Sustainability Overview 2015 - Waco Internationalwacointernational.co.za/wp-content/uploads/2019/06/Sustainability... · information addressed holistically throughout the integrated

Sustainability Overview

2015

The sustainability overview expands upon the sustainability information addressed holistically

throughout the integrated report, offering a more granular and detailed discussion of the five material

sustainability elements.

1Waco International / Sustainability Overview 2015

Purpose and scopeOrganisational overview

Safety and healthHuman resources

TransformationEnvironment

Corporate citizenshipCode of ethics summary

Contents

Purpose and scope 2

Organisational overview 6

Safety and health 9

Human resources 14

Transformation 21

Environment 24

Corporate citizenship 28

Code of ethics summary 31

Glossary 32

Administration 33

2 Waco International / Sustainability Overview 2015

Content overviewThe sustainability overview contains five sub-sections that have been identified through a materiality determination process with a sustainability focus. These are summarised below.

Safety and health

Safety has a significant impact on Waco International’s reputation and its ability to attract new and return business. All employees, including contract labour, are the responsibility of Waco International for the duration of their employment and it is critical that the Group has the requisite training, equipment and supervision available to ensure their safety.

Human resources

Developing a pipeline of leaders at different levels and operational areas throughout the Group is key to delivering against its stated growth objectives in the medium and long term. Waco International’s employee value proposition involves regular engagement, fair remuneration and a range of talent development and training opportunities.

Transformation

Transformation has a major impact on the labour relations landscape in South Africa, particularly in key sectors where it plays a role in the awarding of contracts and the ability to trade. The Group is committed to transformation principles which are an integral component of its approach to human capital management.

Environment

Waco International has a relatively low impact on the environment by nature of its business. However, environmental resources present Waco International with challenges in terms of access to different sites and rising costs which can jeopardise the smooth execution of projects. Resource shortages, particularly of water, also represent significant value-adding opportunities. Waco International is well positioned to contribute to large-scale resource infrastructure projects (for example, dams) and to develop commercial water-saving sanitation products for deployment in rural and peri-urban communities where water access and infrastructure is limited.

Corporate citizenshipWaco International embraces its role as a responsible corporate citizen and encourages its operating companies to invest in social upliftment programmes. The Group endorses the notion of shared value and has developed products that not only create financial value for the Group, but respond to societal needs – for example, sanitation solutions in informal settlements.

Leadership messageThis is Waco International’s first sustainability overview and will form the foundation from which to improve future reporting. The sustainability overview expands upon the sustainability information addressed holistically throughout the integrated report, offering a more granular and detailed discussion of the five material sustainability elements. The Group aims to clearly communicate the importance of these sustainability elements to its value creation story by describing their ability to materially impact the business. Stakeholder expectations relevant to each element, as well as Waco International’s strategic response, performance and future focus areas, are addressed.

The Group’s ability to maintain and grow financial returns in a sustainable manner for the benefit of all stakeholders depends on the efficient and ethical management of all available resources and relationships. These include the various stakeholders with whom the Group engages in the course of doing business, the people employed at all levels and the natural inputs at its operations.

Governance of sustainabilityThe social and ethics committee is responsible for the governance of sustainability and reports as a minimum on a biannual basis to the board of Waco International. The committee oversees the implementation of leading practices pertaining to the effective management of human capital, which includes ensuring an ethical and safe work environment, the responsible use of environmental resources and good corporate citizenship.

Group management reports to the committee on policy implementation and practices at operations and is responsible for strengthening key stakeholder relationships. Lead performance indicators in key focus areas are proactively managed, while lag indicators reveal where improvement is needed. This holistic approach to performance evaluation enables management to monitor ongoing initiatives while judging progress against quantitative targets at regular reporting intervals. Oversight by the social and ethics committee includes ensuring compliance with all relevant regulations and legislation.

A critical aspect of sustainability governance at Waco International is ensuring that the Group’s activities are conducted in accordance with the code of ethics, which describes appropriate behaviour towards employees, other stakeholders and the environment. A values-based summary of the code of ethics is provided on page 31.

FrameworksWaco International takes the following frameworks into consideration in the governance of sustainability in the business:• The 10 principles set out in the United Nations Global

Compact (UNGC)• Organisation for Economic Cooperation and Development

(OECD) recommendations regarding corruption• Broad-Based Black Economic Empowerment (B-BBEE)

Codes of Good Practice • Labour Relations Act, as amended (LRA)• Waco International business principles• Waco International code of ethics

Purpose and scope






Integrated report Sustainability overview Annual financial statementsContents • Concise overview of the Group’s

material matters, business model, strategy, performance and prospects

• Remuneration report• Corporate governance report• Summarised consolidated

financial statements • Independent assurance report• Independent auditor’s report

• Greater detail on the five material social and environmental sustainability elements addressed in the integrated report:

• Safety and health• Human resources• Transformation• Environment• Corporate citizenship

• Full consolidated financial statements for the year ended 30 June 2015

• Directors’ report• Audit and risk committee report

Frameworks and guidelines applied

• IIRC International Integrated Reporting Framework V1.0

• King Code on Governance Principles for South Africa (2009)

• Group social and ethics committee charter

• International Financial Reporting Standards (IFRS)

• Companies Act, 71 of 2008 as amended (Companies Act)

Assurance • Independent auditor’s report on the summarised consolidated financial statements

• Limited assurance on selected financial and non-financial information

• Group executive management oversight

• Audit and risk committee oversight• Board oversight and approval


• Social and ethics committee oversight

• Board oversight and approval

• Independent auditor’s report on the consolidated financial statements


• Audit and risk committee oversight

• Board oversight and approval

Available Online at: www.wacointernational.co.za

Online at: www.wacointernational.co.za

Online at: www.wacointernational.co.za

Printed report available on request

Reporting boundary The information contained in this overview covers the activities and approach of Waco International relative to the sustainability elements with performance data provided for the period 1 July 2014 to 30 June 2015. Qualitative and quantitative indicators have been reported primarily for the Group as a whole, unless otherwise stated. The information pertaining to transformation does not apply to the companies based outside South Africa.

Suite of reportsThis sustainability overview should be read in conjunction with the following suite of reports:

The Group aims to clearly communicate the importance of these sustainability elements to its value creation story by describing their ability to materially impact the business.


The diagram below demonstrates how the social and environmental matters dealt with in the sustainability overview are inextricably linked with the material issues, strategy and performance of the Group dealt with in the integrated report.

Government effectiveness in

South Africa

Transformation in South Africa

Sanitation in South Africa

Material matter

Safety and health

Contract execution

Accessing and retaining skills

Labour stability in South Africa

Retaining and developing skilled

human capital

Driving meaningful transformation

Identifying and targeting new

growth initiatives

Maintaining order book quality and contract delivery

Strategy

CEO's report Chairman's report

CEO's report

Governance

CEO's report

CFO's report

Chairman's report

CEO's report

Performance report back

Human resources Corporate citizenship

Transformation EnvironmentSafety and health

Integrated report

Sustainability overview

Purpose and scope (continued)






AssuranceThe information contained within this overview is derived through the internal reporting processes of the Group. Members of Group Exco and the internal audit function were responsible for overseeing the sustainability overview reporting process and have placed reliance on the combined assurance process followed by the Group. This involves risk management systems, policies, standard operating procedures, quality assurance processes, internal controls and reporting, management oversight and controls and internal assurance procedures.

The board is satisfied that the internal governance processes are such that there is no reason to believe there is any material error or omission in the information and as such do not, at present, believe the cost of external assurance warrants the incremental decision usefulness, if any, that such assurance would provide to users of the information.

Board responsibility and approval statementThe board, with the assistance of the social and ethics committee, is responsible for the integrity of the sustainability overview. The board applied its collective mind to the preparation and presentation of the sustainability overview and is satisfied that the report is a fair and accurate representation of Waco International’s sustainability performance and prospects.

This sustainability overview was approved by the board and signed on its behalf by:

Royden ViceChairman

7 December 2015

Request for feedbackFeedback on the contents and presentation of the 2015 sustainability overview will assist Waco International in improving the quality and relevance of future reports. Stakeholders are invited to contact Gregory Hart (Group human resources executive) at [email protected].

NavigationA glossary is provided on page 32 of this report.

Cross-references to information contained within this and other reports are indicated with this icon.


Waco International provides a range of products and services to a number of markets and industries, including:• Formwork, shoring and scaffolding, suspended platforms

and related services, including personnel supply, technical support, insulation, painting and blasting

• Relocatable modular buildings in which to live, work or learn, including technical support and project management

• Portable sanitation solutions and integrated hygiene services

ProfileWaco International is a diversified equipment rental and industrial services business with rental, sales and manufacturing operations in the following key geographies: Africa (South Africa and other sub-Saharan Africa), Australasia (Australia and New Zealand), the United Kingdom and Chile.

Fact sheetFootprint 5 principal geographies

12 countries

Over 100 branches

Over 14 000 customers

Approximately 100 000 tons of scaffolding

Approximately 44 000 tons of formwork

Approximately 24 000 portable toilets

Over 3 750 relocatable modular buildings

People 2 259 full-time equivalent (FTE) employees

4 165 permanent or limited duration contract (LDC) employees

Transformation Broad-based black economic empowerment (B-BBEE) level 2

Principal activities

Forming, shoring and scaffolding

Suspended platforms and hydraulic access

Insulation, cladding, painting and blasting

Relocatable modular buildings

Portable sanitation

Integrated hygiene services

Principal industries

Industrial maintenance

Infrastructure

Mining and resources

Oil and gas

Power generation

Construction and engineering

Healthcare

Education

Events

Informal settlements

Principal markets by geography

South Africa

Other sub-Saharan Africa (seven countries)

Australia

New Zealand

United Kingdom

Chile

Organisational overview


More information is available in the organisational overview section beginning on page 6 of the integrated report.

Group structureThe following diagram is a simplified representation of the operating companies of Waco International and excludes non-material and dormant entities.

100% 74.9%100%

Companies registered in:• South Africa• Ghana• Mauritius• Mozambique• Namibia• Swaziland• Zambia

Kwikform Acquisition (Pty) Ltd

Chile

Pipes UK Holdings Ltd

Fund 1 (Pty) Ltd

25.1%





9Waco International / Sustainability Overview 2015 9

ContextThe safety and health of employees, customers and the public at operations requires joint awareness and effective collaboration among role players on the implementation of procedures. Operational managers are empowered with the requisite training and experience to carry out these responsibilities and lead by example. This includes ongoing supervision and reporting, as well as regular quality assessments to ensure the hire fleet functions safely. The Group’s performance in these areas determines its reputation and therefore its ability to attract and retain customers.

Each of the operating companies monitors its safety performance on an ongoing basis and reports any incidents to Group management as they happen, as well as submitting a formal report to the board on a quarterly basis. Waco International has seen a steady improvement in its safety performance in recent years and has expanded its incident reporting to include “potential for harm” reporting, thereby enabling operational managers to identify potential risks before they take place and implement appropriate mitigating actions.

Waco International reported two fatalities during the year and the Group sends condolences to the family, colleagues and friends of the deceased. The details of the incident are provided in the safety performance section on page 13. The Group continues to strive for zero harm at all operations.

Focus areas• Values-based, common sense approach to safety

• Safety and health training

• Safety, environmental and quality accreditation

• HIV/Aids support

• “Get home safe” policy

While HIV/Aids does not have a major impact on the Group, it remains the principal health issue, particularly in relation to Waco Africa. The Employee Wellness Programme, which offers holistic support to employees, is equipped to provide support and guidance to those living with the virus and refers serious cases to health institutions as appropriate.

Safety and health is a highly regulated field, particularly in the Group’s key sectors, and significant resources are channelled towards maintaining compliance and striving for leading practice, thereby retaining Waco International’s legal and social licence to operate.

More information is available in the human resources section beginning on page 14 of the sustainability overview.

Relevant material matters

Contract execution

Safety and health

Safety and health






Stakeholder expectationsThe following key stakeholder groups are considered a priority in the areas of safety and health. Their expectations of and potential impact on the Group are outlined in the table below:

Stakeholder Expectation Impact on Waco International

Employees • Safe work environment conducive to wellbeing on site

• Safety training and effective supervision by trained managers

• Functional and safe equipment• Wellness support

• The Group is responsible for providing a working environment that supports the safety and health of employees both as an ethical imperative and in accordance with requisite labour regulation

• High-risk projects, including working at heights and working with potentially hazardous materials, require stringent safety and health procedures overseen by competent supervisors

• Safety and health is embedded in the Group’s code of ethics and performance in this area impacts the morale and productivity of the workforce

Customers and the public

• Incident-free contract execution

• Safety of customers, employees and the public

• Functional and safe equipment

• Customer contracts require that the Group conducts its activities in a manner that is safe and conducive to the wellbeing of all role players on site

• Waco International’s reputation is built on a track record of high-quality work, which includes safety and health considerations

• Incidents can lead to project disruptions, contractual damages and claims, thereby jeopardising the Group’s ability to attract and retain customers

Contractors, suppliers and service providers

• Adherence to Waco International’s safety standards outlined in contracts

• Safe working environment conducive to wellbeing on site

• Adequate safety training, supervision and safe equipment

• Successful project execution requires the collaboration of multiple role players, all of whom contribute to the overall safety of operations

• The Group engages with third parties in a manner that ensures high-quality contracting and careful project scoping which incorporates safety and health aspects

• Deployment of untrained employees to customer sites may lead to safety incidents resulting in reputational damage

Regulatory and industry bodies

• Compliance with occupational health and safety regulations

• Ongoing reporting and monitoring

• Safety and health is a highly regulated aspect of the business, with associated fines, penalties and other serious consequences for non-compliance with the relevant legislation and regulations

• The Group’s track record of safety compliance and performance is a key aspect of its operating advantage in the industry

Focus areasWaco International has identified the major focus areas of safety and health, which support the overall achievement of the Group’s strategic objectives. An overview is provided below.

Values-based, common sense approach to safetyWaco International views safety as a values-based mind-set rather than an activity or process and appreciates that maximising financial returns cannot be achieved at the expense of employee and customer safety. Safety risk is a daily feature in many of the Group’s core activities and it manages this challenge through ongoing training and awareness campaigns under the supervision of experienced operational leaders. Role players have a shared responsibility to identify potentially unsafe activities, to take ownership and to remedy the unsafe situation when incidents occur. The board is ultimately responsible for ensuring a sustained commitment to safety practices, and it monitors progress against set targets.

Safety and health trainingAll employees receive training on safety matters, relevant to their operational role, on an ongoing basis. This takes place primarily through sessions known as Toolbox talks, which happen at the beginning of every shift, with a focus on a specific safety topic. It is part of the Group’s policy to ensure that all employees are trained in the safe use and application of tools and any personal protective equipment issued to them.

Safety, environmental and quality accreditationThe Group’s operating businesses hold a number of accreditations that are designed to protect the safety and health of employees, as well as safeguard the environment. This forms part of Waco International’s commitment to product responsibility and public customer safety insofar as these accreditations require regular audits and assessments to ensure that high standards are maintained in terms of products developed and technical services rendered.

