Vitalis Group SA Business Plan › Section 21 › ESG & Impact Strategy

Environmental, Social and Governance (ESG) considerations are central
to the Vitalis Group SA value proposition, not a peripheral disclosure
exercise. The shared-value model is, by definition, an alignment of
commercial and social outcomes — healthier members, safer drivers,
financially-included households. This section codifies our ESG
commitments, targets, and disclosure framework.

21.1 ESG Strategic Pillars

Environmental

• Carbon neutrality by Year 6 across Scope 1 and 2 operations
  (offsets used only after maximum direct reduction).
• Investment portfolio decarbonisation: 30% reduction in weighted
  average carbon intensity of corporate-bond and equity holdings by Year 5
  versus baseline; no new investments in coal-fired power
  generation.
• Green-finance allocation: 8% of investment portfolio in green
  bonds, renewable-energy infrastructure debt, and certified
  sustainability-linked instruments by Year 5.
• Climate-risk integration: physical and transition risk modelled
  into property and motor underwriting, with explicit pricing of flood and
  wildfire exposures.

Social

• Financial inclusion: 35% of Vitalis Pay accounts held by
  previously unbanked or underbanked South Africans by Year 5; 50% by Year
  7.
• Affordable insurance: Health Lite product (R450 per month
  entry-level) makes private medical-gap coverage accessible to LSM 5-6
  households for the first time.
• Health impact: Vitalis Vitality (Health) targeting a measurable
  8% reduction in lifestyle-disease incidence among Active+ members over 5
  years (versus matched comparator).
• Road safety: Vitalis Drive (motor) targeting a 25% reduction in
  at-fault collision frequency among scored drivers, with public reporting
  of provincial road-safety metrics.
• Skills development: 1,500 youth-employment placements through the
  Company’s tied-adviser training programme by Year 5; YES initiative
  participation; bursary scheme with three SA universities.
• Transformation (B-BBEE): Achieve and maintain Level 3 contributor
  status from Year 3, Level 2 by Year 6. >50% black ownership at the
  level of the holding company is a strategic objective achievable through
  the proposed B-BBEE consortium participation in Series A or Series
  B.

Governance

• Independent-majority board (7 of 11 directors), gender-balanced
  (minimum 40% women), with structured succession planning.
• Mandatory annual external audit, full IFRS reporting from
  inception, voluntary adoption of King IV principles.
• Whistleblower protections, independent ethics hotline,
  transparent related-party transaction disclosure.
• Annual Sustainability Report aligned to SASB Insurance Standards,
  JSE Sustainability Disclosure Index, and TCFD recommendations from Year
  2.
• Executive remuneration: 40% of LTI vesting linked to ESG metrics
  (carbon intensity, B-BBEE level, member health outcomes, customer
  NPS).

21.2 Measurable Impact Targets (Year 5)

21.3 ESG Risks and Opportunities

The Company has integrated climate-risk and transition-risk scenarios
into its strategic planning. Physical climate risks (flood, wildfire,
drought) are most material to the property and motor lines and to
investment-portfolio exposures in agriculture and tourism. Transition
risks (carbon pricing, regulatory change) affect both the investment
portfolio and longer-tenor liability commitments. ESG opportunities —
particularly affordable insurance products and the public-health
behavioural model — are core to the Company’s differentiated value
proposition and competitive moat.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Vitalis Group South Africa (Pty) Ltd.