Responsible Business overview and strategy

Datatec is resolute in its commitment to doing business responsibly. We believe that cultivating long-term value for shared prosperity is critical to our business. We continued to accelerate our efforts to ensure inclusive opportunities and a positive societal impact in FY24 across our divisions, consistently driving ESG initiatives in our operations worldwide. This forms part of our Responsible Business practices, which encompass a holistic view that considers many aspects of the business, from our carbon footprint and overall sustainability to the number of women in our teams.

While the foundations of our global business have always been built on the core principles of ESG, over the last few years Datatec has worked to accelerate its Responsible Business efforts. Beginning in 2021 with formalisation of the responsible business strategy, we began with a focus on communicating and adopting; in which executive buy-in, employee buy-in, and the establishment of a global Responsible Business Champions network and committee were prioritised to enable us to drive our strategy and objectives forward.

In FY24, Datatec’s Responsible Business agenda focused on external alignment and engagement. This involved three key aspects:

1. The conclusion of a Group-wide materiality assessment and engagement with stakeholders to identify the most significant ESG factors impacting our business to ensure our sustainability efforts address the issues that matter most to our stakeholders.
2. Analysis of emerging sustainability regulations and standards to ensure our reporting aligns with evolving expectations and is future-proof.
3. The Group has set carbon reduction targets that have been validated by the SBTi. Targets are considered “sciencebased” if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to 1.5°C above pre-industrial levels.

Our materiality approach

Datatec is committed to operating sustainably and responsibly. In FY24, we conducted our first comprehensive materiality assessment to identify the most important environmental, social, and governance (ESG) issues to our stakeholders.

Understanding stakeholder priorities through a double materiality lens

A solid foundation for our Responsible Business strategy requires a clear understanding of stakeholder priorities. In FY24, we conducted our first comprehensive materiality assessment, guided by a double materiality lens. By adopting this double materiality lens, we ensure our Responsible Business strategy addresses our impact on the world and the potential financial implications for Datatec. The assessment involved engaging with key stakeholders, including employees, customers, suppliers, shareholders, lenders, and industry experts. We gathered their perspectives on the most critical ESG issues facing Datatec through surveys, workshops, and interviews. We analysed our business operations internally, identifying potential ESG risks and opportunities and benchmarking and analysing sectoral trends.

The assessment identified 27 key ESG topics relevant to Datatec's operations. Through a combined analysis of stakeholder importance and potential business impact, 13 of these topics emerged as the highest priority. These priority issues will continue to guide our responsible strategy and future reporting efforts.

1. Ethics and integrity
2. Systems protection and cyber security
3. Compliance and risk management (Including changes in regulations)
4. Disclosing carbon emissions data on their products
5. Reputational Concerns
6. Responsible supply chain practices
7. Carbon-neutral facilities
8. Supply chain management (Constraints)
9. Customer satisfaction and experience
10. Employee skills shortage
11. Energy management
12. Waste management (ICT waste)
13. GHG emissions

ESG materiality matrix

A full materiality assessment will be conducted every two years to ensure our Responsible Business strategy remains aligned with stakeholder priorities. By prioritising the issues most critical to our stakeholders, we can continue to adapt our Responsible Business strategy to benefit Datatec and our stakeholders.

The year ahead: FY25

Datatec’s Responsible Business priorities for FY25 include: