Transnet Online Integrated Report 2017
Market Demand Strategy (MDS) themes
  • Financial sustainability
  • Capacity creation and maintenance
  • Market segment competitiveness
  • Operational excellence
  • Human capital
  • Organisational readiness
  • Sound governance and ethics
  • Constructive stakeholder relations
  • Sustainable developmental outcomes
Sustainable Developmental Outcomes (SDOs)
  • Employment
  • Skills development
  • Industrial capability building
  • Investment leveraged
  • Regional integration
  • Transformation
  • Health and safety
  • Community development
  • Environmental stewardship
The Capitals
  • Financial Capital
  • Manufactured Capital
  • Intellectual Capital
  • Human Capital
  • Social and Relationship Capital

Annexure E:
Global reporting initiative table

General standard disclosures Reference 2017
Sustainability Report
Page Reference 2017
Integrated Report
Page
Strategy and analysis
G4-1
Provide a statement from the most senior decision-maker of the organisation about the relevance of sustainability to the organisation and the organisation’s strategy for addressing sustainability. Message from the Board of Directors, and Message from the Group Chief Executive. 10,12 About this report – Integrating sustainability reporting in the 2017 Integrated Report (jointly approved by Transnet Chairperson, Group Chief Executive and Chief Financial Officer). 2
Leadership perspective – Sustainable Developmental Outcomes (jointly provided by Transnet Chairperson, Group Chief Executive and Chief Financial Officer). 8
G4-2
Description of key impacts, risks and opportunities. Materiality Universe (Figure 13). 62
Aligning material aspects to risks and opportunities. 70 – 71
Organisational profile
G4-3
Report the name of the organisation. Transnet SOC Ltd. Organisational overview. 12
G4-4
Report the primary brands, products and services. About Transnet – Who we are, and Our services. Organisational overview. 12
G4-5
Report the location of the organisation’s headquarters. Johannesburg, South Africa. Organisational overview. 12
G4-6
Report the number of countries where the organisation operates, and names of countries where either the organisation has significant operations or that are specifically relevant to the sustainability topics covered in the report. About Transnet – Where we operate and what we do. Organisational overview. 12
G4-7
Report the nature of ownership and legal form. About Transnet – Who we are. Organisational overview: Strategic context, Regulatory context and Financial context. 12
G4-8
Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). About Transnet – Who we are; Where we operate and what we do; and Our services. Organisational overview: Where we operate. 14
G4-9
Report the scale of organisation, including:
  • Total number of employees;
  • Total number of operations;
  • Net revenues (for public-sector organisations); and
  • Quantity of products or services provided.
About Transnet – Who we are; Where we operate and what we do; and Our services. Organisational overview: Employee profile.
Organisational overview: Operating
context and Where we operate.
Organisational overview: Operating context.
Organisational overview: Transnet’s
services and service sectors.
12
12 – 16
12 – 16
12 – 16
G4-10
Workforce Organisational overview: Employee profile. 12
G4-11
Percentage of employees covered by collective bargaining agreements. % of employees represented by collective bargaining as a % of total headcount= 89,8%.
% of permanent employees represented
by collective bargaining as a % of total headcount= 75,3%.
12
12
G4-12
Supply chain. Organisational overview: Transnet’s supply chain. 13
G4-13
Report any significant changes during the reporting period regarding the organisation’s size, structure, ownership or its supply chain. Reporting approach – About this report. 2 About this report. 2
G4-14
Report whether and how the precautionary approach or principle
is addressed by the organisation.
Transnet supports the precautionary approach to environmental challenges, as espoused in Principle 16 of the Rio Declaration, 1992 –Environmental Stewardship. 68 – 77 About this report: Statement of Precautionary Approach. 7
G4-15
List externally developed economic, environmental and social charters, principles, or other initiatives to which the organisation subscribes or which it endorses. Reporting approach – About this report. 2 About this report: Reporting frameworks and guidelines. 2 – 3
G4-16
List memberships of associations (such as industry associations) and national or international advocacy organisations in which the organisation:
  • Holds a position on governance body;
  • Participates in projects or committees;
  • Provides substantive funding beyond routine membership dues; and
  • Views memberships as strategic.
UNGC (represented on the UNGC’s Local Network Advisory Committee); National Business Initiative; Energy Intensive Users Group; Energy Efficiency Leadership Network; Industry Task Team on Climate Change; and the National Biodiversity and Business Network. 2 Organisational overview: Memberships of Associations (partial). 16
Identified material aspects and boundaries
G4-17
(a) List all entities included in the organisation’s consolidated financial statements or equivalent documents.
