CORPORATE ACCOUNTABILITY HIGHLIGHTS

JSE LIMITED SOCIALLY RESPONSIBLE INVESTMENT (SRI) INDEX

On 28 November 2012 the JSE SRI Index recognised Massmart, for the second year running, as one of the 10 Best Performers in the medium environmental impact category. The index, which takes into account a wide variety of social, environmental and governance dimensions, is a useful indicator of Massmart’s accountability performance.


MINIMISE THE GROUP ENVIRONMENT FOOTPRINT

CARBON DISCLOSURE PROJECT

In 2012 Massmart achieved a Carbon Disclosure Project score of 79% which represents a 7% improvement over 2011. 2012 also marked the first year that Massmart verified a portion of its Scope 2 electricity data.

ENERGY EFFICIENCY

Massmart’s kwh/m2 energy intensity increased by 10.8% due to additional refrigeration in Game Foodco and Jumbo stores, and cyclical increases related to air-conditioning and refrigeration demands peaking over the summer months. Electricity data accuracy and consistency improved significantly as a result of greater emphasis being placed on the use of independent check meter data.*

 

* Energy consumption data is annualised and normalised (outlying data is excluded). Municipal data is used where check meter data is unavailable. Estimated margin of error is considered to be between 10% and 15%

 

 

This is a brief update of Massmart’s corporate accountability highlights for the 26 weeks ended 23 December 2012. These initiatives fall under our three accountability themes which are: enable sustainable supply and consumerism; minimise the Group environmental footprint; and champion social equality initiatives.

ENABLE SUSTAINABLE SUPPLY AND CONSUMERISM

ECO-WISE PRODUCT OFFERING

Eco-wise branded product sales increased by an estimated 30% for the reporting period. In addition, Builders Warehouse together with Ellies sold 225,000 LEDs and 22,000 water efficient shower heads through their “Green Stand Partnership”.

DIRECT FARM

A total of 514 tons of fresh produce was sold to our Massfresh division through procurement from our Direct Farm Programme, Ezemvelo, equating to a value of R2.6 million. In addition, 67 farmers, 36 being female, were trained through the programme.

 

POST-CONSUMER E-WASTE RECYCLING

Makro, in partnership with Desco, facilitated the collection of 55 tons of post-consumer e-waste during the reporting period.

Makro has launched a new private label household cleaning product range called "M". The new range of M cleaning products incorporates more environmentally sensitive packaging, which excludes PVC and has been designed to promote improved sorting, separation and recycling. The new range includes a concentrated fabric softener which makes use of a much smaller bottle and requires less plastic to manufacture.

CHAMPION SOCIAL EQUALITY INITIATIVES

CORPORATE SOCIAL INVESTMENT

Massmart spent R10.2m in CSI over the 26 weeks ended 23 December 2012 equating to 1.4% of net profit after tax. The majority of our CSI contributions continue to be invested in school nutrition, early childhood development and school infrastructure and maintenance projects.

WOMEN’S EMPOWERMENT

A total of 1,409 women were invited to complete “The Women Empowerment” survey with the top barrier being identified as a “lack of female role models in the business”. As a response, the CEO’s Council of Women Leaders has been established.

 

The Massmart CEO’s Council of Women Leaders was formed with the objective of providing women-to-women mentoring. Sixty women in the business attended the inaugural council meeting.

BBBEE

Massmart has successfully maintained its level 4 contributor status, according to the BBBEE Codes of Good Practice. Pleasingly, Massdiscounters has maintained its level 3 status.

For further information on Massmart's Corporate Accountability, please visit www.massmart.co.za