Sustainability report Approach to sustainability At TMG, we contribute to customers and the broader community because we open up more choice in media and entertainment, and we bring people the content they value and trust. We innovate to make things better and we help thousands to access opportunities. We create direct employment for over 4 700 permanent staff members and our corporate investments support development across a number of industries. But while we are proud of the benefits created by our day-to-day businesses, we understand how important it is to see the full picture. Acting responsibly and making a broader contribution is vital to earning the trust of stakeholders and achieving sustainable success. That is why we strive to use our capabilities to make the biggest possible difference to the issues people care about. In South Africa today arguably the most pressing issue is education – including access, quality and affordability. Education in its broadest sense is therefore our focus, from developing our own people to providing container libraries for underprivileged schools. But this is only one part of a holistic view of our world that extends to societal and environmental issues. We believe this approach makes good business sense. It is also the right thing to do – for our own people and our millions of readers and customers. Material issues, risks and opportunities The issues below were identified by stringent risk management processes, stakeholder engagement and GRI guidelines (page ). Collectively, they represent the key factors determining TMG’s sustainability. All are cross-referenced to detailed explanations elsewhere in this integrated annual report. Operational Issue Content delivery shifting Loss of revenue from physical to digital Piracy Loss of revenue Response Page Bolster physical product and adopt digital delivery Educating the public to avoid buying pirated products. Entertainment business provides financial support to SAFACT* to combat piracy Loss of key customers in Business sustainability Key customers are strategically specific businesses managed; relationships are built and maintained Social Responsible citizenship Socio-economic TMG operations actively participate in (projects, donations) community development initiatives Compliance and ethical Upholding industry TMG complies with industry standards standards standards of fair and and codes, and gives readers an ethical reporting appropriate avenue for complaints Contravention of Adherence to applicable Regular compliance reviews Competition Act, relevant laws and regulations legislation Employee retention Shortage of critical skills Appropriate training, development and retention initiatives; succession planning Loss of key personnel Intellectual capital base Succession planning in place for key personnel 1 Operational Environment Paper use Energy Issue Response Sustainable and environmentally responsible supply Availability, security of supply, efficient and responsible use of power resources Certified suppliers with sustainable forestry practices Page Contingency plans for power outages include generators to power critical sites and processes. Initiatives under way to use energy even more efficiently * SAFACT: Southern African Federation Against Copyright Theft Scope of report TMG’s 2013 integrated annual report covers the Group’s financial and non-financial performance. This integrates our economic, social and environmental results for a Group-wide understanding, and sets out the challenges and opportunities ahead. Our financial reporting covers the full scope of the Group, including non-controlled entities, in accordance with IFRS (International Financial Reporting Standards) and other relevant requirements and legislation. In terms of non-financial reporting, acquisitions have made data comparability challenging in some areas. Where possible, methods for determining specific indicators are described in this report. We will continue developing Group standards to make stakeholder reporting more relevant and our progress more measurable against published targets for key indicators. TMG’s triple bottom-line reporting will remain a cornerstone of our commitment to sustainable development and our determination to entrench associated best practices in all operations. TMG therefore reports against the 2006 guidelines of the Global Reporting Initiative (G3), and the content of this report has been prepared in line with GRI intermediate application level C (page ). We have noted the requirements of the new GRI guidelines (G4), published in May 2013, and will incorporate these into our reporting before the end of the December 2015 transition period. Sustainability performance in this report spans the 12 months from 1 July 2012 to 30 June 2013. TMG’s 2013 integrated annual report is available on our website at www.timesmedia.co.za. It includes all wholly-owned operations and those where we have management control or joint management control. In determining material issues to include in this report, TMG uses the methodology recommended by G3 which spans external and internal factors as follows: External Internal Key sustainability issues raised by TMG’s values, policies, strategies, processes stakeholders and targets Sectoral issues and challenges reported by The interests and expectations of stakeholders peers and industry bodies for whom our corporate progress is paramount, Relevant legislation and voluntary agreements including employees, shareholders and suppliers (local and international) of strategic significance to the Group and its stakeholders Key risks defined by corporate risk methodologies High-profile sustainability issues, impacts or opportunities, from climate change to HIV/Aids Critical factors for TMG’s success, including the synergy between our operations and the universal aims of sustainable development. Ongoing feedback from a range of stakeholders helps us to contextualise certain issues better for more informed understanding by readers. Feedback is a critical element of our reporting process and any comments should be directed to the company secretary whose contact details are set out on page . 2 Assurance TMG’s internal systems record and monitor the quality (accuracy, completeness and consistency) of management information and any data gaps in the Group. TMG has considered the value of obtaining external assurance on the sustainability report and concluded that it would serve a limited useful purpose. This decision is reviewed periodically against changes in the business, our operating environment and best practice in our industry. Code of conduct Given the nature of the TMG Group, ethical practices underpin our corporate code of conduct. Accordingly, our people are expected to uphold fair practices by: Maintaining the highest standards of integrity in all business relationships Carefully guarding against influences that may compromise independent judgement and action Using their approved authority to act in TMG’s best interests at all times. The Group’s code of conduct details the behaviour expected from employees at every level when dealing with stakeholders including customers, shareholders, suppliers, colleagues and competitors. The code also sets out expectations for the Group as a responsible corporate citizen. TMG does not condone any unethical business dealings (including fraud, bribery and money laundering) by employees or violation of any law. To protect the Group’s reputation, particularly its media operations, employees are cautioned to guard against perceived violations. To assist them, the code details acceptable limits on gifts, hospitality, free trips and favours. The code details situations (including outside employment and personal investments) that may lead to conflicts of interest, and limits directorships of companies outside the TMG Group to two. Employees are encouraged to discuss these situations with line management to achieve equitable resolutions. To ensure these standards are applied and maintained, the transformation, social and ethics committee of the board operates against a checklist which is summarised below. Social and ethics matters Compliant Policies Social and economic development United Nations Global Compact – ten principles Employment Relationship building Whistleblowers Safety, health and environment OECD recommendations on corruption Code of conduct and ethics Whistleblowers Fraud and crimes of dishonesty Employment Equity Act Employment Employment equity Broad-based Black Economic Empowerment Act B-BBEE Good corporate citizenship Promoting equality, preventing unfair Employment equity discrimination, reducing corruption Relationship building Contribution to development of associated Corporate social investment communities Record of sponsorship, donations and charitable Corporate social investment giving Environment, health and public safety Company’s activities and impact of its products Safety, health and environment and services 3 Social and ethics matters (contd.) Consumer relationships Compliance with consumer protection laws and public relations Labour and employment Standing in terms of International Labour Organisation protocol on decent work and working conditions Employment relations and contribution to the educational development of employees Compliant Policies Consumer Protection Act Code of conduct and ethics Human resources development Human resources development Relationship building Education assistance Ten principles of the United Nations Global Compact (Note: To be typeset as a sidebar) Human rights Principle 1 – support and respect the protection of internationally proclaimed human rights Principle 2 – not complicit in human rights abuses Labour Principle 3 – uphold freedom of association and effective recognition of the right to collective bargaining Principle 4 – elimination of all forms of forced and compulsory labour Principle 5 – effective abolition of child labour Principle 6 – elimination of discrimination in respect of employment and occupation Environment Principle 7 – support a precautionary approach to environmental challenges Principle 8 – undertake initiatives to promote greater environmental responsibility Principle 9 – encourage the development and diffusion of environmentally friendly technologies Anti-corruption Principle 10 – work against corruption in all its forms, including extortion and bribery Corruption TMG’s code of conduct is aligned with the recommendations of the OECD on corruption. We are committed to fair dealing and integrity in conducting business, with various policies in place to ensure compliance. TMG’s standing in terms of the OECD recommendations is entrenched and integral to the working culture across the Group. Non-adherence to these standards is taken very seriously and disciplinary measures are in place. OECD recommendations on corruption (Note: To be typeset as a sidebar) The Organisation for Economic Co-operation and Development (OECD) has developed specific guidelines on corruption in the business world. These are summarised below: Risk assessment – customised to ensure effective controls in place, regularly reviewed and revised Policy – visible and enforced Training – ongoing and Group-wide Responsibility – accountability at all levels Support – leading by example Oversight – top-level monitoring Specific risk areas – detailed policies facilitate compliance and monitoring Business partners – ensuring the same standards and controls are in place from the outset Accounting – fair and accurate records prevent bribery from being concealed Guidance and advice – general information and a confidential reporting facility Discipline – appropriate procedures for addressing violations and deterring future transgression 4 Sensitive information TMG clearly communicates stipulations on the use of sensitive information imposed by the Companies Act, Insider Trading Act, JSE Limited and other regulatory bodies and industry associations. To guard against corruption and to promote sound corporate governance, the code details procedures for employees to disclose contraventions or irregular conduct. Editorial independence and quality of content TMG’s media titles recognise that the right to media freedom flows from the right to freedom of expression guaranteed in section 16 of the Constitution of South Africa. Freedom of expression entails the right of the public to be informed, and to receive and impart information, ideas and opinions freely. These rights make it possible for citizens to make decisions and judgments about the society they live in, to exercise their rights and duties as citizens, and to facilitate greater understanding among the people of South Africa and the world. Freedom of expression, by its nature, protects and defends other rights necessary to a functioning democracy where every citizen enjoys equality, dignity and freedom. Our newspapers play a vital role in disseminating information in South Africa. As such, we have a duty to act as trustee for the public interest. In performing this duty, we uphold the values of the constitution. Accordingly, we pledge: To perform our duties to the highest standards of excellence and integrity True, accurate, fair and balanced reporting To investigate and expose abuses of power – whether political, economic, commercial or social – with courage and with commitment to the truth. We do so without being beholden to any interest group, other than our readers and the citizens of South Africa To take seriously our role as a watchdog over the people, institutions and forces that shape our society. We do so on behalf of our readers and the citizens of South Africa, especially those who otherwise would not have a voice To seek diversity in the views and opinions we publish To uphold the South African Press Code. As a leading media group in South Africa, editorial independence and quality of content are paramount. This pledge is the precursor to a detailed set of editorial policies for journalists and editors that spans print and electronic media and communication, and is closely aligned to the South African Press Code. Throughout the media division, editorial independence and quality of content are clearly stipulated and rigorously enforced. TMG’s editorial policies are available on the Group intranet and also on our website at www.tmg.co.za/business/media/. 5 Conflict of interest TMG has appropriate policies to avoid conflicts of interest, from board level down. These are adapted to suit the requirements of specific business units and their industries. In its media division, TMG journalists may not work for businesses competing directly with the Company, nor may they hold another full-time job. Any outside, paying work must be approved in writing by the editor or deputy editor. Any approved part-time or temporary work must not infringe on the Company’s resources or disrupt the journalist’s responsibility to the Company. Journalists may not promote the business, political or other interests of family members in their stories. Stakeholder engagement TMG engages with key stakeholder groups to advance the interests of both our organisation and interested parties: Media As a media company, TMG fully understands the power of media and using appropriate channels to convey the corporate story. As such, using both print and online mediums that are accessible to our stakeholders is an essential part of our investor relations programme. In delivering financial and other information about the Company, we use both passive and active mediums. We maintain a database of journalists who follow the industry and the organisation to