Old Mutual : Sustainability Report 2023

In line with our victory condition of becoming our customers' first choice to sustain, grow and protect their prosperity, we continue to responsibly build the most valuable business in our industry. Our Sustainability Report provides evidence of our commitment to being a responsible business wherever we operate.

About our report

Our reporting suite

Our Integrated Report provides a balanced view of our value creation story. It shares our strategic journey to becoming our customers' first choice to sustain, grow and protect their prosperity. Although primarily aimed at our providers of capital, it will be of interest to all stakeholders invested in understanding our unique value creation story.

Our Corporate

Governance Report provides an overview of Old Mutual's approach to corporate governance. The report focuses on how we do business in accordance with sound governance practices, which are informed by the highest ethical standards, integrity, transparency and accountability. The report will be of interest to investors, regulators and analysts.

Our Remuneration

Report provides insight into how we address remuneration-related activities and disclosures and reflects how our rewards purposefully align performance outcomes with shareholder interests, while balancing our need to be an attractive employer. The report is of interest to investors, employees, regulators and analysts.

Our Sustainability Report reflects on our sustainability journey, sharing insights into how we manage our most significant environmental, social and governance (ESG) risks and opportunities. The report will be of interest to investors, analysts and a wide range of stakeholders.

Feedback and our reporting journey

Our Climate Report contains information about the Group's climate-related activities, policies, governance, strategy, risk management, metrics and targets. The report provides information that enables stakeholders to assess our progress in our climate adaptation journey. The report will be of interest to all our stakeholders.

Your feedback is important to us, and we welcome your input to enhance the quality of our reporting.

Tax Transparency

Report

Our Tax Transparency Report concisely outlines our tax philosophy, communicates how the tax strategy is interconnected to the

Group strategy and demonstrates our commitment to being a responsible taxpayer.

The report is of interest to regulators, investors and analysts.

We have implemented changes to improve the presentation of this report. These include an overview of our approach to and progress towards transformation; moving disclosures on fair pay into the Social section under Responsible to employees; and condensing disclosures on compliance and regulations into Responsible to regulators.

We are continually improving and refining our non-financial data collation processes and the definitions we use when reporting. This may result in re-presentation of prior year data for increased comparability. Over time, this will enhance the completeness and accuracy of reporting on our non-financial data.

Annual Financial

Statements

Our Annual Financial Statements contain information relating to the Group's financial position and performance. The consolidated and separate financial statements were audited in terms of the Companies Act, 71 of 2008 (as amended) (Companies Act). The report is of interest to investors,analysts, regulators and other stakeholders.

Our design theme for the 2023 annual reporting suite is centred around movement and progression in modern Africa, with our insights depicted as a guiding light for our customers in uncertain times. Our imagery alludes to the embodiment of development, speed and success in embracing technological advancements while maintaining a human touch when creating, executing and delivering growth across all our operating regions.

1

About our report continued

Approval

The Board of directors (the Board) of Old Mutual Limited (Old Mutual or the Group) acknowledges its responsibility for ensuring the integrity of the Sustainability Report 2023 (this report). In the Board's opinion, this report addresses all the material sustainability initiatives, activities and impacts throughout the Group to create shared value during the period.

The Board confirms that the Group complies with the provisions of the Companies Act in relation to its incorporation and that its operation conforms to its Memorandum of Incorporation.

This report was approved by the Board for release on 27 March 2024.

Scope and boundary

This report covers the sustainability initiatives and activities of the Group for the period 1 January 2023 to 31 December 2023. It provides an overview of key ESG initiatives and activities to create shared value during the period. Non-financial information provided is on a Group-wide basis unless specified.

Guiding frameworks

The content of our reporting suite is compiled with reference to multiple sources to guide our thinking and disclosures. For this report, we were guided by:

• » The Companies Act

• » Financial Sector Charter (South Africa)

• » Employment Equity Act, 55 of 1998 (South Africa)

• » King Report on Corporate Governance™ for South Africa, 2016 (King IV)1

• » JSE Limited (JSE) Sustainability and Climate Disclosure Guidance

• » United Nations (UN) Principles for Responsible Investment (PRI)

• » Second Code for Responsible Investing in South Africa (CRISA 2)

• » Global Reporting Initiative Standards - as a guide to material disclosures

• » Task Force on Climate-related Financial Disclosures (TCFD) framework

Assurance

Management performed areview of this report to ensure the accuracy of its content. The Board and Responsible Business Executive committee provided oversight. Group internal audit followed a limited assurance process in respect of numeric disclosures.

