Scope of report
This Integrated Annual Report continues our journey towards effective integrated reporting and aims to provide our stakeholders with a comprehensive perspective of past and current performance, as well as giving insight into our business strategy and future prospects.
The report covers the Illovo group’s economic, social, governance and environmental performance for the year ended 31 March 2014, and provides a review of the cane, sugar and downstream operations of each of the company’s subsidiaries in six African countries: Malawi, Mozambique, South Africa, Swaziland, Tanzania and Zambia. Information regarding our agricultural, manufacturing and marketing activities is included in order to promote understanding of the group’s primary processes and to provide an informed assessment of the group’s risks and opportunities and its ability to create and sustain value in the long term, for the benefit of all our stakeholders (most notably, our shareholders, investors, employees, trade unions, customers, our sugar cane growers and other suppliers, service providers, and the local communities in which we operate).
There has been no change to the structure of the business in the year under review and accordingly this report builds on, and is comparable to, the company’s Integrated Annual Reports for the 2012 and 2013 reporting periods. However, in line with our aim to move toward a more integrated reporting process, we have restructured this year’s report, taking cognisance of the guidance given by the International Integrated Reporting Framework published in December 2013.
This includes the ongoing process of identifying, disclosing and prioritising the group’s material issues. These issues, and their potential positive or negative impacts upon the group’s sustainable value-creating ability, are more fully described in our Risk Management report.
In line with our sustainable business strategy, we are guided by the principles of the United Nations Global Compact and our Social and Ethics Committee Report provides an overview of our journey toward incorporating these principles into our business practices in all of our operations.
In relation to our corporate social responsibility initiatives, during 2013 we initiated an independent socio-economic impact assessment of our business by an internationally recognised global corporate responsibility consultancy, the results of which are included in this report and in more detail on our website at www.illovosugar.com.
Reporting standards and assurance
In compiling this report, we have adhered to the applicable legislative and regulatory requirements for reporting, including:
- the Companies Act 2008 and the Companies Regulations 2011;
- the Listings Requirements of the JSE; and
- the requirements of King III.
We have also been guided by relevant national and international frameworks, including:
- the International Integrated Reporting Framework;
- the Global Reporting Initiative’s (GRI) G3 Guidelines and the JSE’s Socially Responsible Investment (SRI) Index 2013; and
- ISS Proxy Advisory Services’ assessments, GES Investment Services’ ESG assessments, and other best practice integrated report frameworks.
Assurance in relation to our annual financial statements has been provided by the independent external auditors, Deloitte & Touche. The sustainability aspects of the report have been externally assured by Integrated Reporting & Assurance Services (IRAS), confirming that it meets the GRI’s Application Level B requirements (B+ with its assurance). A summary of the assurance statement is provided on page 96, with the full statement appearing on our website. Other sections of the report, such as Illovo’s B-BBEE rating, have been audited by relevant accredited external verification agencies.
This report is available on our website at www.illovosugar.com, as is an index of the GRI sustainability performance indicators, and the full annual financial statements.
Approval of Integrated Annual Report
The board acknowledges its responsibility to ensure the integrity of this report. The directors have collectively assessed the content and believe the report addresses all material issues and presents fairly the integrated performance of our group and have authorised the release of this report. The board has authorised the release of this report for 2014.
| Don MacLeod | Gavin Dalgleish |
| Chairman | Managing Director |
23 May 2014