Goverance of sustainability

Blu Label continues to build on our ESG and sustainability reporting and oversight framework that will assist the Board in exercising oversight of sustainability-related impacts, risks and opportunities and the process for integrating sustainability issues into the strategy development, overall governance, as well as reporting processes of Blu Label.

Several continuing initiatives have been undertaken in recent years, including:

• a review of sustainability reporting impacts, risks and opportunities, with a view to incorporating these into Blu Label’s risk management systems;
• Disclosure Guidance issued in June 2022 that has enhanced content of the integrated report and future planned disclosure improvements;
• enhancing our disclosures on social and environmental impacts; and
• continued refinement of our ESG metrics and targets included in our long-term share incentive plan.

Committee key

				EXECUTIVE COMMITTEE
	Audit, Risk and Compliance Committee	Remuneration and Nomination Committee	Social, Ethics and Transformation Committee	Human Capital	Risk and Compliance	Company Secretary Office
ENVIRONMENTAL IMPACT
Climate change
Water security
Pollution and waste
Biodiversity and land use
Supply chain and materials
SOCIAL IMPACT
Labour standards
Human rights and community development
Health and safety
Customer responsibility
GOVERNANCE
Board composition
Ethical behaviour
Remuneration
Compliance and risk management
Tax transparency
SUSTAINABILITY REPORTING
Reporting standards
Assurance
Materiality

Ongoing initiatives to integrate and embed sustainability in our governance, strategy, reporting, business and management processes include:

• enhancing the work plans and terms of reference for Board subcommittees to create focus and integration on sustainability-related issues and to align with the requirements of the Companies Act amendments;
• formalisation of sustainability-related issues in the risk management system, strategy and policy development as well as internal and external reporting;
• continued alignment of external reporting with the JSE Sustainability Disclosure Guidance as well as future adoption of global reporting standards and frameworks;
• consideration of training and specialist input on material sustainability matters; and
• aligning our governance disclosures with King V principles.

As part of integrating sustainability into the Board’s mandate and structures, we are reviewing the subcommittees’ terms of reference to align with sustainability-related best practices and Companies Act amendments.

Some of the proposed key updates for each Committee include:

COMMITTEES	PROPOSED KEY UPDATES
ARCC	Formalising the Committee’s role in overseeing the application of integrated and sustainability-related reporting standards and regulations. Ensuring that the Group has implemented an effective policy and plan for risk management of sustainability risks and opportunities that will enhance the Group’s ability to achieve its strategic long-term objectives.
INVESTMENT COMMITTEE	Following a review of governance structures, the Board resolved during the year to discontinue the Investment Committee as a standing committee. Investment matters will continue to receive the necessary focus and scrutiny, and the Board will convene ad hoc meetings as and when required to consider and approve transactions or other investment-related decisions.
RNC	To achieve strategic sustainability objectives and the related performance metrics into agreed targets and timelines in short and long-term incentive plans. To ensure the skills and competence of the Group at Board and management levels are appropriate in overseeing strategy development that anticipates and addresses key sustainability-related risks, opportunities and objectives, including ongoing training and support of Board members and management.
SETC	Overseeing the development of the appropriate strategy and policies in response to material sustainability-related risks, opportunities and impacts, including identifying metrics and setting plans and targets over identified time horizons to monitor and manage performance.
EXECUTIVE COMMITTEE	Ensuring that sustainability risks, opportunities and impacts are considered in the implementation of strategy development and policies of the Group. Overseeing the appropriate setting and planning of performance measures and targets to execute and monitor the effective implementation of strategies and policies.