

Black representation
(South Africa)

62%

of management in South Africa

(F2020: 56%)

Women representation
(Group)

31%

of the Group’s workforce

(F2020: 30%)

Training hours
(South Africa)

99

hours of training per employee

(F2020: 63 hours)

Enterprise development
spend (South Africa)

R76 million (F2020: R30 million)

As outlined in our health, safety and wellbeing report, health and safety is a well-managed priority. Management, aligned to relevant government guidelines, has inculcated current COVID-19 prevention measures. Given our responsibility to ensure safe environments for our people and customers alike, we are also actively encouraging staff who are medically able to vaccinate, offering opportunities for on-site vaccinations. Like other companies, Motus is growing to accept that COVID-19 will remain a health risk for the long term, although the impact of government lockdowns on our operations is abating.

As an employer of 16 708 individuals, people remain the core of Motus’s ability to operate. Our people report, reflects our investments in ensuring we attract, grow and maintain the right skillsets for the environment. In South Africa, adapting to hybrid training reduced the absolute cost of training from R177 million to R144 million, but enabled us to make training more accessible and increased training hours from 63 to 99 hours per employee. In the UK and Australia, we invested R127 million on the training and development of our employees.

Our commitment to gender equity, the support and development of people living with disabilities and opportunities for youth employment not only expands our recruitment pool, and the diverse perspectives that keep us relevant and innovative to our customer base, but also uplifts the marginalised people in our society and unlocks opportunities for those that depend on them. Meeting our 2021 employment equity targets and increasing our representation of woman in senior positions from 25% to 36%, reinforces our commitment to broader inclusion at management levels in South Africa. We proudly support the national Youth Employment Service (YES) Programme, providing opportunities for over 400 unemployed youth across the country.

Like the rest of South Africa, the SES committee witnessed the socio-political unrest in July 2021 with deep concern. We were encouraged to see management adopt the same safety-first approach that has been a hallmark of its COVID-19 action plans. Anticipating unrest is challenging. And while measures can be put in place to protect people and facilities against it, political strife is largely out of Motus' control. Poverty and inequality undeniably fuelled protesters' frustration. In addition to supporting our staff during this time, we also contributed R5 million to food security and health-linked NGOs. We know that only by working together with legitimate civil society organisations can companies contribute to stability and the creation of sustainable socioeconomic outcomes. Our contributions are outlined in the transformation and community reports.

¹   Donation made after year-end.

While South Africa and the world deal with a pandemic, socio-economic upheaval and political strife, the growing demand for ESG accountability offers some grounds for hope for a more just society. Even as our ESG report highlights the extent of the systemic challenges we face; it also demonstrates our willingness to be held accountable as a force for social good and a company with a strong moral compass.

Perhaps the greatest value Motus has created over the past few years has been exactly that – to offer reason to be hopeful. The group’s remarkable recovery after the initial stages of the pandemic allowed us to return to a growth path more quickly than expected. With that came employment opportunities for people, particularly the youth. Their excitement about their futures could never be measured or captured in an ESG report but is palpable. Their hope, the opportunities we create through providing mobility, and our empowerment of people and of small businesses, should be the light in which one should read this report.

I thank my colleagues who serve on the SES committee, the executive management team and the people of Motus for their commitment to our values and for the value they strive to create for all our stakeholders, every day in many different ways no matter how big or small. They exemplify that people, when working together within organisations like Motus, create lasting value as their collective contribution exceeds what they as individuals expect to get in return. For me, that is the nub of sustainability, which adds up to hope for a better tomorrow.

Johnson (JJ) Njeke

Chairman of the SES committee