{"id":452,"date":"2014-08-20T14:20:54","date_gmt":"2014-08-20T12:20:54","guid":{"rendered":"http:\/\/www.remgro.com\/ar2014\/governance-and-sustainability\/abridged-sustainable-development-report\/"},"modified":"2014-10-28T14:40:34","modified_gmt":"2014-10-28T12:40:34","slug":"abridged-sustainable-development-report","status":"publish","type":"page","link":"https:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/abridged-sustainable-development-report\/","title":{"rendered":"Abridged sustainable development report"},"content":{"rendered":"<div class=\"row\">\n<div class=\"col-md-12\">\n<p class=\"blurblightblue\" class=\"lead\">&#8220;A prerequisite for survival is adaptability and a&nbsp;willingness to serve.&#8221;<\/p>\n<p class=\"namelightblueright\">(Dr Anton Rupert)<\/p>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h2>INTRODUCTION<\/h2>\n<p>Remgro\u2019s current value system incorporates the guidelines drawn up by its founder, Dr Rupert, nearly 60 years ago for doing business successfully. These guidelines include the following:<\/p>\n<ul>\n<li>Honesty \u2013 because it lasts the longest<\/li>\n<li>Correctness \u2013 because it creates trust with friends and opponents<\/li>\n<li>Courtesy \u2013 which means dignity without pride and friendliness without subservience<\/li>\n<li>Service \u2013 in every respect to your client, your fellow-man, your country<\/li>\n<li>Mutual support \u2013 so that you push others up the ladder of success while climbing yourself, because if you pull others down, you will also fall<\/li>\n<li>Trust \u2013 the belief that all will work out well if everyone is doing their duty<\/li>\n<\/ul>\n<\/div>\n<div class=\"col-md-6\">\n<p>Remgro believes that these values incorporate the spirit in which it strives to be a good corporate citizen. From the above it is evident that the three pillars of sustainable development, namely economic, social and environmental sustainability practices have always been part of Remgro\u2019s core values.<\/p>\n<p>Remgro is fully committed to managing its business in a sustainable way and upholding the highest standards of ethics and corporate governance practices. While corporate governance, risk management and IT governance are addressed in the <a href=\"http:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/corporate-governance-report\/\" title=\"Corporate Governance report\">Corporate Governance<\/a> and <a href=\"http:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/risk-management-report\/\" title=\"Risk Management report\">Risk Management Reports<\/a>, the Sustainable Development Report provides a better understanding of Remgro\u2019s efforts on the social and environmental front in order to achieve its key objectives of maximising value creation over the short, medium and long term, whilst doing business ethically. Refer to the table below for the external recognition and achievements during the reporting period in this regard.<\/p>\n<\/div>\n<\/div>\n<p>View this full report at <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\" title=\"Sustainability Development Report\">www.remgro.com<\/a><\/p>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<a name=\"Sus_high\"><\/a><\/p>\n<h3 class=\"grey_bg\">Sustainability highlights<\/h3>\n<p><img decoding=\"async\" class=\"investment-pics\" src=\"http:\/\/www.remgro.com\/ar2014\/wp-content\/themes\/remgro\/images\/ar2014\/pg80_sustainability.png\" alt=\"Sustainability highlights\"><\/p>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<h2>Combined assurance<\/h2>\n<p><img decoding=\"async\" src=\"http:\/\/www.remgro.com\/ar2014\/wp-content\/themes\/remgro\/images\/ar2014\/pg81_assurance.png\" alt=\"Combined assurance\">\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h2>EXTERNAL ASSURANCE<\/h2>\n<p>We acknowledge the increasing requirements from investors and regulatory and other guidelines, such as King III and the integrated reporting guidelines, for the external assurance of selected non-financial information. We further acknowledge our accountability to our stakeholders to present information that is relevant, accurate and reliable. In this regard it should be noted that Remgro follows a combined assurance model, incorporating management, internal audit and external assurance (e.g. BBBEE scorecard verification, Carbon Disclosure Project (CDP) verification), as illustrated in the table above. We believe that these assurance methods provide the necessary assurance over the quality and reliability of the information presented. The different options and levels of external assurance available are continuously being reassessed to determine the way forward on external assurance.