CORPORATE GOVERNANCE

A strong, viable competitive and accountable organisation through structures, practices, codes and performance management

 The Board ensures that the strategy is relevant, in line with current and emerging investor and stakeholder requirements, making adjustments and changes to maintain short, medium and long-term value focused objectives. Employment equity, diversity and responsible business practices (ESG) are essential strategic requirements for relevance.

Good corporate governance helps to build an environment of trust, transparency and accountability necessary for fostering long-term investment, financial stability and business integrity, thereby supporting stronger growth and more inclusive societies. The Board is ultimately responsible for driving purpose, culture and performance

Value creation

  • Wescoal has adopted a strategy that is aimed at establishing a platform for stability, sustainability and scalability in the short to medium term. The recently completed ESG strategy will be driven by the SEC and will contribute future-focused and stakeholder-centric objectives that increase relevance and value.
  • Wescoal’s directors acknowledge the importance of sound corporate governance and the guidelines set out in the King IV Report on Corporate Governance for South Africa and recommended practices set out in part 5 of the report (“King IV”)
  • The Wescoal board comprises three executive directors and eight non-executive directors of whom four are independent. Non-executive directors are free to make their own decisions and judgments
  • The company has two separate policies dealing with racial and gender diversity on the board. The policies place a voluntary obligation on the board to give consideration to the appointment of female and black directors so as to attain and maintain a level of gender and racial diversity within the board.

ETHICAL AND RESPONSIBLE LEADERSHIP

Demonstrating and promoting leadership in accountability, ethical integrity and responsible business practices

The Board, via its committees must ensure that the organisation is an ethical and responsible corporate citizen. This means driving policies, practices and accountability and upholding the highest standards in the interests of all stakeholders. Integrated thinking is a multi-capital management approach that enables organizations to deliver their purpose to the benefit of their key stakeholders over time. It is about creating and preserving value and enabling better decision-making based on interconnected, multi-capital information. Accountability and transparency are amplified when the Board leads by example and when there are cohesive communications and engagements, internally and externally

Value Creation

  • Wescoal is committed to the Sustainable Development Goals (SDGs) and to South Africa’s National Development Plan. The integration of our ESG Strategy provides the business with an important long-term perspective.
  • Investor expectations are changing, and we are continuously adjusting our own positions on material issues such as climate change, to be in line with these expectations.
  • Wescoal, via the ESG, Social and Ethics Committee, is committed to upholding the highest standards of ethics, transparency and good governance in the interests of all our stakeholders. Bribery and anti-corruption policies are in place, to which all employees are required to adhere.
  • We understand that target an industry leadership position is dependent on our ability to endorse, espouse and communicate ethical and responsible business practices and behaviours, internally and externally.

REGULATORY COMPLIANCE

Demonstrating and promoting leadership in accountability, ethical integrity and responsible business practices

The mining industry in South Africa is a regulatory intensive business environment for good reason. Compliance stretches across the value chain, from exploration and mining rights to community development and from mining practices to rehabilitation. Compliance in the mining industry is critical to business continuity and social license to operate. It is also an important enabler, or destroyer of reputation, investor confidence and equity. Mining companies are required to develop a comprehensive knowledge of compliance, and prioritise compliance management across the organisation. A company’s ability to be proactive and responsive to compliance incidents is important for building trust. Customers are increasingly asking for compliance information, including compliance with third party standards and frameworks.

Value creation

  • Wescoal takes regulatory compliance seriously. Our business and social license to operate is dependent on this.
  • Our approach starts with the identification and documentation of all requirements for compliance in an ESG Compliance Register.
  • Our ESG strategy acts as a guide for the development of our Standards & Practices Register, a repository of operating practices, benchmarks and/or standards that are continuously updated against our quality objectives.
  • We are driving accountability of compliance through ensuring that compliance is an ESG management priority.
  • We plan to use reporting platforms to demonstrate our intentions to move ‘beyond compliance’ towards industry leadership. By adopting selected ESG and reporting standards and benchmarks we are speaking the emerging and important language of investors and other key stakeholder groups.

The directors acknowledge the importance of sound corporate governance and the guidelines set out in the King IV Report on Corporate Governance for South Africa and recommended practices set out in part 5 of the report. The directors therefore embrace the King IV as far as it is appropriate, having regard for the size and nature of the various companies making up the group. The board will continue to take such measures as are practicable to comply with the King IV.

We are committed to upholding the highest standards of ethics, transparency and good governance in the interests of all our stakeholders and we adopt stringent compliance practices.

The board is ultimately responsible for the group’s governance, ethics and values and is supported in this regard by the social and ethics committee.