Governance of sustainable development

GOVERNANCE OF SUSTAINABLE DEVELOPMENT

The board of Amplats is committed to sound corporate governance. It ensures that the Company’s business employs risk-management and risk-control practices that accord  with local and internationally accepted corporate practice, including King III and the governance requirements of the Companies Act of 2008 (effective from 1 May 2011).

A comprehensive overview of the Company’s governance structures and processes are provided in the integrated annual report (see pages 162 to 171 or www.angloplatinum.com/).

This section focuses on the governance of aspects relating to sustainable development. Where this overlaps with the financial sustainability of the Company, the reader is referred to the appropriate section in the integrated report.

RELEVANT GOVERNANCE STRUCTURES

Safety & Sustainable Development (S&SD) Committee

Mandate: The committee develops frameworks, policies and guidelines for S&SD management, and ensures their implementation. It also monitors compliance with legislation and evaluates material impacts in light of the precautionary principle, and advises the board accordingly. It provides input into the Audit and Social, Ethics & 
Transformation committees.

Dorian Emmett*, Brian Beamish, Richard Dunne, Bongani Khumalo
Lorato Mogaki♦1, Pieter Louw, Wendy Lucas-Bull, Ben Magara
Valli Moosa, Mary-Jane Morifi, July Ndlovu, Neville Nicolau2 
Chris Griffith6, Vishnu PillayWendy Lucas-Bull, Ben Magara, Valli Moosa, Mary-Jane Morifi, July Ndlovu, Neville Nicolau (resigned 19 July 2012), Vishnu Pillay.

Social, Ethics & Transformation Committee

Mandate: The committee provides guidance and oversight in terms of the Company’s adoption of the principles of racial, cultural, ethnic and religious diversity. It also facilitates transformation and empowerment within the organisation, acts in an advisory role and considers, encourages and supports management in terms of all transformation issues defined by the Mining Charter, the Employment Equity Act and the Broad-based Black Economic Empowerment Act. 
The committee also develops and monitors the Company’s goals with respect to the ten principles of the United Nations Global Compact and the recommendations on corruption 
of the Organisation for Economic Co-operation and Development.

Wendy Lucas-Bull*, Richard Dunne, Dorian Emmett, Khanyisile Kweyama, Bongani Khumalo, Lorato Mogaki♦1,Valli Moosa, Sonja Sebotsa4

Audit Committee

Mandate: In respect of issues contained in this report the committee is responsible for:

  • overseeing the process of reporting and considering the findings and recommendations of the S&SD Committee
  • meeting with PricewaterhouseCoopers (PwC), senior management and internal auditors to consider PwC’s findings and to make appropriate enquiries from management

Richard Dunne*, Sonja Sebotsa4, Valli Moosa, John Vice5, Albertinah Kekana6 Tom Wixley7

ACCOUNTABILITY

Each Amplats operation is responsible and accountable to the board for ensuring that resources are allocated effectively and that attention is given to the implementation of the Company’s sustainable development principles. The board’s S&SD Committee, and the recently constituted Social & Ethics Committee, provide policy direction and guidance and monitor safety, health, environmental and social performance. The Audit Committee sets the direction for sustainable development issues based on the organisation’s risk profile.

The executive management team relies on the S&SD Department, and the Safety, Health and Environment Department to implement Company policy and ensure that all material issues are addressed.

OUR RELATIONSHIP WITH ANGLO AMERICAN PLC

Anglo American plc owns 79.86% of Anglo American Platinum Limited (Amplats) shares. As the majority shareholder, Anglo American plc defines business policy and performance standards to which Amplats adheres.

Anglo American’s investment decisions, approach to project planning implementation, and manner of managing its operations, are governed by a comprehensive set of mandatory performance requirements set out in the following documents: The Safety Way, The Social Way, The People Development Way, The Occupational Health Way, The Environment Way and The Projects Way. These documents outline the vision, principles, policies, frameworks and management system requirements for each area of focus.

Implementation of these requirements is checked via peer-reviews and internal and external audits.

* Chairman 1 Appointed 29 October 2012. 5 Appointed 30 November 2012.

♦Acting 2 Left 19 July 2012. 6 Resigned 25 September 2012.

Appointed 30 October 2012. 7 Retired 30 March 2012.

4 Resigned 1 February 2013.

table5

BRIBERY AND CORRUPTION

The Company does not tolerate any form of corruption. The risk posed by corruption is considered – along with many other forms of risk – as part of the risk assessments process. Internal audit procedures also consider the risk of corruption within any process that is reviewed, and assess the controls in place to mitigate the risk. If these controls are not deemed sufficient, this is reported along with injunctions to action by management. 
The procedures for both the risk-management and the internal audits are aimed at identifying broad risks facing the business. Management remains responsible for the operation of controls intended to minimise the risk of corruption.

Our Business Principles set out the standards which guide the conduct of our business. They make it clear that we are implacably opposed to corruption. We will neither give nor accept bribes nor permit others to do so in our name, either in our dealings with public officials or with suppliers and customers. We are committed to operate to the same high standard of integrity wherever we work.

As a long-term investor, we are committed to contributing to the sustainable development and good governance of the countries where we work. Corruption undermines that objective; it erodes trust, drives away investment, undermines the rule of law upon which our investment security depends, and increases the costs and unpredictability of doing business. It significantly reduces the ability of our business to produce positive development outcomes.

Bribes and other corrupt payments are illegal. In addition to compliance with this policy, our employees and contractors have a duty to uphold and comply with the laws of the countries and jurisdictions in which they operate.