SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia

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SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
OMNIA HOLDINGS LIMITED
                                                                  OMNIA HOLDINGS LIMITED

                  2018 SUSTAINABLE DEVELOPMENT REPORT

                                                        TRUSTED PERFORMANCE
                                                        INNOVATIVE SOLUTIONS
                                                        BETTER WORLD
                                                                                 2018
                                                        SUSTAINABLE
www.omnia.co.za
                                                        DEVELOPMENT REPORT
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
OVERVIEW OF REPORTING SUITE                                                                                                                                          CONTENTS
                                                                                                           Audited
                                                                                                           summarised            ABOUT THIS REPORT                                2
                                                                                                           consolidated          OMNIA BUSINESS                                   4
                                                         Sustainable                                       annual                Sustainability strategy                          5
                       Integrated                        development            Notice                     financial              Sustainability performance summary               8
                       annual report                     report                 of meeting                 statements
                                                                                                                                 Letter from the Social, Ethics and
    Contents           • Concise communication           • Omnia’s              • Letter to             • Summarised             Risk committee chairman                          12
                         focused on Omnia’s material       sustainability         shareholders            audited
                         matters, performance and          strategy             • Summary of audited      consolidated
                                                                                                                                 MATERIALITY                                      14
                         outlook for sustained value     • Sustainability         results                 financial
                         creation                          performance          • Notice of annual        statements             Materiality determination process                15
                       • Chairman’s statement            • Assurance              general meeting       • Commentary             Material issues                                  15
                       • Group managing director’s         statement            • Supplementary                                  Stakeholder engagement                           15
                         report                          • Letter from the        notice to
                       • Group finance director’s           Social, Ethics and     shareholders in terms
                                                                                                                                 SUSTAINABILITY PERFORMANCE                       16
                         report                            Risk committee         of section 45 of the
                       • Governance report                 Chairperson            Companies Act                                  People                                           20
                       • Remuneration report                                                                                     Integrated sustainability management             35
                       • Audit committee report                                                                                  Social responsibility                            64
                       • Directors’ report
                       • Report of the independent
                         auditors                                                                                                ADMINISTRATION                                   73
                       • Audited consolidated annual                                                                             Assurance statement                              74
                         financial statements                                                                                     GRI content index                                76
    Relationship       • Relevant cross-references       • Highlights of        • A summarised set         • A summarised        Glossary of terms and acronyms                   79
    of information       to more comprehensive             the sustainable        of resolutions for         set of audited
                                                                                                                                 Contact information                              83
    between the          information across the suite      development            the Group has been         consolidated
    suite of reports     of reports                        report is included     included in the notice     financial
                                                           in the integrated      of meeting                 statements has
                                                           report and further                                been extracted
                                                           cross references                                  from the audited          For further            For more
                                                           are made                                          consolidated              information visit      information
                                                                                                             financial                  our website:           see pages
                                                                                                                                       www.omnia.co.za        within the report
                                                                                                             statements
    Frameworks         • Companies Act 71 of 2008        • Companies Act        • Companies Act            • Companies Act
    and guidelines       (Companies Act)                 • King IV              • King IV                  • IFRS
    applied            • International Financial         • IIRC                 • JSE Listings             • JSE Listings
                         Reporting Standards (IFRS)      • JSE Listings           Requirements               Requirements
                       • King Code of Governance for       Requirements
                         South Africa (2009) (King IV)   • GRI
                       • Johannesburg Stock
                         Exchange (JSE) Listings
                         Requirements
                       • International Integrated
                         Reporting Framework V1.0
                         (IIRC)
                       • Global Reporting Initiative
                         (GRI Core)
    Assurance          • The board, assisted by the      • Assurance            • Proxies are attached     • External audit
                         Audit committee and other         statement              for voting of all the      opinions
                         sub-committees, oversees        • BBBEE verification      resolutions tabled       • Internal audit
                         the integrated reporting                                                          • Internal controls
                         process                                                                           • Management
                                                                                                             and governance
                                                                                                             oversight
                                                                                                                                                            www.omnia.co.za
D    OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
This sustainable development report             sustainable approach that encompasses       on the environment and safer operations
                                                                                                                                    also includes key performance-specific          all stakeholders – shareholders,            for Omnia as well as its customers.
                                                                                                                                    indicators on which Ibis ESG Assurance          customers, employees, suppliers,            The Group differentiates itself from
                                                                                                                                    has been engaged to provide an                  governments and the communities in          other commodity chemicals providers
                                                                                                                                    independent assurance in respect of:            which Omnia operates. Omnia continues       by adding value at various stages of
                                                                                                                                    Direct (Scope 1) and Indirect (Scope 2)         to integrate economic development,          the supply and service chain through
                                                                                                                                    greenhouse gas (GHG) emissions.                 environmental quality and social equity     technological innovation and by
    ABOUT THIS REPORT                                                                                                               New variables with respect to enhanced
                                                                                                                                                                                    into the Group’s business practices so      deploying its intellectual capital.
                                                                                                                                                                                    as to constantly improve performance        The sustainability of its business model
                                                                                                                                    assurance were identified during
    Omnia Holdings Limited (“Omnia” or “the                                                                                                                                         in a sustainable manner. The Group’s        is strengthened by targeted backward
                                                                                                                                    FY2018, as follows:
                                                                                                                                                                                    approach includes the integration of        integration through the installation of
    Group”) is an integrated business consisting of                                                                                 • Safety incidents
                                                                                                                                                                                    sustainability into Omnia’s corporate       technologically advanced plants that
    three divisions that work together to ensure the                                                                                • Man-hours verification                        cultures that it will become fundamental    manufacture core materials such as
    responsible and efficient use of resources in a                                                                                 • LTIFR (Lost time injury frequency rate)       across functions, including in the value    nitric acid and explosive emulsions. This
                                                                                                                                    • Recordable case rate (RCR)                    proposition offered to the stakeholders.    enables Omnia to improve operational
    sustainable manner, in the industries in which it is                                                                                                                                                                        efficiencies throughout the product
                                                                                                                                    • Fatality rate
    involved. The Group’s main production facilities                                                                                                                                BOARD RESPONSIBILITY STATEMENT              development and production cycle. In
                                                                                                                                    • Occupational health
    and corporate office are based in South Africa.                                                                                                                                 The board acknowledges its responsibility
                                                                                                                                                                                                                                addition to securing sources of supply
                                                                                                                                    The following international sites are                                                       Omnia, which has its roots in the
                                                                                                                                                                                    to ensure the accuracy of the sustainable
                                                                                                                                    included in the assurance for the first time:                                               fertilizer and agriculture industry, has
                                                                                                                                                                                    development report for the 2018
                                                                                                                                                                                                                                built an in-depth understanding, not only
                                                                                                                                    • Fertilizer – Zimbabwe                         financial year. Accordingly, the board
                                                                                                                                                                                                                                of its core markets in South Africa, but
                                                                                                                                    • BME – Zambia and Namibia                      has applied its collective expertise
                                                                                                                                                                                                                                also in the fundamental industries of
In all its dealings, Omnia deeply          REPORTING FRAMEWORKS                         31 March 2018, certain information is                                                       to this report and, in its opinion, this
                                                                                                                                    • Protea Mining Chemicals – Namibia                                                         mining and chemicals in Africa. Based
considers the impact of its business                                                    reported on a calendar-year basis from                                                      report presents an integrated and
                                           Guided by the International Integrated                                                                                                                                               in Johannesburg, South Africa, with
and operations on the world in which it                                                 1 January 2017 to 31 December 2017          The information presented in this               accurate view of Omnia’s sustainability
                                           Reporting Council (IIRC), the King IV                                                                                                                                                operations in 31 countries, Omnia has
                                                                                                                                    sustainable development report                  performance for the year under review.
operates, and therefore subscribes to      Report on Corporate Governance               along with historical information and                                                                                                   more than six decades’ experience
the vision of belief that the disclosure                                                forward-looking statements, all of which    originated from Omnia’s various                                                             in the business. Additionally, Omnia
                                           (King IV) and the Global Reporting                                                                                                        WHAT WE DO
of socio-economic and environmental                                                     provide context in respect of the Group’s   operations, before being integrated at                                                      continues to grow its global footprint,
                                           Initiative (GRI), Omnia has reviewed its
performance is as relevant as financial                                                 strategy and operations.                    divisional and Group level. Omnia has            Omnia Holdings Limited is a                with business units in Australasia and
                                           sustainability reporting processes during                                                                                                 diversified chemicals Group that
reporting. It is with this intent that                                                                                              directed this report to a wide group of                                                     Brazil, and clients in other regions such
                                           the year. This report has been prepared      The previous sustainable development                                                         supplies chemicals and specialised
Omnia has prepared this sustainable                                                                                                 stakeholders.                                                                               as Europe, South America and South
                                           in accordance with the GRI Standards:        report dated 21 August 2017 published                                                        services and solutions for the             East Asia.
development report for its integrated      Core option and the GRI content index        by Omnia on 28 August 2017 focused          GOVERNANCE OF SUSTAINABILITY                     agriculture, mining and chemical
business.                                  can be found on page 76.                                                                                                                  application industries. Using              Omnia provides customised,
                                                                                        on the financial year 1 April 2016 to
                                                                                                                                    The board is ultimately responsible                                                         knowledge-based, innovative solutions
This is the Group’s third stand-alone                                                   31 March 2017, and there has been no                                                         technical innovation combined with
                                           This is the first year of reporting under                                                for the key governance processes to              intellectual capital, Omnia adds value     through its Agriculture, Mining and
sustainable development report, the        the principles of King IV (previously        material restatement of information                                                                                                     Chemicals divisions. These divisions
                                                                                                                                    ensure sustainable growth, acceptable            for customers at every stage of the
result of a year-on-year evolution which   King III), and Omnia are busy aligning the   provided in that report.                                                                                                                include Omnia Fertilizer, Omnia
                                                                                                                                    performance and affairs of the Group.            supply and service chain. With its
takes feedback into account in order       risk and compliance to the principles of                                                                                                                                             Specialities, Axioteq™, BME, Protea
                                                                                        There have also been no significant         The board delegates to the Social,               vision of leaving a Better World as
to improve the standard of reporting.      King IV and this process will continue                                                                                                    a footprint, the Group’s solutions         Mining Chemicals, Protea Chemicals and
                                                                                        changes in the list of material topics      Ethics and Risk Committee (SERC)
Through this report, Omnia aims to         into the future.                                                                                                                          promote the responsible use of             Umongo Petroleum, all niche businesses
                                                                                        and topic boundaries between the two        its responsibility for monitoring and
share and elaborate on the details                                                                                                                                                   chemicals for health, safety and a         that operate with a common objective:
                                                                                        reports.                                    managing the Group’s social and
of its three divisions individually and    At present, only selected non-financial                                                                                                   lower environmental impact, with           to enhance customers’ businesses
                                                                                                                                    economic development, good corporate
collectively as a Group.                   indicators are assured as per the                                                                                                         an increasing shift towards cleaner        through research, development and
                                                                                        ASSURANCE AND INDEPENDENT                   citizenship (including the promotion of
                                           environmental assurance statement on         ASSESSMENT                                                                                   technologies.                              knowledge-sharing that will enable
In accepting its duty to present                                                                                                    equality as well as environmental, health                                                   them to increase productivity and, by
                                           pages 74 and 75.
a balanced and understandable                                                           The Group makes use of various              and safety), good labour conditions and                                                     extension, profit margins. In doing so,
                                                                                                                                                                                    Not only does the Group try to limit the
assessment of the Group’s position in      Omnia describes its activities with          independent service providers to assess     sound business ethics.                                                                      Omnia aims to increase the performance
                                                                                                                                                                                    consumption of materials and resources
reporting to its stakeholders, the Omnia   regard to sustainability during the period   and assure various aspects of the                                                           used in its manufacturing processes,        of our customers while reducing their
board of directors (the board) takes       under review, its plans for the coming       business operations, including elements     SUSTAINABILITY VISION                           but it also works to continuously create    risk, and at the same time focusing on
into consideration the greater demand      year and how the Group intends to            of external reporting. This sustainable                                                     value through its products. Omnia’s         health, safety and a lower environmental
                                                                                                                                    To manage health, safety,
                                           remain a sustainable business over the       development report conforms to the                                                          intellectual capital, relationships and     impact.
for transparency and accountability                                                                                                 environmental, social and financial
regarding non-financial matters. All       long term.                                   requirements of the South African           demands and concerns in order to                technology enable the production of         The Group’s proven business model
stakeholders with a legitimate interest                                                 Companies Act. While the Group’s                                                            differentiated products, services and       makes it a market leader in Chemicals
                                           This report covers the three business                                                    ensure the responsible, ethical and
                                                                                        annual sustainable development                                                              customer-focused solutions across the       and Chemical services. Omnia continues
in the Group’s affairs should be able to   divisions – Agriculture, Mining and                                                      ongoing success of the business.
                                                                                        report is not audited, it includes                                                          value chain – all of which are expected     to grow and prosper, offering value to
obtain a full, fair and frank account of   Chemicals – which together have a
                                                                                        information from various sources on         The Group subscribes to the principles          to meet its customers’ evolving needs       its customers by tailoring its solutions
Omnia’s performance. The Group makes       physical presence in 31 countries, of                                                    of openness, integrity and accountability       well into the future.                       to their business needs through product
every effort to ensure that information                                                 which assurance has been provided,
                                           which 22 are in Africa with its head                                                     and the concept of the “triple bottom                                                       and service innovation, and through the
is distributed via a broad range of                                                     such as Broad Based Black Economic                                                          The Group remains focused on critical
                                           office based in Johannesburg, South                                                      line”. These principles embrace                                                             expert application thereof.
communication channels and takes                                                        Empowerment (BBBEE) information,                                                            issues such as securing a healthy and
                                           Africa. While this report focuses on                                                     economic, social and environmental              adequate food supply for a growing
care to ensure that critical information                                                which has been verified and signed off
                                           the financial year from 1 April 2017 to                                                  relationships through an integrated,            population, and effecting a lower impact
reaches all stakeholders timeously.                                                     by Mazars (South Africa).

2   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                                                                                                            OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018     3
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
OMNIA’S PURPOSE

                                                SUSTAINABILITY STRATEGY   PILLARS, PRINCIPLES AND VISION OF GROUP
                                                OMNIA’S SUSTAINABILITY    STRATEGY
                                                STRATEGY IS FULLY         The Group strategy comprises three strategic pillars that aim to:
                                                ALIGNED WITH THE          • Transform the existing business
                                                GROUP’S VISION AND        • Create new growth
                                                OVERALL BUSINESS          • Build people and Omnia’s reputation
                                                STRATEGY, AND FORMS       Underpinning the Group strategy are the business enablers.
                                                AN INTEGRAL PART OF       These are the core elements which are required to run the
                                                                          business and will be addressed in the operating model design.
                                                HOW THE DAY-TO-DAY
                                                BUSINESS IS CONDUCTED
                                                THROUGHOUT
                                                THE ORGANISATION.

          OMNIA
          BUSINESS

4   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                              OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018   5
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
OMNIA BUSINESS CONTINUED

                                                            The Group’s strategy is underpinned           (For more on Responsible Care® see                                                                                                     quality by introducing farmers to the
                                                            by ensuring a safe and sustainable            pages 17 and 59).                                                                                                                      latest technology in order to assist
     The successful implementation                          environment for its employees, the                                                                                                                                                   them with improving their decision-
     of the strategy is largely                                                                           The Group has also formulated a
                                                            communities in which it operates and                                                                                                                                                 making progress and reducing
     dependent on consistent                                                                              supplier code of conduct which takes
                                                            its customers. Safety is embedded in all                                                                                                                                             farming risk
     adherence to a set of guiding                                                                        into account the principles of the
                                                            aspects of the strategy, a core principle
                                                                                                          UN Global Compact as it pertains to                                                                                                  • Advises on good farming practices
     principles aligned to it. Based                        to the strategy of contributing towards a
                                                                                                          the protection of human rights and                                                                                                     to conserve water and prevent soil
     on this approach, Omnia has                            Better World.
                                                                                                          ensuring sustainable business practices.                                                                                               erosion
     adopted the following eight
                                                                                                          Assessments of suppliers against this                                                                                                • Maintains a dedicated unit focused on
     strategic guiding principles:                          SUSTAINABILITY AND GROWTH
                                                                                                          code will commence during FY2019.                                                                                                      emerging farmers to assist them in
                                                            The sustainability strategy has been                                                                                                                                                 becoming self-sufficient commercial
                                                            devised to drive the growth of the            As a signatory to the Responsible Care ®                                                                                               farmers over time
                                                            business in a sustainable way. Omnia          Global Charter, the Group subscribes
                                                                                                                                                                                                                                               • The Agriculture division has extensive
                     ANCE          I NN                     recognises the imperative to manage           to the principles of strengthening
                                                                                                                                                                                                                                                 experience, knowledge, and expertise
                  RM                      O                 environmental, social and financial           chemicals management systems on
                                                                                                                                                                                                                                                 related to good farming practices in
          FO

