Our Values, in Practice

Kwikbuild School

Lonrho Group companies are continuing their work on installing the corporate responsibility values into their operations. While these initiatives are too numerous to mention here, some examples are provided below:

Investment Decisions

Lonrho’s corporate responsibilities are taken into account at all stages of an investment decision. Our transaction proposal process incorporates a review of our corporate responsibility values and identifies social and environmental risks to the business.

For example, Lonrho Ghana Ports Ltd is proposing to develop an Oil Services Terminal to provide support services for the offshore oil and gas developments in Ghana and other countries in the region. It is envisaged that the proposed project will become the economic centre for the oil industry creating local employment and economic stimulus.

As part of the feasibility study which is currently being undertaken, Lonrho has commissioned Environmental Resources Management to undertake a full Environmental and Social Impact Assessment (ESIA), compliant with the Equator Principles (EPs). The EPs are a credit risk management framework which is used by commercial banks to assess social and environmental risks of the projects they are considering for finance.

The ESIA process involves numerous surveys and studies as well as engagement with affected stakeholders to understand their views on the project. The final ESIA report will describe the project, assess the likely positive and negative social, environmental and economic impacts of the project and explain the plans to manage these impacts.

Broad Based Black Economic Empowerment (BBBEE) in South Africa

Lonrho Group companies operate in 18 different African countries, each of which has its own understanding of corporate responsibility and priority areas for businesses operating responsibly. For example, the South African Department of Trade and Industry has developed a code of good practice (the codes) which forms the framework for the implementation and measure of the Broad Based Black Economic Empowerment Act 2003 (B-BBEE Act). The Act promotes economic transformation and is designed to enhance the economic participation of black people in the South African economy.

The B-BBEE Act makes the codes binding on all state bodies and public companies, and the government is required to apply them when making economic decisions on procurement.

Companies in South Africa are assessed against the code which considers the following elements: ownership, management control, employment equity, skills development, enterprise development, preferential procurement as well as socio-economic development. Companies are attributed a score to show whether they are compliant with the B-BBEE Act, and if so, which level they meet above compliance.

Investing in our workforce and their wellbeing

Rollex has recently been audited against the Ethical Trading Initiative’s basic code, which is founded on the conventions of the International Labour Organisation - a global standard on worker welfare, adherence to law and general worker improvement.

Lonrho Hotels: Grand Karavia provides employees training in IT, first aid and CPR. Hotel Cardoso provides a Red Cross first aid course which has been completed by 22 staff to date.

Supporting communities

Luba provides emergency response services for fires in the Luba area through a qualified fire fighting unit. It also sponsors the rental of a pre-school building in conjunction with the Ministry of Education.

CES has donated US$5,000 for a school playground in Mozambique and US$500 to Barefeet Theatre, a group which focuses on helping under privileged youth in Zambia by engaging them in productive activities.

Integrity

All subsidiaries follow Lonrho's Anti-Corruption and Bribery Policy.

Protecting the environment

Oceanfresh has a Sustainable Seafood Policy and is an active member of the World Wildlife Fund’s (WWF) South African Sustainable Seafood Initiative. It has Marine Stewardship Council (MSC) certification of Hake in South Africa and is seeking MSC certification of deep trawled prawns in Mozambique, working together with the WWF and Mozambican Ministry of Fisheries.

Afex has supported the protection of river banks, through planting and other strategies to mitigate river storm water run-off erosion. Solar powered hot water heating is utilised throughout Afex flagship accommodation facilities in Juba, Rumbek  and Lokichoggio.

Lonrho Logistics are ISO14001 certified at Johannesburg and its Cape Town branches. It is continuously improving its waste management and recycling initiatives and has an extensive maintenance programme to keep fridge compressors in top working condition to prevent gas leaks.

 

Published : 16/10/2013 16:32:53

Lonrho: 100 years investing in the growth of Africa

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