About this report

The Motus ESG report provides an in-depth assessment of the Group's sustainability performance for the reporting year 1 July 2021 to 30 June 2022. It assesses our ability to manage our environmental, social and economic impacts to create or preserve value for stakeholders, and guard against value destruction. It also assesses how we govern our sustainability risks, opportunities and impacts and ensure ethical business conduct.

Scope and boundary

The ESG report covers Motus' sustainability risks, opportunities and impacts associated with the businesses over which the Group had operational control during the reporting period, including our operations in the United Kingdom (UK), Australia, South East Asia and the Rest of Africa. It also covers the sustainability-related issues that matter the most to our stakeholders.

¹ Original equipment manufacturers (OEMs).

For the purposes of this report, Hyundai Automotive South Africa is referred to as Hyundai, KIA South Africa as Kia, Motus Vehicles Distributor as Renault and Brietta Trading as Mitsubishi.

Frameworks

The ESG report has been prepared with consideration given to the GRI Standards, the JSE Sustainability Disclosure Guidance published in 2022, and the TCFD. Together these frameworks have guided the narrative of this report and the identification of key ESG indicators. The principles of King IV and South Africa's national development priorities are also considered.

As sustainability guiding frameworks consolidate, we are keeping abreast of developments to standardise ESG metrics to enhance comparability and drive accountability. We are committed to continually improving our ESG reporting as stakeholder expectations change and new reporting frameworks emerge.

In this year's report, we have made a first attempt to link our material issues to the UN's SDGs based on our current strategies, projects and objectives. This has been guided by a review of the individual targets of each SDG and identifying which targets we feel the Group is able to make a contribution towards. Our detailed disclosure can be found in United Nation's Sustainable Development Goals of the additional information section.

Materiality

Our material priorities set out in Link to 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. They are the factors considered to be within the control of the Group's leadership, and which have been identified for close and careful management over the short, medium and long term to deepen the Group's resilience, relevance and responsibility in pursuing sustainable value for 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 decisions 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.

Link to material priorities.

Determining our material priorities.

Materiality boundary

Managing our environmental impact, our people and occupational health and safety (OHS), and embedding an ethical culture are material issues for all Motus entities. OHS is particularly key in our workshops and parts distribution centres where employees work with machinery.

Quality control is material for our workshops, vehicle businesses, Car Rental and Aftermarket Parts. Responsible mobility offerings and the protection of customer information are particularly material for our dealerships, Car Rental and Mobility Solutions.

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 Africa.

Time horizons

The Group defines the short term as the next three years, the medium term as the next three to six years, and the long term as beyond six years.

Report preparation

The Executive of Corporate Affairs, Risk and Sustainability is responsible for managing the preparation of the ESG report, including overseeing the process and controls applied in the gathering of information and drafting processes. She is assisted in this responsibility by the Chief People Officer and specialist external reporting advisors. Oversight and guidance is provided by the Group CFO and other selected Executive Committee members.

Interviews with senior leadership together with internal and external sources of trusted information used for decision-making purposes have been used to prepare this report. This includes board and management reports, strategy presentations and presentations and reports submitted to the SES Committee.

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

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

Independent limited assurance report.

B-BBEE certificate.

The Group CFO and other relevant Executive Committee members reviewed this report before it was submitted to the SES Committee, including the Group CEO, for approval.

Statement of responsibility and approval

Executive management and the SES Committee have reviewed and approved this year's ESG report. In the SES Committee's opinion, the ESG report addresses all material matters relating to ESG, and provides a balanced and appropriate view of the Group's sustainability performance.

On behalf of the SES Committee