Massmart Global Reporting Initiative 4: Questions and ... · 1 January 2015 – 31 December 2015...

1January2015–31December2015

MassmartGlobalReportingInitiative4:QuestionsandAnswers

StrategyandAnalysis*indicatesupdatedinformationfor2015

*G4-1. The relevance of sustainability to Massmart - Statement from most senior decisionmakerinorganisation

Massmart’s corporate accountability proposition is to achieve commercial success by adopting amass distributionbusinessmodel that pro-actively incorporates the input of our stakeholders toeffectivelyintegratecommercialityandaccountability.

Massmartcontinuesto implementacomprehensiveCorporateAccountabilityprogrammeandwewere proud once again, to be identified as one of only ten best performers in the JohannesburgStock Exchange Socially Responsible Investment (SRI) Index. Our accountability initiatives aredriven by an understanding that advocating more sustainable practices and product choices isfundamentaltoourcommitmenttoenablesustainablesupplyandconsumerism.Inthiscontextwerecognise that minimising our own environmental footprint is the nucleus around which wedevelopcredibilityforouradvocacywithoursuppliersandcustomers.

Webelievethat,asaretailer,Massmartcanplayapivotalrolebyadvocatingresponsiblebusinesspractice to our suppliers and responsible consumerism to our customers, recognising that aprerequisite for doing this credibly requires that we embrace the principles of responsiblecorporatecitizenship.TheMassmartBoardplacestheadvancementofthecompany’ssustainabilityagendaamongitsmostimportantobligations.

Our sustainability agenda over the short to medium term focuses on the achievement ofsustainabilityobjectivesthatfallunderthreemainsustainabilitythemes;theseare:

Enablingsustainablesupplyandconsumerism

• To partner with willing suppliers to identify and implement opportunities to rationaliseprivatelabelproductpackagingprimarypackaging

• To share knowledge with willing local suppliers to facilitate voluntary achievement ofhigherenvironmentalandhumanrightsstandardsintheretailsupplychain

• Tocontinuegrowingourpost-consumere-wasterecyclingschemesinmajormetropolitan• Topromoteadoptionbysuppliersofindependentlyverifiedeco-labels,suchastheMarine

StewardshipCouncil(MSC)• To empower consumers to make responsible consumer choice more frequently through

betterlabellingstandards• To partner with private label, direct import and non-branded merchandise suppliers to

ensureadherencetoWalmartSupplierStandards


ReducingtheGroupenvironmentalfootprint

• Toimproveenergyefficiencyinlinewithformat-specificenergyintensitybenchmark• To recycle secondary packaging (specifically paper, board and plastic waste) that is

generatedinstoresanddistributioncentres• To harvest rainwater to supplement nurseries (at BuildersWarehouse) and landscaping

irrigationrequirements

Championingsocialequalityinitiatives

• Toinvestaminimumof1%profitaftertax(PAT)ineducation-focusedsocialdevelopmentinitiativesthatbenefitthepoorestofthepoor

• To increaseeconomicopportunities forwomenby improvingemployment,educationandbusinessopportunities

• Toincreasepermanentemployees’accesstoaffordablesubsidisedprivatemedicalbenefits• Tocombattherateofinfectionamongstemployeesandtoprovideallemployeesandtheir

spouseswithfreeaccesstopre-highlyactiveanti-retroviraltherapyandprogrammes• While we continue to prioritise BBBEE as a key performance area, our group BBBEE

contributorstatusdeclinedin2015duetotheamendedCodesofGoodPracticecomingintoeffect.Wedidhowever,maintainoutempoweringsupplierstatus.

Achievementsandareasfocusedonoverthelastyearincludethefollowing:

PackagingRationalisation

In 2012 we embarked, under Walmart’s guidance, on an initiative to identify opportunities torationalise and improveprivate label packaging.As a first step, inwe committed to develop andconductpackagingrationalisationworkshopswithourprivatelabelbuyers;in2013weconductedtwoworkshops. To date 64 private label buyers have received training in techniques to reducepackaging resources and optimise packaging recyclability and safety. A key outcome of theseworkshopswasthedevelopmentofaGrouppackagingevaluationsscorecard,whichenablesustomore critically praise our private label packaging and pinpoint the area’s most in need ofimprovement. In 2014, subsequent to the completion of a Group-wide private label packagingrationalisation audit,wewere pleased to see amarked improvement in the quality, recyclabilityandsuitabilityoftheGroup’sprivatelabelpackaging.Specificallywehavenotedthatourbuyersaremoreadeptat specifyingenvironmentally intelligentpackagingoptions.Whilstwerecognise thatthere is still considerable room for improvement we are pleased with progress to date whichincludes: the introduction of doypacks to the M brand snack range; the rationalisation of theBuildersPridenutandboltrange;andthroughtheinclusionofchild-safeclosuresacrosstheentireBuilders pride solvents range, which on their own will impact one million packs supplied tocustomers in 2015. Further progresswasmadewhenwe, in collaborationwith our peers in theretail sector, launched a more customer-centric packaging recycling logo. The new on packrecycling logo, which has been launched on our BuildersWarehouse Private Label packaging, isintended to simplify the separation and recyclingprocess for consumers and in sodoing, reducerecyclablematerialsfindingtheirwaytolandfill.


SupplierAdvocacy

Massmartproactivelypromotesresponsibleenvironmentalpracticeswithinoursupplychain.Werun an active supplier advocacy process with the objective of encouraging responsible supplierconductinoursupplychain.In2009,welaunchedasurveybasedadvocacyprocesstomotivateandbenchmarkresponsibleenvironmentalpracticesinoursupplychain.Asaresultwehavecollectedand shared comparative information about supplier environmental practices that has enabledinterested suppliers to compare their performance with that of their peers. To date we haveprofiled the environmental practices of over 1000 individual suppliers on up to 35 differentenvironmental indicators. Among others environmental indicators, the survey addresses issuessuch as; energy consumption at manufacturing facilities, water consumption at manufacturingfacilities, logistics efficiency, environmental attributes of product packaging, the environmentalattributesofproductssuppliedtoMassmart,environmentalsanctionsorcensuresduetosupplierpractices or products and public disclosure of environmental indicators material to suppliersbusiness.In2014,MassmartworkedcloselywiththeNBI'sPrivateSectorEnergyEfficiency(PSEE)programme where we identified suppliers through our supplier advocacy process who and thepotential to benefit from the completion of free and/or partially subsidised energy audits.Furthermore, in 2014, Massmart took the decision to publicly recognise the top 10 performingsupplierswhohavedemonstratedan industry leading commitment to sustainableenvironmentalmanagement and product development. Suppliers were recognized Massmart's Annual SupplierEnvironmental Awards lunchwhich is attended by leading national and internationalNGO's andmedia. In addition top performing suppliers are also recognised in press release and a surveyreportwhichissentouttoallparticipatingsuppliers.

ConsumerEmpowerment

In 2008, Makro launched its first e-waste recycling project with Fujitsu-Siemens and electronicrecycling specialistsDESCO. InitiallypilotedatMakro’sWoodmeadstore, itwas rolledout to tenMakro stores in South Africa. In 2013 Makro and DESCO, together with new partners SamsungElectronics expanded the e-wasteproject to18Makro stores across the country. It is nowSouthAfrica’s largest retail-led e-waste collection programme. Empowering customers to make betterinformedpurchasingdecisionswhileinourstoresremainsanareaofinterest.Oneareawherewehavemademodestprogressinvolvestheincorporationofaneco-wiseconsumerinformationpanelon all private label products introduced by Builders Warehouse since January 2013. The panelprovides information about environmental product and packaging attributes, relating to factorssuch as water efficiency, energy efficiency and recyclability. Furthermore, in line with ourcommitmentin2014toincreasethepenetrationofenergyratinglabelsonmajorappliancessoldinourstores,wehave,throughengagementwiththeDepartmentofEnergy(DOE)andoursuppliers,formalised a group wide approach to energy efficient appliance labelling. Key to this is anundertaking to enforce adiscipline that requiresmajor appliancemanufacturers to apply energyefficiencyratingslabelsontheirproductsinaccordancewiththestandardssetoutbytheDOE.

Massmart collaborateswith suppliers on an on-goingbasis tomitigate environmental impacts ofproducts and services. Examples include: 1.Makro (aMassmart Division) and Colgate-Palmolivecollectivelysoughttoreducetheimpactonwaterreservesimplicatedinconsumeruseofhygieneproducts through an in store campaign to change consumer behaviour. 2. Massmart conductsannual environmental advocacy surveys with suppliers which focuses on, amongst other things,water conservation and water and energy efficiencies in business operations and productmanufacture.


OperationalEnergyEfficiency

Over80%ofMassmart’sgreenhousegasemissionsarefromtheconsumptionofelectricityassuchwehavegonethroughgreatlengthstoreduceourenergyconsumption,byDecember2020wewillreduce theper squaremeterenergy intensityofour storesby10%(as comparedwithour2010baselinestores).Basedon2015energyintensitytargetsweare100%completewithourtargetandweareaheadwithourtargetfor2020.Throughalltheenergyefficientinitiativesimplementedbythe Massmart divisions, we have reached an 18.76% reduction in our energy emissions, almostdoubleour10%target.Theseinitiativesincludeamongothers;retrofittingourstoreswithenergyefficient lighting, improving the efficiency of our refrigeration, installing Building ManagementSystems(BMS),installationofenergyefficienttechnologiessuchasdaylightharvestingand100%LEDlighting. Makro'sneweststores,arebetween30-42%moreenergyefficientthantheirlegacystores. Similarly, Game's Foodco stores incorporate solutions such as advanced energy efficientrefrigerationunitstoreduceelectricityconsumption.In2014weopenedourfirstnewgenerationBuildersWarehousestorethatmakesuseof100%LEDsalesfloorlighting,daylightharvestingandevaporative cooling. Introduced Building Management Systems that leverage the ASDA EnergyBureau, to remotely monitor and manage energy consumption across 12 Cambridge stores. Wecompleted the rollout of independent electricity meters across all Masscash stores. Massmart’senergy intensity is currently 18.6% below the Group’s modelled Business As Usual (BAU)consumption.

RainwaterHarvesting

In2013wecommunicatedourintentiontomoreaccuratelyquantifyourGroupoperationalwaterconsumption. As a result, in 2014 we re-focussed our water consumption tracking to coverkilolitresconsumedratherthanrandcostofwaterconsumed.WealsoimprovedtrackingofactualconsumptionbyexpandingtheinstallationofindependentwatercheckmeterstoincludeselectedMakro, Builders Warehouse and Cambridge stores. Based on this more accurate data, BuildersWarehouseandMakrowereconfirmedasthehighestwateruserswithintheGroup.Thisreinforcesour prior decision to prioritise water-saving initiatives including rainwater harvesting andcondensatecapturewithinthesetwoformats.Ourwaterharvestinginitiativesinthesetwoformatsnowcover75sites,whichweestimatehavecombined,helpedustosave17milllonlitersofwater.

BBBEE

The Broad-based Black Economic (BBBEE) Codes of Good Practice have been amended, theimplicationofwhich is that ithasbecomesignificantlymoredifficult fororganisations tocomplywith and excel on the BBBEE scorecard. In 2015 we continued to prioritise BBBEE as a keyperformancearea,ourgroupBBBEEcontributorstatusdeclinedtoalevel8contributorwhentheamendedCodesofGoodPracticecameintoeffect.Wedid,howeveraimtoandsucceedatachievingandmaintaininganempoweringsupplierstatus.

CorporateSocialInvestment

Massmart spent R 20.36million, equating to 1.74%NPAT, in Corporate Social Investment (CSI)initiativesduringthe2015financialyear,exceedingtheminimuminvestmentguidelineby0.74%.Basedonexternalreviewof theGroup’sCSI investmentpolicy,Massmartcontinues toencouragethe divisions to adopt central guidelines that will see a minimum of 80% of CSI support being


allocated to: nutrition (container kitchens); school infrastructure and maintenance; and earlychildhooddevelopment.