Safety and health (continued)


The following table provides an overview of the accreditations held by the various businesses in Waco Africa. Each business complies with the Waco Africa safety, health, environmental and quality (SHEQ) policies and procedures and compliance checks are conducted during regular branch visits.

OHSAS 18001: International safety standard

ISO 14000: International environmental standard

ISO 9001: International quality system standard

Local accreditations

Form-Scaff All 27 South African branches have been audited and certified

All potential high impact branches (nine) have been audited and certified

Four additional branches will be audited in 2016/17

All 27 South African branches have been audited and certified

SGB-Cape All branches adhere to Waco Africa SHEQ policies and procedures

All branches adhere to Waco Africa SHEQ policies and procedures

All branches have been audited and certified

NOSA Risk Management Systems

Member of Institute for Working at Heights

Member of South African Quality Institute

Sanitech 17 branches out of 20 have been certified

Auditing of the three major branches was completed September 2015

The remainder will be audited in 2016 and 2017 over a three-year cycle

All branches planned for 2018

Abacus Head office accredited


Planned for 2017 Head office has been audited and certified


SkyJacks Planned for mid-2017 Planned for mid-2017 Planned for early 2017 NOSA five-star grading audit for Johannesburg branch planned for September 2016

NOSA five-star grading audit from remaining branches planned for September 2017






OHSAS 18001: International safety standard

ISO 14000: International environmental standard

ISO 9001: International quality system standard

Local accreditations

Waco Kwikform AS/NZS 4801: 2001; Australia and New Zealand Occupational Health and Safety Management System Standard: Australia: All Branches Accredited New Zealand: APL Kwikform scheduled: 2016 United Group scheduled: 2017

ISO 9001: 2008; International Quality Management System Standard: Accredited: Head Office, Sydney, Newcastle, Port Kembla, Canberra, Brisbane, Sunshine Coast, Darwin, Perth, Adelaide, Traralgon, Geelong, Melbourne, APL Kwikform

Mackay and Karratha 2015.

Geraldton and Hire West scheduled 2016

United Group scheduled 2017

Waco Kwikform operates a Safety Management System (SMS) and Quality Management System (QMS) that are both certified and regularly assessed by an accredited third party.

Premier Modular (United Kingdom)

OHSA 18001/ISO 45001 – Scheduled: 2016

ISO14001:2008 EMS Certified by BSI – Environmental Management

Accredited ISO 9001 Will transition to the new 2015 standard during 2016.

BS EN: 1090 – CE marking for steelwork and fixings up to Exec Class 2Achilles Building Confidence level 5 – United Kingdom major contractors approval schemeAchilles UVDB – United Kingdom Utilities contractor approval schemeCHAS – Local government prequalification schemeFSC – Forestry Stewardship Chain of Custody Certification

HIV/Aids support

Waco International recognises the serious implications of HIV/Aids in terms of its impact on employees, the workplace and the wider community. While the Group emphasises that it is the responsibility of every employee to look after his or her own personal wellbeing, it also believes that it is necessary to adopt a proactive approach to this issue. Waco International complies with all applicable legislation in this area and has, accordingly, adopted the following policy:• The Group runs an Aids awareness programme with

employees in the form of a series of information sessions and accompanying posters for visual emphasis in the workplace

• The Group makes free condoms readily available to all employees

• The Group does not discriminate against any employee or prospective employee based on his or her HIV status. However, it recognises that in certain African countries, a positive HIV status precludes eligibility for certain types of work. In such cases, the Group endeavours to reassign the employee to an alternative available position that is not status-dependent

The international businesses are accredited in accordance with the local requirements as well as with the relevant international bodies.

Safety and health (continued)


• It is the employee’s prerogative to disclose his or her HIV status to management. The Group will advise the employee on how to access confidential HIV counselling, testing and supportive care. This is a core function of the Employee Wellness Programme

• The Group ensures that all employees who are HIV positive are treated with sensitivity and dignity

• In the event that an employee is diagnosed as HIV positive, the terms and conditions of that person’s employment remain unchanged and the Group continues to provide employment for as long as the employee is willing and able to work

• In the event that an employee becomes unfit for his or her work as a result of his or her illness, the Group follows the normal procedures relating to medical incapacitation

“Get home safe” policyWaco International has recently implemented a “get home safe” policy for senior managers and customers who attend work functions where alcohol is served. This process is governed according to the Group’s social and ethics and risk charters. It was implemented as a business imperative to support key people in avoiding the negative outcomes of driving under the influence of alcohol, which could have an adverse impact on the Group.

PerformanceThe following table provides a summary of the Group’s safety performance. The main causes of all accidents during the current period were: struck by (23%), manual handling (25%) and workplace hazards (19%).

2015 2014 2013

Lost man hours 4 762 6 788 7 358Lost-time injuries (LTIs) 66 74 77Lost-time injury frequency rate (LTIFR) 0.85 0.91 1.06All-accident frequency rate (AFR) 4.54 4.96 5.36Fatalities 2 3 0

LTIs over three years

LTIs/Quarter

Q1/

2012

Q2/

2012

Q3/

2012

Q4/

2012

Q1/

2013

Q2/

2013

Q3/

2013

Q4/

2013

Q1/

2014

Q2/

2014

Q3/

2014

Q4/

2014

Q1/

2015

Q2/

2015

Q3/

2015

Q4/

2015

0

5

10

15

20

25

30

16.9

21.2

27.3

LTIFR over three years

Actual 12 Month

p LTI Frequently rate

Q1/

2012

Q2/

2012

Q3/

2012

Q4/

2012

Q1/

2013

Q2/

2013

Q3/

2013

Q4/

2013

Q1/

2014

Q2/

2014

Q3/

2014

Q4/

2014

Q1/

2015

Q2/

2015

Q3/

2015

Q4/

2015

0

1

2

3

4

5

Target

It is with sadness that Waco International reported two fatalities during the year. Avela Ivan Gumede and Khangelani Macaleni, both employees of SGB-Cape, were working overtime on a project in Port Elizabeth and were being transported on the back of a light delivery vehicle – contrary to Group policy and forgoing the formalised minibus service offered by the Group – which was involved in an unfortunate motor accident. The Group views a tragedy of this nature as unacceptable and sends condolences to the families and loved ones of the deceased. The board and management of Waco International, as well as SGB-Cape leadership and employees, deeply regret the loss of these capable and committed individuals. Every effort is being made to safeguard against future incidents of this nature.

Looking aheadFocus areas Target

Waco International’s stated goal is “zero harm”. The identification of “potential for harm” situations is a key factor in achieving this goal. Managers and employees are encouraged to “see, fix and report” potentially harmful situations so that pre-emptive actions may be taken. The more effective the reporting in this area, the greater the Group’s ability to minimise its incident rate and ultimately achieve zero harm

60 “potential for harm” events for every one LTI reported

Reducing the LTIFR of all the operating businesses, thereby contributing to a reduction in Group LTIFR

0.75 Group LTIFR






ContextAttracting, developing and retaining the required leadership pipeline to guide Waco International on its growth strategy is a fundamental priority for the Group. Waco International has a range of training and development initiatives in place that are offered to employees throughout the business. A significant number of internal candidates working at a range of different levels and business areas have been successfully upskilled and empowered as a result. Wherever possible, Waco International creates advancement and development opportunities for previously disadvantaged individuals.

At operational level, successful contract execution requires the collective contribution of a motivated and able workforce, often on large-scale projects in widespread locations. Sourcing the appropriate human capital is therefore critical and requires the use of short-term contract labour. The Group makes use of responsible labour brokers in South Africa with whom it engages as labour sourcing partners to provide the required labour from local communities near operational sites on a short-term basis. Pleasing progress has been made towards converting contracted workers to permanent employment status when appropriate, in line with recent amendments to the LRA.

Focus areas• Human resources approach

• Talent management framework

• Performance management framework

• Investment in People (Premier Modular)

• Employee Wellness Programme

• Responsible use of labour brokers in South Africa

• Industrial relations

The Group is committed to fostering positive labour relations. Waco International endorses its employees’ rights to collective bargaining and engages with employees and their representatives in a spirit of transparency and accountability, opting for a proactive rather than a reactive approach to dispute resolution. The Group experienced several instances of strike action during the year, which had an impact on the operations. The affected businesses responded appropriately.


Effectiveness of growth initiatives Labour stability in South Africa


Human resources


Stakeholder expectationsThe following key stakeholder groups are considered priority in terms of human resources. Their expectations of and potential impact on the Group are outlined in the table below:


Employees • Fair remuneration• Skills development and career

advancement opportunities• Performance recognition

and reward• Ethical treatment and effective

up-and-down communication• Job security and long-term

employment possibilities• Safe work environment

conducive to wellbeing on site

• Effective leaders, from branch to executive management, are responsible for guiding the business towards achieving its strategic goals currently and into the future

• Workers are deployed on large-scale projects and are equipped with the requisite skills to deliver against the Group’s standards for quality and safety

• Employee engagement activities take place in a spirit of openness, in an effort to foster positive labour relations which are critical to successful contract execution and the growth of the business

Labour broker employees

• Fair remuneration• Fair treatment for all

employees while on contract• Safe work environment

conducive to wellbeing on site• Permanent work opportunities

• The Group makes use of labour brokers to source the requisite human capital for short-term, project-based work and ensures that these relationships are based on ethical and compliant practices

• All employees, irrespective of their contract term, receive appropriate training to do their work safely and effectively and are remunerated on a fair and equitable basis

• The conversion from a short-term contract to permanent employment takes place according to controlled procedures in line with the appropriate legislation

• Improved employee morale

Trade unions • Fair remuneration and career advancement opportunities for members

• Non-discriminatory and safe working conditions for members

• Demonstrable employment equity initiatives

• The majority of the Group’s employees in South Africa are unionised, and industrial relations play a significant role in the sustainability of key sectors

• Work disruptions from industrial action lead to decreased productivity and therefore impact on profitability and the Group’s ability to meet its contractual obligations with customers

• Recognition agreements are in place with the major trade unions, with formal and ad hoc meetings to negotiate fair and equitable terms and conditions of employment for members

Customers • Safe and responsible business practices

• Responsible and reliable labour practices

• Safe operations

• Customers rely on the Group to deliver high-quality work or risk losing their business

• Employees are deployed on customer sites and are equipped with the skills and training required to operate safely and efficiently in line with Waco International’s standards and customer expectations

• Possible contract breaches and claim for damages


• Compliance with labour relations regulations

• Ongoing reporting and monitoring

• Group human resources is responsible for ensuring sound labour practices and monitors the adherence of each operating company to the regulatory requirements of their respective locations

• Transformation remains a key focus in the South African operations, as an ethical imperative and as a key component of successful tender contracting

• The amendments to the LRA in South Africa limit the use of labour broker employees to contracts shorter than three months






Focus areasWaco International has identified the major focus areas of human resources, which support the overall achievement of the Group’s strategic objectives. An overview of these is provided below.

Human resources approachWaco International aims to maintain a high performance culture built on sound ethical practices. The table below provides an overview of the core frameworks through which the Group approaches the management of its human resources.

Organisational three CsThese inform the way Waco International organises and rewards work and implements formal human resources programmes and activities

People competencies (three Cs) These are the core attributes which the Group values in its people

Business principlesThe business principles are management’s primary tool to bridge the gap between aiming for a high performance culture and actually achieving it

• To ensure that the organisation has the capacity to deliver on strategy and customer promises

• To ensure that employees are competent to do the job they are appointed to do

• To ensure that all employees are committed to do the work assigned to them

• Curiosity

• Courage

• Commitment

Known as TAP the Best Team, these are:

• Transparency

• Accountability

• Performance

• Best practice

• Teamwork

The combination of these approaches ensures that Waco International channels the appropriate energy and motivation into its human capital to promote the achievement of its overarching strategic ambitions.

Talent management frameworkWaco International endeavours to identify talented individuals for advancement from within the organisation for positions that are core or unique to the business, a practice which encourages employee commitment and incentivises performance. Talent management committees (TMCs), which are made up of managers or functional experts, develop succession plans at Group level and in the operating companies to fill such positions as they become available.

To facilitate this process, Waco International has a number of development programmes in place that provide employees with the means to upskill and empower themselves to advance within the organisation. This includes Adult Basic Education and Training (ABET).

More information on ABET is available in the corporate citizenship section beginning on page 28 of the sustainability overview

• Waco Africa Cadet Scheme This scheme is designed to equip high-potential individuals from previously disadvantaged backgrounds with core business skills. The scheme comprises two elements – a learnership involving practical and study work towards achieving an NQF level 4 in general management, followed by job stream mentorship exposing cadets to various aspects of the business in a rotational fashion – and can be completed in two years. Upon completion, a cadet is placed in a position to which their skills are best suited and from which they are encouraged to compete for the position of branch manager when the opportunity arises.

• Business Leadership Development ProgrammeThe Business Leadership Development Programme (BLDP) was developed to give managers who have demonstrated potential the opportunity to add to their skillset and advance further within the organisation. The six-month curriculum involves a range of learning methods designed to enhance candidates’ business leadership skills in areas such as finance for non-financial managers, contract management, project management, change management and people management. The programme culminates in a team challenge where BLDP teams present Action Learning Projects – ideas for improving the business and achieving further growth.

More information is available in the organisational overview section beginning on page 6 of the integrated report.

Human resources (continued)


• Executive Development Programme In partnership with the Gordon Institute of Business Science (GIBS), the Group offers high-performing managers and senior managers exposure to leading global strategic thinking and the operational tools to execute against strategic goals. Similar to the BLDP, candidates are required to present Action Learning Projects. Between the BLDP and Executive Development Programme (EDP), a number of successful value-adding initiatives have been implemented to date.

• Operational trainingOperational training programmes take place on a day-to-day basis. A flagship example of this is Project Margin, which is currently underway at SGB-Cape. The business has identified a checklist of over 50 key operational competencies that are required for it to perform optimally. Individual employees are then assessed against this checklist to help SGB-Cape better understand where there is a skills gap that can be filled with targeted and individualised training programmes. Once the methodology has been refined at SGB-Cape, it will be rolled out across the Group.

Performance management frameworkWaco International has a results-driven approach to performance management, underpinned by the acknowledgement that work is performed by individuals and, therefore, should be managed and rewarded on an individualised basis. To facilitate this, a number of interactions take place at key points in the annual performance management cycle: 1. Goal setting – A formal process to determine specific

goals for the individual within the context of his or her job and the objectives and challenges for the year ahead. Relevant targets for the business unit or operating company are included in the overall set of goals that make up the performance contract, to which the employee agrees and commits. This takes place according to the weighting determined by the balanced scorecard.

2. Support – Employees are supported in their day-to-day work during the year, normally in the form of discussions and progress reports. The objective of ongoing interaction is to identify issues as early as possible, provide direction, feedback and motivation and assist the employee in achieving his or her predetermined set of goals.

3. Review and assessment – A formal process during which manager and employee jointly review the set of goals and identify achievements and areas requiring improvement. This is a subjective process, and the core objective is to reinforce a positive working relationship. New goals for the next cycle are also agreed upon in this process.

At the end of the cycle, the manager is required to rate the employee on a five-point scale, which is used in part to determine the appropriate financial reward.

More information on remuneration and reward programmes, including the balanced scorecard, is available in the remuneration report beginning on page 62 of the integrated report.

Investment in People (Premier Modular)Investment in People is a formal business accreditation which assists businesses in their people management according to specific pre-agreed standards. The accreditation is highly respected in the United Kingdom as an indicator of sound business practices. Premier Modular carries out ongoing internal audits facilitated by an in-house auditor and the business is audited externally every three years to ensure compliance in eleven key areas.

Employee Wellness ProgrammeThe Employee Wellness Programme is available to all South African employees and provides assistance with private and work-related issues, the majority of which are related to alcohol and drug abuse, HIV/Aids, financial distress, work-related stress, legal matters and domestic violence. The programme also provides services specific to managers to assist them with supporting and managing troubled employees.

Support is offered by means of a 24-hour toll-free number available to all employees and their direct family members, with guaranteed confidentiality in appropriate circumstances. Management is able to refer an employee to the Employee Wellness Programme.

Responsible use of labour brokers in South AfricaWaco Africa is a significant employer of people in the South African economy, particularly its SGB-Cape business whose average employee complement exceeds 4 000 people. Labour requirements are dependent on project-based work and are therefore variable in terms of duration and location.

The Group strives to source the requisite human resources to maintain its standards of operational excellence, while carefully managing labour efficiency rates and operating margins. Achieving this balance requires the responsible use of labour brokers and contracted labour within the context of the amended LRA. The following summary provides insight into how Waco Africa manages these relationships to achieve optimal outcomes in line with its operational and ethical standards:• Labour broker employees are only used when the profitable

outcome of the commercial contract relies on labour cost variability, which can be defined in terms of a specific work objective and/or commercial contract

• Where possible, all skilled and supervisory employees are employed on a permanent basis, as well as a core of semi-skilled employees who are able to move between projects

• Labour broker employees are primarily deployed in entry-level positions and are given the requisite training and skills to work safely and efficiently

• Operational leaders remain alert to opportunities of identifying high-performing individuals who could add value to the business on a permanent basis

• While on contract, all employees receive the same treatment in terms of work conditions, pay and benefits






Responsible use of labour brokers in South Africa (continued) • Only approved labour brokers, who are required to undergo

regular “quality” audits, are used • Managers do not delegate their employee management

responsibilities to the labour broker

Amendments to the LRA in 2015 have a significant impact on the way businesses engage with contracted employees and labour brokers, limiting their use to strictly temporary conditions of no more than three months on a single contract. Employees contracted for longer than three months are immediately converted to permanent status by law. Waco Africa’s employment strategy is aligned to these changes and no significant negative consequences to the business model are foreseen, placing the business in a strong position going forward. Managers have been provided with specific guidelines to assist in the application of these changes.

Over this past year a total of 900 labour broker employees have been converted to permanent employment or limited duration contract (LDCs).

Industrial relationsAll Waco International employees across its geographic footprint have the right to collective bargaining. The Group has appropriate procedures in place to facilitate positive industrial relations, based on the significant cumulative experience of the operating companies and Group management. This takes place primarily through weekly workplace forums in which management, along with industrial relations coordinators

PerformanceTraining and developmentThe following table indicates the number of Waco International employees who have benefited from the Group’s various training and development programmes within its talent management framework.

Waco Africa Cadet Scheme Business Leadership Development Programme

Executive Development Programme

22 cadets appointed to the scheme to date 194 managers have benefited to date 100 managers have benefited to date6 cadets appointed during the year 70 managers went through the course

during the reporting period25 managers attended the 2015 GIBS Business programme in November 2015

6 cadets appointed to branch manager level to date

who are embedded within each of the businesses, engage with employees and their representatives to facilitate conversations around the conditions of their work and proactively resolve concerns as they arise. The terms and conditions of employment of every employee guarantee their rights, in line with relevant labour regulation and the Group’s commitment to good business practices.

Whilst sustaining positive industrial relations is critical across the Group’s operations, legal and illegal industrial action in South Africa in particular, presents a major challenge to doing business in the country. Growing politicisation at union level, combined with the rising cost of living within the current economic environment, are aggravating factors. Waco International ensures that contracts are structured such that the potential negative impact of labour disruption on project margins is minimised.

Trade unions play a crucial role in forming employee perceptions and attitudes toward their work and their employers. Waco International has recognition agreements with major trade unions operating in its key sectors, namely NUMSA, NUM, UASA and Solidarity, and regularly engages with shop stewards on a formal and ad hoc basis. The terms and conditions of unionised employees’ employment are generally governed by business or branch agreements, excluding some SGB-Cape, Waco Manufacturing, Form-Scaff Refurbishment and Abacus employees, whose terms and conditions are governed according to the metal industries’ bargaining council agreements. A total of 1 052 South African permanent wage employees are members of a union, for which the Group deducts union dues.

Employee Wellness ProgrammeThe following table shows the broad indicators relating to the programme in the past year.

2015

Employees enrolled in the programme 1 400Total engagement rate for the year 480Individual cases 131Profiled e-Care users 345Formal referrals 19



Cases of industrial actionThe major industrial incidents which occurred during the year are described below.

Date Incident Outcomes

July 2014 A labour broker employee at SGB-Cape in Newcastle demanded an increase following misinformation from an SGB-Cape employee, causing a dispute.

60 employees were involved in an illegal strike which lasted four days.

The situation was resolved but saw the dismissal of a supervisor who was proved to be the instigator.

July 2014 The national legal metal industries strike had a substantial effect during this time:• Abacus’s manufacturing facility, comprising

47 people, was affected with no production for the duration of the strike

• 177 employees at Form-Scaff’s distribution and refurbishment facility participated in the strike

• Kusile was the only SGB-Cape site that was affected by the strike and about 403 SGB-Cape employees were locked out from working at the Kusile power plant

• 71 employees of Waco Manufacturing went on strike

It is worth noting that many employees wanted to report for duty but declined to do so because of the atmosphere of intimidation around the strike.

These strikes came to an end with the signing of a three-year settlement in the metal industries on 29 July 2015.

August 2014 Negotiations at Form-Scaff branches are ongoing and have not been easy this year, largely as a result of the expectations raised during the protracted metal and mine industries strikes.

After 48 hours’ notice, the union commenced a strike on 25 August 2014 at most of the Form-Scaff branches. Following unfortunate incidents of violence and intimidation at a number of branches, the company sought a court interdict.

The strike progressed with varying levels of intensity between the branches. Certain branches did not participate at all.

The strike was concluded with a three-year wage agreement at 10%, 8% and 8% increases respectively. Instigators of the violence were dismissed.

February 2015 Kusile Boslapa incident: Employees embarked on unprotected industrial action at Eskom’s residence Boslapa hostel by demanding the dismissal of one of the residence supervisors. Disciplinary proceedings were followed, which resulted in the dismissal of 117 individuals in the employ of the joint venture partner business

The trade union NUMSA has laid a claim at the Labour Court of unfair dismissal and the Group is engaging with the relevant legal processes to formulate its defence.

May 2015 Approximately 159 employees embarked on an unprotected march to site offices at Kusile, demanding feedback regarding a grievance against a scaffold project manager.

Disciplinary proceedings appropriate to the level of misconduct were initiated.






New jobs created The table below indicates the number of jobs created across the Group from 2013 to 2015.

Employee category June 2015 June 2013 Growth

Salary employees 1 044 841 203Wage employees 2 523 2 355 168LDC employees 717 2 715Total Waco International employees 4 284 3 198 1 086Labour broker employees 2 282 2 389 (107)

6 566 5 587 979

The increase in jobs over the last three years is as a result of our growth agenda, i.e., creating capacity to grow and the transfer of labour broker employees into direct employment either as permanent wage employees or LDCs.


Labour relations No avoidable work stoppages or cases with the Commission for Conciliation, Mediation and Arbitration

Project Margin at SGB-Cape Identify skills and critical skills gaps and develop targeted training to close those gaps

Roll-out programme to Form-Scaff, Kwikform, Abacus and SkyJacks, beginning with competency checklist, profiling and assessment

Develop a tertiary recruitment process that will ensure a steady stream of B-BBEE candidates for the Waco Africa Cadet Scheme

10 candidates per year, beginning in January 2016

Rightsizing project at Form-Scaff, with special focus on the distribution and refurbishment facility, to ensure the company’s cost to serve remains appropriate in the prevailing business conditions

Beginning January 2016



Transformation

ContextTransformation is embedded in Waco International’s growth strategy, as it has a significant impact on the South African operating companies and the Group. Appropriate initiatives are in place to facilitate progress towards transformation targets as it strives to be more representative of the country’s demographic profile while managing the process in a sustainable and ethical manner. Transformation is also a significant commercial driver as it impacts the Group’s ability to successfully tender for certain contracts and plays a role in maintaining positive labour relations.

Waco International was awarded level 2 B-BBEE status, an improvement on its previous level 3 status, and this rating is valid until October 2016. The Group’s involvement with appropriate joint ventures, and its ongoing employee development initiatives, including the Waco Africa Cadet Scheme and ABET, contributed to the progress in this regard.

Focus areas• Bopa Moruo equity partner of Waco Africa

• Joint ventures and small, micro and medium enterprises (SMMEs)

In some cases, contracts are awarded by prioritising B-BBEE considerations, and these are best approached in partnership with appropriate SMMEs whose status adds credibility to that of the Group. Waco International has developed various long-term, value-adding joint venture relationships with a number of its SMME partners.


Transformation in South Africa







Stakeholder expectationsThe following key stakeholder groups are considered priority with regard to transformation imperatives. Their expectations of and potential impact on the Group are outlined in the table below:


Employees • Fair remuneration • Skills development and career

advancement opportunities• Performance recognition

and reward• Freedom from discrimination

• Fair and equal working environment that is free from discrimination, in which to perform to the best of their ability

• Previously disadvantaged employees benefit from development and training initiatives which equip them with the requisite skills to compete for senior positions within the business

Trade unions • Fair remuneration and career advancement opportunities for members

• Freedom from discrimination for members

• Demonstrable transformation initiatives

• Evidence of transformation in the employee base informs the perspectives of organised labour organisations and their members, thereby contributing to the stability of industrial relations and boosting employee morale

Customers • Responsible and reliable labour practices

• Progress towards B-BBEE requirements

• The ability to demonstrate transformation progress in line with B-BBEE can be a major competitive advantage when it comes to winning the business of, and building relationships with key customers

• The awarding of tender contracts can hinge on transformation aspects when there are multiple bidders involved


• Compliance with labour relations regulations

• Progress towards B-BBEE requirements

• Compliance with the Employment Equity Act (EEA)

• B-BBEE requires all South African businesses to transform their workforce to be more representative of the country’s demographic profile

• Lack of transformation can jeopardise the Group’s licence to operate and ability to successfully bid for government contracts

• Non-compliance with the EEA may result in fines and penalties by the Department of Labour

Focus areasWaco International has identified the major focus areas of its transformation progress which support the overall achievement of the Group’s strategic objectives. An overview of these is provided below.

Bopa Moruo equity partner of Waco AfricaBopa Moruo is a 100% black-owned company and has been Waco Africa’s empowerment partner with 25.1% ownership since 2014. This relationship bolsters Waco International’s ownership structure in terms of its B-BBEE objectives.

Joint ventures and SMMEsWaco International enters into joint ventures to strengthen its ability to succeed in tender bidding processes. These relationships involve valuable contributions from both parties, in which the Group provides management, training and equipment resources and the partner company provides labour. This has been a successful strategy and the Group has a number of established relationships that have generated substantial returns for both parties, as well as the benefit of shared expertise.

Transformation (continued)


PerformanceB-BBEE scorecardThe Group's B-BBEE scorecard, valid until October 2016, is indicated in the table below:

Weighting%

Score as atAugust 2015

Ownership 20 21.00Management 10 8.25Employment equity 15 2.06Skills development 15 14.51Preferential procurement 20 19.67Enterprise development 15 15.00Socioeconomic development 5 5.00

100 85.49


A number of work programmes have been initiated to assist Waco International in achieving the best possible rating once the new B-BBEE codes are implemented

Retain level 2 rating






Environment

ContextWaco International has a relatively low impact on the environment as a hire business with a vast fleet that requires replacing and refurbishing only after long periods of time. However, the Group endeavours to minimise its impact on natural resources through ongoing monitoring, incident reporting and identifying more efficient ways of operating. The Group views this as an ethical and operational imperative in the current global context where the sustainable supply of critical resources is uncertain and multinational organisations have a responsibility to manage their environmental impact. The associated cost saving of reducing Waco International’s reliance on key inputs, including fuel, power and raw materials, is a further incentive to improve in this area.

Annual environmental plans are developed at operational level whereby each company is required to report relevant environment indicators and demonstrate progress towards targets. Environmental peer groups, made up of senior operations executives, ensure that these plans are compatible with the Group’s policies and objectives and that leading practices are shared among all the companies within the Group. These learnings, along with general environmental awareness training, are shared with operational leaders and their teams during the induction process and on an ad hoc basis thereafter.

Focus areas• Environmental audits

• Resource management

• Sanitation and water solutions

The United Nations Economic Commission for Africa (UNECA) estimated that two out of three people will live in "water-stressed" areas (between 1 000 m3 and 1 700 m3 per person per year) by the year 2025, and that 25 African countries will be in this bracket. South Africa was categorised as a "water-stressed" country in 1990 and this is expected to worsen to "water scarce" by 2025 (less than 1 000 m3 per person per year). These water limitations present opportunities to innovate new, value-adding commercial products that respond to societal needs as they arise. Water access limitations in rural and peri-urban communities in South Africa present Waco International’s Sanitech business with a market for water-saving sanitation and latrine products. Similarly, its industrial services businesses are well placed to service large-scale water infrastructure projects on the African continent.


Contract execution

Sanitation and water solutions


Focus areasWaco International has identified the major focus areas of its environmental stewardship that support the overall achievement of the Group’s strategic objectives. An overview is provided below.

Environmental auditsSelf-directed environmental audits are performed by operational management on all sites on a quarterly basis, the results of which are compiled into a formal report submitted to the board. Audits take into account the specific requirements of a site in the context of relevant local and international policies. Senior management and central employees responsible for environmental matters regularly review the audit procedure and outcomes in order to maintain quality standards.

An overview of the safety, environmental and quality accreditations held by the various businesses is provided on page 11 and 12 of this report.

Resource managementEach operating company has air, water, noise and waste management programmes in place and preference is given to technologies, operating processes and treatment alternatives that minimise waste and emissions. One such example is the implementation by Form-Scaff of a closed system for washing concrete off equipment that is currently undergoing a trial run in the Johannesburg East operations.

Wherever possible, material is recycled and the Group opts to refurbish equipment rather than manufacture or purchase new stock. Suppliers of primary materials are selected according to the supplier evaluation, selection and performance appraisal (SESPA) process, which considers environmental indicators and accreditation.

Hazardous waste is disposed of in a responsible manner at reputable waste disposal plants, in accordance with relevant legislation in this area. Further to this, SGB-Cape also provides a commercial asbestos removal service where asbestos is

Stakeholder expectationsThe following key stakeholder groups are considered priority with regard to environmental stewardship. Their expectations of and potential impact on the Group are outlined in the table below:


Customers • Responsible business practices, including environmental management

• Necessary accreditation for products and services

• The Group commits to efficient and professional environmental management in its contracting processes with customers

• Where equipment and services are deployed on customer sites, operational leaders and customers are jointly responsible for their management and efficient deployment, which includes considerations of their environmental impact

• Practices that ensure responsible resource and waste management are an integral component of the overall high-quality service offered by the Group to its customers

Communities • Responsible use of environ-mental resources on site

• Innovative solutions to resource challenges

• Efficient, high-quality contract structuring requires considering the interests of surrounding communities, including the impact on the environment

• Collaboration with community stakeholders can contribute to the successful execution of projects, particularly in terms of access to natural and labour resources

• In communities where resources and resource infrastructure are limited, an opportunity exists for certain products to be deployed that not only yield significant financial returns, but also improve the living standards of people in those areas

Contractors, suppliers and service providers

• Responsible supply chain management

• Responsible use of environmental resources

• Responsible supply chain management requires collaborative methods of minimising environmental impacts, including waste disposal, recycling and the efficient use of water and energy

• Contractors, suppliers and service providers are required to meet the Group’s standards and share in its goals to improve in this area for the benefit of all role players


• Compliance with environ-mental management regulations

• Maintaining the requisite environmental accreditation in terms of operational resource management and product responsibility is critical to the Group’s legal licence to operate






PerformanceEnvironmental incidents There were no major environmental incidents during the year.

Case studies of environmental initiatives undertaken by the operating businessesBusiness Material environmental initiatives

Premier Modular • Target of zero to landfill• Introduction of reusable transportation sheets for product to reduce plastic waste• Waste compaction and greater segregation resulting in less transport, thereby reducing

carbon emissions• Product selection to reduce hazardous waste output• Energy consumption is monitored on a daily basis, with motion detector lights in public areas and

energy-efficient IT equipment

Waco Kwikform Group • Waste steel and paper generated within branches is disposed of through commercial recyclers• Sensitive documents are disposed of and recycled by secure shredding contractors• Where generated at branch level, waste paint is disposed of through commercial waste

management contractors• Paint tanks are located/secured within containment tanks (a second skin) to guard against leakage• Wastewater generated from wash bays is collected and treated by liquid waste contractors

Resource management (continued) removed and disposed of in a responsible manner on behalf of customers. This is a service offering provided by the company, which also increases its environmental capital.

Sanitation and water solutionsSanitech, a sanitation and integrated hygiene services business, has approximately 4 500 latrine products deployed in informal settlements throughout South Africa. Furthermore, the business focuses on innovation and has developed a number of latrine products that use little or no water and can be deployed in rural and peri-urban contexts where water infrastructure is lacking. These products have a minimal impact on the environment, as they are designed to prevent leaching (which contaminates groundwater) and airborne contamination from human waste (which causes disease), both of which are common hazards of existing latrine technology.

Sanitech has the requisite resources and capability to service these products once they have been installed, thereby creating long-term commercial engagements that not only add value to the business but also improve the lives of community members who use the products.

• Steam clean toilet Sanitech has developed a unique latrine product specifically

for use underground in mining operations. The steam clean toilet (SCT) uses steam and a rotating bowl, thereby saving water and bypassing the need for water infrastructure. A similar product has been designed for deployment in informal settlements where access to water is limited and there is a critical need for improved basic hygiene.

• New informal concept toilet The new informal concept (NIC) toilet uses nano technology

to keep the toilet bowl clean and minimise water usage, with a flush function and small water reservoir. The NIC uses a patented rotating bowl system which seals the waste inside, protecting the user from contaminants. This design also guarantees the safety of the user, particularly children, who are at risk in open-pit latrines. The products are available in stand-alone units or can be slotted into existing pit latrines, with minimal associated installation costs. The system uses up to 100 times less water than a common domestic rinsing type latrine.

• REPIT toilet The REPIT toilet is a retrofit kit which has been designed for

installation on existing pit latrines as well as new units. The REPIT is designed to prevent leaching (which contaminates ground water) and airborne contamination from human waste (which causes disease), both of which are common hazards of existing pit latrines.

• Portable wastewater treatment plants South Africa’s current wastewater treatment infrastructure

is insufficient and sewerage treatment in general is in a poor condition, leading to health and environmental hazards. Sanitech is in the process of developing and rolling out a portable wastewater treatment product which can be deployed in communities near existing branches. The plant is a modular, container-like, ‘plug-and-play’ structure which is convenient to assemble and transport. The treated greywater can potentially be reused in irrigation and industry applications. This innovation reduces the pressure on already limited water purification facilities, and also represents a significant cost and emission saving in terms of transport to and from these facilities.

Environment (continued)

Business Material environmental initiatives

Abacus • Abacus has contracted with an external service provider for the recycling of all waste, including domestic and hazardous waste

• Oil and hydraulic fluid are collected in a drum and, once disposed of, an appropriate disposal certificate is received

Sanitech • Careful selection of chemicals and chemical suppliers to ensure environmentally safe products and discontinued use of all chemicals containing formaldehyde

• Optimisation of logistics via monitoring of relevant indicators to improve fuel consumption • Material from products that are no longer in use is used to repair broken products where possible

and, once scrapped, all recyclable materials are recycled • In case of power outages, the server at head office has back-up power to run the computers,

with a generator on standby • High pressure hoses are used to reduce the amount of water required when washing toilets• Sanitech is in the process of developing a direct purification system in its trucks to save the use

of potable water for cleaning, thus utilising greywater for non-domestic applications


Piloting of portable wastewater treatment plants First installation in November 2015

Roll-out of the REPIT toilet November 2015

ISO 14000: International environmental standard All major branches to achieve this accreditation by 2017







Government effectiveness in South Africa

ContextWaco International recognises the need for businesses to be active role players in society and identify opportunities within their means to meaningfully share value with a broad group of stakeholders over a sustained period of time. The Group encourages its operating companies to invest in social upliftment projects where their unique product offering will improve the lives of communities and groups in need.

The Waco International Charitable Foundation is one of the Group’s primary corporate social investment (CSI) vehicles, offering financial support to children of employees entering tertiary education, followed by employment opportunities upon graduation. Waco Africa runs an Adult Basic Education and Training (ABET) programme, which has been successful in developing and upskilling previously disadvantaged individuals to advance in their careers.

Focus areas• Waco International Charitable Foundation

• Adult Basic Education and Training (Waco Africa)

• Social upliftment projects

Corporate citizenship


Focus areasWaco International has identified the major focus areas of its corporate citizenship endeavours that support the overall achievement of the Group’s strategic objectives. An overview of these is provided below.

Waco International Charitable FoundationThe Waco International Charitable Foundation’s primary mandate is an education fund, which it set up in 2007 via a donation from management to provide the children of permanent, full-time employees with tertiary education bursaries. Successful applicants who fulfil the criteria of financial need and academic excellence upon leaving school receive the necessary financial support for at least one year, with future support determined by academic results. The fund favours courses of study that are broadly in line with the Group’s business activities, as bursars are generally offered a position upon graduating for a period equal to the number of years they received support.

To date, a total of R2.84 million has been awarded to beneficiaries of the trust, spread over eight years. In that time 44 children of employees have been or currently are recipients of these bursaries.

Adult Basic Education and Training (Waco Africa)Waco Africa runs an ABET programme for employees; 128 learners are currently enrolled. The programme is offered to learners to enhance their basic literacy and numeracy skills and thereby develop their professional and personal capabilities.

Social upliftment projects The operating companies within Waco International undertake various social upliftment projects. Report-backs are communicated across the Group, sharing the positive outcomes and encouraging and incentivising further engagement. The following projects were undertaken in recent years

• The Smile Foundation Waco International supports the South African Smile

Foundation, a non-profit organisation that assists

disadvantaged children in need of reconstructive facial surgery. Since 2000, the Smile Foundation has facilitated over 1 500 corrective surgeries and has invested substantially in hospital infrastructure. To date, Waco International has donated R350 000 with a pledge of R850 000 in total.

• Devland Community Education Campus Growing Up Africa (GUA), a South Africa and US-based

non-profit organisation, formed a collaboration in the building industry for the construction of a multipurpose education campus in Soweto. Form-Scaff, Sanitech, SGB-Cape and Abacus are supplying formwork, scaffolding, ablutions and site containers respectively.

• Skukuza Primary School Waco Africa established a relationship with the school

through the Rhino Capture Trust Programme. The Group provides financial support that is used to fund big game protection programmes at the Kruger National Park, and to invest in specific needs at the school; for example, the installation of interactive whiteboards in classrooms.

• Shalom Christian College Abacus refurbished existing classrooms at the college when

it was in financial distress and unable to meet its rental commitments. Furthermore, Abacus provided two additional classrooms and accommodation for the school caretaker. The school has since grown its student and teacher numbers.

• Fishing for Hope Sanitech, SGB-Cape and Abacus ran a fundraising campaign

in support of a local children’s home.

• Sanitech community projects Sanitech supports a number of organisations through the free

supply and servicing of toilets and other sanitation products to needy schools, hospitals and crèches.

Stakeholder expectationsThe following key stakeholder groups are considered priority with regard to corporate citizenship. Their expectations of and potential impact on the Group are outlined in the table below:


Employees • Access to skills development and training

• The sustainability of the business depends on the development of a leadership pipeline at every level of the organisation able to achieve its identified growth initiatives

• Effective employee development initiatives contribute to employee commitment and enhance the Group’s reputation as a responsible employer

Communities • Long-term support• Employment opportunities

• Local communities represent a valuable labour resource on projects, to whom the Group is able to offer employment and development opportunities as appropriate

• Meaningful social upliftment projects encourage ongoing community engagement, build relationships and strengthen the Group’s profile as a good corporate citizen






Corporate citizenship (continued)

The table below provides a summary of the community upliftment projects undertaken by Waco International, as well as the associated CSI spend of each.

Project Period CSI spend

Waco International Charitable Foundation 2007 – 2015 R2.84 millionSmile Foundation 2015 R850 000ABET 2015 R750 000


The Group aims to improve its methods of recording CSI spend. In this way, Waco International will endeavour to measure the social return on investment where possible.

Contribute further to the Smile Foundation R850 000 to the Smile Foundation

Continue to train employees on the ABET programme Train at least 60 employees


Code of ethics summary

A summary of Waco International’s code of ethics is provided below. This is an adaptation of the summary that was sent to all employees of the Group in an effort to make the code accessible and emphasise its values-based approach. It outlines the required behaviour, relevant to a range of stakeholders, which the Group views as critical to the sustainable and ethical functioning of the business. All senior and key managers and employees have signed this code.

The company

We will act at all times in the best interests of and for the benefit of the company and its shareholders.

Customers

We strive to serve our customers and stakeholders by exceeding their expectations in terms of product offering and service at the agreed price.

Suppliers

We will always apply sound ethical and good purchasing practices.

Competitors

We will be fair, ethical and lawful in our dealings with competitors or communication with others about our competitors.

Environment and society

All our business dealings will be conducted with due consideration to the environment and the societies in which we operate.

Employees and co-workers

We will treat all our employees and co-workers with dignity, integrity and honesty; we will respect our diversity and the human rights of others. As managers, we must strive to ensure that our employees are trained to do the job for which they are employed, that their workplace is safe and that work expectations are clearly communicated. Employees are obliged to give a fair day’s work that is safe and free of any conflict of interest.

Individuals

You take personal responsibility for your actions.






ABET Adult Basic Education and Training

AFR All-accident frequency rate

Africa South Africa and other sub-Saharan Africa

Australasia Australia and New Zealand

B-BBEE Broad-based black economic empowerment

BLDP Business Leadership Development Programme

CSI Corporate social investment

EDP Executive Development Programme

EEA Employment Equity Act

FTE Full-time equivalent employees

GIBS Gordon Institute of Business Science

GUA Growing Up Africa

IFRS International Financial Reporting Standards

ISO International Organization for Standardisation

LDC Limited duration contract

LRA Labour Relations Act

LTIFR Lost-time injury frequency rate

LTIs Lost-time injuries

NIC New informal concept toilet

NOSA National Occupational Safety Association

NUM National Union of Mineworkers

NUMSA National Union of Metalworkers of South Africa

OECD Organisation for Economic Cooperation and Development

OHSAS Occupational Health and Safety Standards

QMS Quality Management System

SCT Steam clean toilet

SESPA Supplier evaluation, selection, and performance appraisal process

SHEQ Safety, Health, Environment and Quality

SMME Small, micro and medium enterprise

SMS Safety Management System

The Code Code of ethics

TMCs Talent management committees

UASA United Association of South Africa

UNECA The United Nations Economic Commission for Africa

UNGC United Nations Global Compact

Glossary


GREYMATTER & FINCH # 9633

Waco International Registered office and business addressPhysical address: No 2 Harrowdene Office Park128 Western Service RoadWoodmead, Johannesburg, 2148Postal address: PostNet Suite #108Private Bag X23Gallo Manor, Johannesburg, 2052Switchboard: + 27 11 461 1400Web: www.wacointernational.co.za

Contact detailsChief executive officer: Stephen GoodburnEmail: [email protected] financial officer: Eben le RouxEmail: [email protected] secretary: Mark TowlerEmail: [email protected]

Registered auditorsKPMG Inc.85 Empire Road, Parktown, Johannesburg, 2193Switchboard: +27 11 647 7111

Principal bankerThe Standard Bank of South Africa Limited

Business unitsWaco AfricaPhysical address: 181 Barbara Road, ElandsfonteinJohannesburg, 1601Switchboard: +27 11 842 4000Web: www.wacoafrica.co.za

AbacusPhysical address: 2 Fonda Place, Yaldwyn Road, Jet ParkJohannesburg, 1459Switchboard: +27 11 397 8150Web: www.abacusspace.co.za

SanitechPhysical address: Unit 9 Lakeview Business ParkYaldwyn Road, Jet Park, Johannesburg, 1459Switchboard: +27 11 823 6060Web: www.sanitech.co.za

SkyJacksPhysical address: 5 Geertsema Road, Jet ParkJohannesburg, 1459Switchboard: +27 11 397 2730Web: www.skyjacks.co.za

Waco KwikformPhysical address: 12 Pike Street, RydalmereNSW, Australia, 2116Switchboard: +61 2 9684 8888Web: www.wacokwikform.com.au

APL KwikformPhysical address: 604 Rosebank Road, AvondaleAuckland, New Zealand, 1026Switchboard: +64 9 828 0211Web: www.aplkwikform.co.nz

Premier ModularPhysical address: Catfoss Lane, Brandesburton, DriffieldEast Yorkshire, United Kingdom, Y025 8EJSwitchboard: +44 1964 545 000Web: www.premiermodular.co.uk

Form-Scaff ChilePhysical address: Las Acacias 1031, Parque IndustrialEstrella del Sur, San Bernardo, Santiago, Chile, 9801Switchboard: +562 738 5019Web: www.formscaff.cl

Administration

Africa

Africa

Africa

Africa Africa

New Zealand

New Zealand

AustraliaAustraliaUK

Chile

Documents

Sustainability Overview 2015 - Waco Internationalwacointernational.co.za/wp-content/uploads/2019/06/Sustainability... · information addressed holistically throughout the integrated