Kumba Annual Report 2005

INDEX TO GLOBAL REPORTING INITIATIVE INDICATORS

Including Feb 2005 supplement for mining and minerals sector

GRI ELEMENT	TOPIC	FY2003	FY2004	FY2005	PAGE (as per printed report)
Vision and strategy 1.1	Vision and strategy				4, 14
1.2	Key elements of report including language policy				Contents, 4, 14, 103
Profile 2.1	Name				OFC
2.2	Major products				1, 2
2.3	Operational structure				1
2.4	Major divisions and joint ventures				Foldout, 1
2.5	Countries of operation				Foldout
2.6	Nature of ownership				3
2.7	Nature of markets served				2
2.8	Scale of organisation				3
2.9	Stakeholders				88
2.10	Contact details				103
2.11	Reporting period				103
2.12	Date of previous report				103
2.13	Boundaries of report				103
2.14	Significant changes on prior year				103
2.15	Basis reporting on joint ventures, etc				103
2.16	Explanation of restatements	n/a	n/a	n/a
2.17	Decisions not to apply GRI principles	n/a	n/a	n/a
2.18	Definitions
2.19	Significant changes in measurement methods on key economic, environmental and social information				47 - 51 74 - 78 80 - 84
2.21	Policy, practice on independent assurance				5, 13, 104
2.22	Additional information	web	web	web
Governance structure and management systems 3.1	Governance structure				60
3.2	Independent non-executive directors				60
3.3	Expertise of board members				60
3.4	Supervisory board processes				60
3.5	Link between executive compensation and achievement of goals				61
3.6	Organisational structure and key responsible individuals				56
3.7	Principles and policies on economic, environment and social performance				72, 74 -78, 80
3.8	Mechanisms for shareholder interaction with board members				62
3.9	Identification of stakeholders				86 - 89
3.10	Stakeholder consultation				86
3.11	Information ex stakeholder consultation				86
3.12	Use of information from stakeholder consultation				86 - 89
3.13	Precautionary approach				60
3.14	External principles endorsed				13, 81, 104
3.15	Industry, business and advocacy organisations				84, 85
3.16	Upstream and downstream impacts
	– outsourcing/supplier management				82
	– product and service stewardship				6
MM5	Materials stewardship Policies for assessing product eco-efficiency and sustainability attributes (eg recyclability, material use, energy use, toxicity, etc)	–	–	na	Investigation under way
3.17	Indirect impacts				74
3.18	Major changes in locations or operations			n/a
3.19	Programmes and procedures in economic, environmental and social performance
	– priority and target setting				5 - 6
	– major improvement programmes				4, 13
	– internal communication and training				83
	– performance monitoring				83
	– internal and external audit				72, 86
	– senior management review				61, 62
3.20	Certification of management systems				60, 74
4.1 GRI index	Index				107
Performance indicators Economic Customers EC1	Customers Net sales				3, 8
EC2	Geographic breakdown				34, 73
EC3	Suppliers Cost of procurement				83
EC4	Percentage paid on contracted terms				73
EC11	Supplier breakdown				73
EC5	Employees Total payroll and benefits				73, 81
EC6	Providers of capital Distributions				73
EC7	Retained earnings				73
EC8	Public sector Total taxes paid				73
EC9	Subsidies received				73
EC10	Donations			Zero	73
EC12	Total spent on non-core business infrastructure development	na	na	na	Systems being developed to monitor
EC13	Indirect impacts Indirect economic impacts				9 - 15
MM1	Revenue capture, management and distribution Identify sites where local economic contribution and development impact is of particular significance and interest to stakeholders (eg remote sites).	–	–	na	Contained in social impact assessments and labour plans. Reporting will begin in 2006
MM2	Value added disaggregated to country level	–	–	na	Will report in 2006
Environmental EN1	Materials used other than water				77
MM4	Percentage products from secondary materials	–	–	–	Kumba produces no products from secondary materials
EN2	Materials waste from external sources	na	na	na	Kumba uses no wastes from external sources
EN3	Direct energy use				77
EN4	Indirect energy use	na	na	na	Kumba suppliers do not publish this information
EN17	Renewable energy sources	na	na	na	Kumba does not currently use renewable energy sources
EN18	Energy consumption				76, 77
EN19	Indirect (up/downstream) energy use	na	na	na	Energy consumption investigation initiated
EN5	Total water use				77
EN20	Water use and ecosystems affected	na			Investigations under way
EN21	Withdrawals of ground and surface water	na			76
EN22	Recycling of water	na	na	na	Investigations under way
EN6	Land in biodiversity-rich habitats	na		na	Zincor adjacent to Ramsar site and Rosh Pinah next to national conservation area
EN7	Impacts on biodiversity in terrestrial, fresh water and marine habitats	na	na	na	Investigations under way
EN23	Land for production activities or extractive use
	1. Land disturbed				76
	2. Land rehabilitated in period vs agreed end use				76
MM3	Biodiversity management	–	–	na	Under way. All sites will have biodiversity action plans on completion
MM6	Large-volume mining and mineral processing waste	–	–	na	Test case in progress. To be refined in 2006 to enable full reporting
EN24	Impermeable surface of land	na			Available but not yet reported– negligible portion of land
EN25	Impacts on protected, sensitive areas	na			Under control and stable. Investigations under way
EN26	Changes to natural habitats from activities/habitats protected or restored	na			Investigations under way
EN27	Objectives for protecting and restoring ecosystems	na			Under development
EN28	Protected species with habitats in operational areas	na	na	na	Available but not yet reported
EN29	Business units in or around protected or sensitive areas				Zincor and Rosh Pinah (EN6)
EN8	Greenhouse gas emissions	na	na	na	Calculated but not yet reported as additional parameters are being integrated into the model for FY2006
EN9	Ozone-depleting substances	na	na	na	Air quality baseline studies initiated at select business units
EN10	Other significant air emissions	na		na	Projects under way to comply with legislation
EN11	Waste by type and definition	na	na	na	Waste stream analysis initiated at Sishen and Ticor. Project to be rolled out to group by end FY2006
EN12	Discharges to water	na	na	na	See EN11
EN13	Spills of chemicals, oils and fuels	na			Handled and reported under incidents p77
EN30	Indirect greenhouse gas emissions		na	na	Air quality baseline studies initiated at select business units
EN31	Hazardous waste	na		na	Studies under way
EN32	Ecosystems/habitats affected by water run-off	na	na	na	Biodiversity action plans being developed
EN33	Performance of suppliers		na	na	Work to be initiated with hydro carbon suppliers at select business units
EN14	Impacts of products and services	na	na	na	Kumba has no interaction with end users to measure this indicator
EN15	Products reclaimable	na	na	na	Kumba has no interaction with end users to measure this indicator
EN16	Fines for environmental non-performance	nil	nil		Ticor, R2 000 –uncovered transport vehicle resulted in dust spillage
EN34	Impacts of transportation used for logistical purposes	na	na	na	Not a SHE Indicator
EN35	Total environmental expenditure by type	na	na	na	Limited to water, electricity and diesel as reported
Social LA1	Employment Breakdown of workforce				80
LA2	Net job creation and average turnover segmented by region/country				80
LA12	Employee benefits beyond legal mandate	na			81
LA3	Labour/management relations Employees represented by trade unions, bona fide employee representatives or covered by collective bargaining agreements				81
LA4	Information, consultation and negotiation with employees over changes in operations				81
LA13	Formal worker representation in decision-making or management, including corporate governance				81
LA5	Health and safety Recording and notification of occupational accidents and diseases				75
MM13	Number of new cases occupational disease by type. Programmes to prevent occupational disease.	–	–		75
LA6	Formal health and safety committees with management and worker representation				75
LA7	Standard injury, lost-day and absentee rates and work-related fatalities (including sub-contracted workers)				75
LA8	Policies or programmes on HIV/Aids – prevalence				80 -81
LA14	Compliance with ILO guidelines				82
LA15	Agreements with trade unions or employee representatives covering health and safety at work				74
LA9	Training and education Average hours of training per year per employee by category				82
LA16	Programmes to support continued employability of employees and to manage career endings				81
LA17	Programmes for skills management or lifelong learning				81
LA10	Diversity and opportunity Equal opportunities and monitoring systems				80
LA11	Senior management, corporate governance bodies, including male/female ratio, cultural diversity				80
HR1	Human rights Human rights and operations, including monitoring mechanisms				80
HR2	Human rights impacts on investment and procurement				81
HR3	Human rights within supply chain including monitoring systems	na			81
HR8	Employee training on human rights in operations				81
HR4	Non-discrimination Discrimination in operations				81
H5	Freedom of association and collective bargaining Freedom of association				81
HR6	Child labour				81
HR7	Forced and compulsory labour				81
HR9	Disciplinary practices Appeal practices				81
HR10	Non-retaliation				81
HR11	Security practices Human rights training for security personnel				81
HR12	Indigenous rights Needs of indigenous people				81
HR13	Jointly-managed community grievance mechanisms				85
HR14	Share of operating revenues redistributed to local communities	na			86
SO1	Community Communities affected by operations				86
	– R value of CSI contributions
MM7	Significant incidents affecting communities during reporting period, grievance mechanisms used to resolve incidents and outcomes.	–	–		86
MM8	Programmes that address artisanal and small-scale mining (ASM)	–	–		86
MM9	Resettlement policies and activities	–	–		86
MM10	Operations with closure plans, covering social (including labour transition), environmental, economic aspects.	–	–		86
MM11	Process for identifying local communities’ land and customary rights, including indigenous peoples’, grievance mechanisms to resolve disputes.	–	–		86
MM12	Approach to identifying, preparing for and responding to emergency situations affecting employees, communities, environment.	–	–		74
SO4	Awards for social, ethical and environmental performance				10 – 13, 65
SO2	Bribery and corruption Policy				63
SO3	Political contributions Political lobbying and contributions				63
SO5	Money paid to political bodies			zero
SO6	Competition and pricing Court decisions on anti-trust and monopoly regulations	n/a	n/a	n/a
SO7	Mechanisms to prevent anti-competitive behaviour				63
PR1	Customer health and safety Customer health and safety during use of products and services	n/a	n/a	n/a
	Products and services
	PR2 Product information and labelling	n/a	n/a	n/a
	PR7 Non-compliance on product information and labelling	n/a	n/a	n/a
PR8	Customer satisfaction	n/a	n/a	n/a
PR9	Advertising Advertising	na
PR10	Breaches of advertising and marketing regulations	zero	zero	zero
PR3	Respect for privacy Consumer privacy	na
PR11	Breaches of consumer privacy	zero	zero	zero

