SUSTAINABLE DEVELOPMENT REPORT - TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD - Omnia
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OMNIA HOLDINGS LIMITED OMNIA HOLDINGS LIMITED 2018 SUSTAINABLE DEVELOPMENT REPORT TRUSTED PERFORMANCE INNOVATIVE SOLUTIONS BETTER WORLD 2018 SUSTAINABLE www.omnia.co.za DEVELOPMENT REPORT
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
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
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
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 6 OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018 OMNIA SUSTAINABLE DEVELOPMENT REPORT 2018 7
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
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
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
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
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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