VERITAS KAPITAL ASSURANCE : SUSTAINABILITY REPORT FOR 2023 FINANCIAL YEAR

20 SUSTAINABILITY 23 REPORT

www.veritaskapital.com

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INTRODUCTION As a prominent Insurance Company in Nigeria, Veritas Kapital Assurance Plc, known as "VKAP," understands the significance of embracing sustainability principles throughout its operations. We acknowledge that sustainability entails an ongoing dedication to utilizing resources responsibly, aiming to preserve and enhance natural resources for the benefit of future generations. Our decision-making process not only weighs financial considerations but also assesses potential impacts on sustainability objectives. In light of the challenges posed by climate change, environmental degradation, and social disparities, it has become evident that maintaining business as usual is no longer feasible. We recognize the imperative to adopt a more sustainable approach, considering the long-term consequences of our actions on the environment, economy, and society. While the pandemic has been a defining event of the past decade, safeguarding and nurturing our environment will profoundly shape our collective future. Thus, sustainability cannot merely serve as a tool for marketing campaigns; it demands genuine commitment from companies and industries to safeguard the well-being of communities. As a frontrunner in the insurance sector, we continually explore avenues to safeguard the environment. We hold ourselves accountable as a Company for the nature of our business practices. Our customers, partners, investors, and communities need to recognize our unwavering commitment and endeavor to make a meaningful impact. If the world is to achieve its climate objectives by 2050, every form of accountability carries weight. We must go beyond mere rhetoric and demonstrate our steadfast dedication to action, regardless of the challenges. At Veritas Kapital Assurance Plc, our decisions are guided by the principle of making a positive impact. We firmly believe in conducting business without causing harm to our communities. In the words of Hunter Lovins, "Sustainability is the right thing to do, it's the smart thing to do, it's the profitable thing to do." As leaders and businesses, it is incumbent upon us to lead the charge in fostering a healthier planet. We are committed to creating sustainable value for our brand, people, communities, and the world at large. Achieving this necessitates a steadfast focus on our most vital resources-our people and the planet. Veritas embodies the ethos of sustainability and proudly assumes the role of championing sustainability endeavors within our sphere of influence. We acknowledge that addressing the global sustainability challenges demands significant investment in research, technology, and innovative solutions. Sustainability is deeply ingrained in our core business strategies, and we remain steadfast in conducting our operations responsibly and ethically, thereby making positive contributions to the environment, society, and economy. The breadth of our sustainability report extends across multiple dimensions, covering critical areas such as social responsibility, workplace health, safety, and welfare, employee engagement and development, customer relationships, economic impact, governance encompassing both business practices and ethical conduct, and environmental stewardship.

SOCIAL:

a. Occupational Health and Safety Our foremost priority is the safety and well-being of our workforce, as we strictly adhere to health and safety regulations. Our business premises are meticulously designed to ensure a secure and healthy working environment. We maintain first aid provisions readily available to 1

staff in case of emergencies, and through a dependable Health Management Organization (HMO), we offer free medical services and counseling to both our employees and their families. Furthermore, our commitment to employee wellness extends beyond medical care. The company provides complimentary access to a gymnasium and regularly conducts free health education and awareness programs for staff members. I am pleased to report that in the year 2023, our stringent adherence to our Health, Safety, and Environment policy resulted in zero injuries or fatalities among our workforce due to poor work conditions. This accomplishment underscores our unwavering dedication to safeguarding the health and safety of our employees. b. Human Rights We conduct our business operations with a steadfast commitment to upholding human rights, ensuring fair treatment and non-discrimination for all individuals involved. To safeguard these principles, we have established robust grievance mechanisms and whistleblowing platforms, allowing for the swift and effective resolution of any concerns or complaints. Within the reporting period, no grievances related to human rights violations were filed, addressed, or resolved concerning our suppliers, contractors, employees, customers, or stakeholders. This outcome reaffirms our dedication to fostering an environment of respect, dignity, and equality for all. c. Labor Practices Our dedication to equal opportunity, inclusivity, and fair compensation is evident in our policies aimed at fostering skills development and creating a cohesive work environment. We are pleased to report that our employee turnover remains within acceptable limits, and we actively promote diversity, with women comprising a notable 41% of our workforce. To ensure that our employees feel valued and rewarded for their contributions, we have implemented incentive schemes tailored to individual circumstances. These schemes include adjustments for the cost of living, periodic salary reviews, opportunities for promotion, and comprehensive retirement benefits. Moreover, we regularly conduct employee job satisfaction surveys and leadership assessments to gather feedback on areas of our relationship that may require improvement. By actively seeking input from our employees, we strive to continuously enhance our workplace culture and strengthen our commitment to our workforce. d. Diversity in the Workplace The Company's employee policy strictly prohibits any form of discrimination in the workplace, regardless of factors such as gender, age, physical abilities, caste, creed, race, ethnic group, religion, or economic background.

