Management of Social, Ethics and Transformation in Afrox

Management of Social, Ethics and Transformation in Afrox

July 2013

22/04/23 Fußzeile Page 2

The Companies Act & King III requirements


The Companies Act: Social and Ethics committee should be Implement by 1 May 2012

COMPANIES ACT:

Stakeholder governance model in SA

(Not just shareholders – also refer King III)

− To Monitor the companies activities, having regard to relevant legislation, to other legal requirements, or prevailing codes of best practice

− To draw matters within it’s mandate to the attention of the board

− To report to shareholders at the AGM

KING III:● Ethical leadership & corporate citizenship● Compliance with laws, codes, rules & standards● Governing stakeholder relationships

Principle 8.1. – Stakeholder perceptionsPrinciple 8.2. – Manage stakeholder relationshipsPrinciople8.3. - balance all stakeholder groupingsPrinciple 8.5. - Transparency in communication

● Integrated reporting9.1. – 9.3 – refer detail slide

Scope of matters – Detail from ACTS Social and economic development Good corporate citizenship Environment, health and public safety Consumer relationships Labour and employment


Social and Ethics Committee Approach

Vision, Strategy and policy

May 2013

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Corporate Responsibility Vision

At African Oxygen Limited (Afrox) we are accountable for our actions and strive to be transparent in all decisions

and activities that may impact the environment and society in general.

Everything we do is based on integrity, honesty and equality and we have great respect for all stakeholder

interests, the rule of law, human rights, and international standards of behavior.

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Corporate Responsibility Strategy - Draft

At Afrox we are seen as a leader in Corporate Responsibility that creates shared value. We contribute to sustainable wellbeing and economic growth for our company, society and the environment…

We ensure that we have the right culture and leadership making corporate responsibility core to our values and the way we do business.

We have good governance in all our processes, have the highest standards of integrity and will maintain an ethical relationship of responsibility between the company and the society in which we operate.

We show our commitment to social and environmental considerations in our decision-making and are accountable for the impacts of our decisions and activities.

We support the development and transformation goals of the South African Government and align both local and global legislative and other requirements thus ensuring our good standing as a responsible corporate citizen. We maintain our level 3 BBBEE rating and our inclusion in the SRI index and other socially responsible indices and show our support for the UNGC 10 principles

We consider the interests of all stakeholders when deciding on the best interest of the company. We are a total solutions partner to our stakeholders.

We have measurable CR policies and will follow a rigorous reporting and review cycle and will have specific metrics associated with each CR goal. This will culminate in the annual Sustainability report.

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Economic developmentMarket presence

BBBEE position in market Spend on local suppliers

Localisation

Transformation / Employment equity

Decent work - GESEmployee health & Wellness

Education of employees

Corruption preventionConsumer protection

King IIIJSE SRI criteria for ethics

Federal Sentencing guidelinesSACEI Index

Community developmentDonations & sponsorships

Consumer relations Sustainability reporting

and communications

Environmental impactEmployee Safety

Public health & safety

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Corporate Responsibility Policy

STRUCTURE


Linde Corporate Responsibility organisationGovernance structures


Afrox Social, Ethics & Transformation (SET) Sub-committee & working committees

SET BOARD Committee (Focus on Sustainability)

Coordinating DRICSR Manager

Quarterly Updates“deep dive” per topic

Chairman:Dr Khotso Mokhele

3 Independent Non- exec board

members

Economic Sustainability

GM Risk & Strategy

Social EnvironmentCSR Manager

Environmental Sustainability

GM SHEQ

WorkplaceSustainability

GM HR

Ethics & Compliance

Company Secretary

SET WORKING Committee (Focus on Sustainability)

3 Internal Committee members

Integration with business

Co-ordinating

DRI: Provides

feedback to Linde


Leading Advanced Standard Foundation

Linde Corporate Responsibility Roadmap

Focus on risk management

Scope of CR manage-ment: own operations

CR reporting in acco-rdance with interna-tional standards

Global KPIs and data management systems for all CR areas

Quantitative targets for all CR focus areas

Solid management of stakeholder enquiries

Compliance with laws

Management of high-risk issues

Reacting on stakeholder enquiries

Basic CR reporting

Integration of CR in business strategy and financial reporting

Collective action with stakeholders on high priority issues

High scoring in CR rankings and ratings

CR as a differentiator in business

Advanced reporting (GRI A+, Advanced Level UNGC)

Focus extended on sustainability opportunities

Inclusion in main CR ratings

Scope extended on suppliers and customers

Active stakeholder inclusion

in place; beyond reach with current set-up

in progress;

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Basic Standard Advanced Leading

CR organisation

•Responsibilities for CR topics defined

•CEO commitment

•CR department coordinating activities

•DRI’s for CR for all aspects

•Active involve-ment of board members in CR decision making

•Direct CR responsibility of at least one board member

•DRIs for CR actively involved

•Virtual cross-functional CR teams

•Reporting line from regional DRIs to Group Corporate Responsibility

CR commitment and standards

•Commitment to comply with legal requirements

•CR integrated into company culture (Linde Spirit)

•Commitment to UN Global Compact

•Commitment to WBCSD

•Code of conduct for employees

•Code of conduct for suppliers

•Regular review of standards

•Public statements for all main issues of interest to stakeholders (e.g. human rights, conflict minerals, etc.)

KPIs, targets and monitoring

•CR KPIs for RAF•Collection of RAF

targets

•KPIs monitored for all CR topics

•External assurance for selected CR KPIs

•Qualitative targets

•Assurance for all major CR KPIs, targets and progress against targets

•Quantitative global targets

•Quarterly monitoring of KPIs and progress against targets

CR roadmapCR Management (1)

LeadingAdvancedStandardBasic

= in place; = in progress; = not in place

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Basic Standard Advanced Leading

Stakeholder dialogue

•Ad-hoc reaction on stakeholder enquiries

•Systematic evaluation of stakeholder expectations

•Integration of stakeholder expectations into CR strategy

•Pro-active and structured engagement with stakeholders

•Collective action with stakeholders on high priority issues

Materiality analysis

•Qualitative approach

•Driven by CR department

•Based on stakeholder expectations

•Quantitative approach

•Involvement of issue owners in evaluation process

•Active involvement of stakeholders in evaluation process

•External assurance of process

•Annual update

•Separate analysis for each step of the value chain

•Reporting in annual report

CR reporting •Annual CR report •CR report in accordance with established standards (GRI, UN Global Compact)

•Assurance of selected parts of CR reports

•Best possible GRI rating A+

•“Global Compact Advanced” report

•Assurance of complete report

•Additional regional CR reports

•CR reporting fully integrated into financial report

•Better report than competitors

•Better report than peers

CR roadmapCR Management (2)

LeadingAdvancedStandardBasic

= in place; = in progress; = not in place

EXECUTE & REPORT


Integrated reporting

Sustainability report content

used


Opportunities

Ongoing management of day to day operation

with a Sustainability lens

Documents

Management of Social, Ethics and Transformation in Afrox