SOCIAL AND ETHICS COMMITTEE REPORT

CompositionObjectives and functions
Chairman: Dinga Mncube

Other committee members:
Gavin Tipper
Shakeel Meer
Pieter van Zyl
Kirsten Coetzee

The Company Secretary acts as the Committee Secretary.

The Board is satisfied that the committee has performed its responsibilities in compliance with its terms of reference for the period under review

  • Monitor York’s activities in relation to social and economic development, good corporate citizenship, the environment, health and public safety, consumer relationships as well as labour and employment

  • Draw matters within its mandate to the attention of the Board as appropriate

  • Report to the shareholders of the Company at the AGM on the matters within its mandate

Appointment and composition

social_ethicsThe Social and Ethics Committee was established by the Board with effect from March 2012, in compliance with the requirements of the Companies Act. The committee’s terms of reference were approved by the Board in September 2012.

The first members appointed to the committee were: Gavin Tipper (Chairman), Pieter van Zyl (CEO), Kirsten Coetzee (Chief Human Resources Officer) and Sue Hsieh (Corporate Legal Advisor). Subsequent to the appointment of new independent non-executive directors to the Board in march 2013, the membership of the committee was restructured.

As of 26 june 2013, the composition of the committee is as follows: Dinga Mncube (Chairman), Gavin Tipper (non-executive director), Shakeel Meer (non-executive director), Pieter van Zyl (CEO) and Kirsten Coetzee (Chief Human Resources officer).

Responsibilities

The objectives and responsibilities of the committee are recorded in its terms of reference and are aligned with the committee’s statutory functions as set out in the Companies Act and the regulations thereto. The committee:

  • Monitors relevant social, economic, governance, employment and environmental activities of the Company;
  • Brings matters relating to these activities to the attention of the Board, as appropriate; and
  • Reports annually to shareholders on the matters within the scope of its responsibilities.

The specific activities monitored by the committee, with reference to compliance with relevant legislation, regulations and codes of best practice, include:

  • Social and economic development, including the Company’s standing relative to the UN Global Compact Principles;
  • Good corporate citizenship, including the Company’s contribution to the development of the communities in which it operates;
  • The environment, health and public safety includ’s standing in terms of the International Labour Organisation Protocol on decent work and working conditions; and the Company’s employment relationships and contribution towards the educational development of its employees.

Functioning

The committee held two meetings during the period under review. The committee has established processes to monitor the Company’s activities, processes and initiatives as per its terms of reference. During the period under review, the committee considered the Company’s:

  • Progress in regard to black economic empowerment as measured by the Department of Trade and Industry’s BBBEE scorecard (verified under the Forestry Charter);
  • Ethics training;
  • Labour practices and policies, with specific reference to contractors;
  • Policies aimed at preventing, detecting and dealing with fraud;
  • CSI programme. Details of beneficiaries and amounts disbursed were reviewed. The committee also received presentations on the Company’s contribution to the development of communities through mechanisms such as the Sasol Community Development partnership;
  • Contribution towards the educational development of its employees, including the Leadership Programme;
  • SHE policy;
  • Sustainability from a social perspective, including the Company’s Forestry Learnerships and Apprentice Training Programme; and
  • Approach to the environment, having due consideration to fire prevention measures and its environmental scorecard. York’s precautionary approach to environmental challenges and initiatives implemented to promote greater environmental responsibility, and development and diffusion of environmentally-friendly technologies were reviewed.

Where appropriate, the committee made recommendations aimed at enhancing the Company’s standing as a responsible corporate citizen. Details of certain programmes, scorecards and sponsorships are provided in sections of the integrated annual report.

Summary

The Company takes its environmental, social and governance responsibilities seriously. Appropriate policies, plans and programmes are in place to contribute to social and economic development, good corporate citizenship, environmental responsibility and fair labour practices. No cases of substantive non-compliance with legislation and regulations, or non-adherence to codes of best practice relevant to the committee’s duties and responsibilities, were brought to its attention during the year under review.

Dinga Mncube
Chairman
Social and Ethics Committee