Sustainable development

Integral to the establishment and character of RBH has been the mandate that the company and its investee companies act with integrity, in compliance with the law, and with the recognition that their actions and operations have an impact on communities, and their economic, social and natural environments.

Although these economic, social and environmental issues have always been considered by RBH as part of its business, the company undertook a review of its sustainable development vision, policies and structures in 2009, with a view to formalising its governance practices, engaging with its partners and other stakeholders, and evaluating and monitoring its performance. Through this process, RBH identified those principles to which it subscribes and from which it can learn, and has adopted the Global Reporting Initiative's (GRI) G3 guidelines as the basis of its reporting.

What sustainable development means for RBH

RBH's role in delivering sustainable development is a dual one:

• As a community-based investment company owned by an inter-generational trust, RBH's core function is to deliver
• sustainable economic returns over the long term that will contribute directly to the upliftment of the RBN community. That community does not live in isolation, however, and its upliftment will have a positive influence on communities within and around the RBN's base in the Bojanala district of the North West Province.
• As a responsible and ethical investor, RBH has a duty and responsibility to guide and direct the companies in which it invests to embed good environmental, social and governance (ESG) standards into their business decisions and practices.
• Further, RBH will not invest in those companies that present a risk to RBH's values and ethos, and will respond should the companies it invests in not act in accordance with RBH's parameters.

What this means in practice is that while RBH's primary mandate is to deliver exceptional returns to its shareholder and that investments will be sought, managed and disposed of to ensure the achievement of this objective, the company will ensure:

• That a process of risk management is applied to identifying and monitoring investment opportunities and investee companies in respect of ESG issues. RBH has always practiced (and recently codified) a process of negative screening of investments where there are potential risks related to human rights violations, excessive and irreparable environmental degradation, corruption and other violations of ethical norms.
• That RBH and its investee companies act in compliance with legislation and regulations guiding safety and health, environment, employment equity and transformation, labour relations and other matters. Further, RBH has adopted or subscribes to internationally accepted principles relating to sustainability, including the United Nations Global Compact, the United Nations Principles for Responsible Investment (UNPRI) and the principles of the International Council of Mining and Metals (ICMM).
• That RBH and its investee companies consider, manage and report on ESG issues transparently and timeously, and that all matters relating to sustainability are considered at the highest levels of governance as recommended by the amended King Report on Corporate Governance (King III).
• That RBH actively engages through its board representation on its primary investments. An objective on ESG issues in this regard is that RBH-nominated directors on these boards actively participate in matters relating to sustainability, and that they seek to participate specifically in those companies' board sub-committees that deal with matters relating to sustainable development. Where these committees are not in place, RBH will motivate for their establishment. RBH has identified a need to provide education and training in respect of sustainable development internally, and to its nominated directors.
• That RBH effectively and responsibly uses its standing, knowledge and positioning to encourage co-ordinated, collaborative and long-term regional sustainable development initiatives, where companies and communities can learn from one another and benefit from a combined rather than an individual approach. Specific regional initiatives in this regard could relate to climate change, improving air quality, reducing ground water and soil contamination, and the rehabilitation of mine sites on RBN lands.

RBH has developed a number of positions and policies that will inform its own activities and those of its investee companies with respect to sustainability. These include the following:

• preferential procurement policy;
• corporate governance policy;
• corporate social investment policy; and
• code of ethics.