We have a structured and systematic approach to managing our most signifi cant social, economic and environmental impacts and to addressing the material interests of our priority stakeholders.

Board level: At board level, sustainability issues are addressed through the following committees:

• The social, transformation and remuneration (STR) committee is responsible for the Group’s activities relating to: social and economic development; transformation; public safety; consumer relationships; labour and employment issues; and remuneration. The committee has delegated the oversight for health and environment to the health, safety, environment and risk (HSER) committee and the oversight of ethics to the nominations, governance and ethics (NGE) committee.
• social and ethics committee (SET) has been established to undertake complementary work examining and addressing social and ethics-related issues impacting employees and communities with a focus on Impala Rustenburg operations. The committee held its inaugural meeting on 25 May 2018.
• The HSER committee guides strategy, assesses the adequacy and appropriateness of HSE policies, standards and procedures and reviews Group-wide performance and risk management practices quarterly. The committee also investigates and reviews all major incidences within the ambit of its work.
• The audit committee oversees the appointment of the assurance provider for non-fi nancial performance each year. The results are presented to both the audit and STR committees with the necessary recommendations and action.

The Group’s risk function is disseminated throughout all committees, except the NGE committee.

Further details of the composition and activities of these board committees are provided in our Integrated Report.

Executive level: At an executive level, sustainable development falls under the responsibility of the executive committee (Exco), which is responsible for reviewing performance in terms of the Group’s non-fi nancial indicators. The Exco lends support to the board’s HSER committee, STR committee, SET committee and audit committee.

Performance evaluation: Sustainability objectives form part of the key performance indicators (KPIs) against which Implats’ management and executives are measured.

Focus areas, policies and procedures: Management of our employees is headed up by a dedicated Group executive for human resources reporting to the CEO. The scope of work includes remuneration, human resource development, talent management and employment equity. Group policies and procedures on people management issues are established at corporate level and apply at our operations. Our policies and procedures are aimed at contributing to sound employee relations, attracting and retaining talent and ensuring the continuous development of our employees, while offering opportunities for career progression with a particular emphasis within our South African operations on historically disadvantaged South Africans (HDSAs). All contracting employees are vetted and assessed according to our own internal standards. The human resources function was identifi ed as a strategic priority in the FY2018 business plan and a series of deep-dive risks analyses were undertaken into human resource related risks.

Transformation: Each operation has a transformation committee comprising representatives from management, unions and women, as well as various other stakeholder groups who contribute to overseeing and advancing transformation at each operation. The operational committees report to the Group STR committee. Our operations also have community forums, at which issues of concern to local communities – such as employment opportunities, skills development, procurement, community development projects and health, safety and environmental performance – are discussed. Issues arising from these community forums are relayed to the operational committee and, ultimately, to the Exco. These are elevated to the STR committee quarterly and to the board as required.

Group and site-specifi c HSE policies, procedures and standards are in place to ensure compliance with legislative requirements and support our vision of zero harm. Responsibility for implementing HSE policies and procedures rests with line management. All operations submit quarterly performance reports to the boardappointed HSER committee. Group and operational level HSE specialists support line management to implement the strategy and to monitor and manage performance.

The Group’s environmental team has close links with operational and project management and is involved in due diligence exercises in connection with acquisitions and the development of strategic initiatives. Policy implementation is enhanced by our commitment to maintaining ISO 14001 certifi cation for our environmental Sustainability governance Implats Sustainable Development Report 2018 16 management systems. The Group’s internal auditors and external auditors conduct regular compliance audits. In addition to the ISO 14001 certifi cation, the refi neries are signatories to Responsible Care® and retained their certifi cation. We follow the International Council on Mining and Metals (ICMM) guidelines to improve our approach and practices. Key sustainability data are externally assured.

At Impala Rustenburg, Marula and Impala Springs we have identifi ed and are addressing compliance gaps relating to the ISO 45001 standard (which replaced the widely implemented OHSAS 18001), with a view to achieving certifi cation. (The health and safety management systems standards will be rolled out at all non-certifi ed operations during FY2019.)

Various internal and external review and assurance programmes ensure that priority unwanted risks are identifi ed and that adequate controls are in place to manage them. A detailed review of our risk management practices is provided in our Integrated Report.

Our approach to social performance is informed by our values and our business and ethics principles; all our operations apply high social performance standards in line with our sustainable development policy, community policy and legal frameworks of the countries in which we operate. We are investigating the implementation of ISO 26000 to provide guidance on social responsibility. We seek to engage with affected communities to avoid, prevent and mitigate adverse impacts of our activities, and to build development opportunities. We invest in developing and maintaining constructive relationships with the stakeholders and communities around our operations. This is essential to maintain and strengthen our sociopolitical licence to operate. Inclusive stakeholder engagement underpins our approach to respecting human rights and to responding to legitimate stakeholder aspirations and concerns. Extending the positive benefi ts of mining, notably by developing infrastructure and creating opportunities for local businesses, also promotes social stability and builds resilience within communities to prosper beyond mine closure.

The sustainable development department at Impala Rustenburg manages the socio-economic development initiatives at our South African operations. A technical team is responsible for implementing the projects, working with the stakeholder engagement department. We identify community projects based on a needs analysis, undertaken in consultation with stakeholder representatives from communities, local government and employees. The sustainable development project steering committee reviews the proposed projects after due diligence. Once approved by the project steering committee, the projects are recommended to the Group’s executive committee, a multi-disciplinary executive-level management team that evaluates the merits of investing in each project. In Zimbabwe, sustainable development initiatives are implemented and managed by the stakeholder engagement executive supported by technical personnel from the operations. Each year an independent verifi cation is conducted on selected social projects, based on the fi nancial, legal and reputational risk as well as to determine impact, progress and potential remedial action where a project faces possible failure. A summary of this can be found on Page 58.

We have a large and diverse base of more than 2 200 suppliers from which we procure goods and services including heavy equipment, process chemicals, fuel and lubricating oils, labour, explosives, underground support grinding media, drilling equipment, electrical equipment, safety clothing, tyres and many more. There is an increasing expectation of business to demonstrate accountability in ensuring responsible business conduct by all parties in corporate supply chains. We have clear principles that guide the selection of reputable contractors with the right skills and values systems to do specifi c tasks that we are not able to do.

All our suppliers are appraised of our policies and business practices and are expected, as a minimum, to abide by these principles in their business conduct and practices at all our operations. To strengthen our approach, we are developing a supplier code of conduct which will detail the mandatory standards that suppliers must achieve, and those that we strongly encourage. We conduct ad hoc supplier audits against our standards on various criteria including health, safety and labour practices. In the year under review, there were no incidents of supplier non-compliance.

We are progressively implementing a SAP Ariba system that will ensure that all our suppliers are legally compliant. We focus on increasing our levels of expenditure with local and black-owned suppliers and on developing existing procurement capacity in the areas close to our operations. We also support initiatives to stimulate local manufacture and technology development, thereby increasing our contribution to empowerment. Increased pressure is being exerted during all interactions with untransformed suppliers to improve the pace of transformation.

We follow the International Council on Mining and Metals guidelines

We subscribe to the United Nations Guiding Principles on Business and Human Rights

We are committed to the United Nations Global Compact

We support the Extractive Industries Transparency Initiative (EITI)

We participate in the annual climate change and water disclosures of the CDP

We are a member of the National Business Initiative (NBI)

Our initiatives support the United Nations Sustainable Development Goals