Banks DIH Pacesetter News 2023

Sonya Forrester

Chairman’s Report to the 67th Annual General Meeting

My Fellow Directors, Shareholders, those who are observing the meeting virtually, Proxies in attendance, Ladies and Gentlemen, permit me to extend a virtual yet warm and cordial welcome to the 67th Annual General Meeting at Banks DIH Limited and to extend on my own behalf and that of the Board of Directors, the Management and Staff, Best Wishes for a Healthy, Safe, Peaceful and Productive 2023. Our Annual General Meeting this afternoon will be conducted in the manner pursuant to the order of Court made by the Honourable Justice Mr Nareshwar Harnanan and entered on the 6th day of October 2022.

Fellow Shareholders, the theme of our Annual

Report is “Forging Global Partnerships” which incorporates an image of a “handshake” to capture a symbolic yet deeper understanding between Banks DIH Limited and its Business Partners, Shareholders, Employees, Suppliers, and Customers. Generally speaking, handshakes come across as routine, but they are intended to capture a deeper meaning. The handshake is one of the highest forms of symbolic currency with the power to unite, divide, seal deals or in some cases, broker peace between parties which have differences. The handshake is a simple gesture that can be more informative to people than a whole host of grand speeches. Handshakes also tap into our cultural consciousness and remain a part of our collective memories even if the purpose for which the symbolic handshake was intended never materialised. The handshake over time has come to be accepted as a universal norm of most international economic negotiations. The rejection of a wellintended handshake sends a powerful message to all concerned. A look back in time, will reveal that the handshake can be linked to the symbolic Kiss of Peace which was a part of Peace Agreements between warring factions at that time. Back in the Middle Ages, Peace Agreements and Treaties were almost never written down. Other symbolic gestures were used to conclude Peace Agreements. In place of handshakes, the medium of Oath Swearing was utilised, but the historical record indicates that the most often used symbolic gesture was the Kiss of Peace. Over the period of the Twentieth Century, formal Peace Treaties became less commonly used across the world. Having some other rituals to

Chairman/Managing Director Mr. Clifford B. Reis C.C.H

indicate that an Agreement had been arrived at, assumed importance. The handshake came to be viewed as a part of a process where disagreeing parties slowly accepted each other as someone to deal with. The handshake came to be recognised and accepted as a symbol of bringing people together, and the opening up of new areas of co-operation. It also sends positive signals to people and communities. Participating in the symbolic gestures of a handshake involves bringing people together as in a cultural exchange.

My Fellow Shareholders, Ladies and Gentlemen, it was a Canadian Investment Banker and Investor W. Brett Wilson who said, “Great Partnerships are built on shared vision cemented with mutual respect and trust.”

Leadership in a sense, provides for those engaged in the relationship a sense of what is appropriate or required. When there is ambiguity, or uncertainty, a leader’s behaviour and statements really matter. A memorable example of a symbolic handshake was demonstrated in 1978 at a Peace Concert in Jamaica when that regional icon Bob Marley coaxed then Prime Minister Michael Manley and Opposition Leader Edward Seaga onto the stage to shake hands. A powerful signal from that encounter was that they were supposed to get along even though in the final analysis the gesture did not achieve the intended outcome of stopping future violence. If unexpected handshakes draw a lot of attention, a handshake that is expected, but never happened can be an even more important symbol.

My Fellow Shareholders, Ladies and Gentlemen, Banks DIH Limited’s venture into the world of International Partnerships, was primarily motivated by an inherent wisdom contained in both the recognition and understanding that there were

mutual benefits to be accrued to the Company and our Partners, were the contracted obligations fully recognised and implemented. From the perspective of Banks DIH Limited, in addition in having branded and internationally recognised products as a part of the Company’s portfolio of saleable products, there were also the opportunities for exposure and training in the areas of Sales and Marketing, Total Quality Management, ISO Quality Standards, Environment and Safety Practices and Technical and Vocational Resources Training. This enhanced scope of opportunities and possibilities are contained in the Agreements entered into with the Coca-Cola Company to manufacture and sell Coca-Cola and Sprite Beverages, the Diageo Ireland Company to manufacture and sell Guinness Stout, to distribute Johnnie Walker Whiskies, Smirnoff and Cîroc Vodkas, the Danish Brewery Group of Denmark to produce and sell Vitamalt and Angostura Ltd to manufacture and sell the RTD Cooler, LLB.

My Fellow Shareholders, Ladies and Gentlemen, as we reflect on the concept of Partnerships within the Company, I am motivated to also reflect on just how multidimensional in scope is the concept of Partnerships when we also consider the understanding we have entered into and share with our Employees, our Shareholders, our Customers, Suppliers and the Union which represents the interests of our Employees. In a truly diverse and multifaceted organisation such as Banks DIH Limited, our strength and capacity to endure comes from the Partnerships we share with such a diverse cross section of entities and persons in what we thankfully receive from them and what we are able to share with them in return. It was a wise person who once said that teamwork does make the dream come true.

My fellow Shareholders, it gives me great pleasure to present my report on the performance of the Banks DIH Group for the period ended September 30, 2022, and to advise on the excellent results produced in 2022”.

Revenue and Profits

The overall performance of the Group improved by recording a Profit before Tax of $13.398 billion compared to $11.078 billion in 2021, an increase of $2.320 billion or 20.9%.

billion compared to $35.858 billion in 2021, an increase of $3.795 billion or 10.6%.

The Profit before Tax for the Company was $10.506 billion compared to $9.439 billion achieved in 2021, an increase of $1.067 billion or 11.3%, while Profit after Tax for the Company increased from $6.777 billion to $7.589 billion by $812 million or 12.0%.

My Fellow Shareholders, despite the continued challenges of the Global Environment which caused considerable instability and unpredictable impacts on businesses around the world including ours, and even as the restrictions of the Covid 19 Pandemic unfold, the effects of the Geopolitical Crisis in Europe continues to create difficulties in the way the Company is managed.

Profit after Tax for the Group attributable to shareholders of the Parent Company increased from $7.170 billion to $8.395 billion by $1.225 billion or 17.1%.

The Board of Directors has recommended a dividend proposal of $2.00 per share unit resulting in an overall cost of $1.700 billion as compared with $1.445 billion in 2021, an increase of $255 million or 17.6%.

Revenue generated by the Company was $39.653

The Financial Year which ended on 30 September 2022 had many ongoing challenges of Supply Chain issues, which resulted in the rising cost of Raw Materials, Spares, Production, Distribution and the rising cost of living on workers’ income. However, through our strategic planning and leadership skills, the Company was able to rise above these difficulties by managing our manufacturing processes to make consistent quality Beverages and Food Products, the engineering of efficient plant and equipment operations and the selling of our products “Better and Smarter” so as to manage growth. Employee engagement continues to be high and agile in a volatile market.

Citizens Bank Guyana Inc.

The revenue of Citizens Bank Guyana Inc., a 51% owned subsidiary of the Company was $4.847 billion compared with $3.949 billion generated in 2021, an increase of $898 million or 22.7%. The Profit before Tax was $3.001 billion compared to $1.787 billion in 2021, an increase of $1.219 billion or 68.4%, while Profit after Tax was $1.800 billion compared to $1.056

billion, an increase of $744 million or 70.5%. Net Interest Income was $3.577 billion.

The earnings per share was $30.26 while the total asset base was $84.7 billion. Loan Assets were increased from $33.8 billion to $38.2 billion, by 13% or $.4 billion.

Banks Automotive and Services Inc.

Banks Automotive and Services Inc., a 100% owned subsidiary of the Company generated revenues of $117.0 million compared to $57.5 million in 2021, an increase of $59.5 million or 103.5%. The Profit before Tax was $5,9 million compared to $2.7 million, an increase of $3.2 million or 118.5%. In 2023, the new multi-storey vehicle parking facility and corporate offices and showroom of Banks Automotive and Services Inc., is expected to be completed by April 2023.