Women’sEconomicEmpowerment

InlinewithWalmart’sfocusontheempowermentofwomeninourworkplace,localcommunitiesand supply chain,wehave established theMassmart Chief ExecutiveOfficer’s Council ofWomenLeaderswhichfostersandpromotestheprogressionofwomen.InitialachievementshaveincludedidentifyingexistingwomensuppliersintheMassmartsupplychain,prioritisingwomenfarmersinourdirectfarmprogrammeandincreasingtherepresentationofwomenontheMassmartgraduatetraineeprogramme. In2014weconducteda supply chainassessment to identifybusinesses thathave a minimum of 25% women ownership. The assessment was distributed to over 1400suppliers,59whichindicatedthattheyhavemorethan25%womenownership.Akeyfocusgoingfurtherwillbeoptimizingsupplyopportunities forexistingwomensuppliers inoursupplychain.Wewilldothisbynaggingwithourdivisionalbuyingteamstoidentifytheopportunitiesthatexisttooptimiseprocurementfromcompaniesidentifiedtohavemorethan25%womenownership.

EmployeeHealthcareandHIV/AIDSBenefits

We have, since 2008, implemented a choice of four additional affordable private health benefitpackages.Ourflagshipemployeewellnessprogramme,Impilo,afully-fundedwellnessprogrammeforemployeeswithnomedical cover, continues tooffera24-hourmedical advisoryandsupportservice to permanent employees and their spouses, including: a fully funded HIV programmeinclusiveofmedication;andtestingforandearlydiagnosisofchronicdiseasessuchashighbloodpressure, raised cholesterol, diabetes and asthma. Since July 2010more than 18 000 tests havebeen conducted, resulting in health counselling for staff that were found to be at risk. HIV-prevalence in the group has remained steady at 6.5%, and remains well below the nationalprevalencerate.

*NOTE:Data gathering and consolidation accuracy can prove challenging in areas such as water consumption andgreenhousegasemissions,soit is importanttodisclosethattherecouldbeuptoa10%marginforerrorinthefigurespresentedinthisreport

OrganizationalProfileG4-2.Nameandorganisation

Massmart isamanagedportfolioof fiveDivisions,each focusedonhigh-volume, low-margin, lowcostdistributionofmainlybrandedconsumergoods forcash, through403stores in13countriesacross sub-Saharan Africa. We are a South African retailer and wholesale distributor, with 365storesinSouthAfricaand38storesinothercountriesinsub-SaharanAfrica.

G4-3.Primarybrands,products,and/orservices

Massmart’sprimarybrandsare;

• Massdiscounters(Generalmerchandise,discounterandfoodretail)–brandsincludeGameandDionWired

• Masswarehouse(Warehouseclub)–brandsincludeMakroandFruitspot


• Massbuild(Homeimprovementretailerandbuildingmaterialssuppliers)–brandsincludeBuildersWarehouse,BuildersExpress,BuildersTradeDepotandBuildersSuperstore

• Masscash (Foodwholesaler, retailerandbuyingassociation)–brands includeLiquorland,Saverite,CBW,JumboandTrident.

• CambridgeFood(Foodwholesaler,retailerandbuyingassociation)–brandsincludeRhinoCashandCarry

G4-5.Locationheadquarters

Massmart’s headquarters are in Johannesburg, 16 Peltier Drive Sunninghill, Sandton, 2090 to beexact.

*G4-6.Countriesinwhichtheorganisationoperates

Massmart currently operates in SouthAfrica and13other countries including;Botswana,Kenya,Lesotho,Malawi,Mozambique,Namibia,Nigeria,Tanzania,Swaziland,UgandaandZambia.

*G4-7.Natureofownershipandlegalform

Massmarthas4242shareholdersinSouthAfricaandabroadfrommajorinstitutionstoindividuals.Furtherinformationonourshareholderscanbeviewedhere.

Massmart’sCompanyregistrationnumber:1940/014066/06(incorporatedinSouthAfrica)JSEsharecode:MSMISINcode:ZAE000029534

*G4-8 and 9. Market served (including geographic breakdown, sectors served, and types ofcustomers/beneficiaries)andScaleoforganisation

Massmartemploys29228peopleacross itsoperations.TheGroupoperatesunder thebrandsofmentionedinG4.3,whichservicecustomersintheLivingStandardsofMeasure(LSM)ofbetween2—10.Productcategoriesincludegeneralmerchandise,foodandliquor.

The Group achieved sales of R84, 731.8m with headline earnings of R1, 229.8m before forex.Marketcapitalizationasof31December2015wasR17,5billion.

*G4-10.Employment

Wecurrentlyemploy29228peopleacrossourSouthAfricanandAfricanoperations.

2010 2011 2012 2013 2014 2015Market Capitalisation(bn)

24.6 28.3 36.4 29.4 17.5 22.4

Headline Earnings(Rm)

1,138.6 1,252.7 1,216.7 1,334.5 1441,4 1229.8


G4-11.Percentageofemployeescoveredbycollectivebargainingagreements

Wehavenoemployeesincollectivebargainingagreements.

*G4-12.Descriptionoftheorganisationssupplychain

Massmarthasaglobalsupplychain,weestimatethatweover5000suppliersrangingfromfoodtogeneral merchandise suppliers. We monitor our suppliers practices through three channels;Massmart Responsible Sourcing and Compliancewhich takes into consideration labour practicesandethicalbehaviourofsuppliers;MassmartSustainabilitywhichisfocusedontheenvironmentalimpactofsuppliersand;MassmartStakeholderEngagementwhichmonitorssupplierrelationshipswiththeGroup.

*G4-13.Significantchangesregardingsize,structure,ownership,orsupplychain

Alignedwithourstrategyofowningourkeyproperties,in2014theGroupacquiredcontrolof15key properties which had previously been leased by the Group. The cash consideration paidamounted to R784.9 million and the acquisitions were accounted for as asset acquisitions. Inaddition the Group acquired control of an entitywithin theMasscashDivision that held a FreshFoodbusiness.ThenetcashpurchasepriceoftheFreshFoodbusiness,ofR11.5million,gaverisetogoodwill of R9.7 million. No contingent consideration liabilities were raised on any of theseacquisitions and none of these acquisitions changed the Group’s store profile. During this sameperiod, the Group also acquired two Liquor businesses in theMassdiscounters Division. Both ofthese acquisitions were aligned to the Group’s strategy of rolling out Retail Food and Liquor.TogethertheseacquisitionsamountedtoanetcashpurchasepriceofR2.9millionandgaverisetogoodwill of R2.4 million. During the current year, final payments of R90 million, included inworking capital movements, were made to settle contingent consideration liabilities raised onhistoricalbusinesscombinationsintheMasscashdivision.

