SerenOx Sulphuric Solutions — Environmental, Social & Governance (ESG) Strategy

Section 11 · Business Plan

Environmental, Social & Governance (ESG) Strategy

11.1 Environmental Stewardship

SerenOx is committed to minimising the environmental impact of its operations through the adoption of best-available technology, rigorous monitoring, and continuous improvement. The Company’s environmental management system will be certified to ISO 14001:2015 and will comply with all applicable South African environmental legislation, including the National Environmental Management Act (NEMA), the National Water Act, and the National Environmental Management: Air Quality Act.

11.1.1 Key Environmental Commitments

Emissions Control: SO₂ stack emissions maintained below 500 mg/Nm³ (below the national standard of 600 mg/Nm³) through DCDA technology and tail gas scrubbing
Water Management: Closed-loop cooling system and rainwater harvesting to minimise freshwater consumption; zero liquid discharge target by Year 3
Waste Minimisation: Spent catalyst recycling through certified hazardous waste contractors; >95% waste diversion from landfill
Carbon Footprint: Annual Scope 1 and Scope 2 GHG emissions reporting aligned with the Greenhouse Gas Protocol; carbon intensity reduction targets
Biodiversity: Environmental Impact Assessment with biodiversity offset requirements; ongoing ecological monitoring

11.2 Social Impact & Community Development

SerenOx recognises its responsibility to contribute positively to the communities in which it operates. The Company’s social investment programme will focus on the uMhlathuze Local Municipality in Richards Bay and surrounding areas, with an annual budget of 1.5% of net profit (commencing Year 2).

Local Employment: Target of 80% of operational workforce recruited from the local community, with structured training and development pathways
Skills Development: Partnerships with local TVET colleges and universities for learnership, internship, and bursary programmes in chemical engineering, logistics, and safety management
Enterprise Development: Dedicated fund to support emerging Black-owned SMMEs in the supply chain, including mentorship, preferential procurement, and access to working capital facilities
Community Health & Education: Support for primary healthcare clinics, school feeding programmes, and infrastructure upgrades in underserved communities
Stakeholder Engagement: Quarterly community liaison forums with transparent communication on operations, environmental performance, and social investment activities

11.3 Governance

Board composition aligned with King IV principles, including independent non-executive directors
Board Audit and Risk Committee with quarterly oversight of financial reporting and risk management
Social and Ethics Committee as required by the Companies Act
Whistleblower hotline managed by an independent third-party service provider
Annual integrated sustainability report published within 120 days of financial year-end
Compliance with the Protection of Personal Information Act (POPIA) and all applicable data protection regulations

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