Dividends

The Board of Directors declared a first interim dividend of $0.40 per share unit which was paid on 27 May 2022. A second interim dividend of $0.40 was also paid on 24 October 2022, and now the Board of Directors recommends a final dividend of $1.20 per share unit, making the overall dividend per share unit of $2.00 or an overall cost of $1.700 billion an increase of $255.0 million or 17.6% over the previous year.

Growth in Shareholders’ Value

My fellow Shareholders, irrespective of the challenges which confronted us during the period under review, we were able to record growth in Shareholder value. From a Net Profit of $8.395 billion attributable to shareholders, a dividend payment of $1.530 billion was made, leaving the sum of $6.865 billion which was transferred to Retained Earnings. The market value for the Company’s shares as at 30 November

2022 was $193.00 per share.

Total Quality Management and Environment Safety Functions

My fellow Shareholders, for the period under review, our Company continued aiming to achieve the highest standards in Product Quality, Health and Safety and Environmental Standards. In this regards, the Production Plants successfully completed surveillance Audits for the International Organisation for Standardisation (ISO) and Coca Cola Quality and Safety Management Systems.

ISO 9001-2015 Quality Management System

ISO 22000-2018 Food Safety Management System

ISO/TS 22002-1:2009 Prerequisite Programme on Food Safety

ISO/TS 22002-4:2013 Prerequisite Programme on Packaging Manufacturing for our NR PET Manufacturing

Food Safety System Certification (FSSC) Standard Version 5.1

US Army Sanitation (Food Safety) Audit for our Water Plant

The Coca Cola Company Global Audit Organisation (GAO) Audit

During the year, the Brewery achieved in the League of Excellence eight in the Americas out of fourteen (14) Breweries and twentieth (20) worldwide out of forty-nine (49) Breweries.

The Environment and Safety Department successfully completed the Surveillance Audits for our Safety Management System ISO 45001:2018 and the Environmental Management System ISO

14001:2015. Additionally, the Department facilitated inspection and monitoring from regulatory agencies such as the Environmental Protection Agency (EPA), Guyana Fire Service, Guyana Energy Agency (GEA) and Ministry of Labour. The Company was found to be compliant with all the necessary regulations as the relevant permits and licences were issued for the year 2022.

As a result of the unparalled peculiarity of the Covid-19 Pandemic and the resultant variants such as Delta and Omicron, we continue to maintain mitigation measures that were implemented since March 2020. Employees were encouraged to get Booster Vaccinations, Practice Social Distancing, wear masks, cover coughs and sneezes and keep hands clean.

The Company continues to maintain sanitation and hand washing stations at entry points and designated areas within the Company’s facilities, recording temperatures, logging and sanitising of office spaces, production areas and vehicles. The Industrial Nurse continues to monitor the health status of staff members.

Community Relations/Partnerships

My Fellow Shareholders, we always endeavour to foster human relations of our business, to have a connection within the community in which we operate and to interact with other organisations and individuals. In the year under review, support was extended to Religious and Faith based communities and sponsorship of major sport events. The Apprenticeship and Work Study programmes continued. Continuous training was done for all levels of employees within the Company facilitated by our Training Department. There were also bursaries awarded to employees’ and shareholders’ children who did excellently at the NGSA (National Grade

Six Assessment) Examination and sponsorship at the University of Guyana to pursue degree programmes and the Guyana Training Centre.

Conclusion

My Fellow Shareholders, Ladies and Gentlemen, contained in my opening remarks shared with you, we examined the exciting and complex world of relationships which our Company has with multiple partners, and reviewed what it takes to achieve success and to be successful in such ventures. My Fellow Shareholders, Ladies and Gentlemen, it was American Motivational Writer and Coach David Joseph Schwartz who said, “The successful combination in business is to do what you do better and to do more of what you do.” This my Fellow Shareholders has been the guiding principle which has been the hallmark of the relationships we share with our Partners in Business.

