Providing a healthy and safe operating environment

Our occupational health and safety (OHS) procedures are closely monitored to ensure we remain vigilant and aware of where risks exist or may occur, as well as to ensure that they meet business requirements and comply with legislative requirements and guidelines.

We adopt both a reactive and proactive approach to OHS management. When serious accidents occur, these are investigated to identify root causes and the controls needed to reduce the likelihood of reoccurrence. Our risk assessment processes and robust OHS audits identify gaps in compliance that are to be rectified to prevent accidents from occurring.

  • Embedding consistent safety measures that comply with legislation across operations and regions despite changing OHS regulations.
  • Ensuring that communicable disease management, including the lessons learnt from COVID-19, are incorporated in our standard OHS practices.
  • Ensuring compliance with our OHS standards, and that employees remain vigilant and up-to-date with our OHS processes and requirements, despite employee attrition.
  • Monitoring the compliance of third-party on-site contractors to OHS standards.

What we are doing

Minimum OHS standards

Minimum OHS standards are applicable to all our sites. The Group risk and sustainability function collaborates with businesses to ensure that appropriate OHS practices are developed and correctly implemented to achieve these standards. All acquired businesses and new sites are required to adopt our health and safety practices. Following a gap analysis, health and safety consultants are commissioned to assist new businesses to develop action plans to improve to an acceptable level of compliance with the Motus OHS checklist.

In the UK, we have adopted the principles of ISO450011 (the revised OHS standard which includes environmental aspects) as our minimum standard.

We adopt a zero-tolerance approach to non-compliant OHS behaviour. Our employees are responsible for their own safety as well as the safety of others, and are required to raise OHS concerns and non-compliance with their line managers and OHS representatives timeously. This includes what they feel may pose potential hazards.

COVID-19 management

2022 was a year of navigating intense and differing responses to the COVID-19 pandemic across our various operating jurisdictions. We were able to adjust our OHS practices accordingly to meet applicable guidelines and regulations on COVID-19. Applicable regulatory measures are now included as part of our standard OHS practices.

COVID-19 vaccination is encouraged but not mandatory. We support vaccination given its proven efficacy to help reduce the chance of severe illness or death and the spread of the virus. As such, our employees are provided with time off work to vaccinate.

Employee engagement and training

Every employee plays a vital role in maintaining our OHS standard; therefore, regular employee engagement is key to embedding a safety mindset across the Group. Our engagements highlight best safety practice and why it is important to remain vigilant and compliant with our OHS protocols, not only during working hours but at all times.

We recognise the importance of employees who are adequately trained, informed and supervised to fulfil their activities in a safe manner. OHS training and awareness is customised to the workplace environment of each business and region. Training ensures that employees clearly understand their OHS responsibilities, how to operate equipment safely and manage hazards responsibly, as well as adhere to legislative requirements.

In the UK and Australia, training is supplemented with method/vision statements, toolbox talks and morning briefings. In the UK, we have three categories of OHS training; induction training for new employees, job- or task-specific training and refresher training. In Australia, all new employees complete online training on safe working procedures prior to starting work.

In the UK, the Head of Health and Safety is a chartered member of the Institute of Occupational Safety and Health and we are a member of the British Safety Council, providing us with access to additional safety guidance. In Australia, we are a member of the Victorian Automotive Chamber of Commerce and the Motor Traders' Association of New South Wales, which provides us with access to the latest work health and safety advice.

1 Organization for Standardization (ISO).

How we measure our performance

All injuries across all business sites are reported monthly on our sustainability management system, including on-site, COVID-19 and road safety metrics. Local administrators and internal audit perform regular data integrity checks. The system also collates lessons learnt, which are used to inform development plans.

The underlying OHS system in the UK tracks and manages incident reporting, regulatory compliance, risk assessments, action plans and training, as well as contractor permits and equipment maintenance schedules. All employees have access to the system using a computer, tablet or phone to ensure that all on-site incidents and near misses are reported.

In South Africa, OHS performance is measured against a predetermined checklist. The extent to which the OHS checklist is applied depends on the nature of the activities undertaken at each business site. The compliance of each business site to the checklist is reviewed quarterly and independently audited at least once a year. All high-risk sites are also assessed by our insurance service providers. All sites are expected to maintain gold status as a minimum OHS rating, which equates to 86% compliance with the checklist. Action plans are developed for sites with ratings below gold status and these sites are then re-audited within a set period of time and again, if required, until they achieve gold status. In the Rest of Africa, our dealerships conduct quarterly OHS self-assessments.

A similar approach is adopted in the UK where sites are required to meet a minimum OHS target of 90% measured across 17 key OHS areas. The internal Health and Safety Auditor audits sites twice a year. Sites that do not meet the OHS target are re-audited within three months to ensure that findings are successfully resolved.

In Australia, internal and external independent OHS reviews are conducted at all sites. A site is rated as either compliant or non-compliant. In the future, once the framework has matured, we may adopt the rating system used in South Africa and the UK, if it makes sense to do so.

Governance of social impact.

Case study

A COVID-19 vaccination campaign was rolled out for Retail and Rental in November 2021 as the business segment was lagging behind the Group in terms of the number of employees that were vaccinated. The initiative was a resounding success with 4 555 of the business segment's roughly 6 000 employees receiving their vaccination by April 2022, achieving a 76% vaccination rate and exceeding our target of 75%.

For those who chose to get vaccinated there was a weekly draw awarding five employees R5 000 each. We also promised that if we reached our target of a 75% vaccination rate that one vaccinated employee would win a brand new Renault Kiger. In total, 90 employees won R5 000 and Sibusiso Mthethwa from Autoworx Jet Park, who did not own a vehicle, won the Renault Kiger in a lucky draw conducted by the Group CEO and Group CFO.

We take this opportunity to thank our employees for their contribution to making our workplaces, and in turn, our customers, families and friends safer from the spread of COVID-19.

Vaccination drive winner

Vaccination
drive

2022 performance and key objectives

Group

  • Road incidents (damage to property but no injuries or fatalities) increased by 42% to 616. Accidents per million kilometres decreased from 0,263 in 2021 to 0,236. Of the 41 road accidents, 28 occurred in South Africa and 13 in the UK.
  • The increase in business activity and travel has unfortunately resulted in road fatalities increasing to seven
    • two employees and five third parties (2021: five). The fatalities resulted from six separate road accidents in South Africa. Of the five third-party fatalities, four were pedestrians. In addition, one of our vehicles was involved in a multi-vehicle accident in which four adults died.
  • 290 on-site incidents were reported (damage to property but no injuries or fatalities) up 49% from 2021, as business returns to more normal trading levels. The UK recorded 242 (2021: 161) incidents with 41% (2021: 31%) being third-party error.
  • On-site accidents increased 38% from 199 in 2021 to 274 (the breakdown shown in the graph below). 7% of on-site accidents were third-party error (2021: 5%). The majority of injuries reported in the UK are slips, trips and falls at 18% and operator error at 17%.
  • There were no material incidents of non-compliance with OHS regulations.

OHS audits

547 sites (2021: 526)
92% audit coverage (2021: 97%)
93% average score (2021: 92%)

On-site accidents

on site accidents

Road accidents

Road accidents by category

Road accidents by category

Road accidents by region

Road accidents by region

South Africa

  • We ran an awareness campaign to share information with our employees on the importance of COVID-19 vaccination and how to register for the vaccination. We also shared the Department of Employment and Labour's vaccination guidelines, which recognises that employees may object to vaccinations on medical, safety, religious, cultural and philosophical grounds. Certain of our businesses facilitated on-site vaccination drives, surveys were conducted to understand vaccination hesitancy and webinars were hosted with experts and doctors who provided employees with COVID-19 information and addressed myths related to the pandemic and vaccination.
  • All OHS checklists were reviewed to identify key risks per business site. The results of the reviews were used to develop a more comprehensive OHS checklist, which is aligned to our updated minimum OHS standards and changes to OHS regulations.
  • We streamlined our supplier base of OHS audit service providers taking into account our national footprint, existing relationships andtheir capability in terms of our OHS standards andsite-specific risks.Wealso reviewed and updated our pool of OHS training service providers to enhance the quality of our training.
  • We are reviewing how OHS incidents are reported to improve consistency and accuracy. During the year, we investigated various OHS systems with the capability of integrating with our sustainability management system. A decision will be taken in 2023.
  • Health and safety training was delivered to 1 320 Retail and Rental employees (2021: 3 178) and 396 key employees in Aftermarket Parts.

Vaccination rate

Over 75% average COVID-19 vaccination rate across all
business segments in South Africa
HyundaiSA covid photo

Business site audits

97% of 446 business sites audited (2021: 419; 99%)
93% average score (2021: 92%)
99% achieved gold status (a minimum compliance
score of 86% against the OHS checklist)

Regions

  • The Omicron COVID-19 variant resulted in high infection levels in the UK towards the end of calendar year 2021 and into 2022, consequently some restrictions were reintroduced. However, high vaccination levels and lower rates of hospitalisation meant the UK was quickly able to relax all restrictions in the third quarter of 2022.
  • In the UK, we conducted a health, safety and environmental review as part of the larger due diligence performed for the FAI Automotive plc acquisition. We expect to complete the corrective actions towards the middle of 2023.
  • Our UK business completed the first stage of the ISO45001 audit in December 2021, with a few gaps identified in the administrative process. Phase 2 audits are scheduled for the end of September 2022. Accreditation, once achieved, will apply across all sites.
  • In New South Wales and Victoria (Australia) lockdowns were abolished when 90% of each state's population were fully vaccinated. In Victoria, the government has mandated that all employees be vaccinated. For two weeks in January 2022, around 20% of the workforce was absent from work due to strict isolation rules.

Vaccination rate and site audits in the UK

In the UK we are restricted from asking about COVID-19 vaccination status, and estimate that around 85% of our employees are fully vaccinated in line with the national average.
63% of 79 business sites audited (2021: 87%; 79 sites)
94% average score (2021: 91%)
98% achieved the OHS target score of 90% compliance and above

Vaccination rate and site audits in Australia

98,5% of our employees are fully vaccinated
94% of 17 business sites audited (2021: 100%)
100% of audited sites rated as compliant with our OHS checklist

Business site audits in the Rest of Africa

100% of 5 business sites audited (2021: 100%)
93% average score (2021: 93%)

Objectives

  • Group: continue to implement updated minimum benchmarks and deliver improved OHS training.
  • South Africa: roll out the new comprehensive OHS checklist in 2023.
  • South Africa: implement an OHS information management system, starting in 2023.
  • UK: areas of focus for 2023 will be assessing contractors, uploading of the correct documentation, the storage of flammable products, enhancing the quality of toolbox talks and monitoring that personal protection equipment is being worn when required.