Report - COP Prototype

2022 Communication on Progress

Netcare Limited

Published date

June 30, 2022

No. of questions

Supplemental files

udhr.pdf SSC_Supplier_Accreditation.pdf Netcare_Standard_Terms_Conditions_January_2017.pdf Netcare_IR_2021.pdf SSC_Supplier_Management_Policy.pdf Netcare-GRI-2020.pdf Anti-Corruption-Policy.pdf Netcare_IR_2021.pdf Netcare FY2017 GHG Verification Statement.pdf Netcare-GRI-2020.pdf NETCARE INFORMATION TECHNOLOGY ISD01 EXECUTIVE POLICY V7 September 2021.pdf CG-OHS-002 S03 Occupational Health and Safety Training and Awareness v6 February 2020.pdf OHS Regulations.pdf udhr.pdf COVID-19 COID Reporting by the Employer (Netcare Employees) V3 September 2021.pdf CG-HR01-S05 Recruitment, Selection and On boarding V12 October 2021.pdf CG-OHS-004 S11 Managing Sharp Injuries and Exposures to blood and bodily fluids - V3 October 2019.pdf CG-OHS-004-S16 Hazardous Substances Management v3 February 2020.pdf CG-HR03-S07 Human Resource Union Relations V4 March 2020.pdf Occupational Health and Safety Act.pdf CG-HR-P02 Employee Engagement and Retention Policy V9 May 2018.pdf natural-capital.pdf netcare-tfcd-2021.pdf netcare-esg-report-2021.pdf ECC_Environmental_Sustainability_Policy_Water_Management.pdf natural-capital (1).pdf Environmental_Sustainability_Policy_Base_Year_Recalculation_Policy.pdf ECC_Environmental_Sustainability_Management_Policy.pdf ECC_Environmental_Sustainability_Policy_Green_Procurement.pdf ECC_Environmental_Sustainability_Policy_General_Waste.pdf ESC_Environmental_Sustainability_Green_Procurement_Policy.pdf ECC_Environmental_Sustainability_Policy_Energy.pdf Anti-Corruption-Policy.pdf SSC_Supplier_Accreditation.pdf SSC_Supplier_Management_Policy.pdf

CEO Statement

Signed

Governance

Policies and Responsibilities

1. Does the Board / highest governance body or most senior executive of the company:

Issue an annual statement about the relevance of sustainable development to the company

Issue an annual statement that addresses impacts on both people and the environment

Issue an annual statement highlighting a zero tolerance for corruption

Sign off on organizational sustainability targets

Supervise Environmental, Social, and Governance reporting

Regularly review potential risks related to the business model

None of the above

2. Does the company have a publicly stated commitment regarding the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a commitment within 2 years	Yes, and the commitment is focused on our own operations	Yes, and the commitment includes our own operations and the value chain	Yes, and the commitment includes our own operations and the value chain along with communities and society
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a code of conduct within two years	Yes, focused on employee conduct	Yes, focused on employees and suppliers	Yes, focused on employees, suppliers, and other business relationships
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

	No one is specifically responsible for this topic	Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)	Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)	Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights	Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

	No formal structure	Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)	Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)	Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)	Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Prevention

6. Does the company have a process or processes to assess risk?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

6.1. During the assessment of risk, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

7.1. During the due diligence process, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Concerns and grievance mechanisms

8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

No, this is not a current priority

No, but we plan to within two years

Yes, we have an informal process (e.g., through supervisors, others)

Yes, we have a formal process

8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

	No	Yes
Is the process communicated to all employees/workers in local languages?
Is the process available to non-employees (e.g., contractors, vendors, suppliers)?
Is the process confidential (e.g., whistleblowing process)?
Are there processes in place to avoid retaliation?
Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)
Other (Please provide additional information)

9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

	No process to enable remedy to stakeholders	Remedy available to some stakeholders (i.e., some geographies, employees only)	Remedy is available to all affected stakeholders	Remedy is available to all stakeholders, and suppliers are expected to have similar policies
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Lessons

10. How does the company capture lessons regarding each of the following sustainability topics?

	No lessons are regularly captured	Conducts root cause analyses/investigation of major incidents	Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly	Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Executive Pay

11. Is executive pay linked to performance on one or more of the following sustainability topics?

Board Composition

12. Percentage of individuals within the company’s Board / highest governance body by:

	Number/Percentage	Not applicable (Please provide additional information)
Total number of board members (#)	11
Male (%)	45.45
Female (%)	54.55
Non-binary (%)	0
Under 30 years old (%)	0
30-50 years old (%)	6
Above 50 years old (%)	5
From minority or vulnerable groups (%)	0
Executive (%)	18.18
Independent (%)	81.81

Data Assurance

14. Is the information disclosed in this questionnaire assured by a third-party?

No assurance for any metrics

Limited assurance for minority of metrics (e.g., GHG emissions only)

Limited assurance for majority of metrics

Reasonable assurance for minority of metrics

Reasonable assurance for majority of metrics

The assurance is provided by independent third parties for internal audit, sustainability ESG disclosures, human resources and anti-corruption.

Other (Please provide additional information)

Human Rights

Commitment

2. Does the company have a policy commitment in relation to the following human rights issues?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
September 2021
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

2.1. For each human rights policy, is it:

	Aligned with international human rights standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving human rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of expression
Digital security / privacy
Rights of women and/or girls
Access to culture
Rights of indigenous peoples
Free, prior and informed consent
Rights of refugees and migrants
Access to water and sanitation

Prevention

3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing /mitigating the risks/impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

5. Who receives training for the following human rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Response

7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
The company has not been involved in any adverse issues nor has it been found to caused any human rights issues by any private or government institution.
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

Our risk management framework – embedded in our business activities and decision-making processes at all levels of the Group – ensures that the actions we take to achieve our strategic objectives fall within our appetite for risk, which variesdepending on the specific risk. The framework defines how we identify, understand and mitigate risks, and realise their related opportunities please refer to the detailed report on our website https://netcare-reports.co.za/2021/pdf/our-risks-and-opportunities.pdf

Labour

Commitment

1. Does the company have a policy commitment in relation to the following labour rights principles?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
March 2020
Forced labour
October 2021
Child labour
October 2021
Non-discrimination in respect of employment and occupation
October 2021
Occupational safety and health
February 2021
Working conditions (wages, working hours)
October 2021

1.1. For each labour rights policy, is it:

	Aligned with international labour standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving labour rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks /impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

4. Who receives training for the following labour rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Performance

6. What is the percentage of employees covered under collective bargaining agreements?

	Percent of employees (%)	Unknown
Employees covered under collective bargaining (%)	50.9

Optional comment

https://netcare-reports.co.za/2021/pdf/human-and-intellectual-capital.pdf

7. What is the percentage of employees in a trade union or other workers' organization?

	Percent of employees (%)	Unknown	Not applicable (Please provide additional information)
Employees in a trade union or on a worker committee (%)	50.9

Optional comment

https://netcare-reports.co.za/2021/pdf/human-and-intellectual-capital.pdf

8. In the course of the reporting period, what was the percentage of women in:

	Percent of women (%)	Unknown
Senior leadership level position	31
Non-executive board	44

9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

	Salary ratio (%)	Unknown	Choose to not disclose
Women / Men (%)

