Archimides Panagotides- Software AG: Charting Your Course in ESG Integration

Archimides Panagiotides, Solution Sales Lead at Software AG, on Charting Your Course in ESG Integration at the Digital Finance Africa 2024 conference.

1. © 2024 Software AG. All rights reserved. 1 Charting Your Course in ESG Integration From Why to How: Archimides Panagiotides - Solution Lead South Africa 7/4/2024

2. The Why of ESG: © 2024 Software AG. All rights reserved. 2 7/4/2024 E S G Environmental Social Governance Why ?

3. Changing Customer Behavior Customers expect products and services that are easy to understand, personalized, and easy to consume. Customers want to do business with responsible banks Rising Inflation Rates Inflation increases pressure on private and commercial lenders – banks must increase loan-loss provisions. Prices increase for banking operations and workers. Regulation A continuous flow of new regulations and continued pressure from internal and external auditors require additional efforts to make sure all bank operations are compliant. Climate Change Banks must consider the risks of climate change in their investment and loan portfolio. Banks must provide funding to support their customers in their net-zero transitions. Workforce Shortage Technical & highly analytical workers are in scant supply and difficult to keep; office workers are also short. Banking trends and developments A fast-paced digital world with new risks, new opportunities, and new technologies © 2024 Software AG. All rights reserved. 3 7/4/2024 Banks use technology to focus on profitability (increase revenue; reduce costs and risks), innovation, and sustainability.

4. 7/4/2024 © 2024 Software AG. All rights reserved. 4 How ?

5. Assess - Map out Your ESG Landscape Conduct a materiality assessment to identify key ESG issues relevant to your industry and company. Analyze your current ESG performance across all factors (environment, social, governance). Identify strengths, weaknesses, opportunities, and threats (SWOT analysis) in your ESG practices. 7/4/2024 © 2024 Software AG. All rights reserved. 5

6. Build Strategy - Setting Your Course Define your ESG goals and objectives aligned with your overall strategy. Develop a clear ESG vision statement outlining your long-term sustainability aspirations. Prioritize key areas for improvement based on materiality assessment and SWOT analysis. 7/4/2024 © 2024 Software AG. All rights reserved. 6

7. Operationalize - Charting Your Path Develop a comprehensive ESG action plan with specific initiatives and timelines. Identify resources required for implementation financial, human capital, technology. Establish a governance structure for ESG oversight and monitoring. 7/4/2024 © 2024 Software AG. All rights reserved. 7

8. Track & Report - Navigation and Evaluation Outline key performance indicators (KPIs) for tracking progress on ESG goals. Discuss strategies for continuous improvement and adaptation to evolving ESG trends. Highlight reporting and communication plans to keep stakeholders informed. 7/4/2024 © 2024 Software AG. All rights reserved. 8

9. 7/4/2024 © 2024 Software AG. All rights reserved. 9

10. 7/4/2024 © 2024 Software AG. All rights reserved. 10 What’s holding You back ?

11. What if You Could… Secure your transformation initiative from strategy to operations by designing the business strategy and connecting it with the operating model? Manage and govern your enterprise with full transparency on the reality of your business operations by visualizing the core business processes end-to-end? Rollout operating procedures and policies to your entire organization? Efficiently measure, monitor and manage your business and combine business transformation with resilient compliance management? Identify the root-causes for delays and bottlenecks in your processes to make changes, before they impact the bottom line? 11 © 2024 Software AG. All rights reserved.

12. … reach your sustainability goals faster and with more confidence? … embed sustainability & circularity and align initiatives with your operating model? Design new sustainable/business models? … enable the transparency of your overall operations and improve ESG ( Environmental, Social, Governance) efficiency? … engage with all your internal and externa l stakeholders and set-up sustainable partnerships? … secure regulatory compliance , mitigate climate-related risks and prove ESG achievements, , e.g. scope 3 emissions? Allowing you to… Turn your ESG theory into action

13. Present in more than 70 countries 2,500+ employees worldwide 2 Million+ Users Cooperation with more than 1,350 universities Founded in 1969 in the belief that data will change the world Headquartered in Darmstadt, Germany 55 years of heritage Strong partner network. For better customer-centric collaboration Strong alliance with competitors to ensure openness for our customers. Current leadership in Business Transformation & Enterprise Architecture Software 47 years in South Africa with Public and Private Sector Clients Software AG

14. TRANSFORMATIoN CHANGE USER-FRIENDLY STRATEGY ROLE-BASED OPERATIONAL EXCELLENCE RPA SAP ANALYSIS CUSTOMER JOURNEYS MODERN UI DATA PROTECTION RISK MANAGEMENT COMPLIANCE PROCESS MINING ENTERPRISE ARCHITeCTURE CONTINUOUS PROCESS IMPROVEMENT BPMN 2.0 DMN EPC TRAININGS FREE TRIAL REGULATIONS BUSINESS PROCESS ANALYSIS GOVERNANCE PROCESS OPTIMIZATION CHANGE MANAGEMENT PROCESS OUTSOURCING SHARED SERVICES ENTERPRISE MANAGEMENT SYSTEM COLLABORATIVE DESIGN TABLE-BASED MODELING ROLLOUT TESTING CERTIFICATION STANDARDS CLOUD DASHBOARD IOT

15. Secure your transformation initiative from strategy to operations and document, analyze and implement what’s needed to promote real change? Through more efficient processes, you are able respond to changing business and market requirements more quickly. Rollout and change Management is a crucial aspect in every successful transformation. To achieve such a successful transformation, operating procedures and policies - stored and shared in a single source of truth - must be rolled out to your entire organization. Process Mining provides a comprehensive set of capabilities to measure and control the actual execution of processes. It allows you to automatically discover end-to-end processes and map them with process designs for process conformance checking and tracking adoption rates. Business automation provides a set of tools, that help to automate business processes. This includes RPA as a general technological approach but also process-driven SAP and IoT-management. ARIS Risk & Compliance Management enables a flexible implementation and an efficient operation of an enterprise-wide compliance and risk management system. EAM enables the design, analysis and transformation of the Enterprise Architecture. IT assets like applications, technologies or information can be recorded and planned in conjunction with business processes. Business Design & Strategy Rollout & Change Management Process Mining & Analysis Business Automation Risk & Compliance Management Enterprise Architecture Management Mature ARIS capabilities Support your business transformation © 2024 Software AG. All rights reserved. 15

16. ARIS - single source of truth for sustainability & operations Sustainability at the very center of the company’s operations

17. Value of using ARIS for sustainability Get there faster and with more confidence Data-driven insights on ESG potential of processes Fasten materiality analysis Simple connect between strategy, goals & processes Out-of-the box risk evaluation and impact analysis Jumpstart with structured framework & predefined contents Automated rollout to stakeholders Operationalized strategy based on processes Secured compliance with adapted processes and policies Audit-proof change management (confirmation) Automated Non-financial reporting Avoided greenwashing risk with proofs of action Proven compliance Reality-checked process execution Transparent initiatives and KPI led process tracking Ready to go reporting e.g. to external auditors and prove compliance easily Lean more www.softwareag.com/aris-sustainability Fasten initiatives Increase efficiency Prove action

18. ARIS brings sustainability to life No matter what your business does and what size it is, ARIS helps bring your sustainability goals to life, facilitating your initiatives with a structured methodology, connecting your strategy with your operations while considering risk & compliance and proving action.

19. © 2024 Software AG. All rights reserved. 19 7/4/2024