Social, ethics and transformation committee's report

The Social and Ethics Committee is pleased to report on its activities for the financial year ended 31 May 2025. During the period under review, the Committee fulfilled its oversight responsibilities with diligence, integrity, and responsiveness to escalating governance and disclosure requirements. We are proud to confirm that all key objectives set for FY25 were achieved, and our commitment to advancing social, ethical, and economic transformation remains resolute as we look toward FY26.

In alignment with the mandates of the Companies Act and King IV, the Committee continues to guide and oversee Blu Label's performance in the following domains:

  • Socio-economic development: Ensuring alignment with the Broad-Based Black Economic Empowerment (B-BBEE) Act and the Employment Equity Act.
  • Consumer relations: Monitoring compliance with consumer protection legislation and upholding customer rights.
  • Labour practices: Supporting adherence to the International Labour Organization (ILO) protocols on decent work and fair labour practices, while advancing employee education and well-being.
  • Corporate citizenship: Championing equality, preventing unfair discrimination and corruption, supporting community upliftment, and tracking donations, sponsorships, and philanthropic contributions.
  • Environmental, health and public safety: Overseeing Blu Label's operations' environmental and societal impact.
  • UNGC compliance: Ensuring alignment with the 10 United Nations Global Compact (UNGC) principles.

Transformation and inclusion

In FY25, transformation efforts were deeply embedded across the business, reflecting the shared responsibility of leadership, management, and employees. These initiatives have contributed to a more inclusive, equitable and sustainable operational model. Transformation is no longer an isolated mandate – it is a core component of how Blu Label delivers value.

Sustainability is at the heart of our strategy, driving our mission to facilitate financial inclusion, economic empowerment, and convenience for the mass market. Our support for vulnerable groups and disadvantaged communities intensified this year, with impactful partnerships and measurable outcomes.

Supplier and enterprise development

In FY25, our commitment to supplier diversity remained strong. Collectively, we partnered with suppliers representing the following categories:

  • 152 Exempted Micro-Enterprises (EMEs);
  • 57 Qualifying Small Enterprises (QSEs);
  • 199 enterprises with 50% black ownership; and
  • 115 suppliers with 30% black women ownership.

These engagements enabled inclusive economic participation and facilitated transformation in critical supply chain segments.

Our supplier development initiatives went beyond compliance. We have enabled job creation and economic resilience through targeted investments such as funding to Dunoworx. Looking ahead, we are scaling these efforts by cultivating inclusive ecosystems and facilitating collaboration between our suppliers and flagship community beneficiaries.

Socio-economic development and flagship partnerships

Blu Label's social investment approach remains grounded in long-term, high-impact partnerships. Our continued support for flagship partners – Boys and Girls Club, Christel House, and Women and Men Against Child Abuse – has deepened their capacity to drive systemic change.

In FY25, we partnered with Education Africa to expand access to online learning for preschool educators in underserved communities. This initiative strengthens early childhood development outcomes and empowers educators to uplift future generations.

We also fostered employee-led social investment, including campaigns to donate books and festive gifts to children in underserved areas. This culture of giving is integral to our ethos as a responsible corporate citizen.

Informal market empowerment

We acknowledge the pivotal role of our informal merchant network in driving financial inclusion. These entrepreneurs are not only distribution partners, but also agents of economic transformation within their communities. Their empowerment remains a strategic priority.

FY25 performance highlights

We are proud to confirm the successful delivery of all FY25 focus areas, including:

  • Achievement of Level 4 B-BBEE compliance, with strategic levers in place to progress further.
  • Significant increase in participation in leadership development programmes, building a strong pipeline of diverse future leaders.
  • Progress toward 50/50 gender parity by 2026, underpinned by targeted interventions and continued executive commitment.
  • Completed domestic learnership and created jobs for 170 learners through the U-Belong initiative within Trust Blu.
  • Launch of a successful disability learnership programme, marking an essential step in our inclusion agenda.
  • Continued strengthening of management control processes to embed transformation in decision-making and accountability frameworks.
  • Dunoworx – The learnership initiative is strategically designed to uplift the less privileged youth of South Africa by imparting not only essential electronics skills but also crucial business acumen. The primary goal is to empower these individuals, preparing them for entrepreneurship and successful integration into the professional arena.

Looking ahead: FY26 strategic focus areas

Building on our progress, the Committee will maintain its strategic focus on:

  • Maintain a Level 4 B-BBEE compliance or better;
  • Expanding leadership and skills development programmes;
  • Realising gender parity by the end of FY26;
  • Scaling socio-economic development and job creation through initiatives such as U-Belong;
  • Continuous support to Dunoworx;
  • Deepening support for informal market merchants and under-represented suppliers; and
  • Embedding sustainability, ethics, and human rights principles across all business operations.

Conclusion

At Blu Label, we recognise that business success is inseparable from societal progress. As we enter FY26, our vision remains clear: to be a responsible, inclusive, and future-fit organisation that empowers people, communities, and the economy at large. Through sustained commitment to ethical conduct, transformation, and shared value creation, we continue to build a better tomorrow – together.

SJ VILAKAZI

Chairman

30 September 2025