SUSTAINABLE
FUTURE IN FASHION
AS A RESPONSIBLE CORPORATE CITIZEN THE GROUP IS COMMITTED TO SUSTAINABLE BUSINESS PRACTICES AND RESPONSIBLE ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) PRACTICES, WHICH ARE ESSENTIAL IN CREATING AND SUSTAINING LONG-TERM VALUE.
The Group's ESG practices are aligned with the United Nations Sustainable Development Goals (SDGs), the 17 global objectives developed by the UN member states to be achieved by 2030.
The Sustainability Committee has aligned the Truworths sustainability programme with seven of the SDGs where the committee believes the business can have the most impact and play a role in contributing towards the attainment of these goals.
This report highlights our main initiatives undertaken in support of these SDGs. Further detail is included in the Social and Environmental Report 2022 on the Group's website at
SDG 
SDG
End poverty in all its forms everywhere
OUR CONTRIBUTION TO SUPPORTING THE SDGs
OUR CONTRIBUTION TO SUPPORTING THE SDGs
Truworths supports unemployed South Africans, mainly women, to become financially and socially independent and to eradicate poverty in their lives through merchandise donations. In the past year alone, over 305 000 garments and 116 000 metres of fabric to the value of R31 million were donated to 15 organisations. One such organisation is Taking Care of Business (TCB), previously The Clothing Bank. Since the start of the relationship with TCB in 2019, more than 371 000 garments have been donated to them for resale. Through donations to the Gift of the Givers and SA Harvest, Truworths assisted in the KwaZulu-Natal flood relief where thousands of people were left homeless.
SDG
Ensure healthy lives and promote well-being for all at all ages
OUR CONTRIBUTION TO SUPPORTING THE SDGs
Since 2010, the Group has supported the development of public hospitals and clinics which cater for millions of poorer South Africans, with more than R17 million invested in upgrading 13 healthcare facilities. Through its long-standing partnership with The Reach For A Dream Foundation, the Group has funded the building of Dream Rooms for critically ill paediatric patients and their parents at three hospitals, with a fourth currently being built at the Universitas Hospital in Bloemfontein, Free State.
SDG
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
OUR CONTRIBUTION TO SUPPORTING THE SDGs
The Group invested R117 million on training and development for staff in 2022. In South Africa, 98% of those trained were black employees. Education is a key focus of the Group's corporate social investment (CSI) programme, with investments aimed at improving infrastructure at educational institutions. Over the past two years, R1.5 million has been provided for the development of the new campus for the Leap Maths and Science School in Alexandra, Gauteng. Literacy is another area of support, with the Group having partnered with the Shine Literacy programme since its inception in 2000. Funding has also been provided for the development of five literacy centres, with a new facility provided for Masinyusane in Gqeberha (formerly Port Elizabeth), Eastern Cape, in the past year.
SDG
Achieve gender equality and empower all women and girls
OUR CONTRIBUTION TO SUPPORTING THE SDGs
The Group's commitment to gender equality is reflected in the composition of the workforce where 73% of employees and 71% of management are female. The empowerment of young women is core to the CSI and enterprise development programmes through projects including support for TCB which, since their inception in 2010, trained over 5 700 unemployed people, the majority of whom are female, to become entrepreneurs. In Office's 2022 pay gap report, published in terms of the UK Equality Act 2010, the company's gender pay gap mean was favourable to female employees by 3.0%, relative to the UK national average gender pay gap which is 15.4% in favour of males. The Group strongly opposes gender-based violence and in the past year supported several employee-nominated initiatives to assist organisations committed to empowering women and providing support for victims of gender-based violence.