Optional comment

Fair and responsible employee remuneration Netcare is committed to ensuring that our remuneration policy and practices are externally competitive, fair, responsible and free of any unfair discrimination and prejudice. To give effect to this commitment, we utilise a reputable job grading system to ensure equal pay for work of equal value. We benchmark our salaries against other healthcare companies and non-healthcare companies of similar size to ensure that our remuneration to employees is market competitive. We also conduct income differential analysis annually to ensure that there are no unfair pay differentials based on gender, race and/or any other social demographics. Our analysis shows that we do not have unfair race and gender pay gaps for work of equal value. Where differentials exist, we investigate the underlying reasons and these mostly relate to educational levels, work experience and length of service in the role. In considering King IV’s Principle 14, the global challenge of income gaps between the highest and the lowest earners, and the social inequalities in SA as one of the most unequal societies in the world, we have implemented the following measures to progressively narrow the gap: • Our minimum wage is 44% above the legislated national minimum wage. • We offer above CPI annual salary increments for our employees at the lower end of the pay scale compared to the CPI linked salary increments for executive directors, prescribed officers and senior executives. • Employees at non-managerial levels are remunerated based on their structured package plus benefits. The benefits include employer contributions to retirement fund, medical aid membership, Group life cover, funeral cover, as well as disability benefits. • Permanent employees at non-managerial level receive a guaranteed 13th cheque at 31 December for each completed 12-month period worked. This is paid to employees in service on 31 December of each year. • All employees below the executive level were allocated 3 000 Netcare shares each in October 2019 as part of Netcare’s B-BBEE Employee Share Ownership Scheme (ESOP). • We offer enhanced maternity and parental leave benefits compared to those prescribed in the Basic Conditions of Employment Act. We offer our employees a four-month paid maternity leave benefit at 33% of structured package and also allow an option of a fifth month without pay. This benefit compares favourably to the Act’s legislated four-months unpaid maternity benefit. • We offer 10 days of paid parental leave compared to the legislated 10 days unpaid parental leave. • We offer uniforms to our staff at no cost to them with uniform allocation made every 18 months. • We offer subsidised meals to employees while on duty.

10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

	Frequency of injury	Unknown	Choose to not disclose
Frequency of injury	4105

11. In the course of the reporting period, what was the company’s incident rate?

	Incident rate	Unknown	Choose to not disclose
Incident rate

Optional comment

All OHS activities have been digitised on SafeCyte (risk assessments, legal appointments, the functioning of our Health and Safety Committees and incident reporting) with electronic OHS records replacing paper-based records. The integrated waste management processes have also been digitised as well as waste plans for the Hospital division. We resumed our internal quality reviews (self-assessments) during FY2021, which were put on hold in FY2020 due to COVID-19. https://netcare-reports.co.za/2021/pdf/social-and-relationship-capital.pdf

Response and Reporting

12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
There have been no matters of concern on any labour rights issues
Forced labour
There have been no matters of concern on any labour rights issues
Child labour
There have been no matters of concern on any labour rights issues
Non-discrimination in respect of employment and occupation
There have been no matters of concern on any labour rights issues
Occupational safety and health
There have been no matters of concern on any labour rights issues
Working conditions (wages, working hours)
There have been no matters of concern on any labour rights issues

13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

Successfully concluded the FY2021/22 wage negotiations with three of four recognised trade unions and entered into collective agreements regarding employee health and safety. A wage dispute with the fourth trade union remains unresolved. • Held discussions with trade unions on our health and safety initiatives and the management of employees affected by COVID-19, as well as the sector skills gaps and skills development opportunities, and progress made in this regard. • The Group’s headcount dropped 4.5% to 18 346 mostly due to attrition and a freeze on appointments. Only 28 roles became redundant and all retrenchments followed the requirements set out in our collective bargaining agreements. • Eight grievances about labour practices were received; all were addressed and resolved (FY2020: six). We have a strong culture of people development with a range of structured learning and development programmes that equip our workforce at various levels with the skills required to perform at their best. Our management and leadership programmes are designed to develop a diverse pipeline of scarce, core and strategic skillsets needed to deliver our business strategy, drive the development of black people, and support succession planning. Programmes like Caring the Netcare Way and Leading the Netcare Way aim to enhance behaviours that support our culture of care.