                                          VA

                                                            demands and concerns in order to              the basis of embedding initiatives such
                                                                                                                                                                                                                                                 South Africa and these aspects are
    TRUSTED PER

                                            TIV

                                                            ensure the responsible, ethical and           as the Globally Harmonised System of
                                                                                                                                                                                                                                                 also being used to support similar
                                              E SOLUTIONS

                                                            ongoing success of the business.              Classification and Labelling of Chemicals
                                                                                                                                                                                                                                                 initiatives in other countries where the
                                                                                                          (GHS). The safe use, disposal and
                                                            While Omnia’s business model is                                                                                                                                                      division operates
                                                                                                          management of chemicals ensures
                                                            designed for long-term sustainability, the                                                                                                                                         In addition, Omnia understands that the
                                                                                                          that policies are in place to safeguard
                                                            Group continues to fine-tune the model,                                                                                                                                            global economy is driven by knowledge
                                                                                                          employees, contractors, the public and
                                                            operating as it does within a broad and                                                   standards of living and inefficient             which results in increased water         which is powered by technology. This is
                   BETTE WORLD                                                                            the environment.
                        R                                   evolving context of macro-economic                                                        agriculture and industry practices.             use efficiency for plants                about turning data into knowledge and
                                                            realities and social, regulatory, community   Wider global sustainability issues                                                                                                   knowledge into wisdom and value. In
                                                                                                                                                      In response to this challenge, Omnia:       FOOD SECURITY
                                                            and environmental influences.                 Omnia recognises the role it must                                                                                                    the agricultural sphere it is no different.
                                                                                                                                                      • Continuously looks for further            There is increasing concern about food
                                                            The Group is committed to playing a           play in helping to address the wider                                                                                                 Given the challenging farming conditions,
                                                                                                                                                        opportunities to improve and promote      security as food production may fail to
    GUIDING PRINCIPLES                                      role in the development and growth of         global sustainability issues of energy                                                                                               farmers are asking for technology with
                                                                                                                                                        the efficient use of water resources      meet the escalating demand caused
                                                            the agriculture, mining and chemicals         consumption, climate change, water and                                                                                               the ability to gather, interpret and make
                                                                                                                                                        by investing in businesses that are       by global population growth, changing
                                                            sectors in South Africa, the rest of Africa   resource scarcity and food security.                                                                                                 available information from real-time data.
                                                                                                                                                        water-wise                                dietary habits in developing economies,
                     Trusted and                            and internationally. As the Group has                                                                                                                                              This information will be used to make
                                                                                                          ENERGY AND CLIMATE CHANGE                   • Optimises the Group’s own water           increasing urbanisation and the declining
                     respected                              grown and prospered, it strives to help                                                                                                                                            daily farming decisions to effectively
                                                                                                                                                        use by reducing consumption, re-          availability of water and arable land.
                                                            the agriculture, mining and chemicals         Global population growth, combined                                                                                                   quantify, manage and mitigate farming
                                                                                                                                                        using its resources, improving its
                     Zero harm,                             sectors grow and it does so through           with improving living standards, has                                                    South Africa has been a net importer         risk. Resource scarcity, in particular water
                                                                                                                                                        quality, managing effluent and limiting
                     positive impact                        long-term sustainable relationships with      created substantial increases in energy                                                 of food since 2000 and innovative            and limited arable land, means agriculture
                                                                                                                                                        pollution
                                                            customers and other stakeholders.             demand which in turn have elevated                                                      approaches are required to remedy the        has to look at new ways to improve yields
                                                                                                          greenhouse gas emissions in the             • Provides advice to customers on the                                                    to feed the growing world population in
                     Engaged and                                                                                                                                                                  shortfall in food production.
                                                            Omnia’s sustainability material issues        atmosphere to record and unacceptably         conservation and efficient use of
                     empowered people                                                                                                                                                                                                          a sustainable manner. It is believed that
                                                            range from safety, health and the             high levels.                                  water in agriculture                      In response to this challenge, the
                                                                                                                                                                                                                                               technology form the basis of the “second
                                                            environment, to employment equity and                                                     • Uses research and development to:         Agriculture division has, through its
                                                                                                          In response to this challenge, Omnia:                                                                                                green revolution” through which crop
                     Collaborative solutions                community development.                                                                                                                Nutriology™ model, developed a
                                                                                                                                                        – Formulate fertilizer products                                                        yields may increase by 70% from current
                                                                                                          • Uses best-in-class technology to                                                      strategy to support the pillars of modern,
                                                            There are four aspects that are central                                                       whereby crops will require less                                                      levels. It is for this reason that Omnia
                     Leveraged knowledge                                                                    reduce the amount of carbon gases                                                     sustainable agriculture. This entails
                                                            to the Group’s sustainable growth                                                             water to function effectively (better                                                invested in the LDR group of companies
                     and capabilities                                                                       emitted from its operations                                                           the use of a large team of agronomic
                                                            objectives:                                                                                   water-use efficiency)                                                                and created the Axioteq™ business.
                                                                                                          • Continually seeks ways to reduce                                                      specialists supported by competent
                                                            • Culture of performance and innovation                                                     – The Chemicals division partners                                                      Axioteq™ focusses on two key areas,
                                                                                                            energy consumption and to optimise                                                    technological services and a world-class
                     Technology enabled                                                                                                                   with water users of all sizes, to                                                    namely, Innovative systems and Data
                                                            • People who perform and innovate               the efficiency of existing and future                                                 laboratory located at the Sasolburg
                                                                                                                                                          ensure that water preservation can                                                   solutions. The Innovative systems team
                                                            • Responsible business practices                processes that consume energy                                                         factory, to conduct research and
                     African heritage,                                                                                                                    begin as soon as possible after use.                                                 will focus on cutting edge technologies,
                                                            • Safety, Environment, Risk and Health        • Actively supports the drive to develop                                                development in order to supply advisory
                     global reach                                                                                                                         This improves cost efficiencies and                                                  which consists and continuous data
                                                                                                            sources of alternative and renewable                                                  and analysis services to customers.
                                                            In addition, the Group adheres to the                                                         sustainability, reduces the burden                                                   gathering, field services and hardware
                                                                                                            energy, such as biofuels
                     Optimised performance                  principles of Responsible Care ®, the                                                         on local municipalities and water       The Agriculture division also:               and the Data solutions team will focus on
                     and assets                             chemical industry’s unique global             WATER SCARCITY                                  boards and in turn increases the                                                     data processing, analytics and software.
                                                                                                                                                                                                  • Continuously invests in programmes
                                                            initiative that drives continuous                                                             overall availability of clean water                                                  This wil improve farming practices, crop
                                                                                                          Water is becoming scarcer, the quality                                                    that enhance nutrient and water-use
                                                            improvement in safety, health                                                                                                                                                      performance and yield.
                                                                                                          is deteriorating, and the unsustainable       – The newly acquired business, Oro          efficiencies
                                                            and environmental performance,                                                                Agri, which will become part of
                                                                                                          rise in water use is rising as a result                                                 • Develops and deploys new agronomic
                                                            together with open and transparent                                                            Omnia 1 May 2018, manufactures
                                                                                                          of expanding populations, increasing                                                      techniques and fertilizer products that
                                                            communication with stakeholders.                                                              and sells products that surfactants       help increase both crop yields and

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SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
SUSTAINABILITY
         PERFORMANCE
         SUMMARY