(b) Report whether any entity included in the organisation’s consolidated financial statements or equivalent document is not covered by the report.
Transnet SOC Ltd denotes the five Operating Divisions and three Specialist Units. For a list of all entities included in the organisation’s financial statements refer to the AFS for the year ending 31 March 2016. 18 – 23 About this report: Reporting boundary. 2
G4-18
(a) Explain the process for defining the report content and the aspect boundaries.
(b) Explain how the organisation has implemented the reporting principles for defining report content.
Material issues – Material issues determination. 18 – 23 Material aspects. 58
G4-19
List all the material aspects identified in the process for defining report content. Material issues – Material issues determination. 18 – 23 Material aspects: Materiality universe (Figure 13). 62
G4-20
For each material aspect, report the boundary within the organisation as follows:
  • Report whether the aspect is material within the organisation.
Material issues – Material issues determination. 18 – 23 Material aspects: Materiality universe (Figure 13) – ‘derived view’ shows how internal and external stakeholder groups served as source of identification of material aspects and, hence, how they are impacted by material aspects. 62
G4-21
For each material aspect – boundary outside the organisation. Material issues – Material issues determination. 18 – 23 Material aspects: Materiality universe (Figure 13) - ‘derived view’ shows how internal and external stakeholder groups served as source of identification of material aspects and, hence, how they are impacted by material aspects. 62
G4-22
Report the effect of any restatements of information provided in the previous reports, and the reasons for such statements. Reporting approach – About this report. 2 About this report: Reporting boundary. 2
G4-23
Report significant changes from previous reporting periods in the scope and aspect boundaries. Reporting approach – About this report. 2 About this report: Reporting boundary. 2
Stakeholder engagement
G4-24
Provide a list of stakeholder groups engaged by the organisation. Material issues – Material issues determination, stakeholder engagement. 20 Material aspects.
Material aspects: Materiality universe (Figure 13).
58
62
G4-25
Report the basis for identification and selection of stakeholders with whom to engage. Enablers of Sustainable
Developmental Outcomes
– stakeholder engagement.
26 Material aspects: Engaging our stakeholders.
Ethical stakeholder relationships.
50
50 – 54
G4-26
Report the organisation’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and indication of whether any of the engagement was undertaken specifically as part of the report preparation process. Enablers of Sustainable
Developmental Outcomes
– stakeholder engagement.
26 Material aspects: Engaging our stakeholders.
Ethical stakeholder relationships.
Governance of stakeholder relationships.
50 – 54
50 – 54
132
G4-27
Report key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Transnet’s material sustainability issues 2017 table, and Sustainability Performance Overview. 20,
30 – 77
Key issues/concerns arising from our 2017 stakeholder engagement process. 55 – 56
Report profile
G4-28
Reporting period (such as fiscal or calendar year) of information provided. 1 April 2016 – 31 March 2017. 2 Reporting boundary. 2
G4-29
Date of most recent, previous report. 31 March 2016. 2 Reporting boundary. 2
G4-30
Reporting cycle (such as annual, biannual). Annual. 2 Reporting boundary. 2
G4-31
Provide the contact point for questions regarding the report or its contents. General Manager: Public Policy and Sustainability,
Sue.Lund@transnet.net.
Navigating this report
Senior Manager: Group Reporting –
Kilford.gondo@transnet.net.
0 –1
G4-32
(a) Report the ‘in accordance’ option the organisation has chosen.
(b) Report the GRI Content Index for the chosen option.
(c) Report the reference to the External Assurance Report.
Reporting approach – About this report and Assurance. 2 About this report: Board Responsibility and Approval Statement. 7
G4-33
(a) Report the organisation’s policy and current practice with regard to seeking external assurance for the report.
(b) If not included in the Assurance Report accompanying the Sustainability Report, report the scope and basis of any external assurance provided.
(c) Report the relationship between the organisation and assurance.
(d) Report whether the highest governance body or senior executives are involved in seeking assurance for the organisation’s Sustainability Report.
Reporting approach – Assurance; and Appendix A: External Assurance Statement. 2 Integrated approach to assurance.
Integrating sustainability reporting in the 2017 Integrated Report.
5
6
Governance
G4-34
Report the governance structure of the organisation, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. Enablers of Sustainable
Developmental Outcomes
– Governance.
24 Abridged governance. 109
G4-35
Process for delegating authority for sustainability topics. 24 Our Control environment: Governance of sustainability. 133
G4-36
Executive level position for sustainability topics. 24 Our Control environment: Governance of sustainability.
Abridged governance: Ethical leadership and corporate citizenship.
