OUR GOVERNANCE AND SUSTAINABILITY

Global Reporting Initiative

Global Reporting Initiatives

OUR GOVERNANCE AND SUSTAINABILITY

Global Reporting Initiative

Part 5: Fund-specific disclosures

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Fund Governance

GRI Disclosure, Description/Response

Governance structure and composition

  • Our corporate governance structure and practices have enabled us to create value for the Fund, our members and all our stakeholders in an ever-changing environment
  • The NSSF Governance Structure diagram shows the interaction between the members and the Board, demonstrating how the Board Committee structure facilitates the relationship between the Board and the MD and indicates the flow of delegation from members

Integrated report

  • Page 73

Sustainability report

  • Page 13

Link

Nomination and selection of the highest governance body

  • Board appointments
  • Tenure, gender, independence, experience

Integrated report

  • Page 71

Sustainability report

  • Page 52

Link

Chair of the highest governance body

  • The Chairman, Dr. Peter Kimbowa, is an Independent Non-Executive Director and was appointed on 1 September 2021.His term ended on 31 August 2024. Dr David Ogong’s three-year term as Chairman commences 1 September 2024

Integrated report

  • Page 79

Sustainability report

  • Page 60

Link

Role of the highest governance body in overseeing the management of impacts

  • Oversight of sustainability is currently undertaken by our Audit and Risk Committee. Given current legal constraints, our Board charter does not provide for a dedicated sustainability committee. To address this, we are actively pursuing an amendment to the board charter to formalise sustainability governance, which is essential for supporting our 2035 strategy centred on sustainable practices.
  • Staff and Corporate Affairs Committee (SACA), Audit and Risk Assurance Committee (ARC), and Investments and Project Monitoring Committee (IPMC) have defined responsibilities in the current governance structures.

Integrated report

  • Pages 79,75(ARC),76(IPMC),78(SACA)

Sustainability report

  • Pages 11,56(ARC),57(IPMC),59(SACA),60

Link

Delegation of responsibility for managing impacts

  • ESG in performance scorecards

Integrated report

  • Page 93

Sustainability report

  • Page 11

Link

  • N/A

Role of the highest governance body in sustainability reporting

  • Message from our Chairman
  • The Fund has appointed the Board as responsible for delivering ESG commitments. The Board is supported by the ARC, SACA and IPMC

Integrated report

  • Page 93

Sustainability report

  • Pages 11,45

Link

Conflicts of interest

  • Declarations and whistleblowing processes.

Integrated report

  • Page 83

Sustainability report

  • Page 64

Link

  • N/A

Communication of critical concerns

  • Chairman’s Report (Use of data, AI and digital channels)
  • Managing reputational risk (new stakeholder engagement framework)
  • Stakeholder engagement

Integrated report

  • Pages 9
  • Pages 33

  • Pages 45-48

Sustainability report

  • -
  • -

  • Pages 30-33

Link

  • N/A

Collective knowledge of the highest governance body

  • Composition of the Board and skills and experience
  • Board training

Integrated report

  • Pages 71-72

Sustainability report

  • Pages 52-53

Link

Evaluation of the performance of the highest governance body

  • The Board is committed to continuous improvement and evaluates its performance

Integrated report

  • Page 79

Sustainability report

  • Page 60

Link

Remuneration policies

  • Remuneration governance
  • Remuneration Report

Integrated report

  • Page 90
  • Page 91

Sustainability report

  • Page 71

Link

Process to determine remuneration

  • The remuneration framework is aligned with strategic KPIs to ensure performance is commensurate with individual and business success. The reward system acknowledges the need for sustainability and adaptability in a changing business landscape

Integrated report

  • Page 91

Sustainability report

  • Page 72

Link

Part 6: Stakeholder Engagement

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GRI Disclosure, Description/Response

Stakeholder Groups

  • We engage regularly with our stakeholders and seek to understand and respond to their needs, interests and expectations