Partnerships which are credible, honest, and transparent and which qualities are reflected in the products represented and the relationships shared. Within the world of business, relationships can be viewed as bank accounts which require that you deposit into them before you can make a withdrawal. This holds through, not only in business, but also in any relationship. The strength of a relationship is key to its success, and this is even more so in international business relationships where there needs to be much trust and dependability because oftentimes complex and large projects are happening across great distances.

Science and technology have enabled Business Partners to continue quality long distance communications via media such as Zoom and Teams, but it is important to ensure that the distance does not prevent you from doing quality business. Within such a reality, actions will need to speak louder than words.

To ensure that such an understanding is possible, some consideration will ensure the maintenance of a healthy and well deposited account. The first of such considerations will be the building of credibility with the Business Partners. Credibility requires honesty and transparency which as was previously said, will be reflected in the products represented.

consumer-oriented Company. This will be achieved by building on our solid foundations from the past by focusing on strengthening our core through advancing capabilities in marketing, innovation, revenue growth, management, and executions, thereby adding value for our Shareholders and Investors.

Another consideration will be the setting of right expectations to enable follow through. Whether it is meeting a deadline or a product specification, never assume that there is an understanding. Ensure that everyone is on the same page. Necessary within any successful partnership, is the ability to listen. Listen to what your partner is saying and expects and adapt your contribution accordingly. Everyone and every business partnership have their motivations for being in the relationship. A reality of any relationship is that no one likes surprises. Knowledge and mutual understanding are critical to successful relationships. And then there is the recognition of the importance of trust for the building up and sustaining of the partnership. Trust is the result of behaving credibly, the setting of right expectations, listening, and adapting and the sharing of knowledge. My Fellow Shareholders, Ladies and Gentlemen it was that iconic entrepreneur and visionary Henry Ford who once said, “If everyone is moving forward together, then success takes care of itself.” Our vision for the future of our Company is rooted in the strength of the relationships we have and enjoy with our Partners in Business.

Future Outlook

My fellow Shareholders, the year just concluded again demonstrated the Company’s ability to rise above the many challenges that were presented. As we look forward to the new financial year and further into the future, we will optimize our strong global brand portfolios and pursue maintaining our position as a

Acknowledgement

I acknowledge the expertise and counsel that the Board of Directors contributed to the progress of the Company throughout the year as well as that of our leadership teams and employees. Importantly, on behalf of the Board, I would like to express our gratitude to our valued Shareholders, Suppliers, Employees and Customers.

Directors Appointment

Mr. Dan Bryan Stoute and Ms. Melissa Jessica De Santos were re-elected as Directors at the 67th Annual General Meeting.

Trevor Nero retires as Trisco Executive after 28 years of Service

Mr. Trevor Nero retired after 28 years of service on December 31st, 2022 as Trisco Executive. Mr. Nero was described as a dedicated employee by Mr. Clifford Reis, Chairman/Managing Director during a Retirement function hosted in his honour.

Mr. Reis said Mr. Nero managed the largest department in the Company with over 150 employees and all the products produced by the department are perishable that must be sold within 24 hours so he managed the department effectively and efficiently.

“Trevor was a very dedicated employee. Thank you for the service and enjoy your retirement,” Chairman concluded.

Operations/Engineering Director Mr. Gavin Todd said Mr. Nero has left a legacy and he worked tirelessly over the years and had enough time to leave the department in the capable hands of Mrs. Reshma Rampersaud –Nedd who was appointed Chief Executive Officer of the department.

There also remarks by Mr. Andrew Carto, Human Resources Director, Mr. Alester Cameron, WMPB Director, Mr. Carlton Joao, Sales and Marketing Executive and Mrs. Rampersaud-Nedd.

Mr. Nero was presented with a token of appreciation during the ceremony.

Unibrew Executives visit Banks DIH

A team from Royal Unibrew of Denmark comprised of Mr. Lars Boe Jensen (Brewing Director), Ms. Helle Knudsen (International Brand Manager for Malts) and Mr. Romie Bordanea (Regional Manager- Sales and Marketing LATAM & Caribbean) recently visited Banks DIH Limited to meet with Mr. Clifford Reis, Chairman/ Managing Director, Executive Directors and other Senior Executives to discuss our continuing partnership.