CommitmentstoExternalInitiativesG4-14.Applicationoftheprecautionaryapproachorprinciple

Asalistedcompany,MassmarthasanobligationtoandcomplieswiththecriteriadefinedintheJSELtd’sSociallyResponsible(SRI)Index.

Massmart isalsoamemberoforsubscribestoandendorsesthesocialchartersandprinciplesofthefollowing:

• DepartmentofTradeandIndustry’sCodesofGoodPracticeonBroad-basedBlackEconomicEmpowerment;

• CarbonDisclosureProject(CDP);• KingIIIReportonGovernanceforSouthAfrica;• GlobalReportingInitiativeguidelines;and• NationalBusinessInitiative(NBI)


G4-15.Externallydevelopedeconomic,environmentalandsocialcharters,principlesorotherinitiativestowhichtheorganisationsubscribesorwhichitendorses

• BusinessAgainstCrime(BAC);• BusinessUnitySouthAfrica(BUSA);• ConsumerGoodsCouncilofSouthAfrica(CGCSA);• EthicsInstituteofSouthAfrica;• NationalAfricanFederatedChamberofCommerce(Nafcoc);• NationalEconomicDevelopment&LabourCouncil(Nedlac);• SouthAfricanInstituteofRaceRelations;and• InstituteforDemocracyinAfrica(IDASA).

G4-16. Memberships of association and/or national or international advocacyorganisations

Massmartisamemberofanumberoforganisationspredominantlyforstrategicpurposes.

• GreenPalm• NBI(NationalBusinessInitiative)• RSPO–throughMassmart’sparentcompanyWalmart• SFP(SustainableFisheriesPartnership)–throughMassmart’sparentcompanyWalmart• Wildlands Conservation Trust – through two Massmart Divisions (Masswarehouse and

Masscash)• WWF

MaterialsAspects&Boundaries

*G4-17.Listofentitiesincludedintheorganisation’sfinancialstatement

InformationreportedencompassesalldivisionsandoperationsoverwhichMassmarthasadirectcontrol;

• MassmartHoldings:• MassmartChannel• MassmartSharedServices• MassmartDivisions:

1. Massdiscounters2. Masswarehouse3. Massbuild4. Mascash

G4-19ProcessfordefiningreportcontentandAspectBoundaries

Weattempt to select information that isperceived tobe sociallymaterial toourkey stakeholdergroups, placing particular emphasis on government, employees, customers, suppliers, thecommunitieswithinwhichweoperateandcivilsociety.Theinformationreportedisbasedoninputprovidedduringstakeholdermeetings,outcomeofMassmart’s internalriskmanagementprocess,advice of independent subjectmatter experts, local and global industry trends, content of public


discourseandstandardsdefinedbyinitiativessuchastheJSELtd.SociallyResponsibleInvestment(SRI)IndexandGlobalReportingInitiative(GRI).

Inordertoobtainmaximumvaluefromourinteractionswithstakeholders,wehaveimplementedastructuredand rigorous stakeholder engagementprocess.The informationwe report isbasedonfeedback from our stakeholders and covers material social and environmental performanceindicators.

G4-22.Effectofanyrestatementsofinformationprovidedinpreviousreportsandthereasonsforsuchrestatements

An errorwas identified in the 2014 CSI spend figure thiswas due to an error in food donationinformationprovidedbyFoodBankSAin2014.The2014reportedCSIfigureshavebeenupdatedaccordingly.

G4-23.SignificantchangesfrompreviousreportingperiodsinScopeandAspectBoundaries

In terms of energy and water intensity figures, we discontinued some of our Africa electricityconsumption,due to inaccuracyof figures.Wewill resumereportingon this figureoncewehaveimprovedaccuracy.TheAfricanoperationsdataincluded,thisyear,isdatafromMasscash.

StakeholderEngagement*G4-24.Listofstakeholdergroupsengaged

Non-GovernmentalStakeholderGroups

• BlackManagementForum• BusinessUnitySouthAfrica• BusinessWomen’sAssociationofSouthAfrica• ConservationSouthAfrica• EndangeredWildlifeTrust• FoodbankSouthAfrica• ForestStewardshipCouncil• Greenpeace• MarineStewardshipCouncil• NationalAfricanFederatedChamberofCommerce• NationalBusinessInitiative• SouthAfricanHumanRightsCommission• SouthAfricanNationalNGOCoalition• SustainableFisheriesPartnership• TheConsumerGoodsCouncilofSouthAfrica• TheSouthAfricanLabourGuide• Tshikululu• WorldWideFundforNature


GovernmentalStakeholders

• AfricanNationalCongressWomen’sLeague(ANCWL)• DepartmentofAgricultureForestryandFisheries• DepartmentofEducation• DepartmentofHealth• SouthAfricanNationalDefenseForce(SANDF)• SouthAfricanPoliceService(SAPS)• USEmbassy

G4-25.Basisforidentificationandselectionofstakeholderswithwhomweengage

Massmart engages proactivelywith identified stakeholder groups that directly impact on, or aredirectly impacted by activities in our direct sphere of commercial influence. Factors that areconsideredbefore engaging stakeholders includewhom they represent, their credentials and thesocialandbusinessrelevanceofissues.

Notwithstandingnumerousone-on-onemeetings,our stakeholderengagementgenerally involvesconductingregulardiscussiongroupsthatincludethemeddiscussionswithsubjectmatterexperts,public policy discussions with government and civil society representatives and consumerdiscussionswithconsumerinterestgroups.Italsoincludesgarneringopinionfromcustomersandsuppliersthroughourinterceptandadvocacysurveys.

*G4-26.Approachtostakeholderengagement

Stakeholder engagement activities occur on an on-going basis throughout the year. Engagementwith investors and shareholders takes place at least four times a year through resultspresentations, meetings and the Massmart annual general meeting. We aim to engage withgovernmentandcivilsocietystakeholdersatleastsixtimesperyearthroughmeetings,workshopsand surveys. Employee, customer and supplier engagement is considerably more intensive andoccursasneeded.

