Our Investee Companies and their ESG Journey

NAOS engages with its investee companies to assist them in achieving their ESG goals. Our annual questionnaires and discussions are used to help identify areas of focus and opportunities for improvement. See the results of our most recent ESG reviews below.

BSA LIMITED (ASX: BSA)MAXIPARTS LIMITED (ASX: MXI)URBANISE.COM LIMITED (ASX: UBN)
BSA completed the NAOS ESG questionnaire during FY23.

BSA LIMITED
(ASX: BSA)

>8 years

NAOS first invested

$43 million

Saunders’ market capitalisation as at 30 June 2022
BSA is a technical services business, with a national network of more than 350 skilled employees.

KEY ACHIEVEMENTS IN FY23:

  • Female employees have increased from 20% to 28% of total employees.
  • All employees have access to a new Health and Wellbeing hub and an Employee Assistance Plan (EAP), which provides on-demand access to wellbeing materials, webinars, training and information.

Environmental:

  • Environmental risks are managed under the ISO 14001 international standard and through various Health Safety and Environment (HSE) risk registers.
  • BSA completes an annual management review of its HSE policy and environmental performance.
  • BSA is currently in the early stages of measuring carbon emissions and carbon footprint.
  • The company has instigated an external third-party review. This will determine future commitments for the use of renewable energy.
  • An internal project is currently underway to acquire ESG tracking and reporting software.
  • Procedures are in place via the Hazardous Substances Management Procedure to ensure hazardous chemicals are registered and safely stored, used and handled.

Social:

  • BSA continues to focus on diversity and inclusion. Four consistent key approaches include:
  • creating a workplace culture that embraces and respects diversity and inclusion;
  • addressing gender diversity in all areas of the organisation;
  • improving overall diversity recruitment; and
  • committing to a series of transparent checks and balances.
  • The company is committed to continual engagement with the communities in which it works, through local training and employment opportunities, as well as Indigenous and community support through sponsorships and charity fundraisers.
  • Completion of the Health and Safety Index marks the third time BSA has partnered with FEFO Consulting to complete this workforce engagement survey, which was completed in FY21, FY22 and in June FY23.
  • As a primary risk to the business, various initiatives have been implemented to tackle the risk of modern slavery in its supply chain, including training for all employees at induction and a refresher course every two years thereafter.

Governance:

  • The Board has employed a third party to assess its current carbon footprint and to advise on strategies for improvement. Potential environmental incidents are required to be tabled for discussion at Board level.
  • KPIs set for senior leaders nominate the diversity targets of the company.
  • Equal Employment Opportunity training.
  • Mental Health First Aider training.
  • BSA Leave Group Standard and Parental Leave Standard implemented.

Areas for improvement:

  • Provide environmental sustainability metrics where possible. Measurement will assist with developing ESG sustainability strategies.
  • The alignment of ESG/sustainability strategies and Sustainable Development Goals framework.
  • The creation of an environmental section on the website or in the annual report to publicly highlight initiatives and progress.
  • Evaluation and management of the risk of modern slavery to continue until all existing suppliers are graded as performing well in this area.
  • A fair remuneration policy is yet to be formalised.
  • Pursue a majority of independent directors for the Board and committees as a priority.
“Our commitment to Diversity & Inclusion is reflected in our company values, which are our guiding principles and essential to our success.”

(Excerpt from BSA’s FY22 Annual Report)

MaxiPARTS completed the NAOS ESG questionnaire during FY23.

MAXIPARTS LIMITED
(ASX: MXI)

>1 year

NAOS first invested

$126 million

MaxiPARTS’ market capitalisation as at 30 June 2023
MaxiPARTS (MXI) is a supplier of commercial truck and trailer aftermarket parts to the road transportation industry. In operation for over 30 years, MXI is one of the largest operators in Australia, with a unified support and distribution network providing over 50,000 different parts across 27 sites nationwide.

KEY ACHIEVEMENTS IN FY23:

  • MaxiPARTS has worked with key suppliers to reduce packaging waste or has moved towards environmentally friendly options.
  • The company has reduced the use of plastic bags by 30,000 for one product alone, with plans to reduce more plastic packaging for other products.
  • The company has become a member of the Australian Packaging Covenant Organisation (APCO) to assist in coordinating reduction efforts.
  • The company has an external, independent reporting service for staff, suppliers and other persons to report modern slavery issues.

Environmental:

  • The company aims to improve its environmental footprint by targeting a reduction in power usage and an increase in recycling materials.
  • Long term, the company is investigating the use of alternative energy vehicles (EV or hydrogen), which could be used on a larger scale. There is currently a trial of EV delivery vehicles underway.
  • MaxiPARTS continues to retrofit energy-efficient lighting at various sites. Many site installations have now been completed.
  • Solar generation equipment has been installed in certain retail sites, with a view to extending this program to more locations.

Social:

  • An annual pulse survey for employees is conducted, with a total of 73% of staff participating in the survey last year, and the company achieving an overall engagement score of 78%.
  • An Employee Assistance Program (EAP) is available to all employees and their families.
  • A Supplier Code of Conduct requires suppliers to adhere to labour rights and environmental management commitments.
  • A diversity and inclusion training program was conducted in FY23 for all managers.

Governance:

  • The Board approved an ESG Activity Plan to improve environmental activities and report on its impact.
  • Independent directors make up 80% of the Board.
  • Female Board participation in FY23 was 40%.

Areas for improvement:

  • Provide environmental metrics where possible. Measurement will assist with developing ESG strategies.
  • The creation of an environmental section on the website or in the annual report to publicly highlight initiatives and progress.
  • Set objectives and put targets in place to improve energy efficiency.
  • Use renewable energy at retail sites and distribution centres.
  • Develop a policy on waste management.
  • Continue to develop and improve training programs, and assess and plan staff training needs.
  • Continue to pursue gender diversity targets not met in the existing Corporate Governance Statement.
  • Develop a policy on fair remuneration and consider incentives for non-management staff.
“The Company believes that perspectives resulting from a diverse workforce promote innovation and business success, increasing productivity and competitiveness.”

Excerpt from MaxiPARTS’ Workplace Diversity & Equal Opportunity Policy

Urbanise completed the NAOS ESG questionnaire during FY23.

URBANISE.COM LIMITED
(ASX: UBN)

>2 Years

NAOS first invested

$35.42 million

Urbanise’s market capitalisation as at 30 June 2023
Urbanise.com is an Australia-headquartered cloud-based software business, providing solutions for facilities and strata managers across the Asia–Pacific and Middle East.

KEY ACHIEVEMENTS IN FY23:

  • The Board has created an ESG subcommittee, which meets monthly to discuss and implement ESG initiatives.
  • Internal administrative processes (including record keeping) are now 100% digitised and cloud-based, minimising the use of paper.
  • A Health and Safety Policy has been introduced.

Environmental:

  • The Urbanise head office is in a 5.0-star NABERS energy-rated office building.
  • Some offices, including Melbourne, operate almost entirely remotely.
  • Urbanise’s largest business cost – its cloud-computing supplier – is committed to using 100% renewable energy by 2030.

Social:

  • The workforce comprises 39% from under-represented social groups based on gender and ethnic groups.
  • An Employee Assistance Program (EAP) has been provided for employees. This includes confidential counselling support and advice services.
  • There are various review processes in place, which include:
  • employee feedback on job satisfaction;
  • review of training and development requirements; and
  • review of pay rates for individual roles and incentives across the organisation.
  • Last year, female employees increased from 26% to 31% of total employees.

Governance:

  • Urbanise’s Chair chairs the newly formed ESG committee, and the CEO also attends these meetings.

Areas for improvement:

  • Provide environmental metrics where possible. Measurement will assist with developing ESG strategies.
  • Formalise an environmental policy.
  • Investigate renewable energy sources, such as green power, to reduce Scope 2 emissions.
  • Provide a policy on waste management.
  • Finalise the company’s modern slavery policy.
  • Engage with local communities by providing donations or donating time to charities with environmental and/or social goals.
  • Set targets for female participation across the workforce, management and Board.
  • Increase the number of independent Board members.
“People are critical to the Group and our customers' success, and we prioritise the attraction and retention of key talent. This includes a focus on our team’s wellbeing and their continuing career development.”

(Excerpt from Urbanise.com’s FY22 Annual Report)