Social, ethics and transformation report

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Reunert subscribes to the highest standards of social responsibility and ethics and legislative compliance.

The social, ethics and transformation committee has oversight of the processes and policies implemented to ensure that Reunert is a responsible corporate citizen that engages with the communities and environment in which it operates. Respect for our people, customers, communities and the environment is a key value and is embedded in our code of ethics.
img Sustainability report
For more on the Social, ethics and transformation committee see the Governance report
 

INITIATIVES DURING THE PAST FINANCIAL YEAR

MONITORING OF SUSTAINABLE DEVELOPMENT PRACTICES

The committee has reviewed the sustainable development practices of the group, specifically relating to:
Ethics and compliance.
Corporate social investment.
Broad-based black economic empowerment.
Health and safety.
Labour relations and working conditions.
Training and skills development.
Management of the group’s environmental impact.
 
A more comprehensive sustainability report is available on our website.
 

KEY INITIATIVES OF THE SOCIAL, ETHICS AND TRANSFORMATION COMMITTEE

Key matters considered by the committee during the course of the 2013 financial year are referred to in the Governance report. This report elaborates on some aspects of the group’s corporate citizenship. Management is primarily responsible for these activities, with oversight and strategic direction provided by the social, ethics and transformation committee.
 

GOVERNANCE AND COMPLIANCE

Governance and compliance received a good deal of attention in the current year. An online compliance training programme was developed and rolled out at year-end to create awareness and to build a knowledge base on anti-corruption, competition law, consumer protection and protection of personal information. Currently, 856 employees are enrolled in the first phase of the programme, which will finish at the end of January 2014. New employees will receive similar training in future and refresher courses will be offered on a regular basis.
 

SRI INDEX

Post year-end, Reunert was included in the JSE’s Socially Responsible Investment (SRI) Index for the first time, based on its performance and disclosures made during 2013.
 

HUMAN RESOURCES

Our operations are diverse and human resource management is consequently decentralised. Each business is responsible for implementing human resource practices that conform to legislation, industrial collective agreements and company-specific agreements.

Despite a decentralised system, a group human resources manager was recently appointed to strengthen oversight and co-ordinate synergies across the group.

On 30 September 2013, the Reunert group employed 5 931 (2012: 5 815) full-time employees. The group further employed 715 non-permanent staff, including 59 trainees. The total payroll cost for the group is R1,8 billion (2012: R1,7 billion), which represents 15,9% (2012: 14,5%) of the group’s total revenue.
 

TRANSFORMATION AND EMPLOYMENT EQUITY

During the past year, the social, ethics and transformation committee focused specifically on transformation and employment equity in the group, giving specific attention to the recently legislated codes of good practice.

Black male representation at senior management level improved from 19% to 26%, while black females at top management level increased from 4% to 7%. Business operations have provided various strategic initiatives that should see more black candidates filling senior and top management positions in the short- to medium term. With staff turnover remaining low at 3%, the board supports management’s proposal to create selected supernumerary positions. This intervention should see a further improvement in our employment equity ratios over the next 24 months.
 

BBBEE RATING PER OPERATION

Over the year, our various operations either maintained or improved their BBBEE rating.
 
Level
2014
target
2013
rating
2012
rating
2011
rating
CBI-electric: African Cables 2
2
2 2
CBI-electric: Low Voltage 4
4
6 8
Telecom Cables 4
4
4 6
Nashua Office Automation 4
4
4 5
Nashua Mobile 3
3
3 3
Nashua Communications 3
3
4 4
PanSolutions 3
3
4 4
Quince 3
3
3 4
Reutech Communications 3
4
4 4
Reutech Radar 5
4
6 7
Reutech Solutions 2
2
3 5
Fuchs Electronics 6
6
6 8
 

SKILLS DEVELOPMENT

Investment in developing the skills of our people increased from R18 million to R24 million with 4 199 employees of whom 58% is black, received training in the current financial year. The group companies provide management development programmes, learnerships, apprenticeship training, internships, practical work exposure, occupational needs and legal compliance training that is relevant to their industries. A total of 97 learners were trained during the past year.

All companies in the group have the required employment equity committees, which monitor the implementation of employment equity plans that are submitted annually to the Department of Labour.
 

HEALTH AND SAFETY

Reunert has a low incidence of injuries and over the past five years recorded no work-related fatalities.

CBI-electric provides full-time clinics at its three manufacturing plants. These clinics offer basic health assistance to workers and are run by the resident sister or visiting doctor.

Several of our companies hosted employee wellness days with the assistance of medical aid providers or the Department of Health. Screening tests covered blood pressure, diabetes, cholesterol and vision. Additional tests included screening for tuberculosis and HIV/Aids.
 

COMMUNITY DEVELOPMENT

The difficult operating environment resulted in a lesser social investment of R11,7 million in the communities in which we operate, compared with the previous year (2012: R15,4 million). In total, 97% of this amount was for the benefit of black beneficiaries. Spend on enterprise development declined to R42,4 million.

Our flagship projects are the Reunert College and the Nashua Children’s Charity Foundation.
 

REUNERT COLLEGE

This year our 21st group of grade 12 pupils had the opportunity to rewrite their matric examinations at the Reunert College. The College, which is registered as an examination centre with both the Gauteng Department of Education and the Independent Examination Board, continues to be an integral component of our investment in education and youth development. Since inception, we have offered 915 pupils the opportunity to improve their matric.
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The Reunert College is funded by contributions from companies within the Reunert group, while the Zenex Foundation and the JSE are external sponsors. In the past year, the contribution from these organisations amounted to R4,4 million (2012: R4,8 million).

After successfully completing their exams, top students are eligible for a Reunert bursary. Students whose fields of study will benefit the group are given preference. This year we had 47 black bursars (2012: 47) studying at universities or technical colleges in Gauteng and KwaZulu-Natal.
 

NASHUA CHILDREN’S CHARITY FOUNDATION

The Foundation supports 54 (2012: 49) charities and an average of 12 000 children nationwide, providing some 360 000 meals per month.

The Foundation’s philosophy is that by making a difference now in the lives of young, underprivileged children, they are laying the foundation to give them a better start in life.
 

ENVIRONMENT

ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS)

A significant proportion of the group’s operations is either ISO 14001 certified or in the process of obtaining certification.
CBI-electric: African Cables and Nashua Communications have been ISO 14001 certified for a number of years.
CBI-electric: Telecom Cables received its ISO 14001 accreditation in November 2012.
Nashua Office Automation hopes to be finally certified by January 2014.
Reutech Radar has finalised its first ISO 14001 audit and is working to being accredited in June 2014.
Reutech Solutions and PanSolutions have started the qualification process.
 

CLIMATE CHANGE OPPORTUNITIES

The worldwide focus on energy efficient products and renewable energy offers opportunities for our CBI-electric and Reutech businesses as covered in the operational reviews.
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CARBON FOOTPRINT

Reunert participates in the annual disclosure projects – CDP climate change and CDP water projects.

Between 1 October 2012 and 30 September 2013, the total measured Scope 1 and 2 emissions reduced to 61 534 (2012: 67 109) metric tonnes of CO2e, largely due to lower production output and energy saving initiatives.

A detailed breakdown of total emissions by segment, scope and emission source activity is provided in our online sustainability report.

Our environmental data is not externally verified, but the internal audit team has tested seven of the 24 environmental GRI performance indicators against which we report.

Our operations manage their environmental impact diligently. We will continue to critically review products and processes to minimise our environmental impact as well as to reduce and recycle waste wherever possible.
 
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THANDI ORLEYN CHAIRMAN SOCIAL, ETHICS AND TRANSFORMATION COMMITTEE
Sandton, 20 November 2013