133
108, 110, 133
G4-37
Process for consultation between stakeholder and Board of Directors on sustainability topics. Engaging stakeholders and measuring our performance. 50 – 56
G4-38
Composition of highest governance body (Board of Directors) and committees. Abridged governance. 109
G4-39
Is Chair also CEO? Abridged governance: Chairperson and Group Chief Executive.
The Chairperson, Ms Linda Mabaso, is an independent non-executive director.
109
G4-40
Nominations and selection process for Board of Directors and its committees. The Corporate Governance and Nominations Committee sets criteria for the nomination of directors to be recommended to the Board of Directors for appointment to the committees of the Board of Directors, other than the Audit Committee.
Non-executive directors are appointed by the Shareholder Representative for a three-year term.
Board of Directors’ composition and directors’ balance of strengths.
109, 124 and Annexure A: v
Annexure A: xiv
117 and 120
G4-41
Process to avoid and manage conflict of interest. Abridged governance: Declaration of interest. 119
G4-42
Board of Directors’ role in development, approval and updating of the organisation’s purpose, value or mission statement, strategies, policies and goals related to sustainability impacts. Abridged governance: Ethical leadership and corporate citizenship. 108, 110, 133
G4-43
Measures to develop and enhance the Board of Directors’ knowledge on sustainability topics. Abridged governance: Directors’ induction and continuous development. 116
G4-44
Process for evaluation of Board of Directors’ performance with regard to governance of sustainability topics, and actions taken. Abridged governance: Independent performance evaluation of the Board of Directors, its committees and directors. 116
G4-45
Board of Directors’ role in identification and management of sustainability impacts, risks and opportunities, and stakeholder consultation in the process. Abridged governance: Ethical leadership and corporate citizenship – The Board of Directors delegates the leadership, oversight and accountability for ethics performance and sustainability-related matters to the Remuneration, Ethics and Social Committee, which advises the Board of Directors on issues pertaining to responsible corporate citizenship and sustainability.
Abridged governance: Governance of sustainability.
116 and 125
133
G4-46
Board’s role in reviewing effectiveness of risk management processes for sustainability topics. Opportunities and risks.
Abridged governance: Our approach to enterprise risk management.
68
131
G4-47
Frequency of Board of Directors’ review of sustainability impacts, risks and opportunities. Abridged governance: Risk Committee.
Annexure A: Directors’ attendance at Board of Directors’ and committee meetings – Risk Committee.
125
Annexure A: i
G4-48
Highest committee or position that formally approves the Sustainability Report. 24 Integrated sustainability reporting in the 2017 Integrated Report.
Abridged governance: Governance of sustainability.
6

133
G4-49
Process for communicating critical concerns to the Board of Directors. Abridged governance: Ethical leadership and corporate citizenship.
Abridged governance: Governance of sustainability.
108 and 110
133
G4-50
Nature and number of critical concerns that were communicated to the Board of Directors, and mechanisms used to address/resolve them. Annexure A: Directors’ attendance at Board of Directors’ and committee meetings. Annexure A: i
G4-51
Remuneration policies for Board of Directors and Senior Executives. Abridged governance: Directors’ remuneration.
Annexure B: Annual Remuneration Report.
128
Annexure B: viii
G4-52
Process for determining remuneration. Annexure B: Annual Remuneration Report. Annexure B: viii
G4-53
How are stakeholders’ views sought and taken into account regarding remuneration. Not reported.
G4-54
Ratio of annual total compensation for highest-paid individual to the median annual total compensation for all employees. Annexure B: Annual Remuneration Report. Annexure B: viii
G4-55
Ratio of percentage increase in annual total compensation for highest-paid individual to the median percentage increase for all employees. Annexure B: Annual Remuneration Report. Annexure B: viii
Ethics and integrity
G4-56
Describe the organisation’s values, principles, standards and norms of behaviour, such as codes of conduct and codes of ethics. Enablers of Sustainable
Developmental Outcomes – Ethics.
19 – 21 Our mission, vision and values.
Our culture roadmap.
Creating value through Transnet’s governance structure.
12
13
107
G4-57
Internal and external mechanisms for seeking advice on ethical and lawful behaviour. Not reported. Core responsibilities of the Board of Directors.
Group Company Secretariat function.
118
119
G4-58
Internal and external mechanisms for reporting concerns about unethical or unlawful behaviour. Enablers of Sustainable
Developmental Outcomes – Ethics.
19 – 21 Abridged governance: Ethics and fraud management. 132
Disclosure on management approach
G4-DMA
For each identified material aspect: Why is it material and how is it managed? Material aspects impacting our strategy. 58 – 63