Data relating to Old Mutual's progress in transformation is independently assured by AQRate Proprietary Limited. This information pertains to broad-based black economic empowerment (B-BBEE) measured against the Amended Financial Sector Generic Scorecard: Long-term Assurers.

The UN Sustainable Development Goals (SDGs)

Our impact cuts across several SDGs, addressing poverty eradication; quality education and skills development; responsible employment; transformational infrastructure; diversity and economic empowerment; financing and supporting sustainable cities and communities; climate action (including through responsible investment into affordable and clean energy); and industry, community and national and international partnerships.

Our approach to sustainability reporting

Through this report, we share our sustainability performance and response to material ESG issues, which is built on the responsible business focus areas that underpin our strategy.

Before this report was compiled, an external reporting service provider conducted a limited materiality process to identify key sustainability material matters. This process involved an analysis of relevant internal and published Old Mutual documentation selected by the sustainability function. The process included coding and analysing information to develop a set of themes and related matters, which have guided the content of this report.

The Group sustainability function is reviewing the Group sustainability strategy, to delineate where Old Mutual has scaled socio-environmental impact across its business model and to identify additional opportunities for impact. The strategy will seek to further integrate sustainability into the broader Old Mutual business strategy.

The Responsible Business committee will consider any amendments to the Group sustainability strategy for approval by the Board in 2024.

CONTENTS

• 4 Overview

• 5 Sustainability highlights

• 6 Overview of our business

• 7 The core of who we are

• 8 Our strategy

• 10 A message from our Chief Executive Officer

• 12 A message from our Responsible Business committee Chairperson

• 14 Governing sustainability at Old Mutual

• 15 Responsible investment

• 16 Responsible investment overview

• 18 Old Mutual Investments

• 19 South African asset managers

• 27 Old Mutual Africa Regions asset managers

• 29 Environment

• 30 Climate is our primary environmental focus

• 33 Social

• 34 Transformation in practice

• 36 Responsible to customers

• 42 Responsible to intermediaries

• 44 Responsible to employees

• 54 Responsible to communities

• 64 Responsible to suppliers

• 65 Governance

• 66 Responsible to regulators

• 69 Risk management

• 70 Preventing financial crime

• 71 Our approach to cyber security and data privacy

• 72 Additional information

• 73 List of acronyms

• 74 Glossary of terms

The Sustainability Report 2023 reflects our sustainability journey, sharing insights into our understanding of, and approach to, managing the most significant ESG issues and opportunities we face.

For detail on our strategy and value creation, our operating context, risks and opportunities, and the Group's financial performance, refer to our Integrated Report

This section provides contextual information for readers, including our sustainability highlights for the year, an introduction to our operations, an overview of how we govern sustainability at Old Mutual, as well as reflections from our leadership.

In this section

Sustainability highlights 5

Overview of our business 6

The core of who we are 7

Our strategy 8

A message from our Chief Executive Officer 10

A message from our Responsible Business 12 committee Chairperson

Governing sustainability at Old Mutual 14

ding the most valuable business in our industry

UM in onomy

1 In 2022, the roll out of the TCX programme exposed more leaders to leadership development initiatives. 2 084 leaders were enrolled on the TCX programme in 2022

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& RESPONS2IBTLhEisINincVrEeaSsTeMisEaNttTrSibutable to increLaEseAdDinINveGstmEMenPtsLOacYroEsEsaPllRbOouPtOiqSuIeTsION

3 The large increase is largely due to the increase in inflows from Old Mutual Investment Group's

illion AA rating

ESG focused products, namely the World ESG Leaders Index strategy (with increased inflows of R9 billion) and the inclusion of the African Frontiers Fund (with increased inflows of R4 billion) that is now an Article 8 fund. Additionally, inflows increased in the Old Mutual MSCI ACWI Climate Paris Aligned Index Investment Pool fund, of around R4 billion. These inclusions represent

42%

approximately 90% of the increase of assets invested in the green economy. The launch of the GloEbSaGl EESqGuEitqyuFituynFdund in Januahrye2ld02b3y,cfoeumpaleldeswith our currentarerepobrltaincgk, has led to a rise in assets invested in the green economy

55%

by MSCI for Old Mutual

senior management employee positions

senior management employees

4 Data essential for 2023 alternative asset analysis is sourced from private investee companies that release information subsequent to our reporting period