In accordance with the National Environmental Management Act of South Africa either a basicassessment or comprehensive environmental impact assessment is carried out on land that isprospectedfornewoperations,orforlandthatrequirestoberezoned.Theseassessmentsprovideforstudiestobeundertakenregardingtheimpacttheoperationorlandrezoningwillhaveonsocialandlabouraspectsintheareathatisbeingprospected.

Somerecentexamplesofstakeholderengagement:

• Customers:Customersatisfaction,customertrustandcustomercomplaintsandissuessurveys.• Employees:Employeeengagement,ethicsandgraduatedevelopment• Shareholders: Business performance, business expectation and strategy, economic, social and

environmentalconcerns• Suppliers: Sustainable seafood sourcing, sustainable timer sourcing, supplier environmental

consciousnessandsuppliersatisfactionsurvey


Furthermore, Massmart has set up a Product Safety Compliance and Food Safety Compliancewebsitebasedon the requirementsof theCPA for suppliers.Wealso, engagewith theConsumerGoodsCouncilofSouthAfrica(CGCSA)onanon-goingbasistodiscussarangeofissuesincludingfood safety and retail. Lastly, we conduct on-going research to understand the impact of theWalmarttransactiontosuppliers,customersandMassmartemployees.

*G4-27.Keytopicsandconcernsraisedthroughstakeholderengagement

EmployeeFeedback:Althoughemployeesaresatisfiedwiththelevelofsupporttheyreceivefrommanagersandfeelempoweredtomakedecisionsintheworkplace,theyhaveindicatedthatmoreactiveengagementincareerplanningisneeded.

CustomerFeedback:

Supplier Advocacy: Although our relationship with suppliers remains positive and the ethicalpractices of ourmerchants continue to be highly regarded by our suppliers, our suppliers havecalledforustorespondmorerapidlytonewopportunities.

Socio-economicDevelopmentWorkshop:AlthoughsocialNGO’sholdpositiveviewsontheprogresswehavemadeindevelopingsmallsuppliersthroughoursupplierdevelopmentprogramme,theyrecommendedthatwemorecloselyalignoureffortswiththeexistingimpactfulactivitiesofNGO;sintheareasofskillsandcommunitydevelopment.

Environmental Workshop: Although environmental NGO’s are satisfied with the level of detailcovered in our supplier advocacy programme as well as our environmental accountabilitypriorities, they encouragedus tomore aggressively investigate the implementationof renewableenergywithouroperations.

ReportingParameters*G4-28.Reportingperiodanddareofmostrecentpreviousreport

ThisisMassmart’s12threportcoveringsustainabilityperformanceforthefinancialyearending31December2015.Thelastreportwaspublishedforthefinancialyearending31December2014.

G4-29.Reportingcycle

Our corporate accountability report is published annually, timed to coincide with the Group’sannualfinancialreportingcycle(1January-31December).

G4-30.Contactpointforquestions

The report was compiled in consultation with divisional management by the Group CorporateAffairsExecutive,amemberof theMassmartExecutiveCommittee,who is thecontactperson forquestionsregardingthereport.

G4-31.Policyandcurrentpracticewithregardtoseekingexternalassurance


Massmart’s InternalAuditDepartmentwasagainresponsible for theverificationof thestatisticalscorecard information contained in our SustainabilityReport due to their intimate knowledge oftheGroupandourinformationsystemsandgiventheirindependence.Theobjectiveofthereviewwas toprovideanopinion,basedon theAA1000AssuranceStandardprinciplesofcompleteness,materialityandresponsivenessonthe:

• Accuracy,adequacyandrelevanceofdatapresentedinthescorecards• Processesandmechanismsinplaceforthepreparationanddeliveryofthecorporateaccountability

scorecards• ComplianceofthescorecardswiththeGlobalReportingInitiativeIII(GRI)SustainabilityReporting

Guidelines• Massmart’scorporateaccountabilityreporting isalignedwiththeguidelinesgivenbytheKing III

reportoncorporategovernance

FortheyearendedDecember2015,apart fromtheexceptionsoutlined intheAnnualReport, theMassmartBoardconfirmedthattheGroupcompliedwiththeCodeofGovernancePrinciplesassetoutinKingIII.KingIIIhasrequirementsinrelationtoauditorindependence.Specifically,principle3.9,paragraph77statesthat“Theauditcommitteemustreview,monitorandreportontheexternalauditor’s independence and objectivity and should assess the effectiveness of the audit processeveryyear.Atleastfiveyearly,rotationatanindividualengagementpartnerordesignatedpartnerlevelenhancesactualandperceivedindependence”.

InternalAuditOpinion:

TheMassmart InternalAudit department (MIAS) conducted a reviewof thedata reported in thepreliminaryand final Sustainability Scorecards.The reviewwas conducted in termsof assurancestandards and entailed the verificationof the authenticity of datapresented against internal andexternalsources.Allsignificantreportedinternalauditfindingshavebeensatisfactorilyaddressedpriortopublication.OnthisbasiswearesatisfiedtoreportthatthedatapresentedinthereportedScorecardsfairlyrepresentsthepositionofMassmart’sSustainabilityperformanceforthefinancialyearending31December2015.

King III requires an external verificationon the accuracyof sustainability information.Massmarthasbeenaheadofthisrequirement.SustainabilityinformationhasbeenindependentlyassuredbyMIAS for the past six years and disclosure has been integrated with the company’s financialreporting.Management is of theview that thequalityof theverificationperformedbyMIASwillsupersedeanexternalverification.ManagementissatisfiedthatthisdeviationfromKingIIIcanbeacceptablyexplained.

Governance

GovernanceStructureandCompositionG4-34.Governancestructure,includingBoardandBoardCommittees

The Board of Massmartcomprises three Executive Directors, four Independent non-executiveDirectorsandthreenon-executiveDirectors. It isresponsible fordirectingtheGrouptowardstheachievement of the Massmart vision and mission. The Board is therefore accountable for thedevelopmentandexecutionoftheGroup’sstrategy,operatingperformanceandfinancialresults,as


well as being the custodian of the Group’s corporate governance. The Board appreciates thatstrategy,risk,performanceandsustainabilityareinseparable.

