Sustainability

Sustainability

Sustainability

Edcon acknowledges that environmental, social and governance issues have an impact on its operations and similarly the Group’s activities have an impact on the environment and society in which it operates. We understand that failing to address issues of non-financial sustainability ultimately affects our business through challenges that may include escalating utility costs, declining staff productivity, regulatory fines or reputational damage. We are involved in a number of social and environmental initiatives where we aim to enhance the communities in which we trade and build a more sustainable future. Our sustainability focus areas are based on the understanding that a sustainability strategy helps the Group innovate to drive competitiveness in a changing world.

The Edcon sustainability framework consists of five Environmental, Social and Governance (ESG) areas where our sustainability initiatives align most strongly with the value drivers of the organisation. Each of the five key areas has two key objectives on which to focus.

Without top-quality people our business cannot be sustainable. We rely on our dedicated employees to identify and secure top quality fashion brands and merchandise, to execute the Group’s strategy and to build our brand through giving our customers excellent service. Employees are also significant shareholders, owning 10.6% of the issued share capital of the Group.

Our sustainability framework ensures we develop a high performance culture in support of national development goals. This includes a focus on diversity and inclusion through our various transformation initiatives. We are committed to a progressive talent management strategy focused on attracting, developing, rewarding and recognising the required capabilities and competencies to drive a high performance organisation. Our human resources practices, policies and objectives are aligned to the organisation’s strategic goals through an integrated performance management, skills development, employment equity, remuneration and benefits programme.

Edcon believes it has a responsibility towards the development and upliftment of its communities, while pursuing its business objectives and is committed to contributing towards making a sustainable difference. Corporate Social Investment is an integral part of Edcon’s transformation strategy and the Group is committed to making a difference to the lives of individuals, families and society at large.

Strategic Focus Area

Strategic Focus Area

Edcon is also committed to promoting, accelerating and supporting the development of broad-based black economic empowerment (B-BBEE) compliant suppliers through the way we direct our procurement spending on goods and services as well as through enterprise development initiatives. We aim to continue to support the development of local small to medium-sized enterprises (SMEs) and black empowered businesses.

Our enterprise development strategy aims to facilitate economic participation of historically disadvantaged communities (black people, women and persons with disabilities). The underlying objective of the strategy is to increase economic growth, create employment and develop skills while progressing towards our overall B-BBEE objectives.

Edcon utilises centralised procurement to capture scale efficiencies, increase direct sourcing and consolidate our vendor base. Offices in Shanghai (China) and Dhaka (Bangladesh) facilitate direct sourcing and we continue to increase the use of local and regional suppliers.

We acknowledge our responsibility to use our influence to encourage good environmental, social and governance practices in our supply chain. By directing more of our spend to local and regional suppliers, we not only further entrench the benefits of a quick response business model, we help to develop the economies in which our current and future customers live and work including the more specific transformation goals.

The Group is establishing further links with the local clothing industry to investigate ways to increase commitment to local and regional sourcing. The Group is committed to increasing local and regional supply as these initiatives will not only aid quick response, but also increase direct sourcing, an important commercial imperative.

If you represent a business and would like to supply products to Edcon, please contact the Edcon sourcing department. Due to the volume of mails we receive, we are only able to respond if we are interested in pursuing your proposal further.

Edcon is committed to reducing its resource footprint and thereby managing its impact on the environment and contributing to providing a healthy and safe environment for our employees and customers. As one of South Africa’s largest retailers, we recognise that our business has both a direct and an indirect impact on the environment. Some of our direct influences include water and electricity consumption, waste disposal and the choice of merchandise, packaging and services we provide. Our indirect environmental influences stem from our partnership with suppliers and manufacturers of merchandise and packaging, transport contractors, property developers, landlords of business sites and the communities and projects we support. The Group’s approach is guided by the Edcon environmental policy which commits the Group to the reasonable and cost-effective management of its direct and indirect impacts on the environment, and providing a healthy and safe environment for employees and customers.