Environment

Commitment

1. Does the company have a formal policy on the following environmental topics?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Climate Action
2020
Water
2021
Oceans
company not in any air pollution aligned business
Forests / Biodiversity / Land Use
company not in any air pollution aligned business
Air Pollution
company not in any air pollution aligned business
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
2020
Energy & Resource Use
2021

1.1. For each environmental policy, is it:

	Aligned with international environmental standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving environmental expertise from inside and outside the company?	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks/ impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

	Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)
Climate Action	Based on global best practice, our 2030 environmental sustainability strategy will contribute to future-proofing our business. The integrated approach will address climate change-related risks, regulatory changes and scarcity of resources. Our overarching goal is to achieve carbon neutrality by FY2050, with much of this achieved by FY2030. The new strategy will focus on reducing Scope 1 and Scope 2 emissions, revising our procurement strategies to achieve reductions in Scope 3 emissions and refining our approach to water consumption and waste generation. We believe our 2030 strategy is well within our reach and skillset and will not only give Netcare a licence to operate but will continue to set us apart as a leader in healthcare sustainability.
Energy & Resource Use	As of FY2021, the cumulative electricity tariff increase since FY2013 has been 92%, meaning that had we continued with business as usual, our electricity cost per bed would have been R48 000, and our total electricity expense for FY2021
Water	A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)	It is widely accepted that a healthcare institution’s waste is broken down into approximately 85% non-hazardous waste (general waste) and 15% HCRW. As our HCRW is accurately reported (given our focus on this waste stream and legislative controls), this would indicate that our general waste is underreported in terms of the industry ratio. We are working to enhance our measurement of the general waste stream to better understand the related Scope 3 emissions and define a reduction pathway. SafeCyte, our SHEQ information management system (see page 118), will play a key role in quantifying this waste stream. We anticipate zero waste certification for the Group by FY2026.
Oceans

Optional comment

for detailed disclosures please refer the weblink https://netcare-reports.co.za/2021/pdf/natural-capital.pdf

4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

	Progress is reviewed against goals annually or more frequently	Progress is reported internally to the most senior level	Progress is reported externally	Other (Please provide additional information)
Climate Action
Energy & Resource Use
Water
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Oceans

5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Climate Action
Company has not been involved in any environmental issues
Water
Company has not been involved in any environmental issues
Oceans
Company has not been involved in any environmental issues
Forests / Biodiversity / Land Use
Company has not been involved in any environmental issues
Air Pollution
Company has not been involved in any environmental issues
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Company has not been involved in any environmental issues
Energy & Resource Use
Company has not been involved in any environmental issues

Climate Action

6. What were the company’s gross global greenhouse gas emissions for the reporting period?

Scope 1 Emissions

Full

None

Emissions (tCO2e)

37862

Scope 2 Emissions

Full

None

Emissions (tCO2e)

209172

Scope 3 Emissions

Full

Partial

None

Emissions (tCO2e)

59270

7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

Percent of revenue (%)

Unknown

Not applicable (Please provide additional information)

Post-implementation reviews on projects representing 69% of our capital investment in environmental sustainability have shown that we are achieving greater savings than originally predicted, and compound savings resulting from the 2023 strategy are expected to total around R1.4 billion. For the remaining years of the 2023 strategy, our focus will be on optimising our existing efficiency projects and we expect the benefits of the strategy to continue to grow over the next 10 years and beyond.

8. Has the organization acted to support climate change adaptation and resilience?

We have taken action to increase organization-wide resilience to climate change

We have taken action to increase resilience in our supply chains

We have taken action to increase resilience in the communities in which we operate

We have provided funding for climate change adaptation and resilience initiatives and projects

We have not taken actions to build climate change resilience in the reporting period

Other (Please provide additional information)

Unknown

Energy / Resource Use

9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

% of total energy consumption

100

Unknown

Technology

10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

Percent of total revenue (%)

Unknown

Not applicable (Please provide additional information)

Sector-specific: Water

12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

Water withdrawal (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Groundwater:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Surface water:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Rainwater:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Wastewater:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Percentage of water withdrawn in regions with high or extremely high water stress (%)

Water consumption (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Groundwater:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Surface water:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Rainwater:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Wastewater:
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.
Percentage of water consumed in regions with high or extremely high water stress (%)
A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.