                                                  EMPLOYEES                                           SKILLS
                                                                                                      DEVELOPMENT
                                                  4 817ˆ                                              An average of
                                                  (2017: 4 406)
                                                                                                      12.0 days
                                                                                                      (2017: 10.2) training,
                                                                                                                                                         HUMAN RESOURCES
                                                3 953                      307                        including both internal
                                                permanent employees        employees received         and external training                             The demographics of the South African
                                                (2017: 3 566)
                                                                           psychological                                                                workforce are as follows:
                                                                           counselling                courses, was received by
                                                864                        (2017: 136)                employees                                         72%
                                                fixed-term employees       Overall utilisation                                                          of the workforce are
                                                (2017: 840)                increased due to all                                                         black employees
                                                                                                                                                        (2017: 69%)
                                                                           divisions forming part
                                                ^ Includes acquisition of
                                                Umongo Petroleum concluded of the programme in
                                                in November 2017           FY2018 together with
                                                                                                    Training programmes
                                                                                                    included:
                                                                                                                             Other statistics in
                                                                                                                             respect of skills
                                                                                                                                                        68% or 3 628
                                                                           further awareness
                                                                                                                             development:               employees
                                                1 452       employees      programmes
                                                                                                    163                                                 are employed in South Africa
                                                attended in-house
                                                wellness programmes        174                      learnerships             128                        (2017: 79% or 3 469 employees)
                                                                                                    (2017: 140)              employees were
                                                                           employees received
                                                (2017: 1 193)
                                                                           financial wellness
                                                                                                                             assisted with part-time    34%
                                                2 587       employees      support                  34 apprenticeships       studies                    of top management are
                                                                                                    (2017: 46)               (2017: 143)                black women employees
                                                received annual medical    (2017: 198)
                                                                                                                                                        (2017: 29%)
                                                checks
                                                                           155                      41                       86
                                                (2017: 1 662)
                                                                           employees received       workplace experiential   employees attended         30%
                                                Annual medical checks                               learning                 adult education and        of South African bargaining unit
                                                                           staff loans
                                                are conducted for                                   (2017: 35)               training (AET)             employees are represented by
                                                                           (2017: 267)
                                                employees at the                                                             (2017: 56)                 trade unions
                                                production sites and
                                                                           730                      4                                                   (2017: 32%)
                                                every second year for
                                                                           employees received       internships              50
                                                administration-based                                (2017: 6)                people with disabilities
                                                                           financial training
                                                employees                                                                    enrolled in learnerships
                                                                           (2017: 774)
                                                                                                                             (2017: 50)
                                                35
                                                employees were                                                               7
                                                referred for further                                                         external bursaries were
                                                medical assessment and                                                       granted
                                                management                                                                   (2017: 6)
                                                (2017: 30)

8   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                                                                     OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018   9
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
SUSTAINABILITY
           PERFORMANCE
           SUMMARY
           continued
                                                                                                                                                                                                          BBBEE RATING

                                        EMPLOYMENT
                                                                                                                                                                                                          Level 3
                                                                                                                                                                                                          (2017: Level 5)
                                        EQUITY AND BBBEE
                                        OWNERSHIP

               37.9%                             Year to year decrease                     PROCUREMENT                        SOCIO-ECONOMIC                          INCIDENTS                       • Normalisation of nitric acid
               economic interest in the hands    in indirect interest relates              The total measurable procurement                                                                             production in Agriculture
               of black people in Omnia Group    to the vesting of Sakhile 2 –             spend with suppliers, as per the   R3.7 million                            1                                 division resulted in an
               Proprietary Limited against a     Tranche 1 during FY2019                   amended dti BBBEE codes, was       was spent on socio-economic             major transport
                                                                                                                                                                                                        increase of N2O emissions
               target of 25%                                                               approximately                      development                             -related incident
                                                 Sakhile 1 (BBBEE initiative)                                                                                                                           following the non-recurring
               (2017: 27.3%)                                                                                                  (2017: R4.1 million)                    (2017: 0)
                                                 currently has                             R7 billion                                                                                                   breakdown of NAP2 in 2017
               A total direct interest of
                                                 1 896                                     (2017: R9 billion)
                                                                                                                              CONSUMPTION                             0                               • Catalyst on the N2O
               13.5%                             active shareholders                       of which                                                                   major or serious                  destruction plant is reaching
               in Omnia Group Proprietary        (2017: 2 096)                                                                3%
               Limited is held by black                                                    82%                                decrease in electricity consumption,
                                                                                                                                                                      environmental incidents           end of life
                                                 Sakhile 2 (BBBEE initiative) for
               employees                         senior management currently
                                                                                           qualified as BBBEE-recognised
                                                                                           procurement spend with all
                                                                                                                              mainly due to the increased use of
                                                                                                                                                                      (2017: 2)
                                                                                                                                                                                                      Indirect emissions
               (2017: 13.5%)
                                                 has 108                                   empowering suppliers using the     alternative energy resulting in lower   NON-COMPLIANCE                  (Scope 2) of
               Indirect interest of                                                        BBBEE recognition levels           demand on the national electricity
                                                 active shareholders                                                                                                  1 notice                        75 723
               7.5%                              (2017: 140)                               (2017: 52%)                        grid
                                                                                                                              (2017:12% increase)
                                                                                                                                                                      was received at the             tonnes of CO2e
               in Omnia Group Proprietary
                                                                                           HUMAN RIGHTS                                                               Chemicals division for an       – down by 18%
               Limited by black employees
               through the Sakhile 1 and                                                                                      41%                                     instance of non-compliance      (2017: 91 978)
               Sakhile 2 share scheme                                                      Zero                               increase in water consumption,          with the industrial effluent
                                                                                           human rights                                                                                               • Decreased use of electricity
               (2017: 9.3%)                                                                                                   mainly due to the NAP2 breakdown        permit conditions – no fine
                                                                                           incidents were reported                                                                                      due to increased alternative
                                                                                           (2017: zero)                       in 2017. This is a non-recurring        was imposed
                                                                                                                                                                                                        electricity generation and
                                                                                                                              item which resulted in increased        (2017: 3)
                                                                                                                                                                                                        usage thereof
                                                                                                                              production and hence increased
                                                                                                                                                                      GREENHOUSE GASES                • Decreased production in
                                                                                                                              water consumption
                                                                                                                                                                                                        the Chemicals division
                                                                                                                              (2017:27% decrease)                     The Group monitors its
                                                                                                                                                                                                        due to the drought in the
                                                                                                                                                                      carbon footprint on the basis
               For more on the
               Sakhile schemes                                                                                                2%                                      of two types of emissions:
                                                                                                                                                                                                        Western Cape
               see pages 22, 34                                             RCR (recordable case rate) of                     decrease in volume of hazardous
               and 71                                                                                                                                                 Direct emissions
                                                                            0.47                                              waste. This was due to improved
                                                                                                                              waste management, resulting in
                                                                                                                              increasing volumes of waste being
                                                                                                                                                                      (Scope 1) of
                                                                            (2017: 0.54)
                                                                                                                              re-used or recycled
                                                                                                                                                                      66 378
                                                                                                                                                                      tonnes of CO2e – up by 50%
                                                                            was below                                         (2017: 33% decrease)
                                                                                                                                                                      (2017: 44 236)

                                                                            0.5       internal limit
                                                                            (2017: 0.8)

