Corporate responsibility Corporate responsibility 210 7 AR | 2017 Investec corporate sustainability Wealth & Investment Wealth Asset Management Specialist Banking Contents Corporate responsibility 01 at Investec 04 Profit Corporate responsibility 3 Overview of our financial year ending Highlights 4 31 March 2017 51 Message from the chief executive officer 6 Communication and stakeholder The way we do business engagement 7 05 Corporate governance and risk 53 Compliance 57 People 02 Information technology 59 Supporting our employees 12 Procurement 61 Transformation in South Africa 18 Supporting our community 20 Appendix Supporting our clients 33 06 Independent assurance statement 63 Global Reporting Initiative (GRI Standards: Planet 03 core option) 65 Green business 35 Policies and programmes 82 Conserving the environment 42 Contact details 83 Direct operational impact and carbon footprint 44 About this report Using this report For easy reading we have provided cross-referencing tools set out below: Scope and reporting framework This corporate responsibility report highlights Investec’s corporate responsibility performance over Page references Audited information Website the period 1 April 2016 to Refers readers to information Denotes information Indicates that additional 31 March 2017. We incorporate elsewhere in the report that has been externally information is available material information from the main or to Investec’s 2017 verified on our website: integrated annual report www.investec.com geographies in which we operate. This report is intended to serve Oversight the information needs of the The social and ethics committee, a sub-committee of the board, is responsible for monitoring stakeholder groups most affected the non-profit elements of corporate responsibility. The mandate of this committee places by our business – customers, a strong emphasis on the responsibility of the group towards the communities in which we employees, investors, sustainability operate, on social transformation in the workplace, on preserving the well-being and dignity rating agencies, government, of our employees (including human rights), recognising the challenges that climate change regulatory bodies and analysts who presents and support any meaningful activity that either reduces the negative impact on or will use the content for an analysis prolongs life of our planet. The social and ethics committee consists of the following board of our corporate responsibility members: performance. This report also S Koseff – chief executive officer focuses on the most material B Kantor – managing director aspects of our business in relation F Titi – chairman to our strategy. CA Carolus – non-executive director Our approach to reporting has Lord Malloch-Brown KCMP – non-executive director followed guidance from the King PRS Thomas – non-executive director Code of Governance Principles Three meetings were held during the reporting period. We also have corporate responsibility for South Africa (King III) and representatives in each of the major geographies in which we operate who drive our in accordance with the Global corporate responsibility objectives as well as various forums discussing corporate Reporting Initiative’s (GRI Standards: responsibility considerations. Feedback on relevant corporate responsibility issues is core option) sustainability reporting provided to board members at each board meeting. guidelines. An index of the GRI Standards indicators, together with Assurance our response to each of them, can Investec Internal Audit performed a limited assurance review of the quantitative and qualitative be found on pages 65 to 81 of this information contained in this report. KPMG has provided limited assurance over selected report. environmental, human resources and corporate social spend key performance indicators. The assurance statement can be found on pages 63 and 64 of this report. About the Investec group We strive to be a distinctive specialist bank and asset manager, driven by commitment to our core philosophies and values. Who we are – Leverage resources • Relevant internationalisation of Wealth & – Break china for the client. Investment Founded as a leasing company in – Digitalisation channel and launch of Johannesburg in 1974, we acquired a • Cast-iron integrity Click & Invest banking licence in 1980 and were listed on – Moral strength – Creating an international operating the Johannesburg Stock Exchange (JSE) – Risk consciousness platform. Limited South Africa in 1986. – Highest ethical standards. • Other In July 2002, we created a dual listed • Dedicated partnership – Continue investing in technology companies structure (DLC) listed in – Respect for others and people to maintain digital client London and Johannesburg. A year later, – Embrace diversity experience we concluded a significant empowerment – Open and honest dialogue – Improving the cost to income ratio by transaction in which our empowerment – Unselfish contribution to colleagues, focussing on operational efficiencies partners collectively acquired a 25.1% clients and society. stake in the issued share capital of Investec – Diversity across the group and Limited. Our philosophies transformation in South Africa. Since inception, we have expanded through • Single organisation We have a very deliberate and focused client strategy: a combination of substantial organic growth • Meritocracy and a series of strategic acquisitions. Today, • To leverage our unique client profile • Focused businesses we have an efficient integrated international • To provide the best integrated solution • Differentiated, yet integrated business platform, offering all our core supported by our comprehensive digital activities in the UK and South Africa. • Material employee ownership offering. • Creating an environment that stimulates What we do extraordinary performance. Our corporate We are an international specialist bank responsibility and asset manager that provides a diverse Our strategy At Investec our corporate responsibility is range of financial products and services to a Our strategy for over 20 years has been to about: select client base in three principal markets, build a diversified portfolio of businesses the UK and Europe, South Africa and Asia/ and geographies to support clients through • Building a sustainable business model Australia as well as certain other countries. varying markets and economic cycles. to position the group for the long term so that Investec can make a meaningful Investec focuses on delivering distinctive Our current strategy focuses on: profitable solutions for its clients in three contribution to society and to macro- core areas of activity namely, Asset • Growing Asset Management in all economic stability Management, Wealth & Investment, and regions • Attracting and developing a strong, Specialist Banking. – Focus on delivery of competitive diverse and capable workforce investment performance We value – Grow in Advisory channel and • Unselfishly contributing to society and continue to scale Multi-Asset and to the well-being of our communities, • Distinctive performance Global Equities largely through education and – Outstanding talent – empowered, – Focus on our larger markets, entrepreneurship especially in North America. enabled and inspired • Understanding and managing our – Meritocracy • Growing Specialist Banking business environmental footprint so we can make – Passion, energy, stamina and – Building and developing our client a positive impact through our operations tenacity franchises across all areas and business activities – Entrepreneurial spirit. – Improving the ROE in the business • Growing and preserving clients’ • Client focus – Implementing the UK Private Banking and stakeholders’ wealth based on – Distinctive offering strategy. relationships of trust. Investec corporate responsibility report 2017 1 01 Corporate responsibility at Investec Corporate responsibility 01 Corporate responsibility at Investec Corporate responsibility Corporate responsibility business practices Our corporate responsibility philosophy Guided by our purpose to create sustained long-term wealth, we seek to be a positive influence in all our core businesses and in each of the societies in which we operate. We do this by empowering communities through entrepreneurship and education, and leveraging the value in our diversity. We recognise the challenges that climate change presents to the global economy and we support activities that either reduces the negative impact on or prolongs the life of our planet. Investec as a responsible corporate citizen At Investec we recognise that, while our Our culture and values demonstrate our allows us to concentrate, for now, on key shareholders remain at the forefront, belief that as an organisation we can focus areas. Deliberately not driven on a our purpose ultimately is not only about and must have a positive impact on the top-down basis, the executive maintains driving profits. We strive to be a distinctive success and well-being of communities responsibility for oversight, direction, specialist bank and asset manager, local to our offices, the environment, and coordination and integration of our demonstrating cast-iron integrity, moral on overall macro-economic stability. corporate responsibility efforts while the strength and behaviour which promotes individual business units provide the key Our philosophy seeks to align the interests trust. Our core values include unselfishly drivers behind our activities, in a manner of