SOCIAL AND ETHICS COMMITTEE:

Previously called the Sustainability Committee, this Committee has been renamed and now includes in its terms of reference the requirements of the Companies Act, 2008, as amended (Companies Act), in regard to this type of committee. The Committee was reconstituted as a result of the Walmart transaction and now comprises Ms Phumzile Langeni (Chairperson) and Messrs Grant Pattison and JP Suarez. Ms Pearl Maphoshe (Group Human Capital Executive), Mr Brian Leroni (Group Corporate Affairs Executive), and an independent expert, Professor Derek de Jongh (Director: Centre for Responsible Leadership, The Faculty of Economic and Management Sciences, University of Pretoria) are invitees to this Committee.

SOCIAL AND ETHICS COMMITTEE:

The Companies Act includes specific responsibilities including:

  • the Company’s standing in terms of the United Nations Global Compact Principles
  • the OECD recommendations concerning corruption
  • the contribution to development within our communities
  • labour and employment
  • the environment and health and public safety

The role of the Committee broadly is to assist the Group with its responsibility towards sustainability with respect to practices that are consistent with good corporate citizenship. The Companies Act includes specific responsibilities including: the Company’s standing in terms of the United Nations Global Compact Principles, the OECD recommendations concerning corruption, the contribution to development within our communities, labour and employment, and the environment and health and public safety. The Committee met twice during the financial year with the objective of reviewing Massmart’s Socially Responsible Investment Index, broad-based black economic empowerment, and sustainability reporting performance.

Performance in each of these areas is measured with reference to the Johannesburg Stock Exchange’s (JSE) Socially Responsible Investment Index (SRII) criteria, the Department of Trade and Industry’s Broad-based Black Economic Empowerment (BBBEE) scorecard and the Global Reporting Initiative III guidelines.

The Committee is satisfied with Massmart’s sustainability performance and is particularly encouraged that the Group continues to exceed its interim BBBEE target and is now a Level 4 contributor.

Further detail on the Group’s sustainability practices can be found in the section titled ‘Corporate Accountability’.