SUSTAINABILITY REPORT CREATING CONCRETE POSSIBILITIES MESSAGE FROM THE CEO 3 ORGANISATIONAL PROFILE 4 SUSTAINABILITY REPORTING 7 GOVERNANCE 9 ECONOMIC SUSTAINABILITY 13 ABOUT THIS REPORT ENVIRONMENTAL SUSTAINABILITY 15 This is a summary of the sustainability activities relating to AfriSam (South Africa) (Pty) Ltd from 1 January 2015 to 31 December 2015. The reporting period is aligned to the company’s financial ETHICS AND INTEGRITY 17 reporting period and AfriSam aims to report annually on its sustainability performance. The report includes SOCIAL SUSTAINABILITY 19 information relating to AfriSam South Africa (Pty) Ltd operations in South Africa, Swaziland and Lesotho. PROTECTION OF HUMAN RIGHTS 22 AfriSam’s subsidiary in Tanzania, Tanga Cement Company Plc, is a publicly listed company on the Tanzania stock exchange and produces its own annual integrated report. This report is available from its website: www.simbacement.co.tz INDEX TO GLOBAL REPORTING This report has been produced giving due consideration to the Global Reporting Index (GRI) Core INITIATIVE INDICATORS 25 ‘In Accordance’ guidelines, as well as the United Nations Global Compact Active Level reporting requirements. We welcome your feedback on our sustainability reporting process. Please send comments or suggestions to: Report contact: Maxine Nel Physical address of headquarters: AfriSam (South Africa) (Pty) Ltd AfriSam House Reg. 2006/005970/07 Constantia Office Park Tel: +27 11 670 5893 Weltevredenpark Email: [email protected] 1715 2 MESSAGE FROM THE CEO Dear Stakeholders, The concept of sustainable development has long since formed the foundation for AfriSam’s business activities. It echoes an internal philosophy that we live on a daily basis. While we acknowledge that, for our generation to prosper, we require the I am proud to confirm that AfriSam (South Africa) (Pty) utilisation of natural resources, we commit to future generations that we will Ltd pledges its continued commitment to uphold the use these in a deliberate and responsible manner. 10 Principles of the United Nations Global Compact in We do this by actively managing our production processes and equipment to the areas of Human Rights, Labour, Environment and ensure that we reduce the consumption of natural resources, such as coal, Anti-Corruption. We look forward to continuing our mineral resources and water, while at the same time reducing the CO2 footprint relationship with the South African Local Network. of our products through increased efficiencies and utilising by-products from AfriSam strives to conduct its business activities in a other industries as part of our cement manufacturing process. manner that contributes to the sustainable development Apart from reducing the environmental impact of our business activities, we of Africa and its people. As such, we ensure the integration also seek to sustainably uplift community members surrounding our operations of the Principles in our business strategy, culture and daily to ensure that they too can look forward to a brighter tomorrow. This year, we operations. In this report, we summarise the progress we have once again made a significant difference to those in need. Through funds have made against these principles in 2015 and strive to donated by the company and active employee involvement, we have built homes report continuous progress in future. and schools, provided food, clothing and educational material – contributing AfriSam is committed to building a better future for the towards the sustainable upliftment of communities in which we operate. people of Africa. It is of this passion and commitment that As employees are the heartbeat of our company and the enablers of we are most proud; not of what products we make, but sustainability, AfriSam strives to provide a workplace that allows them to grow, rather of what we make possible – we create concrete develop and actively contribute towards the success of our company, our country possibilities. and continent. I am proud that we are one of a select few companies in Africa Yours faithfully, that have been certified as a Top Employer by the Top Employers Institute. 2015 was the 6th consecutive year that AfriSam was honoured with this title. The safety of our employees and all stakeholders that interact with our company remains our number one priority. In 2015, the company achieved its best safety AfriSam pledges its performance since it started measuring this business driver in 2006. This is the continued commitment to result of a concerted effort by all employees to ensure that AfriSam becomes an Stephan Olivier uphold the 10 principles of even safer workplace. We will continue the drive towards our ultimate goal of Chief Executive Officer the United Nations Global ‘Zero Harm to People’. AfriSam (South Africa) (Pty) Ltd Compact 3 2 ORGANISATIONAL 1PROFILE Since 1934 when it started its first cement 1.1 Presence and capabilities plant in South Africa, AfriSam has established itself as a formidable concrete materials group The AfriSam Group has operations in South Africa, Aggregates and Readymix committed to making growth possible on the Lesotho, Swaziland and Tanzania. It is the majority AfriSam’s cement operations are strongly augmented by well-established African continent. Today, AfriSam is a leading shareholder of Tanga Cement PLC, listed on the aggregate and readymix operations located in all major growth nodes. supplier of superior quality construction materials Tanzania stock exchange under its brand name Simba There are currently 43 readymix operations capable of delivering more than and technical solutions. Cement, and holds 68.33% of its shares. two million cubic metres readymix concrete annually, and 17 aggregate quarries, producing over 10 million tons of aggregate. Cement facilities AfriSam is strategically positioned and connected Operational presence GEOGRAPHICAL through its fully-integrated cement plants, milling Export operations, blending plants and distribution centres. FOOTPRINT OUR VISION: There are three fully-integrated cement plants: two in To be the leading concrete materials South Africa and a third plant in Tanzania. The fully TANZANIA CEMENT business on the African continent integrated plants have a combined cement producing • A fully-integrated cement plant capacity of six million tons of cement per year. (Tanga) OUR MISSION: • Tanga Cement PLC is a 68.33% To help develop our continent through The South African fully-integrated cement plants are subsidiary what concrete makes possible linked by a well-established road and rail transport • New kiln commissioned in 2015 • Total cement capacity of 1,2m tpa OUR VALUES: network, a modern vertical roller mill grinding ZAMBIA MALAWI operation and three blending operations, of which Success is only possible by living AfriSam’s values of CEMENT & SLAGMENT one is in Swaziland. The company’s slag grinding People, Planet and Performance which inextricably • 2 fully-integrated cement plants – facility is also strategically located in Vanderbijlpark, connect all of our people and business activities: Dudfield (North West province) and Gauteng and has a slag milling capacity of MOZAMBIQUE Ulco (Northern Cape) • PEOPLE: Recognising that people are what make 800 000 tons per annum. • A grinding station in Roodepoort BOTSWANA (Gauteng) the business, we strive to conduct our business with • Blending operations in Swaziland, integrity and in a courteous and respectful manner. Distribution Brakpan and Vanderbijlpark The South African footprint is supported by • PLANET: We utilise natural resources in a deliberate (Gauteng) 11 strategically located distribution centres throughout SWAZILAND • Total cement capacity of 4,5mio tpa way and follow a responsible approach towards the • Total slagment capacity of 0.8mio tpa the country, as well as in Botswana, Lesotho and impact of our actions on the community and environment. SOUTH AFRICA Swaziland. Cement is exported to Mozambique and the • PERFORMANCE: We are uncompromising in our READYMIX Democratic Republic of Congo. LESOTHO professionalism and strive to be the best in everything • 43 Readymix plants we do. We utilise our time, energy and resources to make The Tanzanian operation has 10 strategically located AGGREGATE a valuable contribution to our customers, colleagues and cement distribution centres throughout this country, business partners. Burundi and Rwanda, and exports to Malawi. • 17 plants/quarries 4 1.2 Expansion and new 1.3 Products and services acquisitions Cement Our Aggregate product range includes: Over the decades, AfriSam’s cement range has been a significant During the year under review, AfriSam established a • Roadstone • Road Layer Works contributor to various infrastructure developments on the continent. new readymix operation in Phoenix, KwaZulu-Natal. This • Concrete Aggregate • Speciality Aggregate The company’s cement continues to be used in the provision of much acquisition has been accounted for in the information needed houses, schools, roads, dams and other essential facilities for the provided above. Readymix concrete development of the region. The readymix operations are all equipped with computerised weight CAPACITY: Almost AfriSam also acquired a minority stake in Concrete 4 U, and batching systems – based on the latest technology – that ensure AfriSam produces the following 6 million tons of cement a readymix concrete company operating in the Eastern the final concrete product meets the stringent technical specifications of five types of cement,