Royal Unibrew is the brewer of Vitamalt and Vitamalt Plus, which are bottled and exclusively distributed by Banks DIH Limited.

This visit included a Brewery Tour and trade visits to supermarkets in Georgetown.

Visitors to Thirst Park

Mr. Clifford Reis, Chairman/Managing Director hosted Mr. Cosmo Hamilton and visiting relatives from the United States and the United Kingdom. In photo Mr. Reis (fourth left) and Mr. Cosmo Hamilton (third left) pose with other members of the visiting delegation.

13 DEPARTMENTS RECOGNIZED IN 2022 CHAIRMAN’S AWARD

Thirteen departments have been recognized for outstanding performances at the Annual Chairman’s Award ceremony held in the Rotunda. Refrigeration Department, Brewery, Budgeting and Costing and Novelty/Dairy Plant were the awardees for Thirst Park.

Berbice and Linden Operations shared the Branches Award, while OMG Restaurant and Caesar’s Parlour won the top prizes for departments in Demico

Administration.

Honourable Mention went to Soft Drink Plant, Materials Handling, Water Plant, Power Generation Department and Central Audit Laboratory. A Meritorious Award was presented to Inspector Vishnu Ramotar. Mr. Ramotar also received a 20Year Pin for his years of service with the Company. The presentations were made by Mr. Clifford Reis, Chairman/Managing Director.

Caesar’s Parlour

Water Plant

Novelty/Dairy Plant

Refrigeration Department

Soft Drink Plant

Power Generation

OMG! Restaurant

Vishnu Ramotar

Berbice Branch

Budgeting & Costing

Materials Handling Department

Central Audit Laboratory

Brewery PACESETTER NEWS 2023

Employees celebrating 20 Years of Service

Twenty- Six employees received honorary recognition for 20 years of service to Banks DIH Limited during a ceremony conducted within the HR Department.

The awardees were: Ronald Barker (Head Office), Cort Hall (Beverage Warehouse), Vibrant Grant, Trevor Hollingside, Rawl London, Oudit Bruce, Eardly McLennan (Soft Drink Plant), Dennison Eastman (Materials Handling), Navin Ramnauth (General Workshop), Sharon Clarke (Thirst Park Sanitation) Dwayne Horton, Deon Stewart (Special Events), Dionne Greene (Demico Administration), Maritha Theobald Barkley (Duty Free Shop), Rondell Cummings, Mark Benjamin (Beer Plant), Ciff Morian, Marvin Perreira (Beverage Salesmen), Albert Cunningham (Brewery), Royston Abrams (Liquor Warehouse Outdoor), Neolline Adams (New Amsterdam Qik Serv), Lennox Cordis (Engine Room), Rawle Nedd (Sales Administration), Michelle Humphrey (Bakery), Yawantee Rahim (Processing Room), and Andre Williams (CO2 Plant).

The presentations of tokens were done by Mrs. Sharon Nelson, Human Resources Executive.

Ronald Barker

Rawl London

Cort Hall

Oudit Bruce

Trevor Hollingside

Eardley Mc Lennan

Long Service Awardees

Lennox Cordis

Dennison Eastman

Yawantee Rahim

Deon Stuart

Rawle Nedd

Sharon Clarke

Royston Abrams

Dionne Greene

Michelle Humphrey

Dwayne Horton

Neolline Adams

Andre Williams

In January 2023, the Environment & Safety Department launched a training program on Environment, Health & Safety (EHS) to ensure the wellbeing and safety of employees and the environment. The program is part of our department’s goal to improve our safety culture and achieve “Zero Unsafe Behaviors & Conditions.”

To date, we have trained 189 employees, including executives and managers from various departments such as Beer Plant, Brewery, Trisco, Novelty, Rum Factory, Winery, Water Plant, Human Resources, Wholesale Liquor Bond, Central Lab, Customs, and Stores. A post-test is included to evaluate the participants’ knowledge and understanding of the material.

