Our Purpose and Approach

Our purpose is not merely a statement but a call to action. It urges us to be better corporate citizens, continually reimagining our business practices to serve our customers better, address our environmental impact, foster inclusion, and create a sustainable competitive advantage. The Group takes pride in the progress made towards CSR and Sustainability over the years. However, in today’s rapidly evolving landscape, societal, climate and nature-related challenges are prompting greater emphasis on Environmental, Social, and Governance (ESG) factors to build business resilience and enhance value creation.
 

A Refined Sustainability & ESG Approach

In June 2023, Harel Mallac embarked on a journey to reassess and refine its ESG & Sustainability strategy. We adopted an evidence-based methodology, focusing on two new crucial elements: a carbon footprint assessment and a double materiality assessment. These evaluations provide a precise understanding of our financial and impact materiality, allowing us to craft a more targeted and effective ESG & Sustainability strategy while taking into consideration the various business lines within Harel Mallac.
 

Fous Areas

Planet

At Harel Mallac, we acknowledge that our business activities can affect the environment, potentially leading to societal repercussions. Moreover, the reactions from customers, regulators, and other stakeholders to these environmental impacts are increasingly viewed as significant determinants of material business risks and opportunities. This understanding has been integral to refining our approach and objectives under the new ESG & Sustainability framework. In line with this we conducted:

●  Carbon Footprint Assessment: We took a significant step towards addressing Decarbonisation and Climate Change by completing our first carbon footprint assessment using the GHG Protocol. This evaluation measured both our direct and indirect carbon emissions (Scopes 1, 2 & 3), providing invaluable insights into our carbon emissions related to operations, products, and supply chain activities. These insights enable us to define specific targets and actions for reducing emissions.

●  Sustainability Assessment: We have also conducted comprehensive sustainability assessments aligned with established standards and frameworks, including the Global Reporting Initiative (GRI), UN Global Compact, Sustainability Accounting Standards Board (SASB), and the EU Corporate Sustainability Reporting Directive (CSRD). This approach ensures that our ESG & Sustainability strategy thoroughly addresses the relevant impacts, enhancing our commitment across all business lines within Harel Mallac.
 

People

At Harel Mallac, we recognize that people are fundamental to any organization, encompassing our employees, workers, customers, suppliers, distributors, and the broader communities we serve. In light of this, we are committed to fostering a work environment where everyone feels valued and empowered to share their authentic selves and unique insights. To this end, we have reevaluated and expanded our Diversity, Equity, and Inclusion (DEI) initiatives. Our goal is to ensure that these efforts not only promote inclusivity but also contribute to a tangible competitive advantage.

●  Employees: We work closely with the Human Resources department to act upon relevant material topics that retain our talent, promote diversity, equity and inclusion (DEI), provide a safe working environment and enhance the well-being of all team members.

●  Communities: We also established the Fondation Harel Mallac (FHM) in 2009 to centralise and coordinate our CSR efforts towards nearby vulnerable communities aligned with our values, including children, education and health.

●  Supply Chain: We work closely with our suppliers and distributors to ensure that Human Rights and DEI are upheld along our value chains and ensure that our products are safe for customers and end users.

Prosperity

At Harel Mallac, we understand the significant potential of our businesses to generate economic value for our employees, shareholders, and the wider community. We also believe that sustainability and innovation are intertwined. We are committed to leveraging this connection to develop new products and services that meet the evolving needs and desires of our customers. Additionally, we recognize the importance of building a resilient supply chain and securing access to sustainable finance. These steps are crucial in ensuring our long-term success in an ever-changing global marketplace.

Governance

We believe that effective corporate governance entails managing the relationship between a company’s operations and its contributions to sustainable development and enduring value creation. This approach includes adhering to business integrity practices and rigorous compliance with evolving regulatory standards. To this end, we have established an ESG & Sustainability Committee equipped with comprehensive Terms of Reference to oversee our material topics.
 

Our Commitment to Continuous Improvement

At Harel Mallac, we view materiality as a dynamic process, essential for creating shared value for everyone involved. We emphasize collaboration, continuous learning, and the exchange of best practices. By adhering to both locally and globally recognized frameworks, we ensure that our sustainability and ESG practices consistently meet industry standards.Together, we are Making a Difference for the Better.

For detailed information, please refer to the section dedicated to our Sustainability and ESG Commitments in our 2023 Annual Report.