Environmental, Social, and Governance (ESG)

We are committed to trading in an environmentally-friendly, socially-supportive, and ethical way. Robust governance structures, an ethical culture, diversity, and equality are already part of the Group’s ethos. To better manage our ESG risk and impact, we have established an ESG Committee that has an integrated view of ESG in the Group and is responsible for:

  • Developing, managing, and overseeing the implementation of our ESG strategy
  • Implementing our ESG reporting framework
  • Advising on best practice when discussing policies and regulations that impact ESG
  • Improving our understanding and raising awareness of ESG within the Group
  • Integrating ESG considerations into the Group’s respective value propositions
  • Reporting on ESG compliance to the Board of Directors
  • Staying abreast of the latest ESG developments and industry trends

REPORTING FRAMEWORK

To measure its ESG impact, the Efficient Group adopted the ESG reporting standards of the Sustainability Accounting Standards
Board (“SASB”), read in conjunction with the performance standards of the International Financial Corporation (“IFC”) and other
related documents for guidance and insight. The SASB’s standards focus on financially material areas of impact; link sustainability
to business performance; and can be monitored, measured, and reported on. The standards are based on five dimensions of
sustainability:

  • Environmental
  • Social capital
  • Human capital
  • Business model and innovation
  • Leadership and governance.

The SASB category ‘Asset Management and Custody Activities Industry’ best aligns with the Efficient Group’s business activities.

SOCIAL

We are committed to the development of the communities in which we operate. Our community engagement and development strategy includes:

  • Providing clients with holistic and sustainable financial solutions that contribute to long-term social and economic sustainability.
  • Incorporating ESG considerations into our supplier onboarding process and supporting supplier development initiatives.
  • Providing the community with financial education that is based on impartial information, research, and trends.
  • Creating employment opportunities by way of our internship programme.
Other focus areas include:
  • CSI: Footprints 4 Sam Trust
  • The Ulwazi Educational Trust
  • The Efficient Group’s Internship Programme
  • Employee Relief Fund
  • Employee wellness and belonging
  • Equality, diversity, and inclusion
  • Health and safety

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ENVIRONMENT

We are proud to have a small environmental footprint, but we are, nevertheless, committed to lowering our environmental impact wherever possible. We do so by educating our employees and by continuously implementing actions to further reduce our negligible carbon footprint. Through recycling and responsible water usage, we aim to reduce our environmental footprint even further. We actively recycle paper where we can, and we favour technology solutions over printing. We also encourage the use of video-conferencing facilities for employee attendance at remote locations, thereby reducing the environmental impact of our meetings.

ESG Fund

Globally, there is a growing demand for investments that incorporate sustainability factors into their portfolios to encourage companies to act responsibly. Many studies illustrate that ESG investing does not detract from longterm returns. On the contrary, it can enhance returns while reducing risk. In South Africa, Regulation 28 of the PFA encourages trustees to integrate ESG into their investment decisions. Despite this, South Africa has not seen the same growth in ESG thematic investing as other countries, especially when looking at developed markets. Although many asset managers incorporate ESG factors into their investment processes, asset managers will not necessarily exclude stocks with a low ESG score.

GOVERNANCE

At the Efficient Group, we are committed to upholding the highest governance standards by fostering a culture of integrity, responsibility, and sound risk management. Our governance framework is designed to protect stakeholder interests, promote long-term value creation, and comply with regulatory requirements. The Efficient Group has a strong Board of Directors, including several non-executive members and independent non-executive directors, bringing a well-balanced mix of knowledge and expertise.

The chair of the Efficient Group’s board holds the status of an independent non-executive director, underscoring our commitment to impartial oversight and governance. The Board of Directors provides strategic oversight, while independent committees ensure robust internal controls, ethical conduct, and compliance with ESG principles. Through continuous evaluation and improvement of our governance structures, we aim to enhance trust, mitigate risks, and drive sustainable business growth. Various independent assurance providers also offer added security regarding the Efficient Group’s financial performance, as well as its economic, social, and environmental contribution and impact.

Date security and protection of personal information
  • The Efficient Group recognises its social responsibility to protect personal information effectively.
  • We do not send unsolicited emails to our clients, and they have the option to opt out of receiving direct marketing material.
  • Our Privacy Notice is readily available on our websites, ensuring easy access for clients and third parties. These policies outline how we collect, use, and share personal information.
  • Employees are expected to implement privacy practices like keeping the collection and sharing of personal data to a strict minimum, being open and transparent about the management of personal data, and applying collection and use limitations.
  • We continuously strive to raise awareness about the importance of protecting personal information. Our ongoing training and awareness initiatives ensure that employees are equipped with the necessary knowledge to safeguard company and client data. During this financial year, all employees successfully completed an e-learning training course on the Protection of Personal Information Act (“POPIA”), which included a knowledge assessment.
  • To reinforce data security, cyber controls are rigorously tested through security assessments conducted in collaboration with independent external specialists.
Treating customers fairly (TCF)
  • Our TCF Policy and Code of Conduct and Ethics Policy place a strong emphasis on accountability and integrity. All employees are required to uphold these principles in their daily tasks, regardless of their role.
  •  The fair treatment of our clients is the cornerstone of the Efficient Group. As such, TCF training is an integral part of our employee induction programme.
  • Our compliance team is responsible for monitoring our selling practices and ensuring they remain fair and fully compliant with financial services industry regulations.
  • During the reporting period, we measured our TCF performance through surveys conducted with clients and employees. Our TCF score—based on complaint ratios, client surveys, and employee surveys (each weighted equally)—achieved a rating of 83% in meeting the TCF  fairness principles.