Risk management and material issues

RISK MANAGEMENT

The management of risk forms an integral part of Sibanye’s approach to sustainability. Risk management, which includes the related systems of internal control, is the responsibility of the Board, although management is accountable to the Board for designing, implementing and monitoring an integrated process of risk management into the Group’s daily activities. The Board, through the Audit and Risk Committee, ensures that management implements appropriate risk-management processes and controls.

Of the top 30 risks on the Group’s risk register, 10 relate to matters regarding sustainability either directly or indirectly.

Risk ranking Risk title Capital that this risk is related to
4 Reduced investor confidence Financial capital
5 Non-delivery of the MPRDA in terms of Mining Charter and SLP obligations Social and Financial capital
7 Political risk Social capital
10 Safety and health: mining accidents and seismicity related incidents Human capital
16 Contamination of water resulting in health risks Natural and Human capital
21 Disaster at informal settlements adjacent to operations Social capital
23 Water and soil pollution Natural capital
25 Environmental activism Natural capital
29 Issues relating to accommodation and living conditions Human and Social capital
30 Inability to comply with current and/or future environmental legislation Natural capital
  1. Other risks considered include rising taxes (especially carbon tax), silicosis and NIHL.

MATERIAL ISSUES

Through a process of internal and external environmental scanning, information from the risk register, feedback from stakeholders and assessment of management, Sibanye has identified the following four material issues for the business:

Securing the
business tomorrow

  • Growth and development
  • Transformation
  • LED/Socio-Economic Development
  • Supply chain management

Securing the business today – the licence to operate

  • Compliance and best practice
  • Energy/Water/Air quality/Land management
  • Attracting, recruiting and developing employees
  • Stakeholder engagement and employee relations

Operational and financial sustainability

  • Optimising production
  • Containing costs

Employee safety, health and wellbeing

  • Eliminating injury
  • Addressing occupational hygiene
  • Employee wellbeing
  • Stakeholder engagement and employee relations

PROCESS ADOPTED FOR DEFINING THE REPORT CONTENT AND ASPECT BOUNDARIES

The four-step process adopted, as recommended by the GRI, is illustrated below:

  • 1

    Identification of relevant
    topics and boundaries

  • Identifying topics
  • Identifying
    boundaries

  • 2


    Prioritisation of relevant topics

  • What to analyse
  • Spheres of
    influence
  • Materiality thresholds
    and level of coverage

  • 3

    Validation against principles
    of completeness and
    stakeholder inclusiveness
  • Scope, boundaries and time

  • 4

    Review will be undertaken
    post publication