The training program covers various topics, including hazard identification, accident and injury prevention, and compliance with requirements such as fall protection, fire control, pest control, first aid, and electrical safety. We encouraged participants to “see something, say something” and apply the “Brother’s/Sister’s Principle” to promote a culture of safety. Employees are also made aware of their right to reasonably refuse unsafe work practices. This information aids in boosting the company’s ability to comply with the Occupational Health and Safety Act and Environmental Protection Act.

Our goal is to create a safer and healthier workplace for all employees and reduce the risk of environmental impact. We will continue to roll out this training to the remaining employees and monitor the effectiveness of our EHS program to ensure continuous improvement.

RECOMMENCEMENT OF SCHOOLS TOURS

The recommencement of School tours was met with much enthusiasm as the Company facilitated tours for schools to coincide with the Republic Anniversary celebrations. Amongst the schools hosted were Capoey Primary School from Capoey Lake, Essequibo, New Market Primary School from No. 63 Beach, Skeldon High School and McGowan Primary Schools. Tours are mostly facilitated by the Company’s main Tour Guide, Romel Ramcharan. The Students of McGowan Primary were elated to have the first part of their tour facilitated by Mr. Clifford Reis, Chairman/Managing Director.

“Creating a Culture of Safety: A Company-Wide EHS Training Program”

Camp Street and Main Street Qik Serv share

Co-Managing Director Award for Outstanding Customer Service in 2022

The two departments both won the Most Outstanding Department in Customer Service Experience twice during the year. Both restaurants were presented with trophies during a ceremony held during January 2023 at the Conference Room at Thirst Park.

Julius Douglas of Prize Medal Patisseries, Andrea Campbell of Main Street Qik Serv, Olivia Rahaman of Idiho Health Bar and Odessa Howes of Camp Street Qik Serv were also honoured for winning the Customer Experience Award twice in 2022.

Meanwhile, The Customer Experience Awardees for the period November to December 2022 also received prizes.

The awardees were Oneica Simon and Julius Douglas of Prize Medal Patisserie, Olivia Rahaman of Idiho, Reshumba Williamson of Stabroek Qik Serv, Andrea Campbell of Main Street Qik Serv, Odessa Howes of Camp Street Qik Serv, Walldena Christiani of Caesar’s Parlour, Petal Wilson of OMG Restaurant, Juliana Sears of New Amsterdam Qik Serv and Shavon Persaud of Crème Select. Main Street Qik Serv won the Departmental prize for the period.

DeeDs of Covenant

Twenty- seven (27) community groups and charitable organizations were invited to a handover ceremony, where they were issued with cheques in various amounts totaling Guyana Five million, five hundred and sixty thousand dollars (G$5.560 million) to the representatives at their Thirst Park, Head Quarters. The Deeds of Covenant initiative is a yearly donation made to charitable organizations in Guyana in an effort to strengthen their resilience, impact, and sustainability in society. This year’s recipients were: The Scout Association of Guyana, Girl’s Guide Association, Youn Women’s Christian Association, Uncle Eddie’s Home, Gentlewoman Relief Association, Guyana Red Cross Society, St. Phillip’s Parish Church, Dharm Shala, Shaheed’s Boys & Girls Orphanage, St. Ann’s Orphanage, Ruimveldt Children’s Home & Care Centre, Missionaries of Charity, St. Andrew’s Kirk, The Guyana Conference of Seventh-Day Adventist, Salvation Army, St. George’s Cathedral, Guyana Society for the Blind, Guy. Society for the prevention of Cruelty to Animals,

St Thomas Mores Conference Soc of the St. Vincent De Paul, St Vincent De Paul Society, Our Lady of the Mount Charities, St Joseph’s Mercy Hospital, Young Men’s Christian Association, St John’s Ambulance Brigade, St George’s Finance Committee, Guyana sanathan Dharma Maha Saba and St. John’s Bosco Boy’s Orphanage.

“We have been a beneficiary of the generosity from Banks D.I.H Limited for many years and we take this opportunity to expressed heartfelt thanks to the Company for their support”, said Ms. Badd after receiving a cheque on behalf of the Ruimveldt Children’s Home and Care Centre. Ms. Badd also shared that the financial support will be used for transportation and Clinic Expenses.

As part of its CSR efforts, Banks D.I.H Limited continues to support community groups and organizations in Guyana through this initiative. The disbursement of funds under the Deeds of Covenant was one of the main items voted on by Shareholders at the recently concluded Annual General Meeting.

Peter D’Aguiar Memorial Educational Grants

Educational Grants from the Peter D’Aguiar Memorial Scholarship funds were given out to ten (10) schools and institution across Guyana. The annual donations were presented to Alexander Village Nursery School, Soesdyke Primary School, Bladen Hall Multilateral School, Kingston Practical Instruction Centre,

Blairmont Primary School, #72 Village Corentyne Nursery School, Zeelandia Primary School, Windsor Forest Primary School, New Silver City Secondary School and Wisburg Secondary School. The schools to benefit this year were from Georgetown, Berbice, Essequibo and Linden.

What is ESG?

The world is abuzz with the term “ESG” –Environment, Social Governance and many companies are considering what this would mean for their operations and future. Banks DIH Limited is no different. In responding to a question posed by a Shareholder at the recently completed AGM, Mr. Clifford Reis Chairman/Managing Director made the following comments.

“The first group to coin the phrase “ESG” was the United Nations environment program initiative in the fresh fields report in October 2005.

The term ESG has one of those acronyms which everyone recognizes although not everyone understands. It’s been extremely helpful for the sustainable investment sector to have the ESG acronym at the center of the movement as it has helped broaden interest in the three core sustainability areas of environment social and governance.

The Environmental portion of ESG considers how a company performs as a steward of the physical environment. The E takes into account a company’s utilization of natural resources and the effect of its operations on the environment, both in its direct operations and across its supply chains. Companies that too consider the effects of their policies and practices on the environment may be exposed to higher levels of financial risks. In other words, the environmental factor examines a company’s environmental disclosure, impact and efforts to reduce carbon emissions - issues that represent tangible risks and opportunities for stakeholders and stockholders alike, for example, Coca-Cola requirements.

This has already started with the Coca-Cola Company where we have to report on a monthly basis (1) the accident statistics by department and the category of accidents. (2) water usage ratios targets by one liter of

water to one liter Coca-Cola beverage. (3) the energy usage ratio target of 0.244 kW to 1 litre of Coca Cola. (4) safety performance of total incident rate. Therefore, we will have to assess the company’s environmental footprint by assessing four factors: greenhouse gas emissions, water use, waste and pollution, land use, and biodiversity.

The central idea behind the Social aspect of sustainable investing – the “S” and ESG investing –relates to how the company manages its relationship with its workforce, the societies in which it operates, and the political environment. Consideration would need to be given to how the company’s workforce requirements and composition present problems for the organization in the future; what risk comes with the safety implications of a product or the politics of a company supply chain, and what future demographic or customer changes could shrink the market for a company’s products or services.

The “G” in the ESG pertains to the Governance factors of decision-making from sovereigns’ policymaking to the distribution of rights and responsibility among

different participants in corporations, including the Board of Directors, Managers, Employees, Shareholders, and Stakeholders. Governance factors indicate the rules and procedures for countries and coporations and allow investors to screen for appropriate governance practices as they would for environmental and social factors. A corporation’s purpose, the role and makeup of the board of directors, shareholders’ rights, and how corporate performance is measured, are core elements of the corporate governance structure.

Gender diversity and equity are another highprofile governance issue, with many institutional shareholders demanding better representation of women on corporate boards, in executive ranks, with equal compensation and mobility for women and people of color. More companies are emphasizing the financial benefits of creating inclusive workplaces in an effort to increase diversity and inclusivity.”

These new rules will form a roadmap for action in corporations and countries for the future.