10   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                                                                                                   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018   11
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
SOCIAL, ETHICS AND RISK COMMITTEE REPORT
                                                                                                                                             IN MEMORIAM
                                                                                              THE OMNIA GROUP IS COMMITTED                   Whilst good progress continues in all divisions, we must, with                • Agriculture division: 19 February 2019 – Mr Gert Sello Mosia
                                                                                              TO MAINTAINING HIGH STANDARDS                  great sadness, report two fatalities during the reporting period.               (60 years old)
                                                                                              OF GOOD GOVERNANCE TO                                                                                                          While performing a leak test on the dome of a filter, the dome
                                                                                                                                             This year, two of our colleagues tragically lost their lives during
                                                                                              PROMOTE SUSTAINABILITY                                                                                                         was ejected due to over pressure and the operator, Mr Gert
                                                                                                                                             work in South Africa:
                                                                                                                                                                                                                             was injured and later passed away due to his injuries
                                                                                              THROUGH THE INTEGRATION OF
                                                                                                                                             • Mining division: 4 July 2017 – Mr Clive Shoba (27 years old)
                                                                                              ENVIRONMENTAL, SOCIAL AND                                                                                                    We express our condolences to the families and our commitment
                                                                                                                                               A driver operator and assistant were on route to a client site
                                                                                              ECONOMIC CONSIDERATIONS INTO                                                                                                 to prevent similar or other incidents in the future.
                                                                                                                                               when the driver lost control of the truck resulting in the fatality
                                                                                              ALL ASPECTS OF THE GROUP’S                       of the driver assistant, Mr Clive Shoba
                                                                                              ACTIVITIES AND IN ADDITION
                                                                                              TO ACTIVELY ENCOURAGE THE
                                                                                              EXECUTION OF DECISIONS WITHIN
                                                                                                                                           Membership and attendance to                      The membership and attendance of committee meetings are reflected below:
                                                                                              A DISCIPLINED FRAMEWORK OF                   meetings
                                                                                              POLICIES AND AUTHORITIES.                    The committee members comprised                                             Committee                                              Total
                                                                                                                                                                                                                       members               1 June 19 October 19 March number of
                                                                                                                                           a majority of non-executives, with the
        Frank Butler                                                                                                                                                                         Member                    since                   2017      2017      2018 meetings: 3
                                                                                                                                           Group managing director as the only
        Social, Ethics and Risk committee chairman                                                                                         executive member. An independent                  Frank Butler
                                                                                                                                                                                             (Chairman)                30 Sept 2010                                                    3/3
                                                                                                                                           non-executive member of the audit
                                                                                                                                           committee also attends the meeting                Rod Humphris
                                                                                                                                                                                             (Omnia Holdings
                                                  • Risk management:                          During FY2018, there were no undue,          by invitation. All members have the               Chairman)                 30 Sept 2010                                                    3/3
                                                    – Monitoring the Group’s risk             unexpected or unusual risks that             requisite business, financial and
                                                                                                                                                                                             Ralph Havenstein
         Our primary goals are                        management matters including            realised and risks were managed within       leadership skills for their positions.
                                                                                                                                                                                             (Omnia Holdings
         to provide stewardship                       strategic opportunities and             the tolerance levels set out by the
                                                                                                                                           For detailed qualifications and                   lead independent
                                                      exposure analysis, risk tolerance,      board. Refer to the risk section in the                                                        director)                 30 March 2011                                                   3/3
         and to promote                                                                                                                    experience of committee members
                                                      assurance and compliance                2018 Integrated Annual Report to be                                                            Adriaan de Lange
         social and economic                                                                                                               refer to www.omnia.co.za.
                                                      processes as well as reviewing          published on 13 August 2018.                                                                   (Group managing
         development, good                            the Group’s performance in                                                           During June 2018, the evaluation                  director)        1 June 2017                                                              3/3
                                                                                              In the year ahead, special attention will    process of the Institute of Directors
         corporate citizenship                        managing risk. In addition, this
                                                                                              be given to embedding the governance
                                                                                                                                                                                             By invitation
                                                      monitoring process is a platform for                                                 was followed on the effectiveness of
         and risk management                                                                  principles in the updated charter in line                                                      Linda de Beer
                                                                                                                                           the committee. Overall, the results               (Audit committee
                                                      providing recommendations in risk
         practices in Omnia                                                                   with the requirements of King IV as well     of the assessments reflected that                 chairman)^                N/A                       N/A          N/A                        1/1
                                                      management for consideration and
                                                                                              as a review of Omnia’s climate change        the committee has been effective in                – Attended
                                                      approval by the board
                                                                                              policy.                                      carrying out their duties. Key areas of           N/A – Not a director or member of committee
                                                                                                                                                                                             ^ – Appointed 30 November 2017
                                                  The performance of the committee and                                                     improvement have been incorporated in
              For further information visit our                                               As in previous years, a key feature of
                                                  the chairman is assessed annually.                                                       the annual workplan.
              website: www.omnia.co.za                                                        the committee’s activities has been in
                                                  The committee confirms that it has          testing specific areas of risk, including:                                                     • Effectiveness of risk management                   to playing its role in attaining the goals,
                                                                                                                                           Annual confirmations
                                                  discharged its responsibilities as          • Product liability, particularly as it      The principal matters attended to by the             In conjunction with the audit                     supporting government and working
                                                  mandated by the board, its statutory          pertains to activities in the food         committee during the year included:                  committee, the committee assessed                 with stakeholders to create a Better
     SOCIAL, ETHICS AND RISK                      duties in compliance with the                 industry, animal feeds and fertilizer                                                                                                             World. The Group will therefore be
                                                                                                                                           • Monitoring the resourcing of the risk,             the financial controls and risk
     COMMITTEE RESPONSIBILITIES                   Companies Act and best practice in            application                                                                                                                                       focusing on the integration of enterprise
                                                                                                                                             sustainability, legal compliance and               management practices of the Group
     The committee has adopted an                 corporate governance, as set by King IV.    • Process safety as an area for                                                                   and recommended Omnia’s risk                      risk management, safety, health and
                                                                                                                                             human resources functions in the
     appropriate formal charter and is                                                          continuous improvement                                                                          appetite and risk tolerance levels to             environmental management and active
                                                  During the year, specific focus was                                                        Group, with focused efforts in BBBEE,
     responsible for overseeing activities                                                                                                                                                      the board                                         employee and stakeholder engagement
                                                  placed on the review of the committee’s     • A review of Omnia’s chlorine                 employment equity and corporate
     relating to:                                                                                                                                                                                                                                 in a drive to give life to one of the
                                                  charter in line with King IV, monitoring      processes and handling activities that       social investment. In addition,                 A key focus of the Group is seeking
                                                                                                                                                                                                                                                  Group’s strategic guiding principles:
     • Social and ethics:                         the resourcing of the sustainability,         inherently are highly hazardous              sustained emphasis was placed on                to achieve sustainability integration
                                                                                                                                                                                                                                                  “ZERO HARM POSITIVE IMPACT”.
       – Performing its statutory duties          legal compliance and human resources        • An overview of Omnia’s risk                  monitoring the improvement in health,           throughout the business to support
         as prescribed by the Companies           functions, in the Group, BBBEE                management practices, key risk               safety and environmental exposures              global goals for sustainable
         Act and King IV, with specific           progress, employment equity and               impacts and mitigations                      for employees and all affected                  development.
         reference to social and economic         corporate social investment. In addition,   • Substantial progress in BBBEE from           stakeholders
                                                                                                                                                                                             The United Nations Sustainable
         development, good corporate              sustained emphasis was placed on              level 5 to level 3                         • Social and ethics responsibilities
                                                                                                                                                                                             Development Goals (SDGs) set a
         citizenship, environment, health         monitoring the improvement in health,                                                      The committee is satisfied that
                                                                                              The committee will select topical and                                                          sustainable agenda to end poverty,                   Frank Butler
         and safety matters, and consumer         safety and environmental exposures to                                                      the Group’s social and ethics
                                                                                              significant areas of risk for management                                                       protect the planet and ensure prosperity             Social, Ethics and Risk committee
         relationships, as well as labour and     employees and all affected stakeholders.                                                   procedures and controls are operating
                                                                                              to investigate in their businesses in                                                          for all by 2030. The Group is committed              chairman
         employment matters                                                                                                                  appropriately
                                                                                              more detail during FY2019.

12   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                                                                                                                             OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018          13
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
MATERIALITY DETERMINATION PROCESS
          MATERIALITY
                                                                                               MATERIAL ISSUES                               STAKEHOLDER ENGAGEMENT
                                                   The materiality                             Material issues are deemed to be              Omnia engages regularly with all
                                                   determination process                       those that are most material to               stakeholders in order to consider
                                                   undertaken by Omnia                         the business and its stakeholders,            their legitimate needs, interests
                                                                                               and which fundamentally influence             and expectations. Understanding
                                                   for the 2018 financial
                                                                                               the assessments and decisions of              stakeholder perceptions is important
                                                   year was thorough and                       stakeholders in relation to the Group.        to help identify material issues and
                                                   drew on the knowledge                                                                     possible risks. This in turn guides the
                                                                                               Omnia’s material issues were defined
                                                   of industry experts                         in the 2018 financial year through a
                                                                                                                                             Group’s strategic development. Omnia
                                                                                                                                             undertakes constructive engagement
                                                   and Omnia’s own                             materiality assessment process that
                                                                                                                                             with its broader stakeholder group
                                                   management team                             focused on considering key factors in
                                                                                                                                             with the aim of developing a mutual
                                                                                               the external environment, combined
                                                                                                                                             understanding of objectives, while
                                                                                               with a thorough analysis of the current
                                                           For further information visit our                                                 taking into account statutory, regulatory
                                                           website: www.omnia.co.za            risk register and informed by feedback
                                                                                                                                             and other directives overseeing the
                                                                                               from stakeholders. This process
                                                                                                                                             dissemination of information by
                                                                                               included the evaluation of external
                                                                                                                                             companies and their directors.
                                                                                               topics covered in market reports and in
                                                 The evaluation process explored
                                                                                               the media, as well as formal feedback         Building personal relationships with
                                                 challenges and opportunities that the
                                                                                               from stakeholders and a benchmarking          stakeholders makes good business
                                                 Group encountered throughout the year
                                                                                               against peers. The matters identified         sense and is an integral part of the way
                                                 whilst focusing on the Group’s vision for
                                                                                               were then ranked according to their           the Group works.
                                                 the forthcoming year. The process took
                                                                                               impact on stakeholders and the
                                                 into consideration the material issues for                                                  The board has a duty to report
                                                                                               business.
                                                 each of the three divisions and how they                                                    transparently to all stakeholders,
                                                 affect the Group as a whole.                  The material issues determined for            and increasingly, there has been an
                                                                                               the 2018 financial year and presented         emphasis on greater accountability
                                                                                               below were identified as matters that         regarding non-financial disclosures.
                                                                                               are integral to the Group’s strategy and      The board carefully ensures that
                                                                                               performance. They will be continuously        communication on performance is
                                                                                               monitored to ensure that value is added       distributed to all stakeholders and
                                                                                               for clients by harnessing the Group’s         the public through a broad range of
                                                                                               knowledge and expertise, and by               channels. This engagement is guided
                                                                                               nurturing stakeholder relationships.          by disclosure requirements in terms
                                                                                                                                             of legislation the JSE’s Listings
                                                                                               During the 2018 financial year, the
                                                                                                                                             Requirements and King IV.
                                                                                               following five areas have been
                                                                                               determined to be material issues              For more on stakeholder engagement
                                                                                               pertaining to sustainability for the Group:   refer to the 2018 integrated
                                                                                                                                             annual report.
                                                                                               • People and community
                                                                                               • Responsible business practices
                                                                                               • Health and safety
                                                                                               • Energy and climate change
                                                                                               • Water management
                                                                                               For more on material risks affecting
                                                                                               the Group refer to the 2018 integrated
                                                                                               annual report.

14   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                       OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018          15
SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
OVERVIEW
          SUSTAINABILITY                         Omnia strongly believes

          PERFORMANCE                            that the sustainability of the
                                                 business and minimising
                                                 negative impacts on the
                                                 environment vests in the
                                                 people, management
                                                 and operation of an
                                                 organisation. Accordingly,
                                                 Omnia adheres to the
                                                 principles of Responsible
                                                 Care®, an international
                                                 Chemicals Industry
                                                 initiative which in South
                                                 Africa is under the aegis
                                                 of the Chemical and Allied
                                                 Industries’ Association
                                                 (CAIA)

                                                                                  ABOUT CAIA                                   Rod Humphris, the chairman of Omnia,
                                                                                  CAIA was established in 1994 to              has been a board member of CAIA
                                                                                  represent a wide range of interests          since February 2016 and appointed as
                                                                                  throughout the South African chemicals       chairman in February 2017.
                                                                                  industry. As an association that
                                                                                                                               ABOUT RESPONSIBLE CARE®
                                                                                  forms part of a worldwide network of
                                                                                  chemicals industry associations, CAIA        Responsible Care® is the chemicals
                                                                                  seeks to:                                    industry’s own, unique, global initiative
                                                                                                                               – a voluntary programme that helps
                                                                                  • Promote the sustainability and
                                                                                                                               the industry to raise its standards
                                                                                    continuous improvement of
                                                                                                                               and win greater trust from the public.
                                                                                    performance in safety, health and
                                                                                                                               Responsible Care® envisages a
                                                                                    environmental arenas
                                                                                                                               profitable, sustainable chemicals
                                                                                  • Boost the productivity and                 sector in South Africa that contributes
                                                                                    competitiveness of the chemicals and       to the quality of human life and to
                                                                                    allied industries in South Africa          the economy, through innovation and
                                                                                  CAIA maintains a constructive working        production and without harm to people,
                                                                                  relationship with Government and             property or the environment.
                                                                                  NGOs so that the industry is properly        Responsible Care® aims to ensure
                                                                                  represented at the policy and legislative    that South Africa’s chemicals sector
                                                                                  level. The association is also the           is recognised by all stakeholders as
                                                                                  custodian of the global Responsible          a responsible industry playing an
                                                                                  Care® initiative in South Africa. This       important role in bringing a wide range
                                                                                  voluntary initiative has been adopted        of benefits to society, while remaining
                                                                                  by 57 countries and it is through this       open, honest and credible in all its
                                                                                  initiative that companies make a formal      dealings.
                                                                                  public commitment to continually
                                                                                  improve their safety, health, and            Under Responsible Care®, the
                                                                                  environmental performances.                  worldwide chemicals industry is

16   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                          OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018        17
SUSTAINABILITY PERFORMANCE CONTINUED

committed to continuously improving
all aspects of health, safety and
environmental performance and to open
communication about its activities and
achievements. Through Responsible
Care®, CAIA member-companies strive
to “do the right thing, even when no-
one is looking.” They innovate for safer
and greener products and processes,
and work to continuously improve
their safety, health and environmental
performance. The initiative is essential
in the reduction and elimination of risks
and to the implementation of sustainable
development. In terms of international
trade and the standards regarding safety,
health and environmental practices, it is
a strategy for survival and growth, and
for maintaining a competitive advantage.
Adherence to its principles represents
Omnia’s commitment to sustainability
– the betterment of society, the
environment, and the economy.

AWARDS AND RECOGNITION
The Climate Change Programme (CDP),
encompassing climate change and water
disclosure, is a non-profit organisation
that manages the global disclosure
system for investors and companies
                                            SAFETY AND HEALTH                              • Championing the Responsible Care ®         and surrounding communities and the        • Promoting effective participation to      All Omnia’s divisions and business units
which enables the measurement and
                                            As a signatory to the Responsible Care     ®     principles across the business value       environment                                  encourage dialogue and consultation       are therefore certified in terms of the
management of environmental impacts.
                                            initiative, Omnia remains committed to           chain                                    • Identifying hazards, assessing risks         with stakeholders                         following standards, where applicable:
The water disclosure provides               the safe, responsible and sustainable          • Managing SHERQ risks in a manner           and implementing effective controls        • Striking an appropriate and reasonable    • ISO 9001 – International Quality
information related to the Group’s          operation of its business activities.            that strives for compliance with legal     to mitigate any possible negative            balance between economic, social            Management Standard
approach to water management,               The Group places significant emphasis            requirements and conformance to            consequences from products and               and environmental needs to facilitate     • ISO 14001 – International
initiatives to improve water efficiency     on the formulation, adoption and                 industry best practice                     services                                     the sustainability of the business          Environmental Management Standard
and the identification of risks and         implementation of the Omnia SHERQ              • Achieving maximum customer               • Effectively responding to emergencies      • Holding line-management accountable       • OSHAS 18001 – International Health
opportunities regarding water               Policy.                                          satisfaction by continuously reviewing     involving employees, contractors,            for the implementation of the SHERQ         and Safety Management Standard
management, and it was in 2016 that the                                                      and improving the processes through        operations and products                      policy
Group responded to it for the first time.   The overarching goal remains to achieve:                                                                                                                                           • Responsible Care ®
                                                                                             which products and services are          • Providing the resources that are
Based on the 2017 water disclosure,         • A sustainable business that creates                                                                                                  Omnia’s divisions and operational sites     All certifications have been maintained
                                                                                             delivered                                  essential for establishing, maintaining,
Omnia’s performance achieved a ranking        stakeholder value through responsible                                                                                                are required to ensure alignment with,      in the current financial year.
                                                                                           • Using internationally-recognised           assessing and continually improving
of A (Leadership Level), an improvement       environmental management                                                                                                             and implementation of, the SHERQ
                                                                                             management systems which                   SHERQ performance
from the A- ranking achieved in 2016.       • The highest level of employee health                                                                                                 policy, with the Group managing director
                                                                                             are regularly audited and with           • Facilitating the responsible and
Refer to page 57 for more detail on the       and wellness                                                                                                                         holding all divisional managing directors
                                                                                             improvements identified to drive           optimal utilisation of natural resources
ranking.                                                                                                                                                                           responsible and accountable. In addition,
                                            • The prevention of injuries and illness         enhanced SHERQ performance                 and raw materials                          all divisions within the Group realise
                                            • The provision of a workplace that            • Managing process safety to               • Ensuring adequate training of              the importance of aligning SHERQ
                                              places great value on the safety and           prevent, prepare for, mitigate and         employees and contractors to facilitate    management systems with an external
                                              protection of Omnia’s people                   respond to releases of chemicals           an effective understanding of SHERQ        standard against which third-party audits
                                            To ensure that this goal is achieved,            and energy from manufacturing and          responsibilities                           can be undertaken.
                                            Omnia requires all divisions to commit to        storage facilities that may impact on    • Regularly publishing SHERQ
                                            the following principles:                        employees, contractors, customers          performance against targets

18   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                                                                                                         OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018         19
PERFORMANCE DURING FY2018

PEOPLE                                        the year under review to provide              The implementation of an integration         Omnia’s total workforce by employment type, region and gender:
Omnia’s people play a critical role in        employees with the required technical         plan commenced after the acquisition
attaining the Group’s vision, delivering      abilities, mindful leadership and quality     was concluded and will continue for a                                        South Africa                     Africa               Other regions
on its strategy and behaving in a manner      decision-making skills. Omnia branded         period of 24 months. The first phase of      Employment type               Male      Female          Male              Female     Male      Female         2018        2017

that is aligned to its core values. A vital   their internal innovation programme,          the integration was concluded in March       Permanent                    2 607          752            458               77         43           16       3 953      3 566
part of this journey is the focus on          framework and processes as Latitude.          2018. This included the establishment        Fixed term                     182          112            540               28          –            2         864        840
aligning individual and organisational        The business leverages the Latitude           of a steering committee, completion          Total 2018                   2 789          864            998              105         43           18       4 817            –
priorities by ensuring not only that          programme and resources across                of the due diligence, the integration of
                                                                                                                                         Total 2017                   2 695          773            764               83         36           15           –      4 406
Omnia recruits the right people but           the business as part of strategy              payroll and HR functions, establishing
continually engages its employees             development and execution. The                a commercial interface between the
                                                                                                                                         RECRUITMENT
and ensures that they are enabled to          Latitude process was also developed to        leadership teams of Protea Chemicals
                                              help drive innovation.                        and Umongo Petroleum and induction           During the year under review, the Group recruited 852 (2017: 663) employees in operations, as tabled below:
deliver in terms of their mandate. To this
end, the Group has developed the                                                            into Omnia’s processes and procedures.
                                              The Group continuously aims to attract,                                                                                 South Africa                 Africa                     Other regions
following people-management strategic                                                       The next phase of the integration plan       Age category               Number            %       Number                   %    Number            %        2018        2017
                                              retain, engage, motivate and inspire its
objectives:                                                                                 will involve employee engagement,
                                              people with the value proposition of a                                                     Under 30                        47            9             12                 9         –            –         59         94
                                                                                            coaching, support to line managers, as
• Focusing on employing, growing and          mutually beneficial career within Omnia.                                                   Between 30 – 50                 85           16              6                 4         1           20         92         55
                                                                                            well as the implementation of the new        Over 50                          5            1              –                 –         –            –          5          4
  building skilled and capable people         While the employee value proposition
                                                                                            Microsoft Dynamics AX ERP system
  and teams                                   is framed to provide employees with a                                                      Total – Female                 137           26             18                13         1           20        156         113
                                                                                            and related systems.
• Creating a culture of continuous            compelling offer to choose Omnia as the                                                    Under 30                       173           33             68               49          –            –        241        186
  learning and development to stay            company of choice within which to grow        No industrial action was experienced         Between 30 – 50                386           55             51               36          2           40        260        304
                                              and contribute, it is correspondingly         during FY2018.                               Over 50                         11            2              3                2          2           40         16         20
  ahead
• Driving and tracking the application        balanced by an understanding of                                                            Total – Male                   570           81            122               87          4           80        517         510
  of knowledge to solve customer              the roles and responsibilities of the         WORKFORCE ANALYSIS                           Total 2018                     707           83            140                16         5            –        852             –
  problems                                    employee. The greater this balance,           As at 31 March 2018, the Group had a         Total 2017                     344           55            277               44          2            –           –       663
                                              the more sustainable and mutually             total of 4 817 (2017: 4 406) employees
• Creating a collaborative environment
                                              beneficial the value proposition is both      and fixed-term contractors worldwide.
  in which knowledge can be accessed                                                                                                     EMPLOYEE TURNOVER
                                              to Omnia and to its employees. Simply         A total of 3 653 (2017: 3 468) employees
  and shared                                                                                                                             A total of 441 (2017: 362) employees left in FY2018. As a result of the loss of a substantial contract, 36 employees in BME
                                              put, this “offer” to employees in return      are employed in South Africa of whom
• Decentralising decision-making in                                                                                                      Botswana were retrenched, while the closing down of the BME Angola office resulted in a reduction of headcount by four. A total
                                              for their skills, capabilities, engagement    2.1% (2017: 2.6%) people are with
  customer-focused functions to ensure                                                                                                   of 265 terminations were voluntary, 48 involuntary and 128 consisted of fixed term contracts expiring.
                                              and performance, is Omnia’s employee          disabilities, 28% (2017: 31%) are white
  that dedicated, agile and timeous
                                              value proposition.                            and 72% (2017: 69%) are black. Omnia’s
  responsive solutions can be delivered                                                                                                                                   South Africa            Africa – Other                Other regions
                                              Omnia’s people-management strategy is         workforce increased by 9.4% during the       Age category               Number            %       Number            %           Number           %         2018        2017
  to customers
                                              integral and fully aligned to its business    current financial year.                      Under 30                        69           19              5                 7         –            –         74         13
• Implementing fit-for-purpose
                                              strategy. This vision is actively pursued     The growth in headcount is due               Between 30 – 50                 51           14              3                 4         1           50         55         56
  performance management to provide
                                              by line-management and has been                                                            Over 50                          6            2              –                 –         –            –          6         12
  consistency and accountability                                                            to various factors, including the
                                              holistically integrated into the day-to-day   acquisitions of Umongo Petroleum and         Total – Female                 126           34              8                12         1           50        135          81
• Ensuring that the Group is
  continuously engaging, supporting           operations of the Group.                      Axioteq™, as well as a number of new         Under 30                        60           16             14               20          –            –         74         66
                                                                                            roles that were added to BME following       Between 30 – 50                137           37             43               62          1           50        181        160
  and communicating with its people           As proven by many studies, engagement                                                      Over 50                         47           13              4                6          –            –         51         55
  to build an engaged and productive          is critical to achieving business results.    a restructure in the previous financial
                                                                                            period and the positioning of the            Total – Male                   244           66             61               88          1           50        306        281
  workforce                                   Engaged employees work with passion,
• Driving transformation and localisation                                                   business for international growth.           Total 2018                     370           84             69                16         2            –        441             –
                                              commitment and apply discretionary
  objectives in all its markets               effort to their work. Collectively            BME was awarded new business which           Total 2017                     293           81             66                18         3            1           –       362
• Ensuring action-orientated and timely       they drive innovation and increase            resulted in the employment of additional     Notice periods depends on the nature of the operational change envisaged.
  decision-making                             sustainability. Omnia’s leadership            employees and contractors and other
                                                                                                                                         • Attending a disciplinary hearing – minimum of 48 hours
                                              understands the importance of an              resources being required to deliver on
To achieve these objectives, a culture                                                                                                   • Impending retrenchment – minimum of one month to a maximum of three months
                                              engaged workforce to deliver desired          the additional scope of work. In addition,
has been created for employees that                                                                                                      • Termination of employment not related to gross misconduct – minimum of one month to a maximum of three months
                                              performance and superior service to           following an extension of the existing
provides and enables growth, innovative
                                              its customers. To this end, focused           contract at the same client, there was       • Termination of employment related to gross misconduct – summary/immediate
and change-fit mindset in the workplace.
                                              engagement interventions have been            an increase in headcount in Zambia.
This further enables employees to take                                                                                                   Collective bargaining notice periods are aligned to the above mentioned as they are informed by Labour Relations Act.
                                              identified and action plans are currently
the initiative, to sustain a standard of
                                              being implemented.
performance and to work collaboratively
despite the volatile economic climate         The acquisition of Umongo Petroleum
within which Omnia operates. Various          was concluded in December 2017, with
initiatives were implemented during           a total staff complement of 38 people.

20   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                                                                                                              OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018   21
PERFORMANCE DURING FY2018 CONTINUED

EMPLOYEE BENEFITS                            Creating a Better World starts with a       Sakhile 1, the BBBEE share incentive         A wellness programme was also initiated that facilitated the reintegration back into the workplace of those employees who
The Group offers benefits to permanent       better self, and Omnia understands          scheme for all South African permanent       embarked on industrial action during the reporting period.
employees, including car allowance,          that employee wellbeing impacts             employees not participating in any other
medical insurance, retirement funding,       organisational wellbeing. The               scheme, will mature in FY2020. The
annual and sick leave, maternity             Group’s wellness campaigns are              call option will be executed on 1 April
and paternity leave, reality wellness        focused on areas of concern which,          2019 with the shares allocated in three
programmes, a 13th cheque and where          if left unattended, could negatively        equal tranches that will pay out in 2019,    Mining division
applicable participation in long-term        affect employee performance in the          2020 and 2021. Refresher training and        The Mining division identified three key wellness problem areas – the management of finance, relationships and stress. As part
share incentive schemes, performance-        workplace. This in turn has an impact       awareness of the rules of the scheme         of an integrated approach to wellness, an empowerment programme for employees at management levels was introduced. The
based short-term incentive schemes.          on the performance of the Group             will take place. The strategy of assisting   purpose of this programme was to assist managers in understanding the EAP services, as well as to empower them to be able
Furthermore, the launch of an affordable     through factors such as absenteeism,        employees to become debt-free or             to identify employees facing various challenges, who can be assisted through the EAP. The table below describes the various
Discovery Health Primary Care Medical        substance abuse, incapacity, recordable     more financially stable to enable good       workshops held within the Mining division:
Insurance has benefited employees            safety incidences and unplanned             decisions regarding the share scheme
                                             and unbudgeted overtime. These              pay-outs will be escalated.                  Site                                      Topic                                                                Audience
within the bargaining unit, with the
result the affordability barrier has been    wellness campaigns are centred on                                                        Head Office                               Employee Wellness Programme for Management                           Managers
                                             health issues identified by occupational    WELLNESS PROGRAMMES WITHIN                   Head Office                               Stress and Relationship Talk                                         Employees
largely overcome.                                                                        THE DIVISIONS
                                             health services that are provided on                                                     Dryden                                    Employee Wellness Programme for Management                           Managers
                                             site, including medically-related issues                                                 Dryden                                    Financial Management                                                 Employees
EMPLOYEE WELLBEING                                                                                                                    Fochville                                 Relationship issues                                                  Employees
                                             such as illness management, HIV
Omnia is committed to the sustained                                                                                                   Wolvekrans                                Relationship issues                                                  Employees
                                             screening and counselling, diabetes and
wellness and personal growth of its
                                             cancer awareness and general health         Agriculture division                         These sessions will continue in FY2019.
employees. As part of the Group’s
                                             management.                                 The Employee Assistance Programme
objective of ensuring that employees                                                                                                  During the year under review, two areas that required wellness interventions in Zambia were identified – financial management
                                             The wellness drive includes other           (EAP) has been expanded and is now           and optical services. Various service providers were identified and partnered with to provide the requisite wellness interventions,
maintain performance at an optimal
                                             behavioural issues that also have an        available to all employees within South      and targeted programmes to address these areas were delivered. Some of the other wellness interventions included cholera
level, an understanding of the different
                                             impact on employee performance and          Africa. During the year under review         awareness and the provision of extra sanitary stations at mining sites.
types of demands that are placed on
                                             raises awareness through education          the comprehensive and robust wellness
employees in the workplace is required.
                                             on substance abuse, the promotion of        programme included measurable
This means continuous and intentional
                                             healthy eating habits, physical fitness,    solutions such as annual wellness
action in maintaining health in all
                                             fatigue and stress management,              days, health awareness campaigns
spheres of employees’ lives. In turn, this
                                             financial fitness and maintaining a work-   and HIV and AIDS voluntary screening,
informs what is required for employees                                                                                                Chemicals division
                                             life balance.                               testing, prevention and management.
to ensure that they have a fulfilling                                                                                                 Apart from annual health screenings, there are several other initiatives driven by the Chemicals division to encourage awareness
                                                                                         The increased uptake of the service
career and deliver optimal, consistent                                                                                                of financial-, retirement- and health-related issues, to improve morale and to reduce absenteeism. These initiatives include
                                             The campaigns combine the managerial        offerings has resulted in 188 (2017: 235)
performance in the workplace.                                                                                                         partnering with various financial services and governmental institutions who offer a variety of services. These include financial,
                                             elements of training, education and         employees receiving support through
                                             crisis intervention with a comprehensive                                                 retirement budgeting trainings as well as, tax and estate planning, HIV and AIDS industrial theatre, healthy living, annual flu
As part of Omnia’s employee value                                                        876 (2017: 2 005) interventions – mainly
                                             range of clinical services for employees                                                 vaccines, prostate and breast cancer testing and onsite occupational health-care clinics.
proposition, wellness is one of the                                                      telephonically.
main catalysts for employees to              and their families, including telephonic,                                                Since FY2017, the use of EAP focusing on wellness has increased by 3% which confirms a growing interest by employees for the
                                             face-to-face counselling, financial and     In FY2018, the Agriculture division’s
become and remain fully engaged in                                                                                                    need for this programme as part of the overall approach to managing the workplace.
                                             legal advice. This model delivers an        financial wellness solutions continued
their working environment. Omnia’s
                                             integrated programme for identifying        to provide support at the Sasolburg          PARENTAL LEAVE
holistic and integrated approach to
                                             and successfully combating employee         plant. The service was also extended
employee wellness includes leveraging                                                                                                 Parental leave is defined as temporary leave granted to parents of a new born child. Omnia grants maternity and paternity leave to
                                             problems in the early stages before they    to the Rustenburg plant. The primary
collaboration with on-site occupational                                                                                               their permanent employees. The detail of the number of employees entitled to parental leave were as follows:
                                             adversely impact on the employee, the       focus was on the basic principles of
health services and the enlisting
                                                                                         managing finances, the importance of                                                           2018                                             2017
of the service of wellness experts.          employees’ family and workplace.
                                                                                         financial goals and sustainable financial    Number of employees                   Male         Female             Total            Male          Female                Total
The wellness programme supports
                                             FINANCIAL AWARENESS AND                     management habits. Income tax                Entitled to parental leave           3 108             845            3 953           2 791              735              3 526
employees taking responsibility for their
                                             EMPOWERMENT                                 service support was introduced with 56       Took parental leave                    123              49              172              74               33                107
own wellbeing.
                                             With the maturation of Sakhile              employees taking up the opportunity to       Returned to work after
The Omnia Group Employee Wellness            Initiative 2, the first tranche of the      gain assistance in such matters as using     parental leave ended                   114               45             159              66               25                 91
Programme continues to make a                BBBEE long-term share incentive             the SARS e-filing system. A number of
                                                                                                                                      Retention %                           93%              92%             92%             89%              76%                85%
tangible difference to the employees         scheme for black executives,                employees are participating in the debt
and their families as well as to the         management and critically skilled           rehabilitation programme and support
Group. Each division uses employee           permanent employees residing in             was provided to help manage possible
engagement surveys to identify the           South Africa, the Group embarked on         instances of repossession of property
specific areas of focus and to design        an extensive financial awareness and        and other assets.
wellness programmes that address             empowerment programme.
these issues.

22   OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018                                                                                                                                                                          OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018          23
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