<\/p>\n<h2>MANAGEMENT APPROACH TO SUSTAINABILITY<\/h2>\n<p>Remgro\u2019s Board is ultimately accountable for the per\u00adformance of the Company, appreciating that strategy, risk, performance and sustainability are inseparable. In this regard the Board has delegated the general oversight and reporting of sustainability to the Audit and Risk Committee, assisted by the Social and Ethics Committee. The role and function of this committee is dealt with in more detail in the <a href=\"http:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/corporate-governance-report\/\" title=\"Corporate Governance report\">Corporate Governance Report<\/a> and the <a href=\"http:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/social-and-ethics-committee-report\/\" title=\"Social and Ethics Committee report\">Social and Ethics Committee Report<\/a>.<\/p>\n<h2>ETHICS AND COMPLIANCE<\/h2>\n<h4 class=\"subh\">Ethics<\/h4>\n<p>The Board believes that ethical behaviour stems from appropriate value systems inherent to the people in the Company\u2019s employ as directed and supported by visual ethical leadership and a values-driven corporate culture. Leadership based on ethical foundations results in a culture of ethical and moral behaviour and compliance with laws, rules, codes and standards. The Board therefore retains the responsibility to establish and maintain a culture of honesty, transparency, fairness, responsibility and accountability in order to position the Company as an investment partner of choice. This is underscored by ethical leadership as ethics cannot be regulated but stems from personal conviction.<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<p>In this regard the Company has adopted a Code of Ethics (the code) that provides a framework of ethical practices and business conduct that are applicable to all directors and employees. The code is available to all employees on Remgro\u2019s in-house intranet and a copy is provided to all new employees. The code as well as a formal Gifts Policy also provides strict policies regarding gifts, invitations or favours received from suppliers or any other party. The offering of favours to gain unfair commercial advantages is also strictly prohibited.<\/p>\n<p>The Audit and Risk Committee monitors compliance with the code and addresses instances of fraud or irregularities. During the reporting period there were no incidents of fraud or irregularities.<\/p>\n<p>The Company has implemented an Ethics line to enable any employee or other stakeholder to report knowledge of perceived and alleged irregular or unethical behaviour in a confidential and controlled environment. The Ethics line is managed by an independent third party and is available on a 24-hour basis. During the year under review no calls were received through the Ethics line that related to alleged governance breaches or ethical anomalies at Remgro. Where calls are received which relate to alleged irregularities at investee companies, such calls are directed to the appropriate governance structures at the respective investee companies via the Remgro representatives serving on the boards of these companies.<\/p>\n<p class=\"grey_bg_left\" style=\"text-align:center !important\">Remgro Ethics Hotline 0800 86 4726<br \/>or email <a href=\"mailto:&#x65;&#x74;&#x68;&#x69;&#x63;&#x73;&#x6C;&#x69;&#x6E;&#x65;&#x40;&#x6B;&#x70;&#x6D;&#x67;&#x2E;&#x63;&#x6F;&#x2E;&#x7A;&#x61;\">ethicsline@kpmg.co.za<\/a><\/p>\n<h4 class=\"subh\">Competition<\/h4>\n<p>The Group supports and adheres to the relevant competition and anti-trust laws applicable in the various jurisdictions in which the Group operates. During the year no enquiries regarding anti-competitive, anti-trust or similar conduct were received that resulted in fines being levied.<\/p>\n<h4 class=\"subh\">Compliance<\/h4>\n<p>During the year under review there were no incidents of material non-compliance with any laws, regulations, accepted standards or codes, and no significant fines were imposed either.