TheBoardisresponsibleforitsowncomposition,theappointmentoftheChairmanandtheChiefExecutiveOfficer,andtheconstitutionandcompositionofitsCommittees.TheBoardhasachartersettingout itspolicies,rolesandresponsibilities in theexecutionof itsmandatedescribedabove.EachBoardCommitteealsohasacharter,ortermsofreference,that is formallysignedoffbytheBoard.AnnuallytheCommitteesandBoardreview,andamendifnecessary,therespectivecharterstoensuretheirrelevance.

ExecutiveCommittee

The Massmart Executive Committee is the most senior executive decision-making body in theGroup.TheCommittee ischairedbytheChiefExecutiveOfficer.TheCommitteedeliberates, takesdecisions or makes recommendations on all matters of strategy and operations. Within theparameters described by the Board-approved Governance Authorities, the decisions orrecommendationsaresometimesreferredtotheBoardoritsrelevantCommitteeforfinalapproval,while in other cases the power to take decisions is delegated to Divisional Boards or ExecutiveCommittees.TheExecutiveCommitteedeliberatesandtakesdecisionsormakesrecommendationsonallmattersaffectingGroupstrategyandoperations, includingriskmanagement,andexecutiveandseniormanagementsuccession.

SocialandEthicsCommittee

The Social and Ethics Committee assists the Groupwith its responsibility towards sustainabilitywithrespecttopracticesthatareconsistentwithgoodcorporatecitizenship.TheCommitteealsoassesses the company’s standing in terms of the United Nations Global Compact Principles. Inaddition the committee considers: the company’s standing with regards to the OECDrecommendations concerning corruption, the contribution to development within ourcommunities,labourandemployment,andtheenvironmentandhealthandpublicsafety.

TheMassmart Social and Ethics report is aligned to the business requirements contained in theUnitedNationsGlobalCompactPrinciples.Aspartof thisalignment, theSocialandEthicsReportaddressesandreviewsGroupperformancewithregardtothefollowingprinciples.

• Businessesshouldsupportandrespecttheprotectionofinternationallyproclaimedhumanrights;and

• Makesurethattheyarenotcomplicitinhumanrightsabuses.• Businesses should uphold the freedom of association and the effective recognition of the

righttocollectivebargaining;• Theeliminationofallformsofforcedandcompulsorylabour;• Theeffectiveabolitionofchildlabour;and• Theeliminationofdiscriminationinrespectofemploymentandoccupation.• Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges;• Undertakeinitiativestopromotegreaterenvironmentalresponsibility;and• Encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.• Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery


AuditandRiskCommittee

TheAuditandRiskCommitteesoverseestheeffectivenessoftheGroup’sinternalcontrolsystemsbyreviewingthescopeandeffectivenessoftheexternalandinternalauditfunctions,ensuringthatadequate accounting records have been maintained, ensuring that the appropriate accountingpolicieshavebeenadoptedandconsistentlyapplied,reviewingandreportingoncompliancewiththe King III Report, testing that the Group’s going-concern assertion remains appropriate andoverseeingthequalityandintegrityoftheannualfinancialstatements.

RemunerationsandNominationsCommittee

The Remuneration and Nominations Committee is responsible for overseeing the Group’s riskmanagement programme as contemplated in King III, designing,monitoring and communicatingthe Group’s remuneration policies, considering and approving executive remuneration includingshort- and long-term incentives and the assessment, recruitment and nomination of new non-executivedirectors.

EthicsandIntegrityG4-56.Organizationalvalues,principlesandstandardsandnormsofbehaviorsuchascodesofconductandcodesofethics

The roleof theSocial andEthicsCommitteebroadly is to assist theGroupwith its responsibilitytowardssustainabilitywithrespecttopracticesthatareconsistentwithgoodcorporatecitizenship.TheCompaniesActincludesspecificresponsibilitiesincluding:thecompany’sstandingintermsoftheUnitedNationsGlobalCompactPrinciples,theOECDrecommendationsconcerningcorruption,the contribution to development within our communities, labour and employment, and theenvironmentandhealthandpublicsafety.TheCommitteemettwiceduringthefinancialyearwiththe objective of reviewingMassmart’s Socially Responsible Investment Index. Broad-based blackeconomicperformanceineachoftheseareasismeasuredwithreferencetotheJohannesburgStockExchange’s (JSE) Socially Responsible Investment Index criteria, the Department of Trade andIndustry’s (DTI) Broad-basedBlack Economic Empowerment (B-BBEE) scorecard and theGlobalReportingInitiativeIIIguidelines.

ManagementApproach*G4-DMA.ManagementapproachtoMaterialSustainabilityAspects

AtCompany level theRiskCommittee is responsible to theBoard foroverseeing theGroup’sriskmanagement programme. The day-to-day responsibility for risk management, includingmaintaining an appropriate loss prevention and internal control framework, remains with theexecutivesoftheGroupandofeachDivision.TheCommittee’sprimaryroleisoneofoversightandthereforeitreviewsandassessesthedynamicinterventions,withintheGroup’savailableresourcesand skills, required in response to business-specific, industry-wide and general risks. TheCommittee tablesaGroupriskregister,aggregated fromthosepreparedby theDivisionsandtheGroup Executive Committee, to the Board annually. The Committee considers there to be threecategoriesofGroupriskwhichcanbroadlybedescribedasOperationalrisks,ReputationalRiskandStrategic/Environmental risks. The Social and Ethics Committee assist the Group with itsresponsibility towards social and environmental sustainabilitywith respect to practices that are


consistentwithgoodcorporatecitizenship.Forexample,whenitcomestoEnvironmentalriskweconsider among other issues;wherewe source our products, our emissions, and progressmadetowards the Group's energy efficiency reduction targets. At asset level Massmart has multipleproductandoperationsforumsthatmeetonamonthlyorbi-monthlybasistodiscussrelevantrisksandopportunities. For example, theOperationsForummeetsbi-monthly todiscuss amongotherthings risks and opportunities related to improving the Group's environmental footprint. Allinformationthatisaddressedatforumiscirculatedtotherelevantdivisionalfunctionalunits.Overand above Risk CommitteeMassmart employs three full-time resourceswho are responsible foridentifying key environmental risk anddraw them to the attention of the variousGroupForumsandtheSocialandEthicsCommittee.Risksareprioritisedbasedontheprobabilityoftheriskandthe potential impact to the company’s operations and current business structure and theconsequences of taking action versus taking no action. For example, an immediate regulatoryrequirement mandating a reduction in waste generated to lower emissions requires immediateactiontoensurecompliance. Whereasapotentialregulatorychangethatmayhaveimpactsyearsinto the future, but that does not currently impact our facilities, is monitored but does notnecessarilydriveshort-termactions.