accurately target our media engagement approach. Investor community Engagement with the investor community is driven by three key pillars: market intelligence, compliance and communications. We strive to go beyond compliance with the letter of the law. Our goal is to create a holistic view of the Company, seen by shareholders from a range of vantage points that enable them to make informed decisions about our Group. The TMG website is regularly updated with financial and corporate information. Shareholders also receive electronic communication. Given the accelerating pace of technological change, further mediums of communication are being investigated to ensure a valuable online presence. TMG also capitalises on industry platforms and conferences to present the Company’s strategy, opportunities, trends, performance, risks and other pertinent areas to ensure ongoing transparency on matters of interest. Employees Our people are an essential element of our value proposition and thus key in advancing the Company’s interests and achieving our goals. Critical to ensuring long-term organisational success is the need to enhance understanding and awareness of the purpose, strategy, goals and direction of the business. Given the diversity of businesses in the Group, it is also important for staff to understand TMG as a whole. Again, we use various mediums. Staff are notified of key events and updates through TMG Billboard, an email mechanism for key messages. All departments have appropriate forums and meetings to communicate business challenges and priorities. In the quest for continuous improvement, we are investigating ways of minimising information gaps as far as possible, creating other forums for further staff and management interactions, and providing greater management accessibility. The way we engage with our staff is reviewed regularly to ensure the Company communicates for performance, supporting the creation of an environment in which organisational goals can be achieved. 6 Industry bodies Our continued involvement with key industry organisations includes: World Association of Newspapers Print and Digital Media South Africa Newspaper Association of South Africa Magazine Publishers Association of South Africa Printing Industries Federation of South Africa Southern African Federation Against Copyright Theft National Organisation for Reproduction Rights in Music in Southern Africa Content Delivery and Storage Association Recording Industry of South Africa South African Music Performance Rights Association Publishing Association of South Africa South African Booksellers’ Association International Map Trade Association Sustainable Energy Society of Southern Africa. TMG is represented by appropriate senior managers and decision makers in these organisations to ensure quality interactions. This allows us to play a pivotal role in positively influencing industryrelated matters for the benefit of all participants. Government and non-government financial assistance TMG receives no financial assistance from government, although various government departments do place recruitment and other advertisements in TMG publications. In recent years, the quantum of recruitment advertising carried by all print media has dropped significantly, given the economic downturn. TMG receives no significant financial assistance from non-government sources. Defined benefit retirement plan obligations TMG’s only defined benefit retirement plan, the Johnnic Entertainment Pension Fund, is in liquidation. The employer’s surplus account, which was R46 million at year end, is recognised as an asset (see note of the annual financial statements). Supply chain management Acknowledging that TMG is a diverse Group with many different operations, and sometimes decentralised controls, its procurement policy is designed as a framework for users. The procurement policy regulates transactions with related parties, and transactions that give rise to conflicts of interest. The responsibility for complying with broad-based black economic empowerment (B-BBEE) criteria rests with the business units, although guidance on specific criteria for the Group is provided. Where possible and appropriate, goods and services are procured from BEE-compliant entities. TMG has guidelines on labour standards and human rights that govern its relationships with suppliers and business partners, specifically: Not to use child labour Not to use forced and compulsory labour such as prison workers Not to enforce a working week that exceeds 45 hours and to allow employees at least one day off for every 17 days worked To offer remuneration that complies with prevailing laws and matches local practice To support diversity To respect the rights of individuals in terms of freedom of association To offer a safe and healthy work environment To demonstrate full compliance with laws and regulations. 7 In return for this compliance and good governance, TMG has committed to: Selecting suppliers on merit while assessing BEE credentials Building mutually beneficial relationships Providing existing and potential suppliers with clear criteria for decisions on major supply contracts Respecting the patents, trademarks, copyrights, proprietary information and trade secrets of suppliers and business partners. Statement of value added 2013 Rm 2012 Rm Revenue Paid to suppliers for materials and services Value added Finance income Income from investments Total value added Employees Share-based payments Providers of capital - Finance costs - Dividends - Owners of the Company - Non-controlling interests Central and local government - Income tax expense - Secondary Tax on Companies expense - Skills development levy Reinvested in the Group to maintain and develop operations - Depreciation and amortisation - Retained profit - Owners of the Company - Non-controlling interests Total value distributed Our people People are the foundation of our business because their combined intellectual capital, experience and expertise are pivotal to our success in the media and entertainment sector. As a content-driven business, TMG’s underlying strength is its talent. This in turn underpins our competitiveness in consistently offering renowned brands, products and services to customers. As our markets change in terms of generational consumer preferences – simultaneously informed by race, gender and economic strata – the quality of our people enables TMG’s brands to proactively adapt to new conditions and still offer appropriate products for different customers. Understanding the importance of our people, TMG strives for human resources strategies and policies that acknowledge the unique requirements of our diverse business units to support Group performance and growth, and to optimise the potential of every employee in the Group. 