In line with its strategic framework for sustainable development, Kumba reports to stakeholders on an integrated triple bottomline basis as part of its annual reporting. Our first two integrated reports (2003 and
2004) were well received but, more importantly, the feedback from stakeholders on these reports and discussions at all levels have prompted a more detailed approach this year.

In formulating a group-wide approach to sustainable development and its inextricable component of local economic development, Kumba has been guided by the considerations of South African legislation, recommendations on corporate governance and international benchmarks such as the Global Reporting Initiative.

Sustainable development – a model for delivery
Kumba’s approach to sustainable development begins at the top – in our country and in our group. Given our belief that sustainable development is the foundation on which our future rests, we have developed a tiered approach to ensure that our sustainable development initiatives complement government’s identified
priorities. A sustainable development steering committee comprising senior management, reporting directly to the executive committee and board, provides overall strategic direction while a sustainable development task team monitors initiatives and action teams are in place at each business unit. Management
information then feeds back to senior level to create a virtual circle of development that is both sustainable and meaningful because it responds to identified needs.

We have consulted with all stakeholders for their feedback on our formal stakeholde charter, which helped us determine targets for specific initiatives. Our approach synthesises all these elements into a framework that is both practical for Kumba and meets the unique needs of our stakeholders. Underpinning this framework is a clear understanding of what we want to achieve and how we will do so.

Social impact management – Kumba’s direct and indirect effects on community and society (operations, social stability and influence on family life, housing and living conditions)

Employment equity – Kumba’s equitable recruitment and employment practices to meet legislative targets for employing and developing individuals from designated groups.

Natural environment – Understanding our impact on the physical environment and conforming to nationally- and internationally-recognised standards, policies and measures to negate or address detrimental environmental effects, and to ensure sustainable development of our operations. Kumba’s management of environmental issues is well structured, both by legislated requirements and the internal systems established to manage these.

HDSA ownership and control – Managing the black economic empowerment imperative in South Africa through ownership control and management participation.

Stakeholder engagement – Implementing effective and transparent engagement, communication and independentlyverified reporting arrangements with stakeholders.

Natural resource management – Responsible use of non-renewable mineral and other natural resources.

Business sustainability – Ensuring our long-term financial viability; contributing value to all stakeholders; and accounting for the distribution of value created through business activities.

Mine closure – Ensuring we leave good infrastructure, skilled people and selfsufficient communities after mine closure.

Social development/national social priorities – In balancing our interests with those of our various stakeholders, specific areas are guided by the social needs of the community, and by the national social priorities of society at large, including:
– Education, training and skills development
– Healthcare promotion, particularly HIV/Aids programmes
– Job creation
– SMME and other business opportunity development
– Conservation of environment, including awareness programmes
– Infrastructure development, including schools, clinics, etc.

HIV/Aids – Kumba’s approach to the pandemic on two levels: as a workplace issue (specifically preventative,
educational and clinical support practices including anti-retrovirals) and as a community issue.

Health and safety in the work environment – Going beyond legislative compliance on workplace conditions for employees to facilitate greater workplace satisfaction, efficiency and productivity.

Labour relations – Managing the relationship with our employees and their representatives, to foster
appropriate engagement, a climate of trust and widespread participation on issues of mutual interest.

Corporate governance – The extent and sophistication of Kumba’s board, executive management and governance structures supporting our practice of triple bottom-line risk management.

Human resource development – The range and extent of training and skills development practices, moving beyondcurrent job training requirements to include future and potential work orientation, personal skills development, and training in corporate citizenship and sustainable development.

Shareholders’ rights – Equal treatment of all shareholders and protecting their rights – specifically minority
shareholders – through equal accurate and timeous disclosure.

Supplier relations/developmental procurement – Managing procurement processes and, in South Africa, nurturing small enterprises and disadvantaged individuals, and developing suppliers through preferential procurement.

Human rights – Ensuring that basic human rights are respected and adhered to by all direct and indirect operations.

Product stewardship – Managing the impact of our products or services on the marketplace and society at large.

Supply chain compliance – Ensuring that business partners in our supply chain are themselves responsible
corporate citizens.

Leadership in sustainability – Demonstrating our leading role in promoting and implementing corporate
citizenship and sustainability as a business philosophy in our industry peer group, in our sector of operation, in our country and against international benchmarks and standards.Relevance and urgency in Kumba's context
We separate our key elements on the basis of urgency and relevance to Kumba, including the impact on our business and the inherent risk. Some are already well developed and performance needs to be maintained. In others, such as stakeholder engagement and local economic development (detailed on p85-89) significant progress is being made to bring performance to appropriate levels.

Note: The colour coding used in this table aligns Kumba’s key sustainable development elements with the accepted triple bottom-line framework. Kumba’s responses to these elements, highlighting specific initiatives and progress through case studies from across the group, are detailed on p91-101.