Report on Safety, Social and Ethics Committee
Chairman
Dear stakeholders
On behalf of the Safety, Social and Ethics Committee (the Committee), I am pleased to present an overview of safety, social and ethics matters for the Group. The Committee reviewed the 2018 Sustainability Report and assurance processes supporting key data included therein.
- Refer to Sustainability Report further details of our activities.
The Committee assumed Social and Ethics Committee responsibilities following the Nomination, Governance, Social and Ethics Committee's reconstitution as a Nomination and Governance Committee with effect from 1 June 2017. This has enabled the Committee to have a greater focus on our activities with respect to safety, social and ethics matters, including the statutory mandate provided for under the Companies Act, No 71 of 2008.
Ms Imogen Mkhize led the Safety, Social and Ethics Committee until she retired from the Board at our last annual general meeting on 17 November 2017. On behalf of the Committee, I thank Ms Mkhize for her leadership in shaping the direction of our Committee. In executing our responsibilities, we considered and monitored Sasol's activities, on safety and sustainability, social and economic development, labour and employment, ethics and stakeholder relationships as set out below, while having due regard to relevant legislation, human rights and prevailing best practice.
Safety and sustainability
We received reports covering matters relating to the Group's safety, health and environmental strategy, policies, performance, risks and liabilities. Safety is a top priority, and is one of our core values. We are therefore deeply saddened to report four work related fatalities and six high severity injuries this year. Four focus areas were identified which will form the basis of our safety programme for the next financial year. The Committee provides oversight over sustainability reporting and supports the Board in ensuring effective risk management oversight in material risks within the scope of the Committee.
Social and economic development
We monitored compliance with the goals and purposes of the 10 principles of the United Nations Global Compact and the Organisation for Economic Co-operation and Development's recommendations regarding corruption. The Committee also considered Sasol's activities in relation to good corporate citizenship, with an emphasis on Sasol's social investment and global programmes embarked on within education, skills development, environment, community development and employee volunteerism. The Committee considered Sasol's activities in relation to all environmental, health and public safety matters, including the impact of the company's products and services on stakeholders.
Labour and employment activities
We received reports on employment relationships, organised labour and the International Labour Organisation Protocol on decent work and working conditions. The Committee also considered Sasol's progress in terms of the South African Employment Equity Act, No 55 of 1998, focusing on gender diversity, women empowerment and Sasol's contribution towards the educational development of employees. Sasol is committed to promoting equal opportunities and fair employment practices, globally, across all its businesses. We have implemented several programmes to ensure the practical application of our commitment to human rights, including worker participation and employment equity, always maintaining our high standards and statutory compliance.
Ethics
We monitored the tone at the top, the ethics culture of the Group and considered reports on ethics transgressions and how the Group responds to these. In February 2018, we adopted a new Code of Conduct (the Code) which entrenches our seven values for the Group, which applies to all our directors and employees. The Code is a public statement that Sasol is committed to good corporate governance, ethical conduct, and to applying consistent and high standards in all we do.
Stakeholder relationships
We received reports on our supplier and consumer relationships and the governance of the Group's stakeholder engagement activities as well as Sasol's standing in terms of the South African Broad-Based Black Economic Empowerment (B-BBEE) Act, No 53 of 2003, including Sasol's proposed response to the revised B-BBEE Codes. The Board, assisted by the Committee, ensures that disputes with Sasol's stakeholders are resolved as effectively, efficiently and expeditiously as possible. It considered the legitimate interests and expectations of stakeholders in all its decision-making. We regularly communicate with our stakeholders, including presenting the Group's strategy and performance to investors. In 2018, we continued our engagement with non-governmental organisations on matters related to climate change. In terms of the Promotion of Access to Information Act, 2 of 2000, Sasol considers and responds to all requests for access to information. We ensure appropriate engagement with requesting parties, without compromising Sasol's rights with respect to the protection of certain information.
Two valid requests for information were received during the year, one of which was rejected based on non-compliance with the requirements of the Act, and one was acceded to.
Mr ZM Mkhize
Chairman
27 August 2018