8 The human resources team has concentrated on entrenching sound workplace relationships and confidence. At TMG, we believe that a good work environment is built on fostering respect for people and their diverse views, instilling a climate of trust through open and honest communication and focusing on developing people. Properly implemented, this approach plays a major role in motivating, engaging and retaining knowledge workers and key talent. TMG’s strength and competitiveness rest on our ability to continuously manage our employees effectively in a changing workplace. In every workplace, managers play a significant role in setting the tone and anchoring Company culture. Our investment in upskilling management and staff is reviewed every year. Transformation TMG takes a holistic approach to transformation. While our policies and practices support the focus on transformation in terms of the Department of Trade and Industry (dti) scorecard, our commitment has been concentrated on improving black ownership in our Company, procuring from black-owned companies, entrenching an inclusive Company culture and employment equity, including black women and people with disabilities. Our learnerships and internships are focused on historically disadvantaged groups. Constantly improving our demographic profile is a key driver of TMG’s transformation process. This is supported by a detailed employment equity strategy and policy, and significant investment in training and development. In each business unit, employment equity targets are quantitatively and qualitatively measured. The former is aligned to Group targets, while the latter considers strategic human resources initiatives aimed at attracting, engaging and retaining staff. A deliberate series of interventions has been implemented by the Company to address these issues. However, it is also important to note that our view is long term and part of a process, rather than an event. TMG has been audited as a level 4 contributor in terms of the dti scorecard. Learning and development TMG’s strategy on developing people is based on the corporate business strategy and aimed at enhancing skills in the Group, while taking cognisance of national imperatives – the skills development strategy, national qualifications framework and related legislation. Our business units operate in diverse markets that require different skills sets. Although the human resources development strategy is set at Group level, implementation is tailored to meet the requirements of individual business units and their evolving markets and requisite skills. In addition to internal training, employees are encouraged to undertake external studies related to the Group’s business using the TMG education assistance scheme. This extends loans for tuition fees, and refunds successful candidates on completion of their courses to promote a culture of learning. TMG also offers financial assistance and bursaries to the children of lower-income employees each year. Awards TMG’s strengths are embodied in its people, quality of content and multifaceted delivery of that content. During the year, TMG companies and employees received numerous awards for these skills, as well as for broader contributions to their industries and communities. 9 Internship programmes The Group offers annual journalism learnerships, comprising rotational learning in the editorial sections of different publications to enable learners to develop practical skills in newsroom processes. This programme offers graduates the opportunity to enter the specialised field of economic and business journalism, and is based on courses initiated by the Financial Mail and Business Day in 1998. The course is open to graduates from all disciplines and runs for six to 12 months. Training is intensive, ranging from classroom sessions to practical exercises and handson internships. When the classroom component is complete, trainees are rotated through TMG’s news and information business units. TMG has established internship programmes accredited by the National Qualifications Framework (NQF). To complement this, TMG has invested in site-learning facilities. As an example, at our Industria offices, we offer a customer service centre internship where around 20 learners are taken into a structured learning process each year, including learners with disabilities. At our Durban printing plant, we capitalised on the business need to offer apprenticeship-structured learning on the same basis as the customer service centre. Ten learners from different trades undertake a 12-month programme aligned to the NQF. Performance-related remuneration TMG’s remuneration policy, underpinned by principles of fairness, transparency and flexibility, reflects the dynamics of the market and context in which it operates. The policy is aimed at aligning behaviours to the values and strategies of the business. As such, remuneration plays a critical role in attracting and retaining high-performing individuals, and in reinforcing, encouraging and promoting superior performance. Employees receive regular performance and career development reviews. As remuneration is performance-related, there is no discrimination between men and women in the ratios of cost-tocompany packages by employment category. Remuneration is integrated into other management processes such as performance management and the overall Group human resources policies. At executive level, and as far as practical down the organisation, employees are consulted on the implementation and modification of remuneration programmes. TMG and its business units are committed to open communication with all internal stakeholders about launching remuneration programmes, and ongoing changes to these programmes. The remuneration mix reflects the relative proportions of pay represented by guaranteed and variable income. It is also linked to job levels and the nature of expected outcomes and performance. Guaranteed remuneration includes all guaranteed items such as cash component, travel allowance, and other allowances. Variable remuneration includes cash incentive bonuses and commissions. paying variable remuneration is typically one year or less. The timeframe for Share incentives are long-term initiatives with varying timeframes - TMG’s new share incentive plan became effective on 1 July 2013. TMG has adopted the ‘cost-to-company’ approach, cascaded down the business units to include all levels of staff. Associated advantages of this approach include employee responsibility for their salary packages and flexibility on choice of benefits. 10 Recruitment Group policy is to recruit locally and appoint internally wherever possible. Talent management Managing talent is a particular focus for TMG, given the importance of intellectual capital in each of our businesses. Our relatively low staff turnover rate reflects the success of talent management programmes across the Group. The existing talent management programme aims to retain key talent in the Group by creating an environment that promotes individual professional goals and productivity potential, while strengthening the Company’s brand leadership. TMG’s talent management strategy emphasises key talent, identified in a systematic approach across the Group. Our strategic focus on talent management has contributed significantly to building TMG succession pools, while minimising vulnerability and risks. Across the Group, programmes are in place to maximise the potential of high-performing individuals, particularly those in positions best suited for realising TMG’s strategy. Individuals are assessed using a variety of tools, career pathing discussions and customised development solutions to match key talent needs. Employee relations TMG operates in a labour environment where employee rights and freedom of association and speech are respected in terms of current labour legislation and the South African constitution. Our corporate culture embraces participative management to promote full involvement on issues affecting employees, and individual business units have employee structures in place that suit their particular circumstances. TMG is committed to: Fair treatment and non-discriminatory work practices Collective bargaining principles while respecting the individual’s right to freedom of association or dissociation Upward communication through existing structures and appropriate procedures to empower employees Balancing rights and obligations within the legal framework and considering business realities. TMG’s sound relationships with employees and stakeholders reflect good leadership at shop-floor level and appropriate policies that guide business units. In addition, feedback from exit interviews is used constructively to enhance working conditions. Substantive issues raised by employees are addressed before being elevated to the CCMA (Commission for Conciliation, Mediation and Arbitration) or related bodies, if necessary. At Uniprint, the South African Typographical Union (SATU) has a majority representation at its bargaining unit. The Group policy on relationship building recognises the diverse nature of our employees and the need to consult with a broad representation of interest groups. The diversity of our people is recognised in terms of nature of work, religion, gender, age, race, level of seniority, unionised and non-unionised, nationality and language. This wealth of diversity is used to the benefit of all stakeholders. 