13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

Water intensity of products (cubic meter/$):

Unknown

Not applicable (Please provide additional information)

A water audit conducted in FY2015 revealed that 39% of our facilities are located in areas at elevated risk of experiencing regular water shortages, especially during drought conditions. This is likely to increase to around 49% of our facilities by 2025. Our water strategy is in its early stages with many unknowns still to be investigated. While our primary objective is to reduce our water consumption from 500 litres per bed per day to 400 litres per bed per day by FY2030, we must first establish a solid baseline from which to measure progress and explore alternative sources of water.

Sector-specific: Waste

18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

Waste Generated (t)

9406

Unknown

Not applicable (Please provide additional information)

19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

Hazardous Waste Ratio (%)

Unknown

Not applicable (Please provide additional information)

20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

Single-use plastics (tonnes)

Unknown

Not applicable (Please provide additional information)

Overall Environment

21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

With a bold vision, our 2030 sustainability strategy outlines our intent and goals over the next nine years. Based on global best practices, our integrated approach will contribute to future-proofing our business, addressing the challenges posed by a changing world, particularly regarding climate change-related risks, regulatory changes, and scarcity of resources. Our overarching goal is to achieve carbon neutrality by FY2050, with much of this to be achieved by FY2030. While energy will remain a core focus of the strategy, we have refocused and refined our approach to waste and water to ensure that we maximise our positive impact on the environment. Reducing Scope 1 and 2 emissions are a core focus of the strategy, and we will revise our procurement strategies to begin to reduce our Scope 3 emissions. We believe our 2030 strategy is well within our reach and skillset and will not only give Netcare a licence to operate but will continue to set us apart as a leader in healthcare sustainability.

Anti-corruption

Commitment

1. Does the company have an anti-corruption compliance programme?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes

2022

2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

No, and we have no plans to develop a policy

No, but we plan to in the next two years

Yes, included within a broader policy

Yes, articulated as a stand-alone policy

Prevention

3. Who receives training on anti-corruption and integrity?

3.1. How often is such training provided?

	One time only	Every year	Every two or more years	We do not collect this data
All employees
Select employees
Contractors
Direct suppliers of the organization
Other – such as partners, clients, etc.
Indirect suppliers of the organization

4. Does the company monitor its anti-corruption compliance programme?

No, we do not monitor the anti-corruption compliance programme

Review issues on ad-hoc basis

Yes, through internal employee self-evaluations

Yes, through automated controls monitoring

Yes, through external independent monitoring

Yes, through other mechanisms

Response and Reporting

5. Please report the company's total number and nature of incidents of corruption during the reporting year.

	Number of incident(s)	Unknown	Choose to not disclose
Confirmed during the current year, but related to previous years	182
Incidents of alleged fraud and irregularities
Confirmed during the current year, and related to this year

6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

Initial case assessment

Internal investigation

Review by risk / ethics committee

Review by board of directors

External audit / review

Other (please provide additional information)

Not applicable/no incidents in the reporting period

7. Does your company engage in Collective Action against corruption?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes (please explain)

We are committed to high moral, ethical and legal standards, and all our employees are expected to fulfil this commitment, including our policy of fair dealing and integrity when conducting Netcare’s business. We take a zero-tolerance approach to theft, fraud and corruption, as well as discrimination and racism. Every incident reported through our whistle-blowing hotlines is investigated.

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

The Clinical Practice Committee, which sets guidelines on clinical conduct and monitors compliance with clinical governance criteria. Our ethics management programme, which includes our annual ethics survey, and our ethics training and awareness raising initiatives. The anonymous toll-free SHOUT line for employees to report alleged or perceived discriminatory or racist action or behaviour.