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Report to Stakeholders 2017 Governance and Excellence

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Report to Stakeholders 2017 Governance and Excellence Report to Stakeholders 2017 Governance and Excellence 1 CONTACT INFORMATION: Enquiries about this report can be directed to Debswana Corporate Affairs Manager, Ms Boikhutso Malela at [email protected] or +267 364 4303. 2 CONTENTS 2017 IN NUMBERS 4 STATEMENT BY THE DEBSWANA BOARD CHAIR 6 DEBSWANA MANAGING DIRECTOR’S STATEMENT 8 ABOUT THIS REPORT 10 OUR ORGANISATION 10 OUR VALUE CHAIN 12 GOVERNANCE 14 OUR APPROACH TO SUSTAINABILITY 17 FOCUS AREA: OPERATIONAL PERFORMANCE 23 FOCUS AREA: HEALTH AND SAFETY 27 FOCUS AREA: OUR EMPLOYEES 33 FOCUS AREA: STAKEHOLDER ENGAGEMENT 39 FOCUS AREA: OUR COMMUNITIES 45 FOCUS AREA: OUR NATURAL ENVIRONMENT 63 ACRONYMS 70 GRI CONTENT INDEX 71 1 DEBSWANA STAKEHOLDER REPORT 2017 OUR VALUES BE PASSIONATE PULL TOGETHER BUILD TRUST SHOW WE CARE SHAPE THE FUTURE We will be exhilarated Being united in We will always listen We care deeply about We will find new ways. by the product we purpose and action, first, then act with each other and the We will set demanding sell,the challenges we we will turn the openness, honesty people whose lives we targets and take both face and the diversity of our people, and integrity so that touch, our tough decisions and opportunities we skills and experience our relationships communities and the considered risks to create. into an unparalleled flourish. environment we share. achieve them.We will source of strength. We will always think insist on executional through the excellence and reward consequences of what those who deliver. we do so that our contribution to the world is real, lasting and makes us proud. Dintlefatso Gabana Ramasu Keolebogile Kelapile Maruping Shirto Faith Itumeleng Pitsonyane EMPLOYEE ASSISTANCE MAINTENANCE ARTISAN STOCK TAKER TEACHER - GRADE 1 TEACHER - GRADE 1 PROGRAM COORDINATOR FITTER Many times I have been On a daily basis before My favorite value is ‘Good morning boys As an energetic and asked to facilitate sessions at carrying out a task I sit ‘Build Trust’ because the and girls’…are the words I results oriented teacher, I Debswana Corporate down with other involved value has instilled in me a have uttered every live by the value, ‘Shape the Centre; I never say no, the parties and we discuss the sense of responsibility and morning for the past 7 Future.’ I have shown this by passion would not let me. If task thoroughly so as to pushed me to aim for years to pupils that I have ‘going the extra’ mile and we all in our little spaces had reach what is esprit de corps better results every time I taught at Acacia School. working tirelessly over the such burning desires, which is a sense of unity, execute my tasks. For These children are our weekends and during the intense energy and such common interests and example, I am a service future and they must be school holidays to enable relentless spirits, so many responsibilities of which the provider and I aim to shown some care in order pupils to realise their full diamond dreams would be most important is to get the please my customers. As for them to succeed, after potential. turned into realities. task done safely and such I live the value by all they are leaders of successfully. providing my customers tomorrow. with what they need in a timely and effective manner. 2 DEBSWANA STAKEHOLDER REPORT 2017 CODE OF ALWAYS DOING RIGHT CONDUCT AND BUSINESS ETHICS CODE OF CONDUCT The key principles contained in the Code of Conduct are as follows: Debswana remains committed to ethical leadership and integrity as a core value. In 2017, • Health, safety and the environment the company Code of Conduct was reviewed and • Fair and proper treatment of employees and relaunched to employees and contractors. The business partners process involved re-training employees and • Community relations contractors on the code. This was followed by • Political activities by employees mandatory declaration of business • Bribery interests/conflict of interests for all employees at • Gifts, entertainment and hospitality management level as well as Supply Chain • Conflict of interests Management employees. The Code of Conduct • Dealing with suppliers, institutional policy was designed in such a way that it covers all stakeholders and Government De Beers and Anglo American Business Integrity • Money laundering standards that are applicable to Debswana. All the • Protection of diamonds and company assets other relevant policies such as Gifts, • Communicating with media Entertainment and Hospitality Policy, Policy on • Ethics hotline Conflict of Interests and Procurement Policy were also reviewed and re-briefed to employees and contractors. ETHICS HOTLINE The training was conducted company-wide during The Debswana Whistleblowing facility is managed 2017 over a period of six months and covered all through Deloitte Tip-offs Anonymous and has levels of employees. This was augmented through been operational since 2007. The whistleblowing the use of posters and Intranet banners. The Code reporting mechanisms are the Ethics hotline, was also uploaded on the Debswana website for email and walk-ins. Over the years Debswana has external stakeholders. evidenced a preference of walk-in reporting over the use of the hotline facility indicating confidence in the system. Hotline numbers Landline: 0800600644 | Orange: 1144 | Mascom: 71119721 | Email: [email protected] 3 DEBSWANA STAKEHOLDER REPORT 2017 2017 IN NUMBERS INDICATOR 2015 2016 2017 Total Recordable Injury Frequency Rate (TRIFR) 0.38 0.22 0.17 Tonnes Treated (000) 20,523 18,581 22,854 Carats Recovered (000) 20,368 20,501 22,660 Total Debswana Employees 5,432 5,421 5,439 Percentage of Debswana Employees that are Female 21% 21% 21% Sustainability Assurance All the mines retained All the mines retained their ISO All the mines retained their ISO their ISO 14000:2004 and 14000:2004 and OHSAS 14000:2004 and OHSAS OHSAS 18001:2007 18001:2007 certifications in 2016. 18001:2007 certifications in 2017. certifications in 2015. Overall Social Way Score 3.32 Overall Social Way Score 3.91 exceeding the target of 3. exceeding the stretch target of 3.5. HIV/AIDS Mortality Rate 0.8% 0.3% 0.3% 4 DEBSWANA STAKEHOLDER REPORT 2017 INDICATOR 2015 2016 2017 Community Members who made use of the Mine Hospitals* 70,863 84,000 161,901 Water Consumption (Mining Operations) (million m3) 23.04% 18.48% 17.41% Energy Consumption (Mining Operations) GWh 445.35 439.22 476.48 Procurement Spend: Citizen owned Companies 18% 29% 26% Corporate Social Investment Total Spend (million Pula) 15.0 17.8 10.6 Loss of Life Incidents 0 1 0 Number of employees registered in the HIV Programme 845 806 823 Community Members who made use of the Mine Hospital: *2015- Employees and Spouses only | *2016 – Employees and Spouses only | *2017 – Employees, Spouses and Zone of Influence (ZoI) Communities 5 DEBSWANA STAKEHOLDER REPORT 2017 STATEMENT BY THE DEBSWANA BOARD CHAIR MR. CARTER MORUPISIRUPISI 2017: Another strong year for Debswana On behalf of the Debswana Board,oard, I would like to start by thankingg Debswana employees for the remarkable performance in 2017.7. It is through their efforts that thishis was another successful year for our company. We attained strongng production performance while maintaining a good safety record. 6 DEBSWANA STAKEHOLDER REPORT 2017 THE CORNERSTONE OF DEBSWANA’S ACHIEVEMENTS HAS BEEN GOOD GOVERNANCE, ETHICAL BEHAVIOUR, AUDITABLE AND DEFENSIBLE RESULTS. Values are at the core of Debswana. The ZERO HARM. The 0.17 Total Recordable way we live these values and our Injury Frequency Rate (TRIFR), behaviour are even more important; compared to 0.22 in 2016, illustrates that doing the right thing is integral to our there is progress towards this goal. people and our business. We have robust policies and control procedures which In conclusion, our 2017 results across all help us ensure that good business ethics Debswana operations demonstrate both are embedded across the company. This the strength and the resilience of our is key to our success. company. Against the background of the Volatile, Unpredictable, Complex As a result of these efforts, over the and Ambiguous world we live in and all course of 2017, cost efficiency has industry pressures, it is a remarkable improved, productivity increased and achievement that Debswana remained diamond production rose. While we Always Ahead. anticipate stronger demand in 2018 than in 2017, we must continue to implement BOARD CHANGES: our strategy of managing risks, reducing costs sustainably and producing carats in There were changes in the Debswana a way that benefits all our stakeholders. Board during the course of the year. I warmly thank the three outgoing Even with an exemplary safety members – Arthur Paul Hewett, performance, there is still a long way to Athalia Lesiba Molokomme and go to reach the ambitious targets we have Kgomotso Abi – for their many years of set ourselves. I am confident that we will service and substantial contributions to eventually achieve our target of ZERO the Company. HARM and the Board remains supportive and united behind this safety I am pleased to announce the pledge. appointments of Malebogo Itumeleng Mpugwa, Burger Greeff, Moses Dinekere Looking ahead, safety remains a value Pelaelo, Dr. Obolokile Thoti Obakeng and priority across the group; it is the and Abraham Keetshabe – all strong first item on every Board agenda. This leaders who bring great experience and has reinforced our determination to energy to their new positions as Board ensure that at all times our employees members. maintain the determination to achieve 7 DEBSWANA STAKEHOLDER REPORT 2017 DEBSWANA MANAGING DIRECTOR’S STATEMENT MR. BALISI BONYONGO 2017 was the year of Governance and Excellence at Debswana and I am delighted to report that Debswanaebswana mamaintainedintained ititss googoodd performance for 2017. The companypany continued to contribute positively to our shareholders by remainingaining pprofitablerofitable during the yeyearar under review.
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