11 We believe broad participation is the most effective means of pooling employees with different views to channel efforts towards consensus and successful problem-solving. Properly implemented, broad participation delivers multiple benefits, including: Enhanced relationships and better understanding of issues by employees Improved staff morale, and a positive impact on the level of staff turnover Increased interaction resulting in managers and employees being better able to handle day-today issues Open communication leading to increased trust and confidence A broader participation structure facilitating open discussion and debate on sensitive issues Better decision-making based on expanded information from different perspectives Management and staff involvement at all levels The process-orientated nature of the exercise, leading to cooperation, ownership and commitment by all employees. Post-retirement medical aid Certain Group operations have unfunded obligations to provide post-retirement medical aid benefits to certain pensioners. This liability totalled R274 million at year end, and is disclosed in note of the annual financial statements. Employee benefits Full-time employees are entitled to a range of benefits designed to enhance their work life and retain their services. Benefits also comply with South African labour legislation. At present, standard employee benefits include: Leave (annual, ill health, maternity, family responsibility, study leave) Retirement funding Medical aid Study assistance Funeral cover Performance incentives Share incentives. Life-threatening illnesses TMG is committed to creating a supportive and non-discriminatory environment in which employees with life-threatening illnesses can continue working for as long as they are medically capable. The Group policy on life-threatening diseases covers cancer, heart disease, tuberculosis, hepatitis, HIV and Aids. The policy clarifies TMG’s views and commitment to: Assisting employees who contract a life-threatening illness Provide consistent guidelines to senior management to ensure fair treatment of all employees with life-threatening illnesses Inform employees of their rights and benefits Provide an education framework for HIV/Aids. TMG ensures that no employee suffering from any life-threatening illness is unfairly discriminated against, harassed or victimised in the workplace because of the illness. All employees and managers must respect the confidentiality of information for existing or potential employees with life-threatening illnesses. 12 Human rights TMG supports the basic principles on human rights set out in the constitution of South Africa, and is guided by international standards such as the UN Global Compact. Accordingly, several policies governing respect for human rights and non-discrimination are in place. These are regularly reviewed and strictly enforced. Some of these policies, for example sexual harassment, include non-employees. Broadly, TMG’s policies facilitate: Safe and healthy working conditions Freedom of association Non-discrimination in personnel practices The prevention of human rights abuses The right to collective bargaining The elimination of all forms of forced labour A precautionary approach to environmental challenges Combating corruption. No operations have been identified in the Group where the right to exercise freedom of association and collective bargaining may be at significant risk. TMG does not support child labour, or forced and compulsory labour. Public policy As a Group policy, TMG does not contribute financially or in kind to political parties, individual politicians or related institutions. Safety, health and environment Sustainable development of the environment and the right of people to a healthy environment in which to work and live is a principle TMG fully endorses. A board-approved policy defining sound environmental practices has been distributed to employees so that they understand and adhere to their responsibilities and obligations on environmental matters. As a Group, we aim to: Promote social and environmental responsibility through our business activities Develop sound ethical, social and environmental practices relevant to our areas of operations Seek and promote relationships with businesses involved in cleaner production and other environmentally friendly processes. In line with this policy, employees who identify health and safety issues must report them to the appropriate manager. By the nature of its business, TMG has a low environmental impact. We do, however, comply with relevant environmental legislation and aim to meet global best practice. TMG’s safety, health and environmental policy TMG is committed to taking requisite precautions to facilitate a safe environment for employees, customers and independent contractors. Equally, TMG conducts its business in a manner that mitigates harm to the environment. Our comprehensive safety, health and environmental (SHE) policy was drafted using international benchmarks such as the Global Reporting Initiative (GRI), United Nations Global Compact and South African legislation such as the acts governing basic conditions of employment, compensation for occupational injuries and diseases, and labour relations. It also incorporates recommendations on sustainability set out in King III – the local benchmark for corporate governance. 13 The chief executive officer and senior operational management are responsible for implementing the policy, and developing and maintaining a system to ensure compliance with both the policy and applicable SHE laws and standards. All employees are responsible for complying with the policy, and are expected to give appropriate and timely attention to issues covered by the policy. Any employee who becomes aware of circumstances relating to the Company’s operations or activities that pose a real or potential safety, health and environmental risk to other employees or the wider community must report the matter in line with procedures set out in the policy. During the review period, TMG recorded no work-related fatalities or major injuries. Various minor injuries were recorded across the Group. The Group health and safety policy ensures that a formal and structured incident-recording and investigation system is in place which classifies incidents and defines their severity. Representative health and safety committees have been established across the Group. reporting to these bodies, health and safety representatives are responsible for: In Highlighting potential hazards, dangerous work practices and conditions Investigating the causes of accidents, and safety-related complaints by customers and employees Ensuring greater awareness of safety conditions by employees and customers Representing staff by applying appropriate safety standards Adhering to the provisions of legislation Reporting in writing to the health and safety committee on any accident. TMG’s Head Office health and safety committee manages a team of trained first aiders and marshals responsible for incidents in their designated areas. Refresher courses are conducted regularly. Head office marshals are also responsible for ensuring all fire equipment is serviced