ECONOMIC:

a. Responsible Products and Services As a prominent underwriting firm, we prioritize the development of customer-centric products and services that adhere to both regulations and international best practices. In doing so, we conscientiously consider economic and environmental factors to ensure sustainable and responsible business practices. 2

b. Suppliers' Relationship Management and Ethics Our commitment to ethical conduct extends to our relationships with suppliers, encompassing key aspects such as procurement, transparency, confidentiality, fairness, anti-corruption measures, and conflict-of-interest protocols. Additionally, we actively support Small and Medium Enterprises (SMEs) as part of our supplier network. To uphold these standards, we conduct annual reviews of our list of vendors and contractors to ensure their alignment with our service-level agreements and ethical guidelines. c. Corporate Social Responsibility (CSR) Our corporate social responsibility (CSR) initiatives play a vital role in fostering social development by promoting education, healthcare, and sustainable employment opportunities within the communities we serve. In 2023, VKAP made significant positive contributions to the Society, including financial awards granted to three students who emerged as winners in the Insurance competition, as well as initiatives aimed at traffic control, among others.

GOVERNANCE:

a. Anti-corruption We uphold a strict zero-tolerance policy towards corruption, bribery, money laundering, and abuse of office. To address any unethical activities, we have implemented robust mechanisms, including a whistleblowing policy, to enable the reporting of such behavior. Our anti-corruption policies and procedures are readily accessible to all employees and management through our intranet. I am pleased to report that there were no incidents, fines, or exposure related to bribery and corruption throughout the period from January 1 to December 31, 2023.

ENVIRONMENTAL:

a. Product and Services Responsibility We strive to ensure that our products and services have a minimal environmental footprint throughout their development and distribution processes. Our focus lies in sustaining our customers' businesses through the principles of indemnity, thereby minimizing any adverse environmental impacts. b. Waste Management (Reduction of Paper Usage) We are committed to actively reducing our carbon footprint by implementing strategies such as minimizing paper usage, transitioning to electronic communications, and exploring automation opportunities. Embracing the environmental management principles of reduce, reuse, and recycle, we have significantly reduced our reliance on paper throughout our operations. Internally, the majority of our communications, including leave approvals, performance appraisals, training materials, and certain regulatory reports, are handled electronically, eliminating the need for paper printing. Additionally, approximately 75 percent of our customer policy renewal notices are delivered electronically, further reducing paper consumption. We continuously evaluate our processes to identify additional opportunities for automation and migration to cloud-based storage, further minimizing paper usage within our organization. 3

c. Energy (Contributing to Reduction of Greenhouse Emissions) Our initiatives to curb greenhouse gas emissions encompass several strategies, including the installation of solar panels, maintenance of energy-efficient lighting systems across our branches, and the provision of internal and external online training to minimize travel-related emissions. These efforts have resulted in a significant reduction in our energy requirements for lighting, with estimates showing a 50% decrease compared to traditional incandescent lighting systems. Moreover, our newly installed lighting facilities are expected to have a longer lifespan, contributing to sustainability. At our Head Office, we have implemented a modern and efficient 300 KVA electricity generator, which helps to minimize emissions. Additionally, we have commenced the upgrade of our solar plant from 15Kw to 30Kw at the Head Office in Abuja, aimed at further reducing emissions. Furthermore, we are enhancing sustainability measures at our Annex office in Lagos by upgrading the existing 4.5kw solar solution to 10Kw. This upgrade will power energy-saving LED bulbs and critical IT points connected to the UPS, contributing to a more environmentally friendly operation.

COMPLIANCE WITH REGULATIONS

a. The Company consistently upholds stringent compliance with environmental laws, resulting in zero fines for non-compliance throughout the year 2023. Conclusion: Veritas Kapital Assurance Plc is dedicated to achieving sustainable excellence and growth with a steadfast focus on prioritizing the well-being of our employees, customers, stakeholders, and local communities. We are committed not only to meeting regulatory standards but also to being a proactive force for positive change and environmental preservation. We aim to play a pivotal role in shaping and safeguarding the world for future generations. Thank You. Yours faithfully, SARATU UMAR GARBA COMPANY SECRETARY/LEGAL ADVISER 4

Sustainability isn't just about preserving our planet for tomorrow; - It's about thriving today to protect lives, livelihoods, and the environment and ensuring a prosperous future for future generations.