Sustainability strategy

Building a trusted, accessible healthcare network

The group remains committed in its strategic focus to deliver affordable, high-quality healthcare products and services through an accessible network, supporting customers and communities in leading healthier lives. The group continues to meet its customers’ expectations through its customer-centric value offering, delivered through convenience, innovative products and affordable pricing. In the past year the group opened net 55 stores and net 60 pharmacies across the countries in which it operates, bringing the total retail presence to 991 stores (including 1 UniCare store) and 780 pharmacies. The group offers an extensive range of generic medicines, accounting for 59% of sales (2024: 59%) and 71% of pharmacy volume (2024: 69%). Additionally, the value and affordability elements are enhanced through the Clicks ClubCard loyalty programme, which returned R855 million in cashback rewards to customers. In its second year of collaboration with Transnet’s Phelophepa Health Trains, Clicks Helping Hand Trust (CHHT) provided sponsorship that enabled the trains to serve over 697 000 patients across South Africa, including some of the most remote areas, during the 2024 calendar year. These mobile healthcare units offer professional services in optometry, dentistry, psychology, primary healthcare and other psychosocial interventions.

In addition, the group’s Student on the Go programme – an intervention initiated by the University of the Witwatersrand – now supports over 16 300 vulnerable students (2024 pilot: 1 190) with access to sanitary towels, further bolstering the fight against period poverty. The programme has been expanded to include the University of the Western Cape (UWC), North-West University (NWU), University of KwaZulu-Natal (UKZN) and Nelson Mandela University (NMU). While the original pilot enabled students to redeem products via the Clicks ClubCard at conveniently located Clicks stores, the model has evolved to distribute products through vending machines situated on university premises, further enhancing accessibility and convenience.

 

Empowering motivated, passionate people

Transformation, including diversity, equity and inclusion, remains a strategic priority that drives initiatives across the group’s workforce, the supplier network and the broader community. In November 2024 the group strengthened its leadership position in the Global UN Women’s Empowerment Principles, with its overall score improving from 79% to 89% and placing it amongst leading global exponents. The next assessment is scheduled for December 2025. This performance reflects adherence to the seven gender empowerment principles and aligns with the group’s ongoing commitment to gender equality as a key driver of responsible and sustainable business practices. During the 2025 financial year the group has placed particular emphasis on enhancing transparency and disclosing a broader dataset to support this objective. In addition, it participates in the UN Global Gender Equality member-led committee, providing guidance to assist other organisations in advancing gender equality initiatives.

Building on the group’s broader transformation and gender empowerment initiatives, equitable representation remains a key focus across all levels of the organisation. The board demonstrates diversity in terms of gender, race, skills, qualifications and experience, reflecting the group’s commitment to inclusive and effective governance. The group is led by the first black female CEO of a JSE-listed retailer and 87.5% of the executive leadership team is black. Diversity extends across the organisation, with 2.28% representivity of people with disabilities, 95% black employees and 62% female employees. The group has also maintained a gender pay ratio of 1:1, testimony to its commitment to equitable representation and inclusive workplace practices.

In 2025 a group-wide employee engagement survey was conducted to evaluate levels of commitment, motivation and overall employee experience. The survey achieved a robust 86% participation rate and an engagement index of 67%, with 72% of employees classified as engaged and only 11% as actively disengaged. These results compare favourably with global and regional benchmarks. Employees rated “knowing what is expected” particularly high at 89% and “doing what they do best” at 78%, while recognition emerged as the primary area for development. The insights from the survey are being used to guide targeted interventions, enhance workplace culture and strengthen communication across the business. The results have highlighted areas of strength and opportunities for further development, supporting the group’s ongoing commitment to fostering a high-performance and inclusive work environment.

The group continues to advance the development of young people in communities alongside the growth of its employees. In 2025 the New Clicks Foundation bursary scheme supported 145 students with obligation-free bursaries totalling R7.3 million* (2024: R2.3 million), including 124 pharmacy students and 21 pursuing commercial scarce and critical skills.

During the year R230 million (2024: R185 million) was invested in training and skills development, with 450 learner basic pharmacy assistants registered and 1 612 employees promoted, including 1 039 women.

*The lower 2024 and higher 2025 bursary contribution reflect the timing of payments aligned to the group’s financial year rather than the academic calendar year.

 

The employee wellness programme was enhanced to provide holistic support across emotional, physical, financial and legal well-being. Services include individual and group counselling and coaching, with access extended to families and work teams. The financial wellness pillar offers preferential saving and lending options through partnerships with three of South Africa’s leading financial institutions (ABSA, First National Bank and Standard Bank), delivering tangible benefits to employees.

The group remains committed to addressing gender-based violence (GBV) and harassment, as it recognises its significant impact on the well-being of employees and the broader community. In partnership with the Thuthuzela Care Centres, operating under the National Prosecuting Authority, the group has implemented policies, training and awareness programmes aimed at prevention and effective response to GBV, fostering a culture of respect, equality and inclusivity. During the year the CHHT provided dignity and personal care items to survivors at Thuthuzela Care Centres nationwide, in support of vulnerable individuals and communities.

Sourcing products that uphold the integrity of our brand

The group is committed to ensuring its value chain operates to the highest sustainability, biodiversity and ethical standards. Responsible sourcing is integral to this commitment, with a focus on reducing environmental impacts, protecting biodiversity, safeguarding brand integrity and fostering ethical practices across the supply chain.

All products undergo rigorous development reviews, quality assurance and regulatory compliance to meet the group’s exacting standards. Suppliers are required to comply with the group’s supply chain protocols, industry regulations and applicable ISO quality certifications. Ethical and sustainability commitments are reinforced through Sedex and Business Social Compliance Initiative audits, adherence to the Roundtable on Sustainable Palm Oil (RSPO) guidelines and sustainable forestry standards such as FSC certification.

 

Biodiversity considerations are embedded into sourcing practices for high-impact raw materials, with a commitment to recognised certifications (RSPO, Forest Stewardship Council/Programme for Endorsement of Forest Certification (FSC/PEFC), Fairtrade/Rainforest Alliance (FRA)) to enhance traceability and responsible production. As a founding member of the SA Plastics Pact and a contributor to PROs, the group advances circular economy goals, reduces packaging impacts and promotes sustainable product design.

The phased Clicks Private Label Supplier Audit Programme strengthens oversight by systematically monitoring manufacturer performance against stringent quality, ethical and sustainability requirements. These measures (aligned with global frameworks such as IFRS S2, Taskforce on Nature-related Financial Disclosures (TNFD) and CDP) position the group as one of the leading organisations in sustainable sourcing, ensuring supply continuity, protecting shareholder value and delivering products that reflect the group’s values.

As part of its transformation agenda, the group remains committed to advancing local small, medium and micro enterprises (SMMEs). With 8.2% (2024: 7.5%) of products sourced through direct imports, local procurement continues to be a strategic priority.

For the fourth year in succession, procurement spend in support of local SMMEs exceeded R1 billion, underscoring the group’s sustained commitment to this focus area. The supplier development programme remains a key enabler of sustainable growth for participating businesses, offering a comprehensive package of support. This includes marketing initiatives to expand market access, interest-free loans to fund capital investments, accelerated payment terms to improve cash flow, targeted coaching and specialist advisory services such as product development.

The impact of these interventions is reflected in the performance of supplier development beneficiaries, whose collective growth rate reached 28% during the financial year.

 

Minimising our environmental footprint

In the 2025 financial year the group advanced its environmental stewardship agenda with significant expansion of renewable energy and low-carbon initiatives. Solar power generation capacity at distribution centres (DCs) and head office facilities was increased, exceeding the annual production target of 4 500 MWh. The expansion of battery storage at the head office, Lea Glen and Montague Gardens DCs enhanced energy resilience and renewable utilisation. Supported by reduced load shedding, these developments materially improved renewable energy generation to 5 563 MWh, representing an 8% increase from the prior year (2024: 5 135 MWh).

Energy-efficiency initiatives advanced through the phased replacement of conventional lighting with LEDs, along with the installation of LEDs in new stores, resulted in reduced energy consumption and improved operational efficiency.

The group also maintained focus on the adoption of electric vehicles (EVs) within UPD’s enterprise development programme, with a total of 42 vehicles, enabling employees to transition into business ownership while promoting sustainable mobility. This initiative, now expanded in scale, is projected to save approximately 2.4 million litres of diesel and prevent 6.3 million kg of CO₂ emissions over the vehicles’ lifespan.

Aligned with the South African Plastics Pact (SA Plastics Pact) and the requirements of the National Environmental Management: Waste Act (NEMWA) Extended Producer Responsibility regulations, the group continued to advance circular economy principles. As a brand owner Clicks Private Label contributes fees to producer responsibility organisations (PROs) that drive programmes to increase the collection of single-use packaging and improve recycling rates nationally. Actions to eliminate problematic or unnecessary packaging included removing plastic stems from lollipops, introducing paper stem cotton buds and expanding the range of plastic-free wipes. Rising national recycling rates (43.9% in 2022 to 54.3% in 2023) have increased the availability of post-consumer recycled (PCR) content, enabling the integration of PCR into polyethylene terephthalate (PET) packaging across private label brands such as Clicks, Revive, My Earth, Expert, Hydrate, Hair Rescue, Afri True, Hygiene, Sorbet and Made4Baby.

Partnerships with eWASA and Polyco further support the responsible recycling of packaging and electrical waste, and reinforced the group’s commitment to sustainable production and consumption. At the head office, the use of borehole groundwater reduces reliance on municipal supply, ensures continuous availability for ablution facilities and mitigates the impact of potential drought events, with 5 833 000 litres accessed during the reporting period.

 

By focusing on these key areas, the group aims to drive positive change and create sustainable value for its valued stakeholders.