regularly and that fire escapes are accessible at all times. Annual inspections are carried out by the Department of Labour. Trained first aiders and marshals are in place in the rest of the Group and are responsible for the safety of staff at their operations. Regular drills ensure that staff know how to react in an emergency. The Group has contracted a leading external service provider as a working partner to assist with training and emergencies. Materials used TMG is a major consumer of paper, particularly through our printing, newspaper, magazine and book-publishing enterprises. Collectively, the Group uses thousands of tonnes of paper per annum, over two-thirds of which is supplied by Mondi, a recognised leader in sustainable forestry practices. Over one-third of the stock comprises recycled paper. Given our volumes, our paper-purchasing policy requires that: Paper suppliers comply with environmental laws and regulations Where possible and viable, paper with recycled content is used Paper used is from certified, well-managed forests. Energy TMG’s operations affect the environment directly by consuming fossil fuel in our company-operated motor fleets, and indirectly through buying electricity which is the largest indirect source of carbon dioxide emissions by the Group. The Group uses modern fuel-efficient equipment and recognises the effect of carbon dioxide emissions on the environment. Vehicles and equipment are serviced regularly to ensure efficient fuel consumption. Accurate measurement of nitrogen oxides from transport fleets has not yet been quantified. 14 TMG does not own any major manufacturing plants except for its printing presses in Port Elizabeth, the printing operations of Uniprint and Hirt & Carter in Durban, and its CD and DVD manufacturing operations in Midrand. The Group therefore does not consume significant amounts of raw materials, apart from paper. TMG’s primary energy source is electricity. At head office, numerous energy efficiency measures are in place. Energy is managed by local maintenance departments at our other operations. We are currently investigating ways to lessen our carbon footprint by reducing our energy consumption. This includes installing a power-factor correction unit at Uniprint. Operations at CDT, ELS and Industria have been converted to new low-wattage lighting technology to reduce electricity consumption. Water use Water is a necessary and scarce resource. Although the amount of water TMG uses does not have a large environmental impact, we are committed to ensuring less waste. In addition to ongoing water-efficiency initiatives across the Group, we have reduced the flow of water in common areas by closing stopcocks and continuously checking and repairing leaking taps to reduce waste. No fines were imposed on TMG for water pollution or other water-related issues during the period. Emissions, effluents and waste TMG outsources the recycling of waste and by-products from its activities to service providers, ensuring that by-products do not end up in landfills. The service providers separate nonenvironmentally friendly waste from recycling waste. The Occupational Health and Safety Act obliges employers to safely dispose of waste from hazardous chemical substances. TMG complies by placing this waste in sealed containers to prevent exposure during handling. This is disposed of only at designated sites by contractors complying with the same regulations. For the TMG Group, hazardous chemical substances consist of diesel, cleaning paraffin, benzene, CD and plate-making developer fluid. All chemicals are delivered for use and collected for disposal by compliant contractors. This area is carefully monitored by the health and safety committee. To minimise diesel and petrol emissions from vehicles, route plans are assessed to reduce travel distances. Regular service schedules ensure optimum fuel consumption and only reputable service providers are used where this service is outsourced. TMG has removed all halon gas from its IT environment and replaced it with dry nitrogen. A clean-air and non-smoking policy is enforced in all Group premises. Appropriate processes are in place to maintain clean-air standards. Biodiversity TMG does not own, lease or manage land in or adjacent to protected areas and areas of high biodiversity value outside protected areas. Security By the nature of its business, TMG is required to maintain effective security precautions and systems to protect both its employees and assets. The Company has implemented multi-tiered security measures at various levels of its operations. These measures are regularly reviewed and updated. 15 The Group health and safety policy ensures that reasonable precautions and systems are maintained to prevent any harm, damage or loss to employees and Company assets. TMG is a member of Johannesburg’s Rosebank Management District Police Forum which manages security in the area and creates jobs. Relations with surrounding communities As TMG’s Head Office building is in a residential area, management has an agreement with the Rosebank Management District and its residents to minimise night-time lighting. TMG has installed sound mufflers around its emergency generator to reduce sound output to an acceptable level. At other TMG operations, ongoing attention is paid to relations with surrounding communities. Any issues raised are promptly dealt with. Corporate social investment As a responsible corporate citizen, TMG is committed to the social development and empowerment of the broader community by contributing to various corporate social investment (CSI) initiatives. TMG’s business units support CSI initiatives related to their specific activities or locations. The programmes chosen during the review period are largely aligned with the corporate strategy and the national agenda in that the focus on education and literacy ties in with promoting the Group’s business interests and the country’s focus on education. Operational senior executives control divisional CSI budgets and grants, and report on their activities to the corporate Head Office. TMG’s CSI programme does not support commercial ventures, religious organisations, tours and exchanges, individuals, sporting activities or bursaries. Compliance “Effective self-regulation is the best system for promoting high standards in the media” Declaration of Principles on Freedom of Expression in Africa, 2002 Apart from complying with national, corporate and industry standards and regulations, TMG also abides by several media-specific codes of conducts. One of these is the office of the press ombudsman which provides objective recourse for members of the public on any perceived instance of inappropriate reporting. The Press Council, the ombudsman and the appeals panel are a self-regulatory mechanism set up by the print media industry to provide impartial, prompt and cost-effective adjudication in settling disputes between members of the public and newspapers and magazines on the editorial content of publications. The mechanism is based on two pillars: a commitment to freedom of expression, including freedom of the press, and to excellence in journalistic practice and ethics. The council has adopted the South African Press Code to guide journalists in gathering and distributing news and opinion, and to guide the ombudsman and appeals panel in reaching decisions on complaints from the public. More than 640 publications, mainly members of Print and Digital Media South Africa, subscribe to the code. Cases involving TMG titles referred to the ombudsman can be viewed at www.presscouncil.org.za. 16 Product responsibility Customer health and safety Lifecycle stages where health and safety impacts are assessed for improvement Number of incidents of noncompliance with regulations and voluntary codes on health and safety impacts of products and services during their lifecycle Products and services labelling Type of product and service information required by procedures Marketing communications Number of incidents of noncompliance with regulations and voluntary codes including advertising, promotion and sponsorship Customer privacy Number of substantiated complaints regarding breach of customer privacy and loss of customer data Compliance Monetary value of significant fines for non-compliance with laws and regulations on the provision and use of products and services Media Retail Solutions Books Entertainment None None None Raw materials; expiry dates Nil Nil Nil Nil None None None 3D use Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Information technology TMG’s information technology (IT) policy accommodates both the requirements of King III and ever-changing needs of the digital workplace. An IT steering committee is responsible for implementing and enforcing this policy. TMG’s IT department provides related services to business units, governed by service-level agreements. Third-party IT suppliers are required to sign formal contracts with defined service levels, which are managed, measured and reviewed. Preference is given to IT suppliers that comply with employment equity and B-BBEE economic empowerment measures. To entrench world-class comprehensively covers: digital standards and Use of e-Mail Internet access and use Internet security System-level security Home support. 17 security measures, the Group policy As a media group with different businesses operating under global licences, TMG is highly sensitive to any real or perceived infringement of intellectual property. Accordingly, pirated software is not permitted and users may not use, load or download any software, including unlicensed software, on TMG’s IT equipment. Software used on Group IT equipment is also regularly audited. In addition, TMG’s software, and any software TMG makes available to users, may not be copied for any purpose, including home use. Physical security is ensured through a multi-level approach: Access to all network devices is restricted and monitored A register of all authorised personnel with access is kept and updated by TMG’s IT department Access to servers is only granted to third parties once confidentiality and non-disclosure agreements have been signed All business-critical applications are backed up regularly, while servers are backed up daily. Backups are kept off-site. Verification and test restores are conducted monthly, while a full system file backup is done after each month end. An incident-reporting service enables users to report violations of Group policy, or any incidents of unauthorised or attempted infiltration. GRI index In terms of GRI reporting standards, TMG has met the requirements set out below and selfdeclared this report at level C. B+ A Report on all criteria listed for level C plus: 1.2 3.9, 3.13 4.5 – 4.13, 4.16 – 4.17 For each indicator category Report on a minimum of 20 performance indicators with at least one from each of: economic, environmental, human rights, labour, society, product responsibility 18 Report on all criteria listed for level C plus: 1.2 3.9, 3.13 4.5 – 4.13, 4.16 – 4.17 For each indicator category Respond on each G3 and sector supplement indicator with due regard to materiality principle by either: a) reporting on indicator or b) explaining reason for its absence A+ Report externally assured Report on: 1.1 2.1 – 2.10 3.1 – 3.8, 3.10 – 3.12 4.1 – 4.4, 4.14 – 4.15 Management Not required approach disclosures Performance Report on a minimum indicators of 10 performance (including indicators with at sector least one from each supplement of: social, economic, indicators) environmental C+ B Report externally assured C Report externally assured Standard disclosure G3 report application level Profile disclosures GRI G3 indicators and media supplement This index covers GRI’s G3 indicators and the new media sector supplement (italics) which TMG has proactively incorporated into its disclosure, where possible. ~ partially covered na - not applicable nm – not material nr – not reported GRI Topic Page Strategy and analysis 1.1 Statement from acting group chief executive officer 2.1-9 Organisational profile 2.10 Awards Report parameters 3.1-11 Reporting period, methodology 3.12 GRI index 3.13 Policy and practice on external assurance Governance, commitments and engagement 4.1-4 Governance structure, including governance structure and arrangements for content decision-making and its interrelationship with overall governance of the organisation (commercial, financial, strategic) 4.5 Link between compensation and performance 4.6 Process for avoiding conflict of interest, particularly in content creation and dissemination 4.7 Expertise of board 4.8 Policies on economic, environmental and social performance, including values for creating and/or disseminating content within specific media context 4.9 Procedures for board oversight of economic, environmental and social performance 4.10-12 Board performance, precautionary approach, external principles endorsed 4.13 Membership of industry associations and advocacy groups 4.14-15 Stakeholder groups, including media observers and other key bodies involved in media development 4.16 Approach to stakeholder engagement 4.17 Topics and concerns raised and response INDICATORS Economic Economic performance EC1 Economic value generated and distributed EC2 Financial implications, other risks and opportunities for activities due to climate change EC3 Coverage of defined benefit plan obligations EC4 Significant financial assistance and advertising revenues received from government M4 Significant financial assistance received from other non-governmental sources Market presence EC5 Range of ratios of standard entry-level wage by gender compared to local minimum wage at significant operations EC6 Policy, practices, proportion of spending on locally-based suppliers at significant operations EC7 Procedures for local hiring and proportion of senior management hired from local community at significant operations 19 INDICATORS (contd) Economic (contd) Page Indirect economic impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind or pro-bono engagement, including initiatives for discounted / differential advertising spaces, investments to advance accessibility to content, initiatives to support local cultural activities, philanthropic investments, initiatives to close digital divide using own infrastructure / capacities EC9 Understanding and describing significant indirect economic impacts, including extent Environmental Materials EN1 Materials used by weight or volume EN2 Percentage of materials used that are recycled input materials Energy EN3 Direct energy consumption by primary energy source EN4 Indirect energy consumption by primary source EN5 Energy saved due to conservation and efficiency improvements EN6 Initiatives to provide energy-efficient or renewable energy-based products and services, and resulting reductions in energy requirements EN7 Initiatives to reduce indirect energy consumption and reductions achieved Water EN8 Total water withdrawal by source EN9 Water sources significantly affected by withdrawal of water EN10 Percentage and total volume of water recycled and reused Biodiversity EN11-15 Location and size of land owned, leased, managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas Emissions, effluents, and waste EN16 – Total direct and indirect greenhouse gas emissions by weight 20 EN21 Total water discharge by quality and destination EN22 Total weight of waste by type and disposal method, including initiatives to recycle or safely dispose of paper, inks, batteries and electronic equipment EN23 Total number and volume of significant spills EN24 Weight of