Metair Investments Ltd

Additional responsibility for sustainability, including climate change, is held by the Audit & Risk Committee (ARC), which consists of three independent non-executive directors. The ARC's role with regards to sustainability is to: - Oversee Metair's assessment of climate-related risks and opportunities. - Review and discuss issues raised by financial audits pertaining to current and/or emerging climate-related risks. - Review outcomes of annual independent third-party sustainability assurance assessments at least once per annum. [...] The Chief Executive Officer (CEO) is responsible for implementing the environmental sustainability strategy and the company's commitments to climate, water and waste efficiency improvement targets. The CEO chairs sustainability progress meetings designed to manage sustainability performance and make decisions in key areas where needed. At each meeting, the sustainability leaders from each of the group's subsidiaries provide updates on the progress against annually defined sustainability targets, readiness to meet future targets, regulatory changes and reporting expectations. In addition, the members of the group's sustainability leadership team receive updates on selected topics from selected subject matter experts. Reporting to the CEO, the Managing Director (MD) of each subsidiary is responsible for leading the delivery of sustainability targets and for the operational aspects of reaching the company-wide performance and efficiency targets.

Additional responsibility for sustainability, including climate change, is held by the Audit & Risk Committee (ARC), which consists of three independent non-executive directors. The ARC's role with regards to sustainability is to:

- Oversee Metair's assessment of climate-related risks and opportunities.

- Review and discuss issues raised by financial audits pertaining to current and/or emerging climate-related risks.

- Review outcomes of annual independent third-party sustainability assurance assessments at least once per annum.

The Chief Executive Officer (CEO) is responsible for implementing the environmental sustainability strategy and the company's commitments to climate, water and waste efficiency improvement targets. The CEO chairs sustainability progress meetings designed to manage sustainability performance and make decisions in key areas where needed. At each meeting, the sustainability leaders from each of the group's subsidiaries provide updates on the progress against annually defined sustainability targets, readiness to meet future targets, regulatory changes and reporting expectations. In addition, the members of the group's sustainability leadership team receive updates on selected topics from selected subject matter experts.

Reporting to the CEO, the Managing Director (MD) of each subsidiary is responsible for leading the delivery of sustainability targets and for the operational aspects of reaching the company-wide performance and efficiency targets. [...] The primary responsibility for the oversight of climate related strategy and governance is held by the Social & Ethics Committee (SEC), which consists of two independent non­executive directors and one executive director. The SEC's role with regards to sustainability is to:

- Oversee Metair's strategy and governance on sustainability, including climate-related risks and opportunities.

- Review and discuss Metair's performance against relevant environmental, social and governance (ESG) reporting frameworks, ESG/Sustainability indices and other independent assessments at least once per annum.

- Review outcomes of annual independent third-party sustainability assurance assessments at least once per annum.

- Review and discuss outcomes of stakeholder engagement activities related to past, present and/or emerging climate-related expectations from key stakeholders.

- Review and discuss emerging trends with regards to sustainability.

- Advise the Board and provide counsel to management on ESG matters, including climate change.

The social and ethics committee reviews operational sustainability performance every quarter, and social responsibility and ethics matters at least twice a year. The committee sets environmental, social and governance (ESG) targets for operations that are incorporated in subsidiary key performance measures and influence short-term incentives. These targets measure product quality, blood lead level early warning cases (for the energy storage operations) and lost-time injury frequency rate (for the automotive component manufacturers). The long-term incentive structure for senior executives incorporate ESG targets for health and safety, preferential procurement and transformation. [...] During the year a sustainability working group was formed with representatives from group and all subsidiaries to define a sustainability framework, model and roadmap with a 13-year timeframe. Key themes were identified from the relevant areas prescribed by ESG best practice including the SDGs, Companies Act and King IV. [...] The social and ethics committee plan and strategy were updated to align with the roadmap and the subsidiaries are developing work plans to achieve the relevant milestones.

The board is ultimately responsible for stakeholder engagement in the company. Engagements take place at various levels in the company and are handled by the functions to which they most closely relate. Stakeholder engagement is a standing item on the board agenda and directors are informed of all material engagements and their outcomes. The information and views expressed in these interactions provide input into strategy, helps to determine and prioritise material matters and key risks, and assists us to refine company policies and governance structures. [...] Key engagements with our stakeholders during the year included the following: - We engaged with government through industry bodies to enable safe and early resumption of production. [...] - The board and executive met regularly with our business partners and technical partners regarding operational developments and to discuss the changes to leadership at board and executive levels. We also spent considerable time updating them regarding the implication of current and pending regulations and frameworks including the South African Automotive Masterplan (SAAM), the APDP and B-BBEE.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]All engagement with all stakeholders must be aligned with the Group stakeholder engagement policy. More specifically, any engagement on climate-related issues must be aligned with the Social and Ethics Framework.

The Social and Ethics Committee is responsible for ensuring that there is consistency between what is communicated to stakeholders and Metair's strategy, into which climate change is integrated.

To ensure this, the following is done –

• Sustainability policies and principles are set at group-level and applied by the companies.
• Companies submit reports regarding their sustainability performance every quarter and this information is consolidated and presented to the committee. The information submitted includes a social and ethics register that reports compliance and non-compliance to the social and ethics functions, disciplinary action status, corporate social investment initiatives, risks and opportunities, responsible persons and general comments. This allows the Social and Ethics Committee to identify any risks with regards to misalignment between engagement activities and the group strategy. It then raises these concerns with the company in question.
• Alignment is also ensured through targets. To ensure the implementation of the strategy, targets are set. These targets speak to the most material matters for the group and the direction in which it wants to head. Progress against targets is monitored on a continuous basis and a social and ethics risk dashboard is in place to improve reporting and performance assessment.
• Metair communicates regularly with the companies. The companies are also part of the target-setting process. This minimises the chances for any misalignment between activities that influence policy and Metair's strategy.

Where the Social and Ethics Committee identifies any potential misalignment, this is raised with the respective company and means of resolving the misalignment are identified and implemented.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]All engagement with all stakeholders must be aligned with the Group stakeholder engagement policy. More specifically, any engagement on climate-related issues must be aligned with the Social and Ethics Framework.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes