TOYOTA ΕΛΛΑΣ ΑΒΕΕ

1. Strategic, Analysis & Action

ADMINISTRATIVE PRACTICES

CSR is one of the mechanisms that underpin the long-term sustainability and viability of our company Inchcape plc Group.

The company highly prioritizes the necessity to do business responsibly and will help to support global efforts towards a sustainable and responsible distributor within the automotive industry and create positive impacts on the societies and environment in which we operate. This is not a short-term initiative, but a lifetime commitment.

 We will continue to update our shareholders on our plans and progress regularly while we develop our position as a business known for taking its responsibility to all stakeholders seriously. Our current CSR approach comprises three pillars: our people; health and safety; and the environment. For 2020, we continue to report in this format.

Our Approach

We have evolved our CSR strategy and aligned it with our strategic objectives, focusing on where we can make the most positive impact for our stakeholders and society.

The CSR Committee meets twice annually and is supported by a Group operational team and a network of CR champions across our portfolio of 33 markets.

Our current CSR approach comprises three pillars: our people; health and safety; and the environment (for more information; Annual Report on CSR).

Our People

We are focused on creating a socially conscious culture based on inclusivity and learning.

• We believe that the business is strengthened by embracing diversity in the workplace and this is underpinned by market-relevant policies and practices.
• We foster a learning culture to enable people to optimize their performance in their roles and truly realize their potential.
• We aim to empower our people to collaborate in communities of practice; to share and work together, knowing that their contribution is truly valued.

Health & Safety

Our aim is to eliminate the occurrence of incidents and accidents by continually challenging ourselves, sharing best practices, and investing in the systems and structure to support our objectives. This commitment is underpinned by the creation of a panmarket Group HSE Community of Practice, whose primary function is to embed a deep understanding of the importance of a rigorous and supportive health and safety culture throughout our business.

Environment

There is an increasing focus on climate-related issues from governments, investors, OEM brand partners, and customers. Climate change has been considered by the Board in a

broader context when looking at future trends impacting the industry such as electrification of the drivetrain. These trends can present both risks and opportunities for the Group.

To date consideration of the impacts has been carried out using best estimates, therefore in order to fully understand the impacts, the Board has appointed The Carbon Trust to assist the Group in analyzing the transition and physical risks and improving the Group’s climate-related disclosures as recommended under the Task Force on Climate-related Financial Disclosures (“TCFD”).

Emissions measurement

As many of our operations were closed or with limited operations due to the pandemic, this has reduced significantly. However, it is anticipated that business will return to more normal levels in 2021, and with it an increase in energy used. Initiatives to reduce energy usage are implemented at a local level, with businesses focusing on energy efficiency measures such as managing showroom lighting outside of business hours and assessing heating and cooling timers to ensure optimum efficiency.

CDP submission

In 2020, the Group participated in the CDP (formerly the Carbon Disclosure Project). Our overall score of C is in the awareness band indicating the Group has knowledge of impacts on, and of, climate issues. This is the same as the Europe regional average, and same as the Trading, wholesale, distribution, rental & leasing sector average. The report highlighted the following areas for improvement which will be a focus for 2021:

• Governance
• Reduction initiatives
• Business strategy and financial planning

We will continue to participate in CDP with the ambition to improve our score as our businesses improve awareness around the impacts of climate change. The work being carried out as part of the TCFD project should enable us to improve considerably in all of these areas.

Our company also believes in supporting the different cultures and communities in which we operate, often through sponsorship and support for local charities or local people. All our colleagues can be involved in such initiatives and can expect to be supported by our company in their efforts to help local communities. We do not have a global policy covering specific social matters and any initiatives are governed by the local business.

PERFORMANCE INDICATORS

Links:

• Our CSR approach
• Risk Management report (Risk heatmap for our Group's principal risks before mitigating measures are applied, pp. 43).

2. Materiality

ADMINISTRATIVE PRACTICES

Our unique and sustainable business model provides the full-spectrum Distribution capability for our OEM partners, operating throughout the value chain.

In 2020, our company globally renewed its focus on our Responsible Business agenda incorporating ESG initiatives and established a Responsible Business working group to develop an approach alongside the refreshed strategy to ensure alignment of vision and purpose.

Principal risks to the achievement of our strategy

According to our operating environment, we identified inherent risks and opportunities, relevant to environmental, health, and safety or social issues.

Covid 19

The pandemic could threaten the health and wellbeing of our colleagues and customers and impact the Group’s global trading performance. In the longer term, it may accelerate trends such as digitization and introduce new business models or new ways of working, to which the Group must successfully adapt.

Mitigating actions

• Measures at all sites to reduce infection risk.
• Non-customer-facing staff working at home.
• Pandemic plans established, along with other health and safety measures and guidance for colleagues; a wellbeing programme to support colleagues through the pandemic and increased frequency of Employee surveys.
• Frequent customer communications by email and on our websites.
• Cost-reduction programmes; enhanced monitoring of working capital and delaying discretionary spend.
• Accelerated roll-out of digital trading capabilities.
• Optimizing inventory levels and liaising with OEM partners to allocate supply.

Health and Safety

Our colleagues’ mental and physical well-being could be harmed as a result of workload or external factors (such as the current pandemic).

We changed a number of our operating procedures in response to COVID-19, reviewed and reassessed health and safety risks across the Group, and continue to implement a new framework for managing health and safety risks.

• HSE strategic plans developed in all markets.
• Risk assessments updated.
• Global Standards of Safety continue to be implemented in local markets.
• Targeted risk management programmes being rolled out to address key exposures.
• Single H&S system and reporting tool implemented across 34 territories and 17 languages.
• HSE Director has undertaken a global audit of H&S practices and standards.
• Global Community of Practice implemented.
• Global and Local Health & Safety policy rollout compliant with local legislation.
• Qualified Health & Safety practitioners in major markets.
• First responders appointed and trained in most markets.
• Leading and lagging KPIs.

Climate change and TCFD

We foresee that climate change will affect all Group’s stakeholders in the longer term. The Board’s decisions include:

• Ensuring the strategy fully encompasses the risks and opportunities presented by climate change
• Update the Matters Reserved for the Board to ensure oversight of climate-related matters is considered at the Board level
• Appoint The Carbon Trust to assist the company with its disclosures under the recommendation set out under the Task Force on Climate-related Financial Disclosures.

-Our OEM partner – Toyota Motor Corporation has set a prerequisite for all distributors including our company and the network to be compliant with local environmental requirements and to be certified by EMAS or by ISO 14001:2015 certificate.

PERFORMANCE INDICATORS

Links:

• Risk Management report (Risk heatmap for our Group's principal risks before mitigating measures are applied, pp. 43).

3. Objectives

ADMINISTRATIVE PRACTICES

During 2020, the CSR Committee’s focus has been on the health and safety of our employees and the businesses around the world have worked incredibly hard to keep each other, and our customers, safe throughout the global crisis.

A new Responsible Business (“RB”) working group to move the CSR strategy to its next stage with a fully holistic approach that includes our benefit to society, and to all groups of stakeholders, which is woven into our business strategy. The RB group is made up of over 22 colleagues from around the world covering all areas of the business. This remit of the RB strategy will be developed alongside the Group strategy to ensure close alignment of vision and purpose.

The Committee reviewed the global health and safety programme during the year, monitoring progress against action plans which included a single Health, Safety & Environmental system (HSE) and an HSE reporting tool to track compliance implemented globally. In addition, the Committee monitored the COVID-19 HSE response, including monthly and year to date cases within the Group, health and safety processes in all businesses and the risk assessment and flexible work assessments created for home working risk assessments.

The company measures, monitors and evaluates the key characteristics of its operations and activities that can cause illness and injury. This includes:

• Monitoring and surveillance
• Incident Reporting investigation, corrective, and preventive action
• Records and record management
• OHSMS audits. (Occupational Health and Safety Management System)

Cintellate

Cintellate is the Health and Safety software solution that allows our company to identify, manage, monitor, and report on our H&S and Risk Management obligations. Cintellate System converts to 17 different languages as programs released and can create Reports & graphs on the status of the records that are in the system and provides document storage for policies, procedures, instructions, safety alerts & training.

5 core KPIs against which we measure and report our HSE performance monthly:

• Site reviews (target 1 site review every month/each department)
• Hazard - conversation notifications (target 1 hazard notification every month/each department)
• Meeting uploads (toolbox) (1 safety meeting every week, each department based on predefined safety topics)
• Incident notification
• Hoist inspections (service techs only) (one daily hoist inspection for each of the hoists located in our workshops)

Senior Managers are held accountable for the success or failure of KPI measures at the Group level and Country level.

Site Management is held responsible for the compliance to KPI’s in their areas of responsibility.

COVID-19 reporting

New compliance requirements derived from the pandemic and our response included:

• Policies, Procedures, training materials, reporting tools, and contact tracing apps this was developed in a short window for the month of March 2020
• Translation of policies into 17 different languages for HS Managers and champions to rollout with HR.
• Audit businesses for the management of COVID

CO2 emissions

In addition to monitoring our energy and emissions during 2020, the Group participated in the CDP (formerly the Carbon Disclosure Project). Our overall score of C is in the awareness band indicating the Group has knowledge of impacts on, and of, climate issues. This is the same as the Europe regional average, and same as the Trading, wholesale, distribution, rental & leasing sector average.
The report highlighted the following areas for improvement which will be a focus for 2021:

• Governance
• Reduction initiatives
• Business strategy and financial planning

We will continue to participate in CDP with the ambition to improve our score as our businesses improve awareness around the impacts of climate change. The work being carried out as part of the TCFD project should enable us to improve considerably in all of these areas.

We have strengthened our CO2 data collection processes to ensure that our greenhouse gas emissions data is robust. We are committed to making continuous improvement in our emissions however we are also considering whether, in light of

our broad regional spread, adopting a more 'science-based' target would be appropriate. We are still working closely with the Carbon Trust to improve in this area and are focused on delivering effective energy management in all our sites.

Our OEM partner – Toyota Motor Corporation has set specific targets for consumed energy reduction (electricity, fuel, water). The specific KPI is set to a 1% reduction on a yearly basis taking into consideration the volume serviced.

4. Management of Value Chain

ADMINISTRATIVE PRACTICES

In the link here you may find the value chain mapping at our company on a global level.

We do have a Global Procurement Policy and we fill in a New Supplier Assessment Form to ensure the supplier is compliant with GDPR and Environment Health & Safety Standards.

How we generate value

Our business model is unique in our industry, with our distinct routes to market and

global footprint leveraged across the full Distribution value chain to deliver sustainable value to our stakeholders and superior returns to our shareholders.

Our routes to market

District routes to market: Our value chain spans both Distribution and Retail competencies, with a weighting towards higher-margin Distribution contracts (Distribution 84%, Retail 16%).

Diversified revenue streams: We have a balanced approach to revenue generation, maximizing opportunities at all points in the value chain (Vehicle sales: 58%, Aftersales 42%).

OEM brand partners

We provide our OEM brand partners with professional and efficient routes to market for the post-factory automotive chain.

Customers

We provide access to automotive ownership and support services throughout the customer journey and aim to deliver the best experiences for customers in our industry globally

Shareholders

Our objective is to deliver outstanding returns on long-term investment based on a sustainable platform for growth, a disciplined approach to capital allocation, and cash returns through dividends and share buyback

Employees

We aim to enable every colleague to achieve their personal goals at each stage of the employee journey; to recognize and develop talent; and to foster a socially conscious culture based on inclusion, empowerment, and optimized potential through learning.

Communities

We have a balanced approach to engagement with the communities in which we operate, empowering ownership at the local level with structural support from the global team

Relationships with Brand & supply chain partners

Having positive relationships with our OEM brand partners, our main suppliers, and our customers is imperative for the long-term success of the company. Our OEM brand partner relationships are key to every part of our value chain.

During the pandemic, we have strengthened ties with many of our key OEM partners, who have worked closely alongside us to jointly address the challenges presented this year.

We treat our suppliers fairly and with respect, and we expect them to know and to agree to uphold our high standards of compliance and ethics.

Our employees are required to work within the guidelines/policies established by their business and to always base their supplier selection decisions on objective criteria such as value received, quality, price, and service.

We have taken a number of steps to ascertain that slavery and human trafficking are not taking place in any of our supply chains.  More than 90% of our direct supply comes from organizations that are, themselves, required to publish relevant actions and statements.

Global Procurement Policy takes account of potential increased modern slavery (and anti-bribery) risks.  The Policy sets out that where such increased risk is highlighted, supplier evaluation and due diligence shall be performed proportionately to the risk identified.

Our procurement teams have received modern slavery training which enables them to know what signs to look out for, recognize key risks to the company and how we could be implicated, and take appropriate action to manage risks, and tackle modern slavery and human trafficking.  

PERFORMANCE INDICATORS

• Our value chain explained (link)
• Modern Slavery Statement (link)

5. Responsibility

ADMINISTRATIVE PRACTICES

Our company has an established CSR Committee, which consists of Board members, and is responsible for CSR Strategy and Workforce Engagement.

Greece MD and Europe CEO are responsible for the creation of a strong HSE culture and the availability of relevant resources, through:

• Implementation of monitoring and reporting systems and controls.
• Creation and compliance with relevant policies, procedures, and processes.
• Employee communication and accountability.
• Training implementation.

Our Regional Procurement, Health & Safety and Facilities Manager is based in Athens acting as a focal point for such topics in our premises and operations along with the HR department and board members, who are responsible for all CSR activities.

Health & Safety

The Committee reviewed the global health and safety programme, monitoring progress against action plans which included a single HSE system and an HSE reporting tool to track compliance implemented globally. These tools will give the Committee further transparency into the health and safety culture within the organization with reports against KPIs being provided at each meeting. In addition, the Committee monitored the COVID-19 HSE response, including monthly and year to date cases within the Group, health and safety processes in all businesses, and the risk assessment and flexible work assessments created for home working risk assessments.

A pulse survey was carried out covering specific areas due to the pandemic: impacts on the individual and their wellbeing; communication; leadership and management; and ways of working. Detailed action plans were generated on a local basis, created, and owned by management with HR support and facilitation.

Global and regional outcomes, themes, and trends are considered by the Group Executive Team in a session led by the Chief Human Resources Officer with each market CEO presenting their action plan. Actions are closely monitored, with short Pulse Survey questions aligned to areas of focus measuring progress/improvement.

Environment

The Group renewed its focus on our Responsible Business agenda incorporating ESG initiatives and continued to monitor its GHG emissions during the year and details of the energy used. The impact of climate change will be a key focus for the Committee and the Board with its commitment to reporting in line with the recommendations under the Task Force on Climate-related Financial Disclosures (“TCFD”).

Moreover, during the year, a new Responsible Business (”RB”) working group rolled out to move the CSR strategy to its next stage with a fully holistic approach that includes our benefit to society, and to all groups of stakeholders, which is woven into our business strategy. The RB group is made up of over 22 colleagues from around the world covering all areas of the business. This remit of the RB strategy will be developed alongside the Group strategy to ensure close alignment of vision and purpose.

Evaluation

The external evaluation of the Committee carried out during the year highlighted the need for the remit of the CSR Committee to evolve to align with the refreshed Group strategy. In 2021, the Committee will focus on defining its role so that it supports the Group’s strategic agenda and working with the other committees to report to the Board to enable full oversight of all aspects of environmental, social, and governance matters.

PERFORMANCE INDICATORS

Links:

• Our Governance 
• Corporate Governance Report

6. Rules & Processes

ADMINISTRATIVE PRACTICES

Code of Conduct

The Group’s Code of Conduct was launched in 2018.  All new employees, within three months of joining the Group, undertake training on the Code of Conduct (induction process), which aims to provide a guide to ethical business conduct. It sets out the minimum standards of behavior expected of employees, helps them to make ethical decisions, and shows how they can identify potential misconduct.

Where employees do not have access to a computer, we have ensured that they are made aware of the Code and what is required of them through various non-digital means.

You can view our Code of Conduct here.

Environmental matters

Each of our OEM brand partners has developed comprehensive sustainability programmes and the automotive industry, in general, has made significant progress in reducing vehicle emissions fulfilling thus all the regulations setting by each area’s governmental authorities. We work with OEM brand partners who are at the forefront of technological advances to improve fuel efficiency and to develop alternative powertrains, such as electric and hybrid. We ensure that our business model and infrastructure are in place to support the changing industry and to be able to deliver cleaner technologies to our customers as their preferences change. As an automotive distributor and retailer, we do not have a manufacturing footprint to manage, however, we use energy in our dealerships, transport cars and parts globally, and have an impact from business travel. We measure and report our greenhouse gas emissions. Whilst we do not have a global environmental policy, each business is committed to monitoring its energy usage and to managing energy in the most efficient way and the Code of Conduct sets out the expectation that employees:

• Seek all opportunities to reduce waste and energy usage, to recycle where possible and to switch off appliances when not in use;
• Favour the use of environmentally supplies and materials; and
• Look for opportunities to reduce business travel where possible.

Employees

Our employees are integral to the delivery of the Group’s strategy. As the industry experiences a period of significant change, we continually review the skills of our employees to ensure we can deliver for customers and OEM brand partners. Training and development programmes are carried out within each business and include various initiatives such as technician programmes, apprenticeships, and leadership development programmes.

An Employee Experience Survey is carried out globally to ensure that we understand the views of our employees. We are making improvements on how we collate and manage the data on our people and have created a ‘People Dashboard’ which enables us to track the employee journey and spot areas for improvement. Employee-related policies are implemented at a local level and include policies on pay and rewards, flexible working, and maternity/paternity policies.

Human rights

We embrace, support, and respect the human rights of everyone we work with and we comply with appropriate human rights legislation in the countries in which we operate. We did not receive any reports of human rights abuses during 2020. We do not use or accept forced, bonded, involuntary or child labor. We only employ people who choose to work freely and respect their rights to equal opportunities and freedom of association.

Social matters

We believe in supporting different cultures and communities, often through sponsorship and support for local charities or local people. All our colleagues can expect to be supported by our company in their efforts to help local communities. We do not have a global policy covering specific social matters and any initiatives are governed by the local business.

Our company globally recognised an urgent need for logistical support and the role they could play as the COVID-19 pandemic took hold in communities across the world. Ranging from a temporary donation of unused test-drive and courtesy vehicles to delivery services for hard-to-reach geographical areas, our people contributed time and the company’s temporarily underutilized resources to help those in need.

Anti-bribery and corruption

We have a global anti-bribery and corruption policy, available to all Group employees via iConnect, the Group’s global intranet. Programme compliance is monitored via reports to Speak Up!, the external whistleblowing channel, and adherence to other relevant policies such as the gifts and hospitality policy.

Reports to Speak Up! are monitored by an independent third party. Reports on anti-bribery and corruption matters are escalated to the Risk Committee and, if significant in nature, are reported to the Audit Committee. The Risk and Audit Committees monitor management’s response to any issues and the implementation of any action plan deemed necessary.

PERFORMANCE INDICATORS

Quality Management Systems

Environmental Management System: ISO 14001:2015

7. Monitoring

ADMINISTRATIVE PRACTICES

Inchcape group monitors its energy and emissions usage and details of scope 1 and 2 emissions (p.98, Directors’ Report).

Methodology

The methodology used to calculate the Group’s greenhouse gas emissions is based on the GHG Protocol Corporate Accounting and Reporting Standard, and Mandatory Greenhouse Gas Reporting in line with HM Government guidance. The methodology uses conversion factors as published by the Department for Business, Energy and Industrial Strategy in 2020 and international electricity emission factors as published in the International Energy Agency’s ‘CO2 Emissions from Fuel Combustion (2020 edition).

Data collection and reporting period

Data has been collected for all markets from 1 January 2020 to 31 December 2020. The level at which we report is by business unit for each market. This covers our Retail operations, Distribution operations, and business service operations, which fall within our operational control boundary.

Energy Consumption

During the reporting period, no new energy efficiency actions have been taken however our energy management programme is ongoing, including monitoring and targeted reporting of energy consumption on a daily basis at the majority of sites. Through the service provided by our energy consultants, the energy management programme we run enables us to identify and address any consumption issues as and when they arise, allowing us to eliminate unnecessary energy waste. We also do monitor water consumption for our company as well as our network comparing to previous years.

Intensity ratio

The Group’s intensity ratio is revenue per tonne of CO2e. This allows for a fair comparison over time of CO2e emissions given the growth trajectory envisaged for the Group and cyclical variations in business activity.

TOYOTA HELLAS total greenhouse gas emissions in 2020 (tonnes CO2 e)

By its Environmental Policy, Toyota Hellas seeks to diminish its environmental footprint, through various initiatives producing measurable results and has evolved a system whereby these results are monitored. 

For 2020 the new set of KPIs which were adopted in 2016 and which measure the performance of the company on a per unit of activity basis was used as it provides a more accurate picture of the performance of the company when the volume of business changes. 

For monitoring and annual reporting of these results to Toyota Motor Europe, a specific report is created and included in the network’s check sheet. More specifically, Toyota Hellas and its entire network has set the following KPIs linked with environmental activities as per below:

• Reduction of electricity consumed on a yearly basis by 1%
• Reduction of fuel consumption for vehicles operation and workshops operations by 1% on a yearly basis
• Water usage for daily operations and new vehicle preparations (e.g., washing) reduced by 1% on a yearly basis
• Handling of normal waste produced by workshops > 4,5 kg per unit service
• Handling of hazard waste produced by workshops > 0,5 kg per unit service

Cintellate

Cintellate is the Health and Safety and Environmental software solution that allows Inchcape to identify, manage, monitor, and report on our H&S and Risk Management obligations.

• Stores records
• Notifies management on safety tasks & others on update needs
• Creates Reports & graphs on the status of the records that are in the system
• Document storage for policies, procedures, instructions, safety alerts & training
• Interacts via a computer or via mobile device through an APP
• All the employees within Inchcape Globally can have access via iConnect (company-Intranet) or relevant mobile app

5 Core KPIs against which we measure & report our HSE performance monthly:

• Site Reviews: (target 1 site review every month/each department)
• Hazard - Conversation Notifications: (target 1 hazard notification every month/each department)
• Meeting Uploads (toolbox): (1 safety meeting every week, each department based on predefined safety topics)
• Incident Notification (when we have an incident occurred in any of our departments)
• Hoist Inspections (service techs only) (one daily hoist inspection for each of the hoists located in our workshops)

A Monthly KPI scorecard for measuring country and site HSE performance is being communicated to the GET and Countries CEOs (reported in the Group HR HSE report).

PERFORMANCE INDICATORS

EFFAS S06-01:100%

S06-02: 100%

Toyota Hellas has made the submission of Wastes Reports a requirement for the authorized network under the ISO certification system. Compliance will be checked as part of the Annual Environmental Audit Questionnaire. The reported annual figures per waste type are reported as well on TME’s annual KPI -NMSC report

8. Incentive and reward systems for Sustainable Development

ADMINISTRATIVE PRACTICES

Our remuneration policy is directly linked to the realization of the company’s strategic objectives.  Fundamental to achieving our objectives, whether commercial or strategic, is Inchcape’s most important asset: its people. We aim, both to ensure that our people’s value is recognised and rewarded; that talent is developed through learning and progression; that our people are engaged and communicated, and that all employees are empowered to achieve their personal goals at each stage of their career.

Our approach to salary reviews is consistent across the Group with consideration given to the level of responsibility, experience and individual performance. Further, our company refers to market salary surveys to form a foundation for plans that are internally equitable and externally competitive.

TOYOTA Hellas has in place:

• Bonus Policy
• Life & Medical Policy
• Pension Plan Policy

Our remuneration policy always meets the Greek legal requirements. All employees (100% of human resources) of the company are paid more than the minimum legal limits provided by the law.

We implement a comprehensive system of remuneration and benefits, with the aim of attracting and retaining competent executives as well as ensuring a decent standard of living for all employees. We always pay the corresponding compensations to the employees in cases of overtime and in accordance with the provisions of the current legislation. In addition, having exceeded the statutory benefits to our human resources, we offer a program of additional voluntary benefits (to all our employees), in order to reward our people for their dedication.

Voluntary benefits currently include (but are not limited to):

• Company car
• Medical care
• Life assurance premiums
• Christmas ordinances
• Reward for children entering universities

DRIVE5

DRIVE5 is our performance framework. The objective of the framework is to create a high performance culture that optimises the performance of every individual within our company, to enable the delivery of our strategy, and realise our vision to be the world’s most trusted automotive distributor and retailer. The framework includes performance drivers (behaviors) and objectives aligned with strategic priorities.

Annual bonus

The annual bonus is based on annual financial measures and strategic objectives. The measures are selected to incentivize sustainable growth and the financial matrix is designed to provide a balanced focus between commercial and cash initiatives. The strategic objectives are selected each year to reinforce the Group’s strategic priorities and may include personal objectives linked to the delivery of the Group’s strategy. The principles for setting the framework are such that it:

• Drives the desired behaviors underpinned by our performance drivers
• May be easily cascaded through the organization to reinforce alignment of our collective goals
• Has clear measures and targets

No volunteer incentive program to employees applies in the context that social responsibility and volunteering are over and above any financial reward.

PERFORMANCE INDICATORS

• Annual Staff Remuneration and Expenses - €8.150.255,61 
• Annual donation amount - €76.654,85 
• Inchcape - Director's report on Remuneration

9. Stakeholder Engagement

ADMINISTRATIVE PRACTICES

Our company’s success is dependent on the continued trust and support of all its stakeholders; strong relationships that allow us to work with our key stakeholders are therefore fundamental to the long-term success of the Group.

In order to fully understand the interests of key stakeholders, the Board will engage either directly, for example, a shareholder consultation on the Remuneration Policy, or indirectly, for example by considering the results of an employee consultation carried out by management.

Our strategy is designed to create long-term sustainable success for all our stakeholders by delivering financial returns to shareholders, a robust route to market for our OEM brand partners, fulfilling careers for our people, trusted vehicles sales

and aftersales for our customers and contribute to wider society by offering valued employment opportunities, an established distribution network and an ethical business.

How we engage with our stakeholders

OEMs

We provide our OEM brand partners with professional and efficient routes to market

for the post-factory automotive chain.

Management level

• Regular top to top executive management meetings
• Market level operational meetings
• Pan-market brand development

Board level

• Brand partner deep-dive review annually
• Presentations from OEM management at Strategy Day

Customers

We provide access to automotive ownership and support services throughout the customer journey and aim to deliver the best experiences for customers in our industry globally.

Management level

• Daily reporting of customer feedback on reputation.com
• Analysis of Salesforce customer journey management platform
• Ongoing surveys at the market level

Board level

• Update on the customer satisfaction analytics from reputation.com at each meeting

Shareholders

Our objective is to deliver outstanding returns on long-term investment based on a sustainable platform for growth, a disciplined approach to capital allocation, and cash returns.

Management level

• Regular dialogue with institutional investors
• Webcasts
• Annual Report and plc website
• Capital Markets Day

Board level

• AGM
• Shareholder consultation
• Chairman one to one meetings

Employees

We aim to enable every colleague to achieve their personal goals at each stage of the

employee journey; to recognize and develop talent; and to foster a socially conscious culture

based on inclusion, empowerment, and optimized potential through learning.

Management level

• Management visits to sites
• Pulse survey carried out against a backdrop of COVID-19 and its impact on the business covering:
• Impact on individual and their wellbeing
• Communication
• Leadership and management
• Ways of working
• Performance management framework (DRIVE5)
• Employee intranet and Hive Learning collaborative platform provide two-way communications capability Group-wide

Board level

• Reviews outcomes of engagement surveys and action plans prepared by management

Communities

We have a balanced approach to engagement with the communities in which we operate, empowering ownership at local level with structural support from Group.

Management level

• Market-specific activity coordinated at the local level
• Group-level support for extraordinary events affecting our market communities

Board level

• Updates on community activities included in regional market updates from CEOs

PERFORMANCE INDICATORS

For more information on our stakeholder engagement (here).

10. Product Responsibility and Innovation

ADMINISTRATIVE PRACTICES

Inchcape and Toyota Hellas, as automotive distributors and retailers, do not have a manufacturing footprint to manage, however, we use energy in our dealerships, transport cars and parts globally, and have an impact from business travel. We measure and report our greenhouse gas emissions. Whilst we do not have a global environmental policy, each business is committed to reducing its energy usage and to managing energy in the most efficient way.

Inchcape since 2017 is working with the well-known NGO, Carbon Trust to use their methodology to set science-based reduction targets for the CO2 emissions of the group and to formulate an action plan.

Leadership position was assured due to Toyota’s long-standing effort with hybrid electric vehicles. According to the report released by ICCT (http://www.theicct.org)

Toyota has a share of 40,8% for HEVs in its total EU sales, about 37 % of Toyota’s sales in Europe are hybrid electric vehicles.

As required by EOAN, (the Body overseeing Alternative Management Systems), all producers (i.e. manufacturers/importers) must input the volumes of their products whose wastes are handled by Alternative Management Systems in the portal “Producers Register”. Toyota Hellas’ registration certification and compliance are available since 2015.

Toyota Hellas’ Dealers & Repairers Network ISO Certification 14001:2015

Toyota Hellas is the 1st company of Inchcape plc group, which has fulfilled 100% of the set standard by our OEM related to the environmental management systems. Thus, the whole Network of the Authorized Retailers and Repairers (75 sites in Greece) has been certified by ISO 14001:2015 since 2018.

Additionally, a dedicated training programme has been organized for the whole network, so that the Retailers and Repairers can understand the requirements of the system, specific actions and the relevant timetable.

Strategic focus by Toyota Hellas on hybrid cars

Toyota Motor Europe has achieved considerable success in its strategic objective to increase the penetration of hybrid cars in its sales mix, which has a smaller environmental footprint compared to petrol and especially diesel cars. Currently, hybrids make up 37% of Toyota’s sales mix in total Europe. This brings Toyota Motor Europe close to its target of a 50% hybrid mix in total European sales by 2030.

In Greece, Toyota Hellas continues its almost complete domination of the hybrid car market. The share of Toyota and Lexus in the hybrid market and in the market with alternative fuel in Greece remains at a dominant level.

Toyota Hellas’ strong efforts to promote hybrid cars have resulted in a further increase in the penetration of hybrids.

From to 52% hybrid penetration in total sales (12,6 pp increase versus 2019). C02 and CHC in much lower.

Ηybrid penetration per model (Greece):

• Yaris 41%
• Corolla H/B 79%
• Corolla Sedan 63%
• C-HR 94%
• RAV4 47%
• LEXUS 100%

Participation and payment of fees to Alternative Management Systems for Wastes

Toyota Hellas participates in all the collective recycling systems which cover the products that the company imports and places on the market and which are subject to the Alternative Management Law.

Declarations for Recycling Fees of 2020 were calculated and the relative fees amounting to ca, €98.636 were paid to the following collective systems:

▪ EDOE for ELVs (11.274 vehicles placed in the market)

▪ ECOELASTIKA (52.710 tires)

▪ REBATTERY for car acid batteries (11.145 units equal to 162.082 mb/kgs

▪ ENDIALE (ex ELTEPE) for oils & lubricants (342.058 kgs, oils & lubricants)

▪ KEPED (31.960 kgs, packaging of oils & lubricants)

▪ ANAKYKLOSI SYSKEVON for used electric and electronic equipment

▪ EEAA (116.240 kgs, packaging materials of parts and accessories)

PERFORMANCE INDICATORS

The Energy Challenge

Inchcape has identified electricity consumption and traveling as an area where substantial reductions can be made in carbon emissions, accompanied by substantial cost savings.

The project of Inchcape was initiated in 2016 and monthly figures for electricity consumption data and traveling are collected from all sites including those in Greece

For two directors of Toyota Hellas, the reduction of energy consumption was included in their annual objectives.

Results for all Inchcape sites in Greece show a further reduction in 2020 compared to those of 2019 and 2018, which Is mostly due to the change to LED lighting in all sites and implementing proposals made by energy auditors.

The Inchcape team has communicated that Greece is among the best-performing countries in the Inchcape group.

Initiative to reduce paper consumption for printing & photocopying in HO

The existing contract with Xerox for leasing networked multipurpose photocopiers/printers/ faxes/scanners includes the monitoring of all the machines’ activity through the internet. Monthly reports are produced and sent to Toyota Hellas.

Thanks to continuous efforts, the average number of printed/photocopied pages per month has been further reduced.

Energy saving in Headquarters and Elefsina using LED lighting

During the previous year, all lighting fixtures in Headquarters were replaced with new technology LED ones, aiming to reduce electricity consumption.

End of Life Vehicles (ELV) recycling

Compliance with the EU’s ELV Directive which stipulates that all ELVs should be recycled, and which sets stringent recycling targets, is an important item in Toyota Motor Europe’s Environmental Action Plan.

Toyota Hellas has fully supported this requirement of Toyota Motor Europe in cooperation with EDOE, which handles ELV recycling collectively on behalf of all car importers.

According to Presidential Degree Toyota Hellas is compliant with all requirements and has contributed to a total of 1.940.675 euros paid for environmental handling fees for the end of life of each product put in the market. In 2020 this amount despite the market difficulties the specific amount reached almost 100.000 euros.

11. Usage of Natural Resources

ADMINISTRATIVE PRACTICES

At our company, we understand the impact that a global business such as ours can have on the environment and we are fully committed to ensuring that this impact is minimized.

Whilst we do not have a global environmental policy, however, each local company (i.e. TOYOTA Hellas) has to have its own policy and be committed to reducing its energy usage and to managing energy in the most efficient way and the Code of Conduct sets out the expectation that employees. Therefore, our company that has been certified by ISO 14001:2015 has its own environmental policy.

Seek all opportunities to reduce waste and energy usage, to recycle where possible, and switch off appliances when not in use

Favor the use of environmentally sustainable supplies and materials; and

Look for opportunities to reduce business travel where possible.

A compliance program is in place that meets or exceeds external benchmarks and is appropriate in terms of legal requirements, content, sector, costs and resources.

We recognize that our brand partners are committed to being at the forefront of “green” technology developments in the automobile market, and we take steps to actively promote these products.

Energy consumption:

Our company’s business model, of Distributing and Retailing vehicles, is not reliant on natural resources however the vehicles we sell for our OEM brand partners, are. Each of our OEM partners has developed comprehensive sustainability programs and the automotive industry, in general, has made significant progress in reducing vehicle emissions. We work with OEM partners who are at the forefront of technological advances to improve fuel efficiency and to develop alternative powertrains, such as electric and hybrid. As an automotive Distributor and Retailer, we do not have a manufacturing footprint to manage, however, we use energy in our dealerships, transport cars and parts globally, and have an impact from business travel. Our greenhouse gas emissions are measured and reported.

We have developed an energy management best practice guidance to help those working at retail sites better understand the concepts of energy management and energy efficiency. The guidance focuses on key energy-using systems and processes such as lighting, IT server rooms, heating, ventilation, and air conditioning, compressed air, and renewables.  

Initiatives to reduce energy usage are implemented at the local level, with businesses focusing on energy efficiency measures such as managing showroom lighting outside of business hours and assessing heating and cooling timers to ensure optimum efficiency.

During the reporting period, no new energy efficiency actions have been taken however our energy management programme is ongoing, including monitoring and targeted reporting of energy consumption on a daily basis at the majority of sites. Through the service provided by our energy consultants, the energy management programme we run enables us to identify and address any consumption issues as and when they arise, allowing us to eliminate unnecessary energy waste.

PERFORMANCE INDICATORS

Key figures for TOYOTA Motor Europe (TME) and TOYOTA HELLAS & NETWORK for 2020:

TME:

• Energy consumption: 3.5GJ/unit

TOYOTA HELLAS & NETWORK:

• Electricity: 4.814.777 KWh
• Self-produced: 512.640 KWh

TOYOTA HELLAS & NETWORK Fuel consumption

• Heating: 18.663 lt
• Paint booths: 67.787 lt
• Petrol fuel for vehicles operation: 182.127 lt
• Diesel fuel for vehicles operation: 15.135 lt
• Natural gas for various operations: 68.232 kg

TOYOTA HELLAS & NETWORK Water consumption

• Water: 25.096 m3
• Self-produced water: 1.687 m3

TOYOTA HELLAS & NETWORK Energy usage compared to 2019

• Electricity: -9.8%
• Energy production using renewable energy sources (+372%)
• Fuel usage for paint services (-10,4%)
• Fuel usage for transportation (-33,8%)
• Natural gas usage (+7,6%)
• Water usage (-1,4%)

Moreover, the introduction of water usage reduction technologies & recycling and has achieved significant water usage reduction (compared to 2002). As far as water quality is concerned, TMC introduced new technologies for water cleaning & recycling.

12. Resource Management

ADMINISTRATIVE PRACTICES

Energy efficiency measures

During the reporting period, no new energy efficiency actions have been taken however our energy management programme is ongoing, including monitoring and targeted reporting of energy consumption on a daily basis at the majority of sites. Through the service provided by our energy consultants, the energy management programme we run enables us to identify and address any consumption issues as and when they arise, allowing us to eliminate unnecessary energy waste.

Emissions measurement

We continue to monitor our energy and emissions. As many of our operations were closed due to the pandemic, this has reduced significantly.

However, it is anticipated that business will return to more normal levels in 2021, and with it an increase in energy used.

Initiatives to reduce energy usage are implemented at the local level, with businesses focusing on energy efficiency measures such as managing showroom lighting outside of business hours and assessing heating and cooling timers to ensure optimum efficiency.

CDP submission

In 2020, the Group participated in the CDP (formerly the Carbon Disclosure Project). Our overall score of C is in the awareness band indicating the Group has knowledge of impacts on, and of, climate issues.

This is the same as the Europe regional average, and same as the Trading, wholesale, distribution, rental & leasing sector average.

The report highlighted the following areas for improvement which will be a focus for 2021:

• Governance
• Reduction initiatives
• Business strategy and financial planning

We will continue to participate in CDP with the ambition to improve our score as our businesses improve awareness around the impacts of climate change. The work being carried out as part of the TCFD project should enable us to improve considerably in all of these areas.

Environmental matters

Each of our OEM brand partners, including TOYOTA, our main OEM brand partner, have developed comprehensive sustainability programmes and the automotive industry, in general, has made significant progress in reducing vehicle emissions. We work with OEM brand partners who are at the forefront of technological advances to improve fuel efficiency and to develop alternative powertrains, such as electric and hybrid. We ensure that our business model and infrastructure are in place to support the changing industry and to be able to deliver cleaner technologies to our customers as their preferences change.

Inchcape and Toyota Hellas, as automotive distributors and retailers, do not have a manufacturing footprint to manage, however, we use energy in our dealerships, transport cars and parts globally, and have an impact from business travel. We measure and report our greenhouse gas emissions.

Whilst we do not have a global environmental policy, each business is committed to monitoring its energy usage and to managing energy in the most efficient way and the Code of Conduct sets out the expectation that employees:

• Seek all opportunities to reduce waste and energy usage, to recycle where possible and to switch off appliances when not in use;
• Favour the use of environmentally supplies and materials; and
• Look for opportunities to reduce business travel where possible.

Moreover, the introduction of water usage reduction technologies & recycling and has achieved significant water usage reduction (compared to 2002).

As far as water quality is concerned, TMC introduced new technologies for water cleaning & recycling.

Quality standards

Toyota Hellas is certified with ISO 14001:2015 to ensure that all our partners, network, and suppliers comply with all legal & environmental requirements and all members are promoting TOYOTA’s environmental policy & activities, as they have been announced by TOYOTA ENVIRONMENTAL CHALLENGE 2050.

The whole network has been certified under a group certification which is based on Toyota Hellas central certification supported by TH for organizing –monitoring –auditing and cost.

Moreover, we monitor their operation in such a way, in order to achieve set KPIs such as energy consumption, water usage, fuel consumption (achieve 1% lower consumption on yearly basis, taking into consideration market volumes), as well as that they achieve set KPIs for waste material handling, through documented synergies with waste material management companies.

Our goal is for the network to achieve waste management per unit service 4.07kg for general waste and 0.45kg for hazardous waste.

PERFORMANCE INDICATORS

Participation and payment of fees to Alternative Management Systems for Wastes

Our company abides by the Presidential decrees and participates in all the collective recycling systems which cover the products that the company imports and places on the market and which are subject to the Alternative Management Law.

Our company has already paid for environmental handling fees for End Of Life for its products put into the market €1.940.675. Especially for 2020, despite the covid situation, Recycling Fees were calculated and the relative fees amounting to ca, €100.000 were paid to the following collective systems:

More specifically, products put on the market in 2020:

• EDOE for ELVs: 11.274 units
• ECOELASTIKA for tires: 52.710 units
• REBATTERY for car acid batteries: 11.145 units which equal to 162.088 Mb/kg
• ENDIALE (ex ELTEPE) for oils & lubricants: 342.058 kg
• KEPED for the packaging of oils & lubricants: 31.960kg (plastic, metal, cardboard)
• ANAKYKLOSI SYSKEVON for used electric and electronic equipment: 90kg
• EEAA for packaging materials of parts and accessories: 116.740kg (plastic, cardboard, steel, wood, etc.)

As required by EOAN, (the Body overseeing Alternative Management Systems), all producers (i.e. manufacturers/importers) must input the volumes of their products whose wastes are handled by Alternative Management Systems in the portal “Producers Register”. Toyota Hellas’ registration certification and compliance are available since 2015.

At the same time, TOYOTA HELLAS and its network collected and managed 638.634kg of waste materials which include lubricants, tires, batteries & packaging materials, and 78.561kg of hazardous waste (paint materials, anti-freeze and brake liquids, etc.).

The decrease since 2019 is due to the reduction of vehicles served as a result of the pandemic. Collection per service for 2019: 3,98 kg. There was an increase in 2020 (4,10 kg), which means improved management.

Our goal is for the network to achieve waste management per unit service 4.07kg for general waste and 0.45kg for hazardous waste.

Initiative to reduce paper consumption

The existing contract with Xerox for leasing networked multipurpose photocopiers/printers/faxes/scanners includes the monitoring of all the machines’ activity through the internet. Monthly reports are produced and sent to Toyota Hellas.

Thanks to continuous efforts, the average number of printed/photocopied pages per month has been further reduced.

Furthermore, we have redesigned the spare parts logistics operations and oil packaging, thus resulting in the usage of less packaging materials (plastic & paper) and less waste.

Energy saving in Headquarters and Elefsina using LED lighting

During the previous year, all lighting fixtures in Headquarters were replaced with new technology LED ones, aiming to reduce electricity consumption.

End of Life Vehicles (ELV) & H/B batteries recycling

Compliance with the EU’s ELV Directive which stipulates that all ELVs should be recycled, and which sets stringent recycling targets, is an important item in Toyota Motor Europe’s Environmental Action Plan.

Toyota Hellas has fully supported this requirement of Toyota Motor Europe in cooperation with EDOE, which handles ELV recycling collectively on behalf of all car importers.

EDOE has collected and recycled 2020 44.759 (2.954 TOYOTA) vehicles and achieved 92.06% reuse & recycle and 98.1% reuse & recovery.

In 2020, TOYOTA HELLAS collected and assessed 94.3%. waste of h/b batteries for the purpose of reuse & recycle.

13. Climate-relevant emissions

ADMINISTRATIVE PRACTICES

There is an increasing focus on climate-related issues from governments, investors, OEM brand partners, and customers. Climate change has been considered by the mother company, our Group’s Board (henceforward “the Board) in a broader context when looking at future trends impacting the industry such as electrification of the drivetrain.

To date consideration of the impacts has been carried out using best estimates, therefore in order to fully understand the impacts, the Board has appointed The Carbon Trust to assist the Group in analyzing the transition and physical risks and improving the Group’s climate-related disclosures as recommended under the Task Force on Climate-related Financial Disclosures (“TCFD”). Outcomes and assessments are reported annually, along with the financial results.

The Board will consider the broad landscape of climate-related topics, forward looking exploration of business model vulnerabilities and resilience, looking at financial impacts on the Group from climate change, and identifying climate-related risks and opportunities and how they are managed.

In addition, the Board has updated its Matters Reserved for the Board to ensure that oversight of climate-related issues is at the Board level.

It is anticipated that the outcomes of the TCFD project will assist in determining the appropriate emissions reduction targets for the Group.

CDP submission

In 2020, the Group participated in the CDP (formerly the Carbon Disclosure Project). Our overall score of C is in the awareness band indicating the Group has knowledge of impacts on, and of, climate issues. This is the same as the Europe regional average, and same as the Trading, wholesale, distribution, rental & leasing sector average.

The report highlighted the following areas for improvement which will be a focus for 2021:

• Governance
• Reduction initiatives
• Business strategy and financial planning

We will continue to participate in CDP with the ambition to improve our score as our businesses improve awareness around the impacts of climate change. The work being carried out as part of the TCFD project should enable us to improve considerably in all of these areas.                  

Each of our OEM brand partners, including TOYOTA, our main OEM brand partner, have developed comprehensive sustainability programmes and the automotive industry, in general, has made significant progress in reducing vehicle emissions and fulfilling several regulations linked with vehicles emission. We work with OEM brand partners who are at the forefront of technological advances to improve fuel efficiency and to develop alternative powertrains, such as electric and hybrid. We ensure that our business model and infrastructure are in place to support the changing industry and to be able to deliver cleaner technologies to our customers as their preferences change. Our OEM partner has published 2015 its’ latest environmental strategy.

As automotive distributors and retailers, do not have a manufacturing footprint to manage, however, we use energy in our dealerships, transport cars and parts globally, and have an impact from business travel. Whilst we do not have a global environmental policy, however each local company (i.e. TOYOTA Hellas) is committed to monitoring its energy usage and to managing energy in the most efficient way and the Code of Conduct sets out the expectation that employees:

• Seek all opportunities to reduce waste and energy usage, to recycle where possible and to switch off appliances when not in use;
•  Favour the use of environmentally supplies and materials; and
•  Look for opportunities to reduce business travel where possible.

Methodology

The methodology used to calculate the Group’s greenhouse gas emissions is based on the GHG Protocol Corporate Accounting and Reporting Standard, and Mandatory Greenhouse Gas Reporting in line with HM Government guidance. The methodology uses conversion factors as published by the Department for Business, Energy and Industrial Strategy in 2020 and international electricity emission factors as published in the International Energy Agency’s ‘CO2 Emissions from Fuel Combustion (2020 edition)’.

Data collection and reporting period

Data has been collected for all markets from 1 January 2020 to 31 December 2020. The level at which we report is by business unit for each market. This covers our Retail operations, Distribution operations, and business service operations, which fall within our operational control boundary

Intensity ratio

The Group’s intensity ratio is revenue per tonne of CO2e. This allows for a fair comparison over time of CO2e emissions given the growth trajectory envisaged for the Group and cyclical variations in business activity.

TOYOTA environmental challenges 2050

Announced in 2015, TOYOTA global Environmental Challenge 2050 comprises six challenges. They cover every aspect of our business, our exploration of new products and technologies, and our role as an enabler for individuals and communities to learn about and improve the natural world around them.

Challenge 1: New vehicle zero CO2 emissions

Challenge 2: Lifecycle zero CO2 emissions

Challenge 3: Plant zero CO2 emissions

Challenge 4: Minimizing and optimizing water usage

Challenge 5: Establishing a recycling-based society and systems

Challenge 6: Establishing a future society in harmony with nature

Toyota Hellas is committed to achieving all the set targets and objectives related to Challenge 4,5, and, 6. Challenge 1, 2, 3 is 100% the responsibility of the OEM due to the fact they are linked with the production and design of the products.

PERFORMANCE INDICATORS

• For more information on the Toyota Challenge 2050 (link)

  Greenhouse gas emissions

  We continue to monitor our energy and emissions usage and details of scope 1 and 2. As many of our operations were closed due to the pandemic, this has reduced significantly. However, it is anticipated that business will return to more normal levels in 2021, and with it an increase in energy used. Initiatives to reduce energy usage are implemented at the local level, with businesses focusing on energy efficiency measures such as managing showroom lighting outside of business hours and assessing heating and cooling timers to ensure optimum efficiency.

  Total greenhouse gas emissions in 2020		Total Emissions tonnes (CO2e)
  Scope 1 and 2 emissions	Year ended 31 Dec 2020	Year ended 31 Dec 2019	Change in emissions
  Scope 1 (Direct Emissions from the combustion of fuels and operations of facilities)	8.780	10.744	-18%
  Scope 2 (Electricity, heat, steam, and cooling purchased for own use)	41.179	46.629	-12%
  Total Scope 1 and 2 emissions	49.959	57.374	-13%
  Operational emission intensity
  Intensity metric - total revenue (£m)	7.033	9.391	-25%
  Total Scope 1 and 2 emissions (tonnes CO2e)	49.959	57.374	-13%
  Scope 1 and 2 emissions per 1£ (tCO2e/£m)	7.1	6.1	16%

14. Employment Rights

ADMINISTRATIVE PRACTICES

Employee communication is crucial for our company. During 2020, we increased the frequency of top-down communications from the Group CEO, also putting in place a ‘cascade’ framework to support local leadership communications. Regional, market, and business unit communications via video, ‘townhall’, and face-to-face briefings were increased in regularity to ensure that managers, teams, and individuals had the most up to date information and guidance throughout the pandemic period. Our company also increased one-to-one meetings.

Town Hall meetings are held in each market on a regular basis and also following the release of any financial updates by the company. The Town Hall meetings provide employees with information on the Group’s performance and provide an opportunity for consulting employees on new initiatives or other matters that concern them. The Group's global intranet, iConnect also provides a means of communicating important issues to employees.

Recognizing an opportunity to build virtual connections between distanced teams and reinforce the notion of a united global business, we invited people to submit pictures or video clips of themselves sending greetings to their colleagues which we compiled in montages as ‘Together in Spirit’.

We adapted our annual Employee Experience Survey (EES) to a shorter pulse-check questionnaire of employees in July and August. The objective was to understand the employee experience in a more focused data set around the topics of Leadership, Communications, and Wellbeing. Specifically, we wanted to know how the pandemic and its pressure had impacted people and how the business had performed to mitigate its effects and support the workforce.

The company has various employee policies in place covering a wide range of issues such as family friendly policies, employment rights, and equal opportunities. Policies are implemented at a local level and comply with any relevant legislation in that market. All of our policies are available on the Group’s intranet, iConnect. Our company in Greece complies with Greek law and at the same time strives to adhere to our own internal standards.

Speak Up!, the Group’s externally hosted whistleblowing line, is a compliance and ethics reporting solution that allows both hotline and web reporting capabilities in multiple languages, integrated with case management software to support the efficient and effective investigation, remediation, and reporting. we can report to the Board on any issues of concern.

Our Group Code of Conduct, launched in 2018, provides a guide to ethical business conduct and sets out the minimum standards of behavior expected of employees. All employees have been informed, trained, and are expected to comply.

To enhance corporate transparency and control mechanisms, an Internal Operating Regulation has been adopted and is being implemented (approved by the Board of Directors). For our company in Greece Regulation is distributed to all staff.

Culture

The Board monitors the culture of the company by reviewing reports received from the whistleblowing line, “Speak Up!”, via reporting to the Audit Committee, reviewing the employee voice via the results of the Employee Experience Survey, which is monitored by the CSR Committee, and reviewing the number of employees who have undertaken the Code of Conduct training.

Diversity

Our company is committed to a policy of treating all its colleagues and job applicants equally. We are committed to the employment of people with disabilities and will interview those candidates who meet the minimum selection criteria.

The Committee recognizes the benefits of having a diverse Board and sees this as an essential element in delivering the Group’s strategic objectives. We value diversity of skills and industry experience as well as background, race, age, gender, educational and professional background as we believe this adds fresh perspectives which enrich our decision making and the aim of the policy is to reflect this ethos.

Remuneration policy

Our company’s Remuneration Committee on a global level consists of three independent Non-Executive Directors and the Chairman, to annually review remuneration related issues.

The Committee reviewed the gender pay gap results and the initiatives being introduced to close the gap. The report can be found on www.inchcape.co.uk.

Our company’s local remuneration policy always meets the Greek legal requirements. All employees (100% of human resources) of the Company are paid more than the minimum legal limits provided by the law.

PERFORMANCE INDICATORS

Our company globally:

The gender ratio at a Group level for 2020 was as per below:

Our company in Greece:

The ratio of male to female employees for 2020 was 73.3% to 26.7% respectively. It is worth mentioning at this point that many of our vacancies such as Mechanics, Technicians is mainly preferred by male employees.

Overall, 25% of our board of directors were women in 2020.

S03-01: Age split (2020)

• Age <20: 0%
• Age 20 to 30: 8%
• Age 30 to 40: 28%
• Age 40 to 50: 44%
• Age 50 to 60: 18%
• Age 60+: 2%

Policies:

• Corporate governance
• Work regulation
• Recruitment policy
• Life & Medical
• Mobile policy
• Company Car policy
• Travel policy
• Health & Safety policy
• Anti-bribery policy
• Gift & Hospitality policy
• Conflict of interest policy
• Social media policy
• Data Protection policy
• Procurement policy
• In control standards policy
• Anti-money laundering policy
• Information security policy
• Anti-fraud policy
• Discount policy

Procedures

• Internal transfer procedure
• Hiring & termination procedure
• Performance review procedure

15. Equal Opportunities

ADMINISTRATIVE PRACTICES

Our company has equal growth opportunities and meritocracy for all employees regardless of age and gender putting into practice the company Code of Conduct (equal opportunities, diversity & inclusion) and relevant national legislation.

At our company remuneration policy is regardless of gender, to all categories of workers, in all our activities. The amount of the salary range is determined by the specifications of the position, the qualifications, and the experience of the employees.

We also offer:

• Private life and medical plan for all employees.
• Pension plan
• Rewards to the children of the employees who are admitted to the universities
• Vouchers and gift cards

We have a people-centered approach based on the development of stable and long-term plans with our employees. Thus, we are always supportive of our colleagues in difficult times and in health cases for them and their families.

Gender pay gap report

Our company’s global Remuneration Committee reviewed the gender pay gap results and the initiatives being introduced to close the gap. The report can be found on https://www.inchcape.co.uk/gender-pay-gap/. The Committee will review the impact of the initiatives and the results of the 2021 gender pay analysis.

DIVERSITY POLICY STATEMENT

The Committee recognizes the benefits of having a diverse Board and sees this as an essential element in delivering the Group’s strategic objectives.

We value diversity of skills and industry experience as well as background, race, age, gender, educational and professional background as we believe this adds fresh perspectives which enrich our decision making and the aim of the policy is to reflect this ethos. The Board’s policy on diversity is a verbally agreed principles-based policy. It is clearly understood by our recruitment consultants and is considered when considering succession planning and external hires. The Board considers all aspects of diversity to be relevant and all Board appointments are made on merit and in the context of the skills and experience needed for the Board to be effective in setting minimum targets. The Board has 33.33% female representation, therefore, has reached its minimum diversity requirement.

Training & Development

We provide training and career development for our employees, tailored where appropriate to their specific needs, to ensure they achieve their potential. The training plan derives is aligned with the company’s strategic objectives and respective individual development needs of employees.

If an individual becomes disabled while in our employment, we will do our best to ensure continued development in their role, including consulting them about their requirements, making appropriate adjustments, and providing suitable alternative positions. Our performance and talent framework, DRIVE5, sets performance expectations, behaviors, and values for our people.

The company has various employee policies in place covering a wide range of issues such as family friendly policies, employment rights, and equal opportunities. All policies are available on the Group’s intranet and compliance is monitored at the local level.

COVID-19 impacted the business in all of the markets of our company. Throughout, the primary concern has been to ensure the health, safety, and wellbeing of our employees across the world.

Work-life balance

Our company supports employee work-life balance. We offer all special leaves implied by law i.e maternity leave, breastfeeding leave, school leave. Further, we offer children awards for successful admission to universities.

PERFORMANCE INDICATORS

Our company’s on-the-job injuries in Greece for 2020:

• one orthopedic injury that required one month absence from work
• zero fatal accidents

Our company’s Training Cost in Greece for 2020: €8.891,11

EFFAS S10-01, EFFAS S10-02: In our company in Greece, the ratio of male to female employees for 2020 was 73% to 27% respectively.

Overall, 25% of our board of directors were women in 2020.

SRS 406-1: In our company in Greece we had zero incidents of discrimination and corrective actions taken.

16. Qualifications

ADMINISTRATIVE PRACTICES

Our employees are integral to the delivery of the company’s strategy. Failure to attract, retain and develop our people is a principal risk and several mitigation actions are planned annually. Fundamental to achieving our objectives, whether commercial or strategic, is Inchcape’s most important asset: its people.

Our Global Talent Review ensures we have the right skills and capability in the right roles for today and tomorrow. It is conducted over a two-year cycle, alternating a deep dive review with organizational health checks to track progress, cement existing priorities, identify new or changed priorities and to further inform the longer-term Talent and Organizational Design Strategy. This is reviewed by the Board on an annual basis.

Drive5

In 2016 we launched DRIVE5, our global performance framework designed to support all of our people in the delivery of our strategic objectives, and we have now successfully embedded this across the Group.

Our company has established a Performance Framework to understand what performance looks like to our People, to our Business Partners, Customers, and Shareholders. The performance framework sets out what we stand for as an organisation, and describes what each of us needs to do to enhance individual and team performance to best deliver our ambitions.

People Dashboard

Decision making based on accurate data is important. Our People Dashboard was developed to improve the quality and availability of people metrics, and this is now in use throughout the business, updated monthly. Informing this process with accurate data is crucial to the continued development of our long-term people strategy. The dashboard provides insight that helps us to target improvements in diversity, retention of talent and identification of high-potential individuals as part of our succession strategy.

This data will allow us to monitor people's KPIs to gain an understanding of where improvements can be made. Employee-related policies are implemented at a local level and include policies on pay and rewards, flexible working, and maternity and paternity policies.

This succession strategy is designed to attract, develop and retain critical talent and to build a diverse bench of ‘next-gen’ leadership. With a matrix of levers at our disposal, from resourcing practice to facilitated learning and employee networking, we address critical skills and capability development. We also have an online development portal, called Hive, with access to thought leadership, and leading-edge industry and commercial insight relevant to our growth strategy.

We provide training and career development for our employees, tailored where appropriate to their specific needs, to ensure they achieve their potential. If an individual becomes disabled while in our employment, we will do our best to ensure continued development in their role, including consulting them about their requirements, making appropriate adjustments, and providing suitable alternative positions.

Health and safety

The health and safety of all those who use our facilities, whether employees or customers, is of the utmost importance to us. We are committed to providing environments that can be trusted as spaces in which to work, that are clean, safe and promote a healthy work-life balance.

Our aim is to eliminate the occurrence of incidents and accidents by continually challenging ourselves, sharing best practices, and investing in the systems and structure to support our objectives. This commitment is underpinned by the creation of a panmarket Group HSE Community of Practice, whose primary function is to embed a deep understanding of the importance of a rigorous and supportive health and safety culture throughout our business.

In year one of our programme of global HSE integration we have made significant progress:

• Inducted and trained regional and market level HSE team members to the management and rollout of health and safety standards
• Implemented technology resources in all business units to digitalize safety monitoring and management
• 13,000 employees trained on system use and provided with access to safety processes and practice standards
• Established regional and market level safety metrics
• 130 Policies, Procedures, Safety Talk topics & work instructions translated into 17 languages, improving accessibility
• Rolled out agreed Risk Management programmed for 2020

17. Human Rights in the supply chain

ADMINISTRATIVE PRACTICES

We embrace, support, and respect the human rights of everyone we work with and we comply with appropriate human rights legislation in the countries in which we operate. We do not use, or accept, forced, bonded, or involuntary labor or child labor. We only employ people who choose to work freely and respect their rights to equal opportunities and freedom of association. 

We recognize that ethical and productive partnerships with our suppliers strengthen our business, our reputation, and that of our OEM brand partners. We treat our suppliers fairly and with respect, and we expect them to know and to agree to uphold our high standards of compliance and ethics.

We expect our employees to act diligently when selecting suppliers.  They are required to work within the guidelines / policies that have been established by their business and to always base their selection decisions on objective criteria such as value received, quality, price, and service.

We do have a Global Procurement Policy and we fill in a New Supplier Assessment Form to ensure the supplier is compliant with GDPR and Environment Health & Safety Standards.

We provide our employees with a confidential, independent whistleblowing hotline that they can access 24/7 365 days of the year if they have any concerns or suspect any wrongdoing.  Such concerns are investigated promptly and impartially.

We have taken several steps to ascertain that slavery and human trafficking are not taking place in any of our supply chains.  We have undertaken a detailed analysis of our sources of direct supply.  More than 90% of our direct supply comes from organisations that are, themselves, required to publish statements setting out the steps that they have taken in this regard.  We have reviewed those statements, where available, and will continue to do so periodically. 

Whilst we consider that the remainder of our supply is generally at low risk of exposure to modern slavery and human trafficking, our Global Procurement Policy takes account of potential increased modern slavery (and anti-bribery) risks.  The Policy sets out that where such increased risk is highlighted, supplier evaluation and due diligence shall be performed proportionately to the risk identified.

Our procurement teams across our company globally have received modern slavery training as they often have contact with suppliers and third parties who provide goods and services across our business. Key “red flags” have been identified to assist the procurement teams in recognising possible signs of slavery or human trafficking and guidance produced so that they are fully aware of the need to avoid contracting with suppliers who contravene the Act.  

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our Group’s slavery and human trafficking statement for the financial year ended 31 December 2019. This statement has been approved by our company’s global Board on 24 November 2020.

PERFORMANCE INDICATORS

We did not receive any reports of human rights abuses during 2020. We do not use or accept forced, bonded, involuntary, or child labor.

• Our Modern Slavery Statement.

18. Corporate Citizenship

ADMINISTRATIVE PRACTICES

Our company has a balanced approach to engagement with the communities in which we operate, empowering ownership at local level with structural support from the Group.

• Market-specific activity, coordinated at the local level
• Group-level support for extraordinary events affecting our market communities

We believe in supporting the different cultures and communities in which we operate, often through sponsorship and support for local charities or local people. All our colleagues can be involved in such initiatives and can expect to be supported by our company in their efforts to help local communities.

We do not have a global policy covering specific social matters and any initiatives are governed by the local business.

Many of our local operations recognized an urgent need for logistical support and the role they could play as the COVID-19 pandemic took hold in communities across the world. Ranging from the temporary donation of unused test-drive and courtesy vehicles to delivery services for hard-to-reach geographical areas, our people contributed time and the company’s temporarily underutilized resources to help those in need.

Toyota Hellas and our dealer network provided municipalities across the market with 150 vehicles, facilitating transport for medics to reach the elderly, unwell, and people with reduced mobility as part of the government’s ‘Aid at Home’ scheme.

To support our vision to deliver mobility for all, irrespectively of one’s capabilities, our company has provided two leading Greek para-athletes of a Toyota CH-R car, that was adapted in a way to serve their way of driving. It is important to highlight that with the support of our company the one athlete drove again, after almost 10 years since the accident that took away from her the ability to walk. 

Over and above, both for our para-athletes and athletes, Toyota Hellas does support in any way possible, through the agreed grant but over and above it, their continuous effort to achieve their impossible - perhaps even just paying for the air tickets to attend a very focused camp or accessorizing the car with the correct parts so as to accommodate driving to and back to training. 

PERFORMANCE INDICATORS

• Our company’s annual donation amount in Greece (2020): €76.654,85
• Our local communities (link)

19. Initiatives and Political Influence

ADMINISTRATIVE PRACTICES

Toyota Hellas is a member of the following organizations and initiatives.

1. Hellenic Association of Motor Vehicles Importers Representatives (SEAA)
2. British Hellenic Chamber of Commerce (BHCC)
3. Hellenic Federation of Enterprises (SEV)
4. Foundation for Economics & Industrial Research (ΙΟΒΕ)
5. Greek vehicle alternative system (EDOE)

Our company globally does not make political donations of any form to support a political goal.

In our company in Greece and as listed in our Code of Conduct we have no political affiliations and we make no donations to, or use company assets in support of, any political party or elected official or to the campaign of any individual running for elected office.

The company chooses to support activities of organizations, bodies, or associations, always taking into account their correlation with its business activity or with topics of responsible operation and Sustainable Development.

PERFORMANCE INDICATORS

GRI

415-1: The Company did not make any political donations in 2020.

20. Corruption prevention and alleviation

ADMINISTRATIVE PRACTICES

Anti-bribery and corruption

Our company globally applies a holistic framework against bribery and corruption. The company holds a zero-tolerance stance to bribery and corruption as stated in the respective global policy which is available to all Group employees via iConnect, the Group’s global intranet. The policy states our zero-tolerance stance to bribery and corruption and mandated principles.

Further, our Code of Conduct provides a guide to ethical business conduct and sets out the minimum standards of behaviour expected of employees also in terms of anti-bribery and anti-corruption. The Group’s Code of Conduct was launched in 2018 with training rolled out. All employees have been informed, trained, and are expected to comply. In addition, new employees undertake training on the Code of Conduct as part of their induction process.

The Code covers the basic tenets in respect to:

• Anti-bribery policy
• Gift & Hospitality policy
• Speak Up!-the whistleblowing hotline

Programme compliance is monitored via reports to Speak Up!, the external whistleblowing channel, and adherence to other relevant policies such as the gifts and hospitality policy.

To enhance corporate transparency and control mechanisms, an Internal Operating Regulation has been adopted and is being implemented (approved by the Board of Directors). Toyota Hellas Operating Regulation is distributed to all staff.

Consequences of non-compliance

Employees must report any breaches, or potential incidents of bribery and corruption, of which they become aware. Violations of this will lead to disciplinary action in accordance with our company’s disciplinary procedures.

Report

Our employees can report any relevant activities to their line manager, HR department or Legal department. In case the employee does not feel comfortable reporting incidents to the local focal points they can also use the external whistleblowing channel of our company– Speak up! Employees can also contact the Group General Counsel directly. Or, alternatively, the Group Internal Audit function. Speak Up!, is a compliance and ethics reporting solution that allows both hotline and web reporting capabilities in multiple languages, integrated with case management software to support efficient and effective investigation, remediation, and reporting. Reports to Speak Up! are monitored by an independent third party. Reports on anti-bribery and corruption matters are escalated to the Risk Committee and, if significant in nature, are reported to the Audit Committee. The Risk and Audit Committees monitor management’s response to any issues and the implementation of any action plan deemed necessary.

Our company will take the appropriate steps to protect the confidentiality of anyone who raises a concern. Any colleague who raises a concern in good faith will be protected from retaliation in any form.

Our company’s HQ is based in London and UK Bribery Act 2010 applies to us. It means that any of such actions in any country could lead to liability in the UK.

PERFORMANCE INDICATORS

• SRS-205-1: The whole company is audited on a continuous basis. No incidents of corruption have occurred.
• SRS-205-3: To date, no corruption incidents have been reported.
• SRS-419-1: There were no relevant non-compliance cases, therefore no financial penalties for non-compliance with laws and regulation