transported, imported, exported or treated waste deemed hazardous under Basel Annex I, II, III and VIII, and percentage of transported waste shipped internationally EN25 Water bodies and related habitats significantly affected by discharges of water and runoff Products and services EN26 Initiatives to mitigate environmental impacts of products and services, and extent of mitigation EN27 Percentage of products sold and packaging materials reclaimed by category Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations EN29 Significant environmental impacts of transporting products and other goods and materials used for operations and transporting members of the workforce EN30 Total environmental protection expenditures and investments by type 20 Social performance: Labour practices and decent work Page Employment LA1 Total workforce by employment type, employment contract, and region broken down by gender M5 Initiatives to create and manage systems of remuneration and working conditions for content generators across platforms, and results achieved LA2 Total number and rate of new hires and employee turnover by age group, gender and region LA3 Benefits for full-time employees not provided to temporary/part-time employees, by major operations LA15 Return to work and retention rates after parental leave, by gender Labour / management relations LA4 Percentage of employees covered by collective bargaining agreements LA5 Minimum notice period(s) on significant operational changes, including whether specified in collective agreements Occupational health and safety LA6 Percentage of total workforce represented in formal joint management / worker health and safety committees that help monitor and advise on occupational health and safety programmes LA7 Rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities by region and by gender, including fatalities by gender and using absolute number LA8 Education, training, counselling, prevention and risk-control programmes to assist workforce members, their families or community members with serious diseases LA9 Health and safety topics covered in formal agreements with trade unions Training and education LA10 Average hours of training per year per employee by gender and by employee category, including training on content creation and dissemination-related matters when technological changes affect employees’ areas of expertise LA11 Programmes for lifelong learning that support continued employability of employees and assist them in managing career endings LA12 Percentage of employees receiving regular performance and career development reviews, by gender Diversity and equal opportunity LA13 Composition of governance bodies and breakdown of employees per category by gender, age group, minority group membership and other indicators of diversity LA14 Ratio of basic salary and remuneration of women to men by employee category, by operation Social performance: human rights HR1 Percentage and total number of significant investment agreements and contracts that include human rights clauses or that have undergone human rights screening HR2 Percentage of major suppliers, contractors, business partners screened on human rights, and actions taken HR3 Total hours of employee training on policies and procedures concerning aspects of human rights relevant to operations, including percentage of employees trained HR4 Total number of incidents of discrimination, and actions taken HR5 Operations and significant suppliers identified in which right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights HR6 Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to elimination of child labour HR7 Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour 21 Social performance: human rights (contd) Page HR8 Percentage of security personnel trained in TMG’s policies and procedures on aspects of human rights relevant to operations HR9 Total number of incidents of violations involving rights of indigenous people, and actions taken HR10 Percentage and number of operations subject to human rights reviews or impact assessments HR11 Number of grievances related to human rights filed, addressed and resolved through formal mechanisms Freedom of expression Media organisations exercising freedom of expression, including principles to avoid selfcensorship, either in content or marketing communications Media organisations supporting society’s rights to freedom of expression Social performance: society Community SO1 Nature, scope and effectiveness of programmes and practices that assess and manage impacts of operations on communities, including entering, operating and exiting Corruption Management approach: to journalists receiving benefits, inducements, charging for coverage and paying sources illicitly for news content SO4 Actions taken in response to incidents of corruption Public policy SO5 Public policy positions and participation in public policy development and lobbying, including industry issues such as freedom of expression, access to information, youth protection, protection of sources SO6 Total value of financial and in-kind contributions to political parties, politicians and related institutions by country MSS7 Impact of, and investment in, initiatives to advance sustainable development through media content Anti-competitive behaviour SO7 Number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices, and outcomes Compliance Management approach: - Prioritising and addressing sustainable development issues through media content, pertinent to TMG’s portfolio, context, and audiences served - Own definition of quality media content and approach to ensure compliance (editorial policies, codes, training of journalists, monitoring of initiatives) - Initiatives to advance media literacy - empower audiences to access, understand, engage with and respond critically to media content SO8 Monetary value of significant fines and number of non-monetary sanctions for noncompliance Social performance: product responsibility Management approach: - Empower audiences to consume content responsibly (media literacy initiatives, parental controls, awareness / education on parental controls, awareness-raising and rewards) - Establish effective feedback mechanisms and interaction with audience - Engage with and protect audience (ombudsman, letters to the editor, retraction, right of reply) Customer health and safety PR1 Life cycle stages in which health and safety impacts of products and services assessed for improvement, and percentage of significant categories subject to such procedures PR2 Number of incidents of non-compliance with regulations and voluntary codes on health and safety impacts of products and services during their life cycle, by type of outcomes 22 Customer health and safety (contd) Page Products and service labelling PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction Marketing communications PR6 Programmes for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship PR7 Number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes Customer privacy Management approach: Policies/procedures in place for protecting people’s private lives and information from being used for entertainment or news content PR8 Number of substantiated complaints of breaches of customer privacy and losses of customer data Compliance PR9 Monetary value of significant fines for non-compliance with laws and regulations on the provision and use of products and services Content Content quality M1 Method for assessing performance in relation to content creation aspects M2 Actions taken to improve performance in relation to content creation aspects, and results obtained M3 Number and nature of responses (feedback / complaints) on content creation (quality, sustainability and reflection of society’s diversity), and processes for dealing with them 23