SDG
SDG
Promote inclusive and sustainable economic growth, employment and decent work for all
OUR CONTRIBUTION TO SUPPORTING THE SDGs
OUR CONTRIBUTION TO SUPPORTING THE SDGs
The Group is committed to responsible and cautious staffing strategies to remain a stable employer in all economic cycles, directly employing over 11 300 people across its operations and creating thousands more jobs indirectly. Truworths is a signatory to the South African Retail - Clothing, Textile, Footwear and Leather (R-CTFL) Master Plan between the government, labour unions, clothing, footwear and textile manufacturers and major clothing retailers, which aims to create 160 000 jobs in the manufacturing industry by 2030. The acquisition of local design houses Barrie Cline and Bonwit, which have both been long-term exclusive suppliers to Truworths, is in line with the objectives of the R-CTFL Master Plan and provides stability and a base from which the business can grow. Financial and technical support for key cut-make-trim (CMT) facilities has helped these operations survive and stabilise during difficult times.
SDG
Ensure sustainable consumption and production patterns
OUR CONTRIBUTION TO SUPPORTING THE SDGs
The Group promotes responsible consumption and opposes the dumping of unsold garments in landfill sites. The Group partners with organisations that recycle or re-use damaged goods or convert fabrics into garments for resale. All suppliers are required to commit to good environmental practices. Materials associated with merchandise are recycled or re-used where possible, while the business continues to seek ways to limit packaging on merchandise. In the past year alone in South Africa, 632 tonnes (2021: 482 tonnes) of cardboard cartons and 79 tonnes (2021: 90 tonnes) of plastic were recycled, with over 6 million (2021: 7.6 million) plastic clothing hangers re-used by suppliers. As part of the drive to limit the use of plastic, all Truworths-branded shopping bags will be made from 100% recycled materials by January 2023. In Office in the UK, mail order bags are made from 70% recycled materials and are recyclable. Office's sustainable footwear ranges include vegan products for customers preferring plant-based lifestyles.
SDG
Take urgent action to combat climate change and its impacts
OUR CONTRIBUTION TO SUPPORTING THE SDGs
Extensive measures have been implemented to decrease the carbon emissions associated with the transportation of merchandise across the international and local supply chains. Monitors have been installed in 71% of the Group's South African retail stores to measure energy usage; energy-saving lighting has been installed to reduce consumption; electricity reduction targets have been set; and renewable energy is being introduced where possible. Total energy consumption in South Africa reduced by 4.6% in 2022. Sustainability is a key consideration in all new Office stores and refits and lighting are upgraded to energy-saving LED where possible. Measures have also been introduced at facilities and stores to reduce water consumption. Truworths' new distribution centre, which is expected to be commissioned by 2025, will be designed and built in line with 'green' building standards and be formally certified.
FTSE4GOOD INDEX
The Group again qualified for inclusion in the FTSE4Good Index, recognising its leading ESG practices. The index series is derived from the FTSE Global Equity Index Series and is a tool for investors seeking to invest in companies that demonstrate good sustainability practices measured against global standards.
Truworths achieved an ESG rating of 4.0 (maximum 5) in 2022 (2021: 3.8). This compared favourably to the industry average of 2.5.
The rating for the social pillar improved to 4.6 from 3.7 in the prior year, while the environmental rating was 2.6 relative to 2.8 a year earlier and an industry average of 1.7. The Group again achieved the maximum score for the governance element of the scorecard.
| Pillar/theme | Exposure | Truworths International | Apparel retail industry average | Country average: South Africa | ||
| FTSE4GOOD INDEX SERIES 2022 SCORECARD | Environment | High | 2.6 | 1.7 | ||
|---|---|---|---|---|---|---|
| Climate change | Medium | 2.0 | 1.4 | 2.0 | ||
| Environmental supply chain | High | 3.0 | 1.9 | 2.1 | ||
| Social | Medium | 4.6 | 2.3 | |||
| Human rights and community | Low | 5.0 | 2.5 | 3.3 | ||
| Labour standards | High | 5.0 | 1.9 | 3.1 | ||
| Social supply chain | High | 4.0 | 2.6 | 2.0 | ||
| Governance | Medium | 5.0 | 3.8 | |||
| Anti-corruption | Medium | 5.0 | 3.2 | 3.8 | ||
| Corporate governance | Medium | 5.0 | 4.3 | 4.9 | ||
| ESG rating score | 4.0 | 2.5 |