• » 10 035 SMMEs reached

  (2022: 5 270)

• » Additional grant of 5 million shares to the value of

  R60.1 million to black employees through our Bula Tsela Employee Share Scheme, a transformative B-BBEE ownership transaction

• » 42% of permanent senior management positions held by female employees (2022: 42%)

• » 55% of senior management permanent positions held by black employees (2022: 61%)

• » R119.7 million invested in training intermediaries (2022: R100.3 million)

• » R23.2 million invested in leadership training

  (2022: R42.3 million)1

• » R30.7 billion to renewable energy2 (2022: R26.7 billion)

• » R1.2 billion to education (2022: R1.4 billion)

• » R1.3 billion to low-income and affordable housing (2022: R1.4 billion)

• » R2.0 billion to water and sanitation (2022: R2.2 billion)

• » R166.8 billion of assets under management invested in the green economy3

  (2022: R146.2 billion)

• » 5.5 million tonnes reduction of CO2 equivalent, through direct investment by Old Mutual Alternative Investments' portfolio (2021: 5.1 million tonnes reduction of CO2 equivalent)4

• » Old Mutual Alternative Investments' are funders into 39% (2021: 31%)

  of South Africa's installed renewable energy capacity in 2022

10

Overview of our business

South Africa

Southern Africa

East Africa

West Africa

Asia

In China, we provide life insurance and investment solutions to high-net-worth retail customers through a 50:50 joint venture with China Energy Capital Holdings, asubsidiary of China Energy (a state owned enterprise).

• 1 We have refined our definition of employee and restated the 2022 numbers. Our workforce is defined as permanent and non-permanent Old Mutual employees and contingent workers which include consultants, contractors, service providers and vendors

• 2 Customer numbers for South Africa include policy count for Old Mutual Insure

Old Mutual is a premium African financial services Group that offers a broad spectrum of financial solutions to retail and corporate customers across key market segments in 14 countries.

Old Mutual's primary operations are in South Africa and other African regions, and we have aniche business in China. We are well positioned in the insurance market with a large customer base, avaluable and trusted brand, and most of our core businesses holding leading market positions while making investment in our growth engines and markets. We have structured our operating segments to deliver our products and services to our customers according to their needs.

Segmental results from operations (R million)

5 000

2 500

0

(2 500)

10%

3 710

1 517

22%

1 846

3 369

19%

(1%)

1 718

1 449

1 227

1 240

678

524

Mass and Foundation Cluster

Personal Finance and Wealth Management

Old Mutual InvestmentsOld Mutual Corporate

2022

2023

Results from operations by line of business (R million)

10 000 28%

8 000

6 000

4 000

2 000

0

(2 000)

>100%

(23%)

(22%)

(1 478)

(1 798)

Old Mutual

InsureOld Mutual Africa RegionsNet result from group activities

33%

(65%)

30%

1 845

1 384

1 049

(38%)

766

590

372

Life and Savings

Asset Management

Banking and Lending

2022

2023

1 Other includes net result from group activities and central costs allocated to segments.

Property and Casualty

Total results from operations

R8 343 million

(2022: R7 310 million)

(1 478)

(2 036)

Other1

We believe that creating value for customers ultimately drives value creation for shareholders. We create value through solutions delivered against our integrated financial services and interconnected strategy. We offer comprehensive solutions across Africa to meet our customers' needs at every life stage. We will accompany them on their life journey as a trusted steward through multiple channels, platforms and comprehensive financial products and services anchored in rewards that aim to promote behaviours linked to holistic financial wellness. We conduct business responsibly to deliver asustained positive impact across all our stakeholders: customers, employees, intermediaries, investors, regulators and the communities in which we operate.

The core of who we are

Our purpose is to champion mutually positive futures every day

We want to be our customers' first choice to sustain, grow and protect their prosperity, which is anchored in our purpose. This means that we aim to be their preferred partner for financial wellness and help them achieve their lifetime financial goals.

We deliver our solutions through our distribution channels

We embrace a human-led, technology-enabled distribution model. We deliver personalised advice and solutions using real-time data and insights through our extensive distribution network and strong digital engagement to ensure our customers and advisers can interact with us in away that is most convenient for them. Our face-to-face and digital channels provide customers more choice as we move towards delivering a consistent omnichannel experience.

41 117

(2022: 39 238)

Tied and independent intermediaries

Our intermediaries are the competitive advantage through which we deepen our relationship with our customers in various segments. They are core to our ability to execute our integrated financial services ambition, differentiated by holistic advice, face-to-face interactions, trust and relevance built through meaningful engagements.

796

(2022: 826) Retail branches

Our retail branches facilitate a seamless customer experience by providing direct access to products, servicing and advice. Our branches recruit intermediaries from the communities in which we operate. Branded ATMs support our retail branch network to improve access and convenience for customers.

1.4 million

(2022: 1.2 million) Active digital users

The MyOldMutual integrated needs based goals and financial wellness ecosystem encompasses digital platforms such as the Old Mutual app, WhatsApp, USSD and an online platform that seamlessly integrates into a digital experience. Our service centres, advisers and customers can see and engage with the ecosystem.

48 331

(2022: 48731)

Worksites

Worksites enable us to take an advice-led approach by offering solutions to our customers in their workplace as an extension of the employee value proposition. Our worksites have skilled financial advisers who assist our customers with preserving their wealth and achieving better retirement outcomes.

We formulated our strategy considering our operating environment, evolving customer needs, the competitive landscape and rapidly changing technological advancements. Our strategy seeks to ensure the delivery of sustainable value creation for our business to the benefit of all our stakeholders over the short, medium and long term.

Our strategy is anchored in our victory condition of becoming our customers' first choice to sustain, grow and protect their prosperity. Our value creation framework spans two broad themes: growing and protecting the core and unlocking new growth engines. We took a deliberate portfolio approach to growth by distinguishing between these themes, to ensure we are able to generate sustainable long-term value at an aggregate portfolio level. Our core businesses represent the majority of our portfolio and are the dominant contributors to our stable cash generation and earnings. Our new growth engines are asmall part of our portfolio and represent newer sources of revenue streams for the Group over the long term. Each theme is supported by strategic focus areas that articulate how we will deliver value. This is underpinned by agile delivery driven by engaged employees. Our five value drivers link our strategic actions and the value creation impact for the Group. They also inform the prioritisation of these actions to ensure maximum value creation for customers and shareholders alike.

Strategic focus areas

Growing and protecting the core

Holistic coverage

of customer needs

Distribution and digital

engagementOperational efficiencies

Unlocking new growth engines

Strategic growth businesses

Strategic growth markets

Enabled by

Agile delivery driven by engaged employees

The circles reflect the value drivers impacted by each strategic focus area.

Our strategy continued

Building the integrated financial services business of the future

The delivery of holistic financial services that prioritises great customer and adviser experience, will empower our customers to move towards financial wellness and have financial freedom and security.

One of our most valuable strategic assets is our large customer base. We will focus our efforts on delivering more value to our existing customers through integrated financial services. Integrated financial services is a natural extrapolation of our victory condition.

Partnering with our customers on their journey towards financial wellness is at the heart of our integrated ecosystem. Our approach to building adistinctive integrated financial services ecosystem leverages off our existing strengths to ensure we are our customers' lifetime financial partner of choice. Key components of our ecosystem include:

• 1. Advice-led

  Advice-led conversations support our customers with the right solutions at the right time. We have strong expertise through one of the largest tied adviser networks in South Africa, equipped with industry-leading advice tools.

• 2. Integrated

  We aim to provide a customer experience that is integrated across our holistic solution set and our channels. Our customers benefit through our rewards programme by having multiple products with us and making good financial decisions in support of their personal financial goals.

• 3. Tech-forward

  We provide an always-on experience, enabled by modern technology, so our customers can interact with us when and how they want to.

• 4. Trusted

  Trust is a key driver of consideration and brand usage. It is a critical enabler of business performance. Customers associate the Old Mutual brand with trust and we continue to ensure that we earn and maintain this trust every day.

Board focus: Strategy governance

The Board is responsible for setting and steering the Group's strategic direction. During the year the Board:

• » Continued to monitor the steps implemented to embed the Group's medium and long-term strategy, focusing on delivering an integrated financial services offering

• » Monitored the impact of competitors and disruptors on the industry and the Group's response thereto

• » Supported management in refining the Group's strategy for Old Mutual Africa Regions

• » Supported management in the appropriate strategic allocation of capital , focusing on organic and inorganic opportunities which support innovation and competitive positioning

• » Continued to consider and monitored the return on capital the Group is generating for our shareholders

For more information on industry and customer trends, refer to our Integrated Report