PerformanceIndicators

Economic

EconomicPerformance*G4-EC1.Directeconomicvaluegenerated

Totalsales:R84731.8m

Operatingprofit(beforeforex):R1229.8m

2009 2010 2011 2012 2013 2014 2015Value Added(Rm) 10,052 10,130 13,312 11,475 18,485 17,464.3 9,936.9

In addition, as part of our on-going Corporate Social Investment, Massmart investedR20.36m,this includedinitiativessuchasCasualDay,SlipperDayandtheSANDFgoodwillparcelproject.OurCSIspendamountedtto1.74%ofnetprofitaftertax.

2009 2010 2011 2012 2013 2014 2015

Total Group CSI spendincluding supplier andstaffcontributions(Rm) 23.5 20.6 24.4 46.4 42.3 23.1 20.36


G4-EC2.Financialimplications,risksandopportunitiesfromclimatechange

The Massmart Board considers risk management to be a key business discipline designed tobalance risk and reward, and to protect the Group against risks and uncertainties that couldthreatentheachievementofourbusinessobjectives.

Climate change risks are typically identified and quantified by the Group Corporate AffairsExecutive through interventionsthat includedesktopresearch,consultationwithexternalsubjectmatter experts (for example, environmental lawyers), facilitated workshops with appropriateinternalmanagers(forexample,RiskManagers)andconsultationwithDivisionalChiefExecutives.These risks are formally debated and prioritised by the Massmart Executive Committee on anannualbasisandresponseoptionsareidentified.

A further division specific step involves each divisional Executive Committee discussing thatdivision'sexposuretotheidentifiedgrouprisksand,whereappropriate,re-prioritisingtheriskstoreflect specific divisional concerns. In most instances risks are assessed with reference to theimpactthattheycouldhaveoneachdivision’scommercialandreputationalproposition.Massmarthas identified potential climate change risks, none ofwhich is regarded, in themedium term, assignificant.Someidentifiedrisksincludeclimatechangeimpactingonfoodsecurity,causingwatershortagesand disrupting supply chains. These risks are tracked and updated by the GroupCorporateAffairsExecutiveonanon-goingbasisandarereportedoninmoredetailinourCDPasofthe30thJune2015.

Opportunities exist to reduce costs in all divisions due to the implementation of electricityconservation measures. The potential for additional income from environmentally responsiblemerchandisealsoexists.Empoweringconsumerstomakeinformedpurchasingdecisionswhile instores.Oneareawherewehavemademodestprogressinvolvedtheincorporationofaneco-wiseconsumerinformationpanelonallprivatelabelproductsintroducedbyBuildersWarehousesinceJanuary 2013. The panel provides information about the environmental product packagingattributes,relatingtofactorssuchaswaterefficiency,energyefficiencyandrecyclability.

G4-EC3.Definedbenefitplanobligations

All permanent Massmart employees are members of either a pension or provident fund whichfunds are managed externally by Alexander Forbes, a leading provider of financial, risk andinsuranceandmulti-managerinvestmentsolutionsinternationallyandalicensedfinancialservicesprovider.

G4-EC4.Significantfinancialassistancefromgovernment

Massmartreceivesnofinancialassistancefromgovernment.

Marketpresence*G4-EC5.Ratioofstandardentrylevelwagetolocalminimumwage

Entry levelwages are determined by each divisionwith reference tominimumwage legislation,internalwageequity,sectoralstandardsandlocalmarketexpectations.


2010 2011 2012 2013 2014 2015 BenchmarkAverageMinimumWage(R) 2,555 2,589 2,953 2,688 3,108 3,221.91 2803.74

* It isworthnoting that theGroupminimumaveragewage is higher than theminimumwageofR2803.74prescribedbytheSectoralDeterminationfortheWholesaleandRetailSectorinAreaA.

*G4-EC6.Proportionofseniormanagementhiredfromlocalcommunities

Massmart has a strong preference for hiring staff from local communities. We are howeversometimesconstrainedinoureffortsbytheunavailabilityofindividualswiththerequisiteskillandexperience.Localcitizensrepresent87.46%ofourfullstaffcomplement,atourAfricanoperations.

IndirectEconomicImpactsG4-EC7.Developmentandimpactofinfrastructure

Our trading divisions have been responsible for the provision of container kitchens, vegetabletunnels,andschoolrepairkitsforschoolup-keepandinfrastructuralmaintenanceatgovernmentrunprimaryschools.

G4-EC8.Indirecteconomicimpacts

Our primary indirect economic impact is rooted in Massmart’s high volume low-cost customervalueproposition thatseeks toprovidewholesaleandretailcustomerswithanexceptionalvalueformoneypropositionandimprovedcompetitivenessofinformaltraders.

ProcurementPractices*G4-EC9.Spendingonlocalsuppliers

Massmartdefines localprocurementasbeingprocuredfromsourceswithinthecountry inwhichweoperate.Weapplyeveryefforttofirstprocuremerchandisefromlocalmanufacturersinsofarasthey satisfy our customer expectations of style, quality and price. In addition Massmart has setaside a supplier development fund intended specifically to grow small local suppliers. Since itsinception in 2011 Massmart’s Supplier Development Fund (SDF), an investment worth R200mtowardsdevelopingMassmart’s SouthAfricanbased small suppliers that areeitherblack-owned,black-empoweredormanufacturerofproduct0slocally.ThusfarwehavedisbursedR78mtoandonbehalfofsuppliersasatendofDecember2015.Thisrepresents39%oftheplanneddirectspendwithbeneficiaries.Thegreatestexcitementoverthepreviousfinancialyearhasbeenthetake-offoftheSDF.smanufacturingportfolio.TheSDFclosedtheyearwith28manufacturingSmall,mediumandmicro-enterpriseson-boardallsupplyingarangeofretailproducts.