<\/p>\n<\/div>\n<\/div>\n<div class=\"separator\"><\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h2>STAKEHOLDER RELATIONS<\/h2>\n<p>Our relationship with all our stakeholders is based on the following values that are entrenched and supported by Remgro\u2019s Code of&nbsp;Ethics:<\/p>\n<ul>\n<li><strong><em>Responsibility<\/em><\/strong>, for the assets and actions of the Company<\/li>\n<li><strong><em>Accountability<\/em><\/strong>, for justifying its decisions and actions to shareholders and other stakeholders<\/li>\n<li><strong><em>Fairness<\/em><\/strong>, in considering the legitimate interest of stake\u00adholders<\/li>\n<li><strong><em>Transparency<\/em><\/strong>, in disclosing information in a manner that enables stakeholders to make informed decisions about the Company\u2019s performance and sustainability.<\/li>\n<\/ul>\n<p>Remgro\u2019s Board is the ultimate custodian of its corporate reputation and stakeholder relationships. In this regard a formal Stakeholder Policy sets out the approach and strategy of Remgro with respect to stakeholder engage\u00adments, ensuring that a stakeholder-inclusive approach to corporate governance is followed.<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<p>Remgro utilises a wide variety of communication methods to ensure that its communication with stakeholders is clear and understandable, as well as transparent, balanced and truthful, and sets out all relevant facts, whether positive or negative. Care is taken to ensure that engagement with stakeholders is, where appropriate, not just one-way communication but constructive, partnership-based engagement. This ensures that all legitimate stakeholder expectations are identified and addressed as far as possible.<\/p>\n<p>Remgro, like other organisations, has many economic impacts on our stakeholders through, amongst other things, the generation and distribution of value, the creation of employment opportunities, remunerating our employees fairly and competitively, and our corporate social investment. We continuously manage these and engage with our stakeholders on matters relevant to them, as reported elsewhere in this report.<\/p>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\" style=\"margin:0 auto;text-align:center;\">\n<img decoding=\"async\" style=\"width:90%;text-align:center;\" src=\"http:\/\/www.remgro.com\/ar2014\/wp-content\/themes\/remgro\/images\/ar2014\/pg82_stakeholders.png\" alt=\"Stakeholder Relations\">\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h4 class=\"subh\">Shareholders and the investment community<\/h4>\n<p>Remgro\u2019s primary objective is to maximise value creation and sustainable growth and in this regard particular care is taken to ensure that all shareholders, or classes of shareholders, are treated equitably. Special care is taken to protect minority shareholders from actions by or in the interest of the principal shareholder that may be to their detriment. In this regard a Lead Independent Director was reappointed during the year under review to act as chairman during meetings in situations where the independence of the existing Chairman may be potentially conflicted.<\/p>\n<p>Communication with investors is based on the principles of timely, balanced, clear and transparent information. In this regard the investment community has access to the same information as Remgro shareholders. Firm protocols are in place to control the nature, extent and frequency of communication with investors. Shareholders and the investment community are encouraged to attend Remgro\u2019s general meetings where topical matters are discussed openly. Further interactions with institutional investors take place twice a\u00a0year at the dial-in interim and final results presentations, where questions can be directed to the CEO and CFO. The investment community is also welcome to contact senior management directly.<\/p>\n<p>The most recent and historic financial and other information is published on the Company\u2019s website at <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\" title=\"remgro.com\" target=\"_blank\">www.remgro.com<\/a>.<\/p>\n<h4 class=\"subh\">Employees<\/h4>\n<p>In order for Remgro to be able to achieve its main objectives it is essential to attract and retain employees of the highest calibre. Our employees are treated fairly and remunerated competitively and Remgro strives to afford all staff the opportunity to realise their full potential. During corporate actions special care is taken to ensure that employees belonging to the Remgro Equity Settled Share Appreciation Right Scheme are not treated more favourably than ordinary shareholders.<\/p>\n<p>As Remgro is an investment holding company with a small staff complement at head office level, communication with employees is kept informal and is conducted through a variety of media, including email updates, the in-house intranet, Remgro website, information sessions and notice boards. Care is taken that all communication with shareholders is also communicated to employees.<\/p>\n<h4 class=\"subh\">Investee companies and other shareholders of such&nbsp;investee companies<\/h4>\n<p>Remgro\u2019s performance is directly linked to the performance of the underlying investee companies and accordingly communication with those entities and co-shareholders is regarded as very important. Relationships with investee companies are managed principally through board representation, with Remgro directors or senior management acting as non-executive directors on the investee companies\u2019 boards.<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<p>These representatives interact with the directors and senior management of investee companies at investee companies\u2019 board meetings and, as and when necessary, representatives of investee companies are encouraged to arrange to meet with Remgro senior management to discuss their business. All dealings with co-shareholders in the investee companies are done fairly in terms of the underlying shareholders\u2019 agreements and Remgro strives to add value to these investments.<\/p>\n<h4 class=\"subh\">Community<\/h4>\n<p>Corporate citizenship, the commitment of a business to contribute to sustainable economic development, endorses the principle that no business exists in isolation but undeniably forms an integral part of the environment in which it operates.<\/p>\n<p>In its relationship with the community Remgro strives to be a value partner and in this regard its involvement in the community focuses on eradicating the effects of poverty and investing in young people from disadvantaged communities in the belief that such an investment will provide sound dividends far into the future. Remgro\u2019s corporate social investment initiatives and donations are discussed in more detail in the detailed <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\" title=\"Sustainable Development Report\">Sustainable Development Report<\/a>.<\/p>\n<h4 class=\"subh\">Suppliers and service providers<\/h4>\n<p>Remgro believes in building long-term partnerships with service providers through establishing a relationship of mutual trust and respect. Various criteria play a role in selecting suitable service providers, such as compliance to quality standards (if applicable), the stability and proven track record of the organisation and available support network.<\/p>\n<p>As Remgro is an investment holding company its cost structure is constantly measured against that of unit trusts to ensure that its shareholders are not prejudiced. As part of managing corporate costs good relationships are maintained with suppliers and service providers.<\/p>\n<h4 class=\"subh\">South African government and regulatory bodies<\/h4>\n<p>An open and honest relationship is maintained with the government and relevant regulatory bodies. In this regard communication is on an ad hoc basis as and when the need arises and usually in the form of formal meetings. Regu\u00adlatory bodies like National Treasury, the South African Reserve Bank (SARB) and the JSE Limited are kept up to date regarding corporate actions in accordance with all applicable laws and regulations. Annual meetings are held with the SARB in order to keep them up to date regarding Remgro\u2019s offshore activities.<\/p>\n<\/div>\n<\/div>\n<div class=\"separator\"><\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h2>BROAD-BASED BLACK ECONOMIC<br \/>EMPOWERMENT (BBBEE)<\/h2>\n<h4 class=\"subh\">Introduction<\/h4>\n<p>The Board believes that BBBEE is a social, political and economic imperative and it supports and encourages the Company\u2019s subsidiaries, associates and joint venture initiatives in this regard. To the extent that Remgro\u2019s subsidiaries, joint ventures and associates implemented BBBEE, Remgro\u2019s shareholders effectively participate in BBBEE initiatives and the associated costs and benefits thereof.<\/p>\n<p>Remgro measures its BBBEE status against the generic scorecard criteria set by the Department of Trade and Industry. In terms of the latest assessment of Remgro\u2019s BBBEE status performed during August&nbsp;2014, Remgro obtained a score of 58.25, thereby retaining its level 5 contributor status. The details of the assessment are fully set out in Figure 1.<\/p>\n<p>It should be noted that the assessment includes the BBBEE initiatives of Remgro\u2019s main independent operating subsidiaries, RCL Foods (including Foodcorp and TSB Sugar) and Wispeco.<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<h4 class=\"subh\">Equity ownership<\/h4>\n<p>Verification of BBBEE ownership is governed by the Codes of Good Practice on BBBEE (the Code) which were gazetted on 9&nbsp;February&nbsp;2007 in terms of Section 9(1) of the Broad-Based Black Economic Empowerment Act (No. 53 of 2003). The methodology followed for the verification and certification of Remgro\u2019s contributions to BBBEE ownership was taken from the provisions of Code Series&nbsp;100, Statement&nbsp;102 \u2013 Recognition of Sale of Assets.<\/p>\n<p>It should be noted that, in addition to the above, there is also black ownership included in the <a href=\"http:\/\/www.remgro.com\/ar2014\/pdf\/eng\/pg120_Shareholders_Information.pdf\">shareholdings in Remgro<\/a> (PDF) held by institutional investors. Due to the fact that the records of the ultimate beneficiaries of these shareholdings are not readily available by race and gender, it was not quantified.<\/p>\n<p>Although Remgro\u2019s BBBEE score includes the initiatives of RCL Foods and Wispeco, the discussion below regarding the other elements of the generic scorecard criteria only relate to the activities at Remgro\u2019s head office in Stellen\u00adbosch. For more detail regarding the BBBEE initiatives at investee company level, refer to the section &#8220;<a href=\"#bbbee\">BBBEE at investee companies<\/a>&#8220;.<\/p>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\nFigure 1<\/p>\n<h2>BBBEE scorecard<\/h2>\n<p><img decoding=\"async\" src=\"http:\/\/www.remgro.com\/ar2014\/wp-content\/themes\/remgro\/images\/ar2014\/pg84_bbebe.png\" alt=\"BBBEE scorecard\">\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h4 class=\"subh\"><em>Management control<\/em><\/h4>\n<p>The composition of Remgro\u2019s Board is structured in such a way as to ensure that the collective skills and experience of directors are suitable to carry out its responsibilities and to achieve the Company\u2019s objectives. The Board has transformed quite considerably during the past couple of years, with four of the ten non-executive directors (40%) being black. On Management Board level, one of the five members is also black.<\/p>\n<h4 class=\"subh\"><em>Employment equity<\/em><\/h4>\n<p>Employment equity represents Remgro\u2019s most significant transformation challenge. An annual labour plan is submitted to the Department of Labour where Remgro\u2019s transformation objectives are set out in detail. Although efforts are focused on improving the Company\u2019s black representation at management level, low staff turnover and limited organic growth remain limiting factors. More detail regarding employment equity is presented <a href=\"#our_people\">here<\/a>.<\/p>\n<p>Remgro\u2019s summarised employment equity report as at 31&nbsp;August&nbsp;2013 is presented in Figure 2 and sets out the distribution by race of permanent employees per occupation level.<\/p>\n<h4 class=\"subh\"><em>Skills development<\/em><\/h4>\n<p>Remgro complies with the requirements of the Skills Development Act in terms of which a fixed percentage of its payroll is paid as a training levy to the South African Revenue Service. An annual report concerning all the training which has taken place in the Company is also submitted to the relevant SETA.<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<h4 class=\"subh\"><em>Preferential procurement<\/em><\/h4>\n<p>As Remgro is not an operating company it has a small procurement function and its procurement profile is characterised by a high service component as opposed to materials purchased. Remgro purchases more than half of its goods and services from BBBEE-accredited vendors. The improvement of the preferential procurement score remains a focus area for Remgro.<\/p>\n<h4 class=\"subh\"><em>Enterprise and socio-economic development<\/em><\/h4>\n<p>A considerable amount of time and resources are spent internally on business development and <a href=\"#csi\">corporate social investment<\/a> (CSI) initiatives.<\/p>\n<p><a name=\"bbbee\"><\/a><\/p>\n<h4 class=\"subh\"><em>BBBEE at investee companies<\/em><\/h4>\n<p>Remgro monitors and contributes to its investees\u2019 BBBEE performance through its board representation and par\u00adticipation and facilitation of corporate actions in these investee companies. The BBBEE status of Remgro\u2019s investee companies is presented in the &#8220;<a href=\"http:\/\/www.remgro.com\/ar2014\/index.php\/reports-to-shareholders\/investment-reviews\/\" title=\"Investment reviews | Remgro Limited\">Investment reviews<\/a>&#8221; section.<\/p>\n<p>Further details regarding the BBBEE status of Remgro\u2019s operating subsidiaries are provided in the section dealing with &#8220;Sustainability at operating subsidiaries&#8221; in the detailed <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\" title=\"Sustainability Development Report\">Sustainability Development Report<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\nFigure 2<\/p>\n<h2>Summarised Employment Equity Report <span class=\"normalcase\">(as at 31&nbsp;August&nbsp;2013)<\/span><\/h2>\n<p><img decoding=\"async\" src=\"http:\/\/www.remgro.com\/ar2014\/wp-content\/themes\/remgro\/images\/ar2014\/pg85_emp_equity.png\" alt=\"Employment equity report\">\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h2>OUR PEOPLE<\/h2>\n<p><a name=\"our_people\"><\/a><\/p>\n<h4 class=\"subh\">Employee composition<\/h4>\n<p>Remgro believes that the quality of its staff represents an important sustainable advantage. Being an invest\u00adment holding company, it has a relatively small staff complement, with only 173 people being employed as at 30&nbsp;June&nbsp;2014 (2013: 175 employees). Refer to Figure 3 where more detail regarding the composition of our employees by race, gender and age is illustrated.<\/p>\n<p>For the year under review Remgro\u2019s employee turnover rate was 9.8%, compared to 8.0% for the comparative year to 30&nbsp;June&nbsp;2013. The turnover rates were calculated by using the total number of employees at year-end. By only taking into account resignations (thus avoidable employee turnover), the above numbers reduce to 4.0% for 2014 and 2.9% for 2013.<\/p>\n<h4 class=\"subh\">Recruitment and selection policy<\/h4>\n<p>In order to ensure that Remgro remains an investment partner of choice it is imperative to attract, select and retain employees of the highest calibre. In this regard the Company will at all times endeavour to appoint the best candidate in a position. Remgro believes that all persons are entitled to equal employment opportunities and, accordingly, no unfair discrimination against employees or applicants based on gender, race, religion or any other factor is allowed.<\/p>\n<h4 class=\"subh\">Employment equity<\/h4>\n<p>Remgro endorses the principles of the Employment Equity Act, and in this regard its employment equity policy strives to offer equal opportunities to all employees and aims at identifying suitable individuals and developing and compensating them in line with their performance, dedication and loyalty. Special attention is given to those groups which, because of historic reasons, may be in a disadvantaged position.<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<h4 class=\"subh\">Employee remuneration<\/h4>\n<p>Our objective is to reward our employees fairly and competitively, according to their capabilities, skills, responsibilities and performance levels. The level of salaries we pay is one of a number of elements in our strategy to retain, motivate and, where necessary, recruit high-quality people. In addition, Remgro also offers its staff a stimulating working environment. Remgro has a formal Remuneration Policy that sets out the remuneration approach for directors and members of the Management Board. Refer to the <a href=\"http:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/remuneration-report\/#Rem_App\" title=\"Remuneration report\">Remuneration Report<\/a> where Remgro\u2019s remuneration approach is set out in detail.<\/p>\n<p>Remgro offers retirement benefits to its employees in the form of a defined-benefit (closed fund) and a defined-contribution fund that are administered independently of the finances of the Company. In addition, employees are also offered medical insurance and study assistance.<\/p>\n<h4 class=\"subh\">Training and skills development<\/h4>\n<p>The main purpose of training is to equip employees in such a way that they can realise their full potential to benefit the Company and themselves. Due to the specialised nature of Remgro\u2019s workforce resulting from it being an investment holding company, no prescribed training programmes are promoted. Individuals are, however, encouraged to attend training programmes which will better equip them to do their jobs. During the past few years numerous workshops and training sessions on King\u00a0III, the Companies Act and the Competition Act were held to ensure that its directors and management are equipped to implement and practise sound corporate governance at all levels where they are involved.<\/p>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\nFigure 3<\/p>\n<h2>Composition of employees <span class=\"normalcase\">(as at 30&nbsp;June&nbsp;2014)<\/span><\/h2>\n<p><img decoding=\"async\" src=\"http:\/\/www.remgro.com\/ar2014\/wp-content\/themes\/remgro\/images\/ar2014\/pg86_composition.png\" alt=\"BBBEE scorecard\">\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h4 class=\"subh\">Health and safety<\/h4>\n<p>The Company has a duly constituted Health and Safety Committee, as required by the Occupational Health and Safety Act. The committee is a subcommittee of the Risk and IT Governance Committee and ensures that the Company provides and maintains a safe and healthy risk-free environment for staff and visitors by identifying risks and ensuring that controls designed to mitigate these risks are effective and complied with.<\/p>\n<h4 class=\"subh\">HIV\/Aids<\/h4>\n<p>From an investment holding company perspective, the risk of HIV\/Aids comprises two elements:<\/p>\n<h4 class=\"subh\"><em>Group risk<\/em><\/h4>\n<p>Given the potential impact of HIV\/Aids on the markets, on human capital, cost of employment and on the operational processes of the various businesses invested in, this risk is managed within the governance structures of the various investee companies. The progress of these policies and strategies is monitored against best practice standards. More information regarding the management of HIV\/Aids by Remgro\u2019s operating subsidiaries is provided in the section on &#8220;Sustainability at operating subsidiaries&#8221; in the detailed <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\">Sustainable Development Report<\/a>.<\/p>\n<h4 class=\"subh\"><em>Company risk<\/em><\/h4>\n<p>Remgro has a formal HIV\/Aids Policy and is committed to actively manage the pandemic, and the business risks associated with it. The policy makes provision, inter alia, for the following:<\/p>\n<ul>\n<li>Compliance with all legal requirements as far as HIV\/Aids is concerned<\/li>\n<li>No discrimination against employees or potential employees based on their HIV status<\/li>\n<li>Strict confidentiality of information on the HIV status of employees<\/li>\n<li>General measures to prevent accidental infection<\/li>\n<\/ul>\n<p>Remedi Medical Aid Scheme, of which most of Remgro\u2019s staff are members, has a management plan for HIV\/Aids in which employees can choose to participate.<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<h2>INVESTING IN THE COMMUNITY<\/h2>\n<p><a name=\"csi\"><\/a><\/p>\n<p>Remgro\u2019s corporate social investment initiatives and donations programme covers a broad spectrum of society and can be summarised as follows:<\/p>\n<ul>\n<li>Community development<\/li>\n<li>Cultural development<\/li>\n<li>Entrepreneurship, training and education<\/li>\n<li>Environment<\/li>\n<li>Healthcare<\/li>\n<li>Sport development<\/li>\n<\/ul>\n<p>Remgro aims to maintain a corporate social investment (CSI) spend of approximately 2.5% of its net free cash flow annually. In this regard an official donations committee meets regularly to consider and approve grants to institutions in need. Donations to qualifying institutions are made on an annual basis for a specific period and, although such contributions cover a wide range, there are two noticeable exceptions: political parties and religious institutions. Remgro respects its employees\u2019 choice to participate in these institutions, but does not exercise a choice itself.<\/p>\n<p>During the year under review Remgro\u2019s CSI spending amounted to R23&nbsp;million (2013: R14&nbsp;million), as set out in the table below.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.remgro.com\/ar2014\/wp-content\/themes\/remgro\/images\/ar2014\/pg87_csi_spend.png\" alt=\"CSI spending\"><\/p>\n<p>Also see the detailed <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\">Sustainable Development Report<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"separator\"><\/div>\n<div class=\"row\">\n<div class=\"col-md-6\">\n<h2>SUSTAINABILITY AT OPERATING SUBSIDIARIES<\/h2>\n<p>Remgro\u2019s two main operating subsidiaries, namely RCL Foods and Wispeco, are operated and managed on a decen\u00adtralised basis as independent entities with autonomous boards of directors.<\/p>\n<p>Please refer to the detailed <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\" target=\"_blank\" title=\"\">Sustainable Development Report<\/a> for further details regarding the social and environmental performance of these subsidiaries.<\/p>\n<h2>Environment<\/h2>\n<p>Remgro recognises that the operations of its various subsidiaries impact the environment while, at the same time, these operations are dependent on critical environ\u00admental services such as potable water, fertile soil and clean air. It also acknowledges that climate change and environmental degradation pose a risk to areas of Remgro\u2019s operations, while increased consumer awareness and changing demand for goods with low environmental impact can provide opportunities to explore and capture new markets. Hence, Remgro continuously analyses its impact on the environment; its response to changing environmental realities; and the pursuit of new opportunities that might arise as a result of responsible environmental management. Of priority is a focus in all subsidiaries on issues relating to carbon emissions, energy, water and waste management.<\/p>\n<p>In order to manage its impact on the environment, Remgro has implemented an Environmental Management Policy (the Policy).<\/p>\n<\/div>\n<div class=\"col-md-6\">\n<p>The Policy includes Remgro Management Services Limited (RMS \u2013 its service company), RCL Foods and Wispeco. The Remgro Board is ultimately responsible for the implementation of the Policy, but has delegated its responsibilities to the Risk and IT Governance Committee who is responsible to review and recommend the approval of environmental procedures implemented and maintained by RMS. With regard to RCL Foods and Wispeco, it is the responsibility of Remgro\u2019s representatives on the boards of these companies to obtain assurance regarding the effectiveness and efficiency of its respective environmental management processes.<\/p>\n<p>Further details regarding Remgro\u2019s initiatives to minimise its impact on the environment is presented in the detailed <a href=\"http:\/\/remgro.com\/pdf\/eng\/2014\/Remgro_SUS_REP_2014_ENG.pdf\">Sustainable Development Report<\/a><\/p>\n<h2>Feedback<\/h2>\n<p>We welcome any feedback on Remgro\u2019s sustainable development practices and this report. In this regard please contact:<\/p>\n<p>The Company Secretary<br \/>\nMariza Lubbe<br \/>\nTel: +27 (0)21 888 3311, Fax: +27 (0)86 581 0061<br \/>\nEmail: <a href=\"mailto:&#x6D;&#x6C;&#x40;&#x72;&#x65;&#x6D;&#x67;&#x72;&#x6F;&#x2E;&#x63;&#x6F;&#x6D;\">ml@remgro.com<\/a><br \/>\nPostal address: PO Box 456, Stellenbosch 7599\n<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;A prerequisite for survival is adaptability and a&nbsp;willingness to serve.&#8221; (Dr Anton Rupert) INTRODUCTION Remgro\u2019s current value system incorporates the guidelines drawn up by its founder, Dr Rupert, nearly 60 years ago for doing business successfully. These guidelines include the following: Honesty \u2013 because it lasts the longest Correctness \u2013 because it creates trust with&#8230;  <a href=\"https:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/abridged-sustainable-development-report\/\" class=\"more-link\" title=\"Read Abridged sustainable development report\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":11,"menu_order":74,"comment_status":"closed","ping_status":"closed","template":"page-full-width.php","meta":{"_acf_changed":false,"footnotes":""},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Abridged sustainable development report - Remgro Limited<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.remgro.com\/ar2014\/index.php\/governance-and-sustainability\/abridged-sustainable-development-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Abridged sustainable development report - Remgro Limited\" \/>\n<meta property=\"og:description\" content=\"&#8220;A prerequisite for survival is adaptability and a&nbsp;willingness to serve.&#8221; (Dr Anton Rupert) INTRODUCTION Remgro\u2019s current value system incorporates the guidelines drawn up by its founder, Dr Rupert, nearly 60 years ago for doing business successfully. 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