Effectively managing the economic, social and environmental consequences of our activities and actively striving to uphold our commitment to all stakeholders, secures stakeholder trust and our reputation as a good corporate citizen to invest in, do business with and work for.

Key outcomes for 2020

1	Around 80% of our procurement spend is with or linked to OEMs with whom we have stringent distribution and franchise agreements, leaving approximately 20% of our procurement spend that can be directed to preferential suppliers. Our procurement constraints result in our B-BBEE scorecard being discounted. The scorecard is available on our website.
2	Formerly the Carbon Disclosure Project. Submission was extended to August 2020 due to COVID-19 with results pending.

Our social impact

Motus understands that our social licence to operate depends on being a good corporate citizen and maintaining constructive relationships with our stakeholders and the broader communities in which we operate. In South Africa, our involvement must include sharing our expertise and experience to contribute to broader national strategies and thinking, and investigating new ways within our own operations to contribute to society at large over and above our current community initiatives. Despite the impact of COVID-19, we remain committed to enabling socioeconomic growth, creating employment and making a difference in our communities.

Transformation in South Africa

Small businesses play a critical role in South Africa's socioeconomic recovery, especially in creating desperately needed jobs. Leveraging our entrepreneurial spirit, we have started to develop sustainable working models for black-owned and managed businesses, which also give Motus access to new markets.

Our four key transformation projects are:

	1		A new black-owned dealership within the Motus franchise network in partnership with Toyota South Africa. Motus will have a minority share in the dealership and provide operational support and training. The dealership is expected to be operational towards the end of the 2021 calendar year.
	2		The Makhaya project, which aims to create a sustainable micro-network of informal sector mechanics. The first equipped workshop, located in Alexandra, Gauteng, opened in August 2019 and supports four automotive mechanics who previously operated on street pavements. The mechanics have access to preferential pricing at the nearby Midas retail outlet and receive ongoing technical and business training. Three additional sites are under development.
	3		Project Q – a partnership with the local taxi association in KwaMhlanga, Mpumalanga, to open an independent parts retail store, operational since March 2020. Motus provides guidance to taxi owners and operators on the suitability of products for each application with special emphasis on safety critical components. The initiative contributes towards enhanced roadworthiness of taxis and the safety of passengers.
	4		Department of Trade, Industry and Competition's MotoCity hubs – NAAMSA co-ordinates this project to create hubs of sustainable black-owned vehicle dealerships in rural areas and townships throughout South Africa. As vice-president of NAAMSA and our participation in its various sub-committees, we contribute our experience and skills to the project.

2020 performance

1	Exempt micro-enterprises (EMEs) and qualifying small enterprises (QSEs).
2	Pay-as-you-earn tax.
3	Net profit after tax (NPAT) of the Group's South African operation.

Preferential procurement		Community upliftment
Pleasingly, efforts to improve compliance reporting in line with the Group's procurement policy is driving better procurement data received from our businesses. We have improved the level of compliance (suppliers having valid B-BBEE scorecards) from 49% to over 77%. A minimum scorecard rating for suppliers will be implemented in 2021, including procurement from black women-owned business. 70% of our controllable procurement spend in South Africa was with preferential suppliers (2019: 59,2%). Total enterprise and supplier development spend decreased 66% due to COVID-19 constraints and the postponement of the implementation of our SMME fund. Approximately R30 million has been ear marked for the 2021 financial year, however new beneficiaries are yet to be shortlisted. Tasked business segments with ensuring that the sustainability of SMMEs in their supply chains was not compromised as a result of measures to respond to COVID-19. The procurement of personal protective equipment (PPE), approximately R3 million worth, was facilitated through SMMEs.		The Motus Technical Academy delivered training to 1 435 motor artisans, 1 031 of whom were trained for the broader motor industry. 290 artisans qualified during the year with 70% being from other companies. Grounded in our belief of using "mobility for good", we supported vulnerable communities impacted by COVID-19 by donating Hyundai and Kia vehicles and Beekman canopies to various organisations involved in the delivery of food parcels and medical supplies. Our vehicle donations are valued at R2,9 million. Motus Africa donated large volumes of PPE to various NGOs and government organisations in East Africa and in the UK, vans were made available to employees to assist with community support projects. Hyundai donated medical grade PPE (received from our principals) and sanitisers to the Helen Joseph hospital in South Africa. Launched the Motus Family Bursary Fund for the children of qualifying employees in South Africa who are in their second year or higher of tertiary education. A total of R8 million will be disbursed through the fund over the next three years (2020 to 2022). An amount of R30 000 per beneficiary has been set aside for the 2020 academic year (nine beneficiaries). Spent R1,2 million in the 'Road Safety – Powered by Motus' initiative, which drives road safety education and awareness across South Africa, including among school children, parents and holidaymakers (2019: R1,0 million). Our road safety programme has now reached almost 1,7 million learners in over 1 800 schools.

 

Ownership		Preferential procurement
Maintain and possibly improve the level of black ownership in Motus through a new B-BBEE equity share scheme to be implemented post-2025. Preferential procurement.		Continue to develop the database of suppliers in South Africa to enable Group buying power from B-BBEE compliant suppliers. Increase our spend with EMEs and QSEs, particularly in workshops and for post-delivery inspection and logistics supply services.

 

Our environmental impact

In the execution of its business strategy, Motus aims to operate in an environmentally conscious and responsible manner and adopt practices that support the growth of the economies in which it operates. This is clearly articulated in our set of values.

Our biggest impact on the environment is the water used in our parts manufacturing plants and to wash vehicles in our dealership and rental depots. Other areas of focus are electricity consumption, given the supply concerns facing South Africa, the responsible disposal of hazardous waste oil generated from the servicing of vehicles and equipment, and the fuel needed to support our operating model, for example customer test drives and the delivery of aftermarket parts. We measure our environmental performance and the effectiveness of our projects to maximise operational efficiency against clear resource consumption targets.

2020 performance

1	Scope 1 and scope 2 emissions: tonnes of carbon dioxide. Scope 3 reported for the first time.

• Achieved our internal targets for fuel and water consumption (10% reduction over three years using 2018 as the base year), under the first BNP Paribas sustainability linked loan.
• The second sustainability-linked loan for £120 million (secured in January 2020) is a three-year facility co-ordinated by BNP Paribas and Sumitomo Mitsui Banking Corporation among others, which links preferential interest rates with pre-agreed targets to reduce water and fuel consumption (flat range reduction relative to 2019 consumption). This loan replaces the first BNP Paribas facility.
• Motus Commercials in the UK (one of the largest DAF truck dealers globally) successfully completed its ISO 14001 audits, maintaining its accreditation for eight consecutive years.
• While water consumption decreased 1,3% compared to 2019, prior to business closures due to the COVID-19 lockdown, our water usage was above our internal stretch target. Contributors to the increase included municipal-related issues in South Africa, for example burst pipes and estimated council meter readings, water leakages which have now been repaired, a number of building renovations and new business sites opened in the UK and Australia.
• Decreased activity due to COVID-19 is the main reason for the 9% decrease in scopes 1 and 2 emissions, however, a number of fuel cost initiatives were implemented in many businesses also contributing to lower fuel consumption. In addition, the use of digital platforms for remote meetings has significantly reduced business travel, particularly to international destinations.