Environmental

MaterialsG4-EN1 and EN2 Material used by weight or volume and percentage of recycledmaterialsused

Asa retail/wholesaleorganisation,Massmart isnotdirectly involved inmanufacturingprocessesand as such, does not measure rawmaterials. Initiatives are in place to encourage suppliers toreduce packaging, use more recycled materials whilst the use of toxic materials and inks arediscouraged.Inaddition,Massmartconductsanannualenvironmentalsurveyofitssuppliers.Thissurvey assists the Group in identifying the potential impacts that its suppliersmay have on theenvironmentandallowsMassmarttoadvocateenvironmentallyresponsiblepracticestomembersofitssupplychain.

Energy*G4-EN3.Energyconsumption(internal)

Energy consumption data was provided to Global Carbon Exchange (GCX) for the purposes ofcalculating our carbon footprint. Some assumptions and estimates were made during thecalculationstoestablishourcarbonemissions.

Groupenergyconsumptionfromnon-renewablesources(nationalgrid)amountedto464371498kWhor1.67x1015J.Energyconsumptionfromstationarygenerators(diesel-powered)amountstoafurther17731700kWhor6.38x1013J.

Groupenergyconsumptionfromknownrenewablesourcesamountedto0kWhor0.00J.

Massmartdoesnotconsumeorsellheating,coolingorsteam.

Sources of energy consumption data predominantly originated from two sources: independentelectricitymetersandmunicipal-providedaccounts/statements.

*G4-EN4.Energyconsumption(external)

Massmart does not report on upstream and downstream energy consumption. The Group doeshowever impact on this figure through the procurement and sale of low-energy and renewableenergy solutions for its consumers, reducing its external energy footprint.Massmart also has anelectronicspost-consumerwasteprogrammeatitsMakrostoresinpartnershipwithDescowhichfurtherreducesitsexternalenergyfootprintinthisregard.


*G4-EN6.Energyconsumptionreductions

Electricity consumption is Massmart’s main focus area for energy conservation and efficienciesacross theGroup.The implementationofmore in-storeelectricitymeters and theanalysisof theGroup’senergyusagefigureshaveresultedingreateraccuracyofourenergyconsumptiondata.WehavedevelopedanenergyroadmapbasedonaBusinessAsUsual(BAU)energymodelwhichuses2010asabaselineanddefinesenergytargetstotheyear2020.Thusfartheimprovementinenergyefficiencygoalsisasfollows:10%fortheMassmartGroup,12%forBuildersWarehouse,13%forMakroand8%forGameandDionWired.

Actual energy intensity savings resulting from the numerous energy conservation initiativesMassmart has implemented is currently unavailable because this is not specifically recorded.Energy intensitysavingshavehowever,beenachieved throughanumberofenergy interventionsincludingimprovedin-storeconsumptiontrackingandtheimplementationoftechnologiessuchas:LEDsales floor lighting,daylightharvestingsystemsandhighperformancerefrigerationplants inour new stores and retrofit programmes. To accessmore information on these initiatives pleaseconsult the 2015 Massmart Annual Integrated Report (pg. 107) available via our website[http://www.massmart.co.za/iar2015/].

MassmarthasalsorecentlyexecutedaplannedpilotprojectwhichaimstoevaluatetheimpactofsolarPVongridenergyconsumptionreductionandassociatedrisksandcosts.Thisbeganwitha572kWPVplantinstallationatMakro’snewCarnivalstoreinBrakpaninApril2016.Theplantisexpected to reduce storebrownenergyusageby~30%andproduce1GWhof renewableenergyperannum.

*G4-EN7.Reductionsinenergyrequirementsofproductsandservices

AsmentionedinsectionG4-EN4,Massmartprocuresandsellsawidevarietyofenergyefficientandrenewableenergysolutions to its consumers.Actualenergyconsumptionreductionsexperiencedby customersas a result of theirpurchasesof theseproducts isnotusuallymeasured.Massmartdoes however; estimate the collective potential energy savings of our customers which areassociatedwithlow-energyproductpurchases.Purchasesoflow-energylightingsolutionsimpliedaanestimatedcumulativeannual(2015)savingof62231.85MWhforconsumersofourMakroandMassbuilddivisions.

Estimates are made using a conservative approach. The following assumptions were made inestimatingenergysavingsrealisedfromlow-energyproductpurchases:

• ≤6.5Wreplacesa25Wlamp• >6.5Wreplacesa40Wlamp• 35WIRCreplaces50Wlamp• LEDtubesreplacedequivalentfluorescenttubes(18W,36W&58W)• T5lampsandT8eco-lampsreplaceequivalentlengthfittings(4ft–36W&5ft–58W)• CFL & LED lamps greater than 80W replace 125W halogen/low bays (conservative

approach)• CFL&LEDlamps>30Wreplace70Wincandescent/HIDlamps

Water


*G4-EN8.Waterwithdrawalbysource

The predominant method of water withdrawal across the Massmart Group is by means ofmunicipally distributed potable water. 70% of Massmart’s Massbuild stores have rainwaterharvestinginstallationsandwhileallnewMakrostoresutilisecondensate-harvestingtechnologytoreduce their water consumption footprint. Additional information about water conservation atMassmartisavailableinour2016CDPresponseonClimateChange.

Rainwater Harvesting – Massbuild have 71 stores which participate in rainwaterharvestinginitiatives.Conservativeestimatesbasedonavailablemeterdataindicatethatatleast8352kilolitresofwaterwasharvestedacrossthedivisionduring2015.

Municipal sources – During 2015 the Group cumulatively consumed an estimated797670.94 kilolitres ofwaterwhich equates to a consumption intensity estimate of 0.36kL/m²oftotalarea-under-roof.

Other sources – Makro’s condensate harvesting technologies reclaimed approximately9270 kilolitres of water for air-conditioning and landscaping purposes. Additionalinformation is available at https://www.makro.co.za/about/environment andhttp://goo.gl/4MLoND

Massmart does not extract water directly from the environment and does not have third-partyassuranceorverificationofwaterusagedata.

*G4-EN9.Watersourcessignificantlyimpacted

Asaretailer,Massmartisnotconsideredtobeasignificantconsumerofwaterresources,howeverwearecommittedtominimisingourwaterintensitythroughtheintroductionoftechnologiessuchas:rainwaterandcondensateