Management of Social, Ethics and Transformation in Afrox
July 2013
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The Companies Act & King III requirements
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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
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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
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Linde Corporate Responsibility organisationGovernance structures
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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
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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
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Integrated reporting
Sustainability report content
used
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Opportunities
Ongoing management of day to day operation
with a Sustainability lens