Appendix A - Index to issues identified by the JSE SRI
| Social, environmental and other ethical (SEE) issues/risks | Relevance and significance | Reference in report |
| Compliance with impending or potential laws/regulations |
Relevant and significant. Legal compliance and risks are reported on bi-annually at both the Altron risk management and audit committee levels. Detailed reports setting out all litigation at Altron, Altech, Bytes and Powertech group levels are tabled at these meetings. A report evidencing such legal compliance and litigation matters is available on request. | 46 – 47, 95 – 96, 100, 103 – 105 |
| Product quality/recall | Relevant and significant. Comprehensive quality assurance programmes and certifications are in place throughout the Altron group to ensure that the risk of a product recall is mitigated. Insurances are in place to cover the group in the event that a recall is necessary. | |
| Product-related litigation | Relevant but not significant. | n/a |
| Reputation issues linked to supply chains | Relevant but not significant. The number of retail goods supplied by the Altron group is minimal. | n/a |
| Reputation issues linked to NGO/community campaigns | Not applicable. | n/a |
| Reputation issues linked to human rights | Not applicable. | n/a |
| Bribery/corruption | Relevant and significant. Our approach is detailed in the corporate code of conduct as contained in the Altron policy manual. The same standards applied to South Africa apply to our foreign operations. | 46 – 47 |
| Occupational health and safety | Relevant and significant. We are guided by the regulations prescribed in terms of OHASA. | 80 – 82 |
| Attraction and retention of skilled/key employees | Relevant and significant. The loss of key skills throughout the Altron group has been identified as a material risk. | 59 – 60 |
| Impact on workforce of HIV/ Aids | Relevant but not significant. An independent study has been conducted by the Aurum Institute of Health on the prevalence and incidence of HIV/Aids on the Altron group. See the commentary under HIV/Aids. | 82 – 83 |
| Risk of major negativeenvironmental events | Relevant and significant. These risks are separately reported on by anindependent consultant MS Alexander & Associates and detailed reports provided at risk management committee meetings as well as via the Altron internal audit department. ISO14001 systems are in place throughout the Altron group and corrective and remedial action plans frequently implemented to obviate against any environmental degradation. | 70 – 77 |
| Risks or opportunities from future carbon emissions restrictions | Relevant but not significant. A position paper has been drafted by PricewaterhouseCoopers addressing these issues from an Altron group perspective. | 71 – 73 |
| Risks or opportunities from developing sustainable products/processes | Relevant and significant. See Altron Products and Services Guide at www.altron.co.za | See Sustainability report 39 – 84 |
In respect of social, environmental and other ethical (SEE) challenges, risks and opportunities, Altron monitors potential liabilities and takes appropriate action to mitigate against these risks. As and when liabilities occur, these are addressed at the appropriate forums and in the appropriate manner ie in annual financial statements, risk management committee reports, etc and the necessary and appropriate disclosures made to shareholders either in terms of the media or the annual report.