Enter
2023
GRI content index 2023
ARM's environmental, social and governance (ESG) report was prepared and is presented in accordance with the GRI Standards 2021 for the period 1 July 2022 to 30 June 2023 (F2023). There is currently no GRI Sector Standard applicable to ARM, however, disclosures from the GRI's Mining and Metals Sector Disclosures are included as required by the ICMM.
This GRI content index references the GRI Standards' general disclosures, material topic disclosures and topic-specific disclosures for the relevant material topics reported in ARM's F2023 reporting suite, which includes the integrated annual report and report on climate change and water (available on our website at www.arm.co.za). All page references refer to the F2023 ESG report, unless otherwise indicated.
The 2023 ESG report applies the GRI Reporting Principles, which are: accuracy, balance, clarity, comparability completeness, sustainability context, timeliness and verifiability. We believe that this report covers all matters material to ARM during F2023 in appropriate detail.
ARM's management approach for environmental and social sustainability matters is described in our approach to sustainable value creation (page 32) and our governance framework and approach are discussed in corporate governance (from page 114). Refer to these sections for information regarding our management approach and to the introduction to the relevant sections for additional information.
GRI 2: General disclosures
Disclosure | Description | Reference | |
2-1 Organisational | a. | Legal name | Our 2023 suite of reports (inside front cover) |
details | b. | Nature of ownership and legal form | About our ESG report (page 4) |
c. | Location of our headquarters | Contact details (inside back cover) | |
d. | Countries of operation | Where we operate (page 16) | |
2-2 Entities | a. | Entities included in our sustainability | About our ESG report (page 4) |
included in ARM's | reporting | ||
sustainability | b. | Differences between the list of entities | |
reporting | included in our financial reporting and | ||
in our sustainability reporting | Note 1 to the annual financial statements | ||
c. | Approach used for consolidating the | ||
information |
2-3 Reporting | a. | Reporting period and frequency |
period, frequency | of sustainability reporting | |
and contact point | b. | Reporting period for our financial |
reporting | ||
c. | Publication date of this report | |
d. | Contact point for questions about the | |
report or reported information |
Annual
1 July 2022 to 30 June 2023
10 October 2023
Contact details (inside back cover)
2-4 Restatements | a. | Restatements of information made from | About our ESG report (page 4) |
of information | previous reporting periods | ||
2-5 External | a. | Policy and practice for seeking external | About our ESG report (page 4) |
assurance | assurance, including whether and how the | ||
board and senior executives are involved | Independent assurance statement | ||
b. | External assurance of sustainability | ||
reporting | (page 190) | ||
2-6 Activities, value | a. | Sectors | Our 2023 suite of reports (inside front cover) |
chain and other | b. | Value chain | About our ESG report (page 4) |
business | c. | Other business relationships | Where we operate (page 16) |
relationships | d. | Significant changes compared to the | Our value chain (page 111) |
previous year | |||
2
Disclosure
2-7 Employees
Description
a. Total number of employees and
a breakdown by gender and region b. Breakdown by contract categories c. Methodologies and assumptions used
to compile the data d. Contextual information
e. Significant fluctuations during the year and between years
Reference
Sustainability performance for 2023 (page 20) Where we operate (page 16)
Sustainability data tables (ESG supplementary information 2023 on our website)
There is no significant seasonal variation in employment numbers.
Workforce data is compiled through the operational HR processes and systems and discloses the total workforce as at
30 June 2023.
Note that occupational health and safety statistics use average annual employees and contractors as discussed on page 5.
2-8 Workers who | a. | Total number of workers who are not | Refer response to indicator 2-7 |
are not employees | employees and whose work is controlled | ||
by ARM | |||
b. | Methodologies and assumptions used | ||
to compile the data | |||
c. | Significant fluctuations during the year | ||
and between years | |||
2-9 Governance | a. | Governance structure, including | Corporate governance (page 114) |
structure and | committees of the board | Social and ethics committee chairman's | |
composition | b. | Committees of the board responsible for | report (page 22) |
decision-making on and overseeing the | Our approach to sustainable value creation | ||
management of ARM's impacts on the | (page 32) | ||
economy, environment and people | None of the directors or committee members | ||
c. | Composition of the board and its | ||
are representatives of specific stakeholder | |||
committees | |||
groups. | |||
2-10 Nomination | a. | Nomination and selection processes for | Corporate governance (page 114) |
and selection of the | the board and its committees | ||
highest governance | b. | Criteria used for nominating and selecting | |
body | board members | ||
2-11 Chair of the | a. | Whether the chair of the board is also | Corporate governance (page 114) |
highest governance | a senior executive | ||
body | b. | If the chair is also a senior executive, | |
explain their function within management, | |||
the reasons for this arrangement, and how | |||
conflicts of interest are prevented and | |||
mitigated | |||
2-12 Role of the | a. | Role of the board and senior executives | Social and ethics committee chairman's |
highest governance | in developing, approving and updating | report (page 22) | |
body in overseeing | ARM's purpose, value or mission | ||
the management | statements, strategies, policies and goals | Corporate governance (page 114) | |
of impacts | related to sustainable development | Our approach to sustainable value creation | |
b. | Role of the board in overseeing ARM's | (page 32) | |
due diligence and other processes | |||
to identify and manage ARM's impacts | |||
on the economy, environment and people | |||
c. | Role of the board in reviewing the | ||
effectiveness of these processes and | |||
frequency of this review | |||
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GRI content index continued
Disclosure
Description | Reference |
2-13 Delegation
of responsibility for managing impacts
a. How the board delegates responsibility for managing impacts on the economy, environment and people
b. Process and frequency for senior executives or other employees to report back to the board on the management of impacts on the economy, environment and people
Social and ethics committee chairman's report (page 22)
Our approach to sustainable value creation (page 32)
2-14 Role of the | a. Whether the board is responsible for |
highest governance | reviewing and approving the reported |
body in | information, including the material topics, |
sustainability | and the process for reviewing and |
reporting | approving the information |
The ARM board has overall responsibility. Responsibility for overseeing the reporting process is delegated to the ARM social and ethics committee (page 22)
2-15 Conflicts | a. | Processes for the board to ensure that |
of interest | conflicts of interest are prevented and | |
mitigated | ||
b. | Whether conflicts of interest are disclosed | |
to stakeholders |
Ethics (page 34)
Corporate governance (page 114) Board of directors (pages 116 to 122)
Directors disclose their interests at board and committee meetings
2-16 | a. | How critical concerns are communicated | Social and ethics committee chairman's |
Communication | to the board | report (page 22) | |
of critical concerns | b. | Total number and nature of critical | Our approach to sustainable value creation |
concerns communicated to the board | (page 32) | ||
during the year | Stakeholder engagement (page 46) | ||
Community impacts (pages 104 and 110) | |||
Corporate governance (page 114) | |||
In F2023, there were 48 incidents reported | |||
through the whistleblower facility. Most | |||
allegations related to fraud, corruption, | |||
procurement irregularities, recruitment | |||
irregularities and unethical conduct. The | |||
majority of the cases received were found to be | |||
unsubstantiated, though recommendations | |||
were made to management following the | |||
investigations that helped improve processes | |||
and the overall control environment | |||
2-17 Collective | a. | Measures taken to advance the collective | Corporate governance (page 114) |
knowledge of the | knowledge, skills and experience of the | ||
highest governance | board on sustainable development | ||
body | |||
2-18 Evaluation | a. | Evaluating the performance of the board | Corporate governance (page 114) |
of the performance | in overseeing the management of ARM's | ||
of the highest | impacts on the economy, environment | ||
governance body | and people | ||
b. | Independence and frequency | ||
of evaluations | |||
c. | Actions taken in response to the | ||
evaluations, including changes to the | |||
composition of the board and | |||
organisational practices | |||
4
Disclosure
2-19 Remuneration policies
Description
a. Remuneration policies for members of the board and senior executives
b. How the remuneration policies relate to their objectives and performance
in relation to the management of ARM's impacts on the economy, environment and people
Reference
Remuneration report (page 154)
2-20 Process | a. | Process for designing remuneration | Remuneration report (page 154) |
to determine | policies and for determining remuneration | ||
remuneration | b. | Results of votes of stakeholders | |
(including shareholders) on remuneration | |||
policies and proposals | |||
2-21 Annual total | a. | Ratio of the annual total compensation for | ARM monitors the pay gap between the |
compensation ratio | ARM's highest-paid individual to the | remuneration of our highest-paid employees | |
median annual total compensation for all | to the lowest-paid employees as part | ||
employees (excluding the highest-paid | of our approach to fair and responsible | ||
individual) | remuneration. There is currently no regulated | ||
b. | Ratio of the percentage increase | methodology for reporting the pay gap | |
in annual total compensation for ARM's | in South Africa. ARM will report on the pay | ||
highest-paid individual to the median | gap once there is a statutory measure. | ||
percentage increase in annual total | |||
compensation for all employees | |||
(excluding the highest-paid individual) | |||
c. | Contextual information necessary | ||
to understand the data and how the data | |||
has been compiled | |||
2-22 Statement | a. | Statement from the board or most senior | Executive chairman's report (IAR) (page 22) |
on sustainable | executive about the relevance | Social and ethics committee chairman's | |
development | of sustainable development and our | report (page 22) | |
strategy | strategy for contributing to sustainable | Chief executive officer's statement (page 27) | |
development | |||
2-23 Policy | a. | Policy commitments for responsible | About our ESG report (page 4) |
commitments | business conduct | Reporting in terms of the ICMM performance | |
b. | Specific policy commitment to respect | expectations and mining principles (page 6) | |
human rights | Context, frameworks and reporting (page 8) | ||
c. | Public availability of these policy | Social and ethics committee chairman's | |
commitments | report (page 22) | ||
d. | Level of approval of policy commitments | Our approach to sustainable value creation | |
e. | Extent to which the policy commitments | (page 32) | |
apply to our activities and business | Human rights (page 108) | ||
relationships | |||
f. | How the policy commitments are | ||
communicated to workers, business | |||
partners, and other relevant parties | |||
2-24 Embedding | a. | How we embed policy commitments for | About our ESG report (page 4) |
policy | responsible business conduct throughout | Reporting in terms of the ICMM performance | |
commitments | our activities and business relationships | expectations and mining principles (page 6) | |
Social and ethics committee chairman's | |||
report (page 22) | |||
Our approach to sustainable value creation | |||
(page 32) | |||
Human rights (page 108) | |||
GLOBAL REPORTING INITIATIVE 2023
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Disclosure
Description | Reference |
2-25 Processes to remediate negative impacts
a. | Commitments to provide for or cooperate |
in the remediation of negative impacts | |
that ARM identifies it has caused | |
or contributed to | |
b. | Approach to identify and address |
grievances, including the grievance | |
c. | mechanisms established or participated in |
Other processes by which we provide | |
for or cooperate in the remediation of negative | |
impacts identified or contributed to | |
d. | How stakeholders who are the intended |
users of the grievance mechanisms are | |
involved in the design, review, operation | |
and improvement of these mechanisms | |
e. | How we track the effectiveness of the |
grievance mechanisms and other | |
remediation processes, and examples | |
of their effectiveness, including | |
stakeholder feedback |
Reporting in terms of the ICMM performance expectations and mining principles (page 6) Social and ethics committee chairman's report (page 22)
Our approach to sustainable value creation (page 32)
Stakeholder engagement (page 46) Community impacts (pages 104 and 110) Corporate governance (page 114)
While stakeholders are not directly involved in the design, review, operation and improvement of grievance mechanisms, their feedback informs our approach to business in many respects, including the effectiveness of grievance mechanisms and required improvements, if any.
2-26 Mechanisms | a. Mechanisms for individuals to: | |
for seeking advice | i. | Seek advice on implementing ARM's |
and raising | policies and practices for responsible | |
concerns | business conduct | |
ii. | Raise concerns about ARM's business | |
conduct |
Responsible business practices are embedded in ARM's sustainability policies, management standards, procedures, the code of conduct, human rights policy, legal compliance policy and business protocols and practices.
Social and ethics committee chairman's report (page 22)
Our approach to sustainable value creation (page 32)
Community impacts (pages 104 and 110) Corporate governance (page 114)
2-27 Compliance | a. | Total number of significant instances | No material non-compliance incidents |
with laws and | of non-compliance with laws and | were reported in F2023. | |
regulations | regulations during the year | Refer to the Section 54 and 55 Notices | |
b. | Total number and the monetary value | discussed on page 85 of the safety section. | |
of fines for instances of non-compliance | Apart from the Section 54 and 55 Notices, | ||
with laws and regulations that were paid | there were no significant fines or non- | ||
during the year | monetary sanctions for non-compliance with | ||
c. | Description of significant instances | laws and regulations in F2023. | |
of non-compliance | |||
d. | Description of how significant instances | ||
of non-compliance are determined |
G4 MMSD: Report a summary of judgments made against the organisation in the areas related to health and safety and labour laws.
There were four judgments involving five employees made against ARM operations in areas related to labour laws in F2023. As a result, three employees were re-employed, one received a monetary award without reinstatement, and one case is on review at the Labour Appeal Court. There were no judgments made related to health and safety laws.
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Disclosure
2-28 Membership associations
Description
a. Industry associations, other membership associations, and national or international advocacy organisations in which
we participate in a significant role
Reference
Executive chairman's report (IAR) (page 22) Social and ethics committee chairman's report (page 22)
Context, frameworks and reporting (page 8) Our approach to sustainable value creation (page 32)
Our value chain (page 111) Environment (page 58) Stakeholder engagement (page 46)
2-29 Approach | a. | Approach to engaging with stakeholders, | Stakeholder engagement (page 46) |
to stakeholder | including: | ||
engagement | i. Categories of stakeholders engaged | ||
and how they are identified | |||
ii. Purpose of the stakeholder | |||
engagement | |||
iii. How we seek to ensure meaningful | |||
engagement with stakeholders | |||
2-30 Collective | a. | Percentage of total employees covered | Labour relations (page 103) |
bargaining | by collective bargaining agreements | ||
agreements | b. | For employees not covered by collective | |
bargaining agreements, report whether | |||
ARM determines their working conditions | |||
and terms of employment based | |||
on collective bargaining agreements that | |||
cover its other employees or based | |||
on collective bargaining agreements from | |||
other organisations | |||
GLOBAL REPORTING INITIATIVE 2023
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GRI content index continued
GRI 3: Material topics
Disclosure
3-1 Process to determine material topics
Description
a. Process followed to determine material topics, including:
- How it has identified actual and potential, negative and positive impacts on the economy, environment and people, including impacts on their human rights, across activities and business relationships
- How we prioritised the impacts for reporting based on their significance
b. Specify the stakeholders and experts whose views have informed the process of determining material topics
Reference
About our ESG report (page 4) Our strategy (page 10)
Our approach to sustainable value creation (page 32)
Stakeholder engagement (page 46)
3-2 List of material | a. | List of material topics |
topics | b. | Changes to the list of material topics compared |
to the previous year |
Our strategy (page 14)
The material matters were reviewed in F2023 for developments during the year and remain unchanged from F2022.
Economic and governance
Disclosure
3-3 Management of material topics
Description
For each material topic:
a. Actual and potential, negative and positive impacts on the economy, environment and people, including impacts on their human rights
b. Whether ARM is involved with the negative impacts through our activities or as a result of business relationships, and the nature of these activities or business relationships
c. Policies or commitments regarding the material topic
d. Actions taken to manage the topic and related impacts, including:
- Actions to prevent or mitigate potential negative impacts
-
Actions to address actual negative impacts, including actions to provide for
or cooperate in their remediation - Actions to manage actual and potential
positive impacts
e. Tracking the effectiveness of the actions taken:
- Processes used to track the effectiveness of the actions
- Goals, targets and indicators used to evaluate progress
- The effectiveness of the actions, including progress toward the goals and targets
- Lessons learned and how these have been incorporated into ARM's operational
policies and procedures
f. How engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective
Reference
Our strategy (page 10)
Our approach to sustainable value creation (page 32)
Governance overview (page 34) Enterprise risk management (page 36)
Corporate governance (page 114) Risk management (page 140) F2023 climate change and water report available on our website www.arm.co.za
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Disclosure | Description | Reference | |
GRI 201: Economic Performance | |||
201-1 Direct | a. | Direct economic value generated and | Value distributed (page 19) |
economic value | distributed (EVG&D) on an accruals basis | ||
generated and | b. | Separate disclosure by country, region, | |
distributed | or market where significant | ||
201-2 Financial | a. | Risks and opportunities posed by climate | Our value contribution (page 18) |
implications and | change that have the potential to generate | F2023 climate change | |
other risks and | substantive changes in operations, revenue, | and water report available on | |
opportunities due | or expenditure | our website www.arm.co.za | |
to climate change | |||
201-4 Financial | a. | Total monetary value of financial assistance | ARM did not receive financial |
assistance received | received from any government during the year | assistance from government | |
from government | b. | Breakdown by country | during F2023 in any of its countries |
c. | Whether, and the extent to which, any | of operation. | |
government is present in the shareholding | |||
structure | |||
G4 MMSD: Report countries of operation that are | South Africa and Malaysia are not | ||
either candidate to or compliant with the Extractive | candidate to or compliant with the | ||
Industries Transparency Initiative (EITI). | EITI. |
G4 MMSD: Land use payments
GRI 203: Indirect Economic Impacts
203-1 Infrastructure | a. | Extent of development of significant |
investments and | infrastructure investments and services | |
services supported | supported | |
b. | Current or expected impacts on communities | |
and local economies, including positive and | ||
negative impacts where relevant | ||
c. | Whether these investments and services are | |
commercial, in-kind, or pro bono engagements |
Modikwa Mine and Two Rivers Mine each have one lease agreement with local communities on which they make annual payments.
Bokoni Mine has three lease agreements with national government, in terms of which surface rentals are paid to local communities.
Community impacts (page 104)
Corporate social responsibility initiatives are delivered through corporate social investment projects and local economic development projects. ARM tracks progress against plans, capital invested, the number of jobs created through the projects and a range of other relevant indicators.
203-2 Significant | a. | Examples of significant identified indirect | Social and ethics committee |
indirect economic | economic impacts of ARM, including positive | chairman's report (page 22) | |
impacts | and negative impacts | Community impacts (page 104) | |
b. | Significance of the indirect economic impacts | Occupational health and wellness | |
in the context of external benchmarks and | (page 86) | ||
stakeholder priorities, such as national and | F2023 climate change | ||
international standards, protocols, and policy | and water report available on | ||
agendas | our website www.arm.co.za |
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GRI content index continued
Disclosure | Description | ||
GRI 204: Procurement Practices | |||
204-1 Proportion | a. | Percentage of the procurement budget used | |
of spending on local | for significant locations of operation that | ||
suppliers | is spent on suppliers local to that operation | ||
(such as percentage of products and services | |||
purchased locally) | |||
b. | The definition | of 'local' | |
c. | The definition | of 'significant locations | |
of operation' |
Reference
ARM's preferential procurement and enterprise and supplier development programmes provide opportunities for qualifying black-owned, black women-owned and youth-owned small, medium, and micro enterprises (SMMEs), many of which are from communities close to our operations. We do not currently disclose the percentage of the procurement budget allocated to local suppliers.
GRI 205: Anti-corruption
205-1 Operations | a. | Total number and percentage of operations |
assessed for risks | assessed for risks related to corruption | |
related to corruption | b. | Significant risks related to corruption identified |
through the risk assessment |
Analysing for risk of corruption is inherent to the enterprise management process which is applied to all our managed operations and
at a corporate level. This was included in the risk-based control self- assessment (CSA) process that was used to comply with paragraph 3.84k of the JSE Listings Requirements. Implementation of identified improvement initiatives is monitored by the risk and sustainability department.
205-2 Communication | a. | Total number and percentage of governance |
and training about | body members that anti-corruption policies and | |
anti-corruption | procedures have been communicated to, | |
policies and | broken down by region | |
procedures | b. | Total number and percentage of employees |
that anti-corruption policies and procedures | ||
have been communicated to, broken down | ||
by employee category and region | ||
c. | Total number and percentage of business | |
partners that anti-corruption policies and | ||
procedures have been communicated to, | ||
broken down by type of business partner and | ||
region. Describe if ARM's anti-corruption | ||
policies and procedures have been | ||
communicated to any other persons | ||
or organisations | ||
d. | Total number and percentage of governance | |
body members that have received training | ||
on anti-corruption, broken down by region | ||
e. | Total number and percentage of employees | |
that have received training on anti-corruption, | ||
broken down by employee category and region |
Anti-corruption policies and procedures are included in the code of conduct (code) which is available to employees on the intranet and on the company website. Directors can access the code on the website. All new employees receive training on the code and online annual refresher training is provided to all employees. It applies to suppliers and contractors, requiring that they behave ethically and with respect for human rights.
205-3 Confirmed | a. | Total number and nature of confirmed incidents |
incidents of | of corruption | |
corruption and | b. | Total number of confirmed incidents in which |
actions taken | employees were dismissed or disciplined for | |
corruption | ||
c. | Total number of confirmed incidents when | |
contracts with business partners were | ||
terminated or not renewed due to violations | ||
related to corruption | ||
d. | Public legal cases regarding corruption | |
brought against ARM or its employees during | ||
the year and the outcomes of such cases |
There were four cases of corruption and one case of dishonesty/fraud in F2023. Four implicated employees were dismissed and one received
a final written warning. One case was handed over to the Hawks for prosecution.
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ARM - African Rainbow Minerals Ltd. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 15:48:07 UTC.