VERITAS KAPITAL ASSURANCE : SUSTAINABILITY REPORT FOR YEAR ENDING 31ST DECEMBER, 2022

VERITAS KAPITAL ASSURANCE PLC

SUSTAINABILITY REPORT FOR THE YEAR

2022

Introduction

Veritas Kapital Assurance Plc (The Company) has embraced sustainability as a practice of continual improvement in using resources responsibly. Our actions protect and enhance the natural resources that would be needed by future generations to enjoy a quality of life equal to or greater than our own. Thus, we do not only weigh the financial implications of every decision; but we equally consider its potential impacts on sustainability goals.

Our sustainability report covers governance (Business and Ethical Conduct), social, health, safety, and welfare at work, employee involvement and training, the customers, economics, and the environment.

Governance

Our Board oversees senior management to ensure the long-term interests of the company and our stakeholders are adequately protected. Our commitment to high professional standards is the bedrock of a governance structure that provides oversight, and accountability promotes fairness, and compliance, and proactively manages risk. Governance is critical to our operational, financial, and reputational resilience.

1. Anti-corruption
   The Company has zero-tolerance for corruption, bribery, money laundering, abuse of office, and similar misdemeanors. The Company has put in place a robust Whistle Blowing Policy which enables staff to anonymously report unethical activities affecting any aspect of its operations. The company's anti-corruption policies and procedures are placed on our intranet for easy access to its employees and management.

There was no Incident, fine, or exposure related to bribery and corruption within the period January 1 to December 31, 2022.

Social

In a world that is highly interconnected with faster information dissemination, rapid innovation, quicker decisions, and increasing risk, stakeholder focus is a critical strategic element for Veritas Kapital Assurance Plc. A commitment to stakeholders including employees, customers, communities, investors, and customers reinforces our long-term successes. We actively engage with stakeholders and incorporate their views into our decision-making.

1. Occupational Health and Safety
   The company regards its workforce as one of the most strategic assets. It strictly observes all health and safety regulations. The company maintains business premises designed to guarantee safe and healthy work conditions for its employees and customers alike. Employees are adequately insured against occupational and other hazards.
   Also, free medical services and counseling are provided for the company's employees and their families through a reliable Health Management Organization (HMO). The company through its HMO periodically runs free health education and awareness programs for staff. The company encourages dedicated learning, development, and upward mobility.
   Free Gym services were provided in 2022 for all staff twice a week through the Health Management Organization (HMO) to promote physical fitness and prevent illness.
   The degree of adherence to our Health, Safety, and Environment policy was high. There was no injury, fatal accident, or disaster recorded in the year 2022 among the workforce due to poor work conditions.
2. Human Rights
   While dealing with employees, suppliers, and third-party contractors, the company ensures that business is done in a manner that respects human rights, and that everyone is treated fairly and without discrimination. To achieve this goal, we maintain an effective grievance mechanism and whistleblowing platforms that facilitate prompt identification and remediation of grievances.

No grievances about human rights violations were filed, addressed, or resolved concerning suppliers, employees, customers, or stakeholders.

There were direct engagements in all customer touchpoints, improved claims settlement turn-around time, and a high customer satisfaction rate extracted from our survey. Digital channels were available to allow for easy reach out to/by customers.

1. Investors
   There was quarterly unaudited accounts publication/disclosure. Investor relationship was also highly valued.
2. Labour practices
   The company supports equal opportunity policy structures, an inclusive, cohesive work environment that ensures employability, skills development, and fair remuneration/benefits for its employees.
   The employee turnover rate increased to medium but vacant positions was rapidly filled. The percentage of contract staff to full-time staff was 43% while our non-discrimination policy was adhered to. The company recognizes that women play a crucial role in achieving sound economic growth and poverty reduction. When empowered, they contribute significantly to family income and consequently, poverty reduction with female representation in its workforce at 41%.
   Incentive schemes designed to meet the circumstances of everyone are implemented wherever appropriate and some of these schemes include staff retirement benefits, productivity bonuses, promotions, and salary reviews.
   Employee job satisfaction surveys and leadership assessments are periodically conducted to obtain opinions on aspects of our relationship that require improvement.
3. Diversity in the Workplace
   This refers to diversity across the workplace including at the management level. These can be categorized along the dimensions of gender, age, and physical abilities.
   The company employee policies prohibit discrimination on grounds of caste, creed, disability, race, ethnic group, religion, age, gender, or economic background.

Economic

1. Responsible Products and Services
   As one of the foremost underwriting firms, the Company is strategically positioned to impact the Nigerian Insurance Market through its array of customer-centric products and services. We continuously ensure that our transactions are carried out in line with applicable regulations and international best practices. Our commitment is evident in the economic and environmental considerations in our operations.
2. Suppliers' Relationship Management and Ethics
   The Company has operating standards for purchasing and the selection of suppliers. Our ethical practices address procurement, transparency, confidentiality, fairness, corruption, conflict of interest, support for Small and Medium Enterprises (SMEs) and women-owned businesses, forced labor, social responsibility, Health, and Safety. Annually, our approved list of vendors and contractors is reviewed in line with the service level agreements.

1. Corporate Social Responsibility
   As part of social risk management, the company also aligns its Corporate Social Responsibility (CSR) programs toward the goal of social development within communities in which the company operates by supporting education, improving health, and encouraging long-term employment.
   Part of the positive social contributions of the company within the year 2022 was the donation of funds to the FCT Para-Athletics Association as a co-sponsor to their zonal annual games, blood donation drives with the National blood commission, and community service on traffic management.

Environmental

1. Product and Services Responsibility
   There is little or no environmental impact arising from our products and services in the course of their lifecycle, (including product design, development, testing, etc.). Rather they aim at sustaining the businesses of other establishments through the principle of indemnity.
2. Waste Management (Reduction of Paper Usage)
   We recognize that a better and prosperous future is linked to the well-being and health of our planet. The protection of the environment is important to us; we consciously control our carbon footprint with respect to the use of paper and track our energy consumption through the consultation of Power Auditors.
   The company has adopted the environmental management concepts of reducing, reusing, and recycling. Most internally generated communications within the office including leave approvals, performance appraisals, certain regulatory reports, etc are handled electronically without recourse to paper printing. Likewise, about 75 percent of our customer policy renewal notices are delivered electronically.
   The company is constantly reviewing its processes to identify more that can be automated and stored in the cloud in order to reduce the use of paper in the organization.
   At present, any waste paper generated by the company is collected by recycling agents or carted away for proper disposal by waste management companies.
3. Energy (Contributing to Reduction of Greenhouse Emissions)
   In comparison to other businesses, our business operations utilize less energy, use less water, and generate less waste and air pollution. As the Company continues to pursue adaptation measures that promote sustainable operations in its business, its strategy of reducing greenhouse gas emissions includes the maintenance of fitted energy-efficient lighting facilities at our various branches/facilities. This has reduced our energy requirements for lighting by above 50% and our new lighting facilities are estimated to last longer than traditional incandescent lighting systems.
   The smaller, modern, and efficient 300 KVA electricity generator at the Head Office which reduces emissions is adequately maintained.
   The 15Kw solar plant was installed at the Head Office Abuja for additional reduction in emissions functions optimally. The 4.5kw solar solution provided for our Annex office in Lagos retrofitted with energy-saving LED bulbs is adequately serviced, and supplies electricity to the UPS and all the critical Information Technology points.
   A lot of our internal and external training of staff, as well as job interviews, are conducted online thereby reducing traveling by cars, and aircraft as well as emissions.
   To further manage our carbon footprint, we maintain flowers around the premises of our operations which act as a buffer to offset the minimal carbon dioxide (CO2) emission from our operations. It is well known that plants take CO2 out of the atmosphere. Photosynthetic carbon capture by plants is likely to be among the most effective ways to limit the rise of CO2 concentrations across the globe and we are committed to the global course of CO2 reduction.

Compliance

Alignment of activities to relevant environmental laws is high in the company leading to nil monetary value of fines for non-compliance to environmental laws and regulations for the year 2022.

Conclusion

We go beyond just doing the right thing as a responsible organization. We strive to be a catalyst for change - using our skills and relationships to create a lasting effect on the world around us. We believe that our customers, employees, the wider community, and the world we live in deserve to be treated ethically and actively supported.

We remain committed to achieving sustainable growth by placing great value on our employees, customers and delivering benefits to our stakeholders and local communities without endangering the environment.

We will continue to work together to create a society that is healthier, less wasteful, more productive, and more sustainable with a great optimism about the future.

Thank you.

Yours faithfully,

VERITAS KAPITAL ASSURANCE PLC

SARATU UMAR GARBA

Company Secretary/Legal Adviser