Integrated report

  • Page 44

Sustainability report

  • Page 29

Link

Engagement methods, Frequency of engagement, Topics discussed

  • We engage regularly with our stakeholders and seek to understand and respond to their needs, interests and expectations

Integrated report

  • Pages 45-48

Sustainability report

  • Pages 30-33

Link

Part 7: Assurance and integrity

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GRI Disclosure, Description/Response

Assurance Statement, Scope of Assurance

  • Internal audit provides assurance on key areas across the six capitals.
  • Internal Audit will expand its scope over the next 12 months to review all ESG frameworks as part of its assurance activities

Integrated report

  • Pages 3,97

Sustainability report

  • Page 10

Link

Independent Assurance Provider

  • External auditors assure the AFS (numbers from these are included, where applicable in the IR and ESG Report)

Integrated report

  • AFS

Sustainability report

  • AFS

Link

  • N/A

Integrity Statement

Multi-layered approach:

  • Robust systems and controls
  • Subject matter expertise
  • Board oversight

Integrated report

  • Page 5

Sustainability report

  • Page 10

Link

Commitment to Transparency

  • Annual Members Meeting
  • Finance Committee
  • The Board, being the overall custodian of good corporate governance, together with the Management Team, promotes and upholds the core fundamental principles of governance, accountability, fairness, transparency, and social responsibility in the way we conduct business and in all our processes
  • Our integrated report discloses our performance to our members, our stakeholders, and the public as a commitment to our accountability and transparency. This applies to our AFS and Sustainability (ESG) Reports as well
  • This comprehensive assurance framework supports NSSF in delivering value and ensuring transparency in its operations and reporting

Integrated report

  • Pages 51,98
  • Page 77
  • Page 86

Sustainability report

  • Pages 8,10,67
  • Page 58

Link

Accuracy of Report

  • NSSF prioritises the accuracy, completeness, and fair representation of information within our integrated report, ESG Report and AFS

Integrated report

  • Pages 5,77

Sustainability report

  • Pages 67,58

Link

Conclusion

The Fund is incorporating reporting frameworks, standards, and protocols into its sustainability strategy and reporting structure through an iterative, interconnected process. To enhance understanding of their interplay, the Fund will follow this process in the following order over the coming years:

Process

Approach

Status

Engagement and materiality process

Conduct a materiality exercise to link sustainability initiatives with business benefits. This will involve engaging internal and external stakeholders to identify and prioritise issues relevant to the Fund's business. Additionally, collaboration across departments will be essential to achieve bold commitments aligned with the strategy.

The Fund has reviewed our ESG consultant's recommendations for the next materiality assessment and is preparing for the upcoming reporting cycle while working collaboratively with its departments.

Framework selection

Select a sustainability reporting framework that aligns with our strategic goals, stakeholder expectations, and industry context.

To date, the following frameworks and standards have been adopted:

  • King IV Report on Corporate Governance for South Africa (King IV 9TM)
  • Integrated Reporting Framework
  • Global Reporting Initiative (GRI standards)
  • Sustainable Development Goals (SDGs)
  • International Financial Reporting Standards (IFRS)
  • Task Force on Climate-Related Financial Disclosures (TCFD)

Standard identification

Identify the relevant standards, both universal and industry specific, to capture and report material sustainability issues.

After discussions with the Consultant, the Fund has identified and adopted the relevant reporting standards. Additionally, the Fund will engage with its Regulator and industry stakeholders to initiate discussions on developing industry-specific standards to support the creation of a reporting framework within Uganda.

Protocol application

Implement the appropriate protocols to measure, monitor, and report sustainability performance in alignment with the selected framework and standards.

This is ongoing following the adoption of the IFRS S1 and S2 standards.

By cohesively integrating these elements, we will enhance the credibility, transparency, and impact of our sustainability reporting, driving positive change toward a more sustainable future.

With guidance from our ESG advisor, we will continue to evaluate our current structure and sustainability strategy during FY2024 to ensure they are fit for purpose going forward. This will involve conducting a gap analysis to identify areas needing improvement for compliance with the standards.

A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH