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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

GLOBAL REPORTING INITIATIVE 2023

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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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GRI content index continued

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:

  1. 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
  2. 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:

  1. Actions to prevent or mitigate potential negative impacts
  2. Actions to address actual negative impacts, including actions to provide for
    or cooperate in their remediation
  3. Actions to manage actual and potential

positive impacts

e.  Tracking the effectiveness of the actions taken:

  1. Processes used to track the effectiveness of the actions
  2. Goals, targets and indicators used to evaluate progress
  3. The effectiveness of the actions, including progress toward the goals and targets
  4. 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

GLOBAL REPORTING INITIATIVE 2023

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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.