– sufficient disclosure

– partial disclosure

n/a – not applicable

na – not available

GRI “in accordance with” self-assessment
Requirement 4: The company must ensure that the report is consistent with the principles in part B of the guidelines
Requirement	Comments/conclusion
Principle 1 – Transparency Does the report provide full disclosure of the processes, procedures, and assumptions in report preparation?	Chief executive’s review (p12), approach to sustainable development, social summary
Principle 2 – Inclusiveness Does the reporting organisation systematically engage its stakeholders to help focus and continually enhance the quality of its reports?	Ongoing engagement initiatives (p85) address all elements of our integrated sustainability reporting. Feedback is noted and incorporated where appropriate
Principle 3 – Auditability Is the reported data and information recorded, compiled, analysed and disclosed in a way that would enable internal auditors or external assurance providers to attest to its reliability?	Report compiled to meet auditability requirements relating to aspects of which KPMG’s independent assurance report (p104) gives assurance over, and our internal audit processes for SHE data review
Principle 4 – Completeness Does the report include all information that is material to users for assessing the organisation’s economic, environmental and social performance in a manner consistent with the declared boundaries, scope and time period?	Kumba’s executive committee has reviewed the content of this report and is satisfied that the information it contains is sufficient to enable analysis p103 (Report Scope)
Principle 5 – Relevance Does the report clearly define the degree of importance assigned to particular indicators, including the threshold at which the information becomes significant enough to be reported?	As stated by our chief executive and enumerated in our targets (p8), all information in this report is considered significant to our diverse stakeholders
Principle 6 – Sustainability context Does the report provide an overview of the context in which the data is reported relative to the larger ecological, social or economic constraints?	The report scope and introductions to each core section identify the context of the data being reported
Principle 7 – Accuracy Does the report achieve a high degree of exactness, or a low margin of error, such that users can make decisions with a high degree of confidence?	Aspects of this report have been reviewed by internal auditors and external assurance providers to ensure that the data is presented as accurately as possible
Principle 8 – Neutrality Does the report avoid bias in selection and presentation of information, and provide a balanced account of the organisation’s performance?	This report reflects Kumba’s commitment to providing abalanced and objective account of our economic, social and environmental impacts – positive and negative. Our impartiality includes references to underperforming areas or missed targets
Principle 9 – Comparability Does the report maintain consistency with previous reports in the boundary and scope of indicators? Alternatively, are any changes of boundary or scope, or re-statements of previously disclosed information, adequately disclosed?	Apart from the impact on comparability due to a change in financial year end, this report underscores our commitment to continuous improvement in sustainable development reporting and the value we place on stakeholder feedback at every level
Principle 10 – Clarity Does the report make the reported information available in a manner that is responsive to the maximum number of users while still maintaining a suitable level of detail?	Kumba’s aim to provide a report that is as comprehensive as economically possible is reflected in the additional case studies included this year. Our commitment to clarity, consistency and ease of use is reflected in structural changes designed to ease readership and will ultimately be tested by stakeholders
Principle 11 – Timeliness Is the report being released in a manner that is consistent with a regular schedule that meets user needs?	Kumba’s annual report is provided in accordance with our published financial year-end reporting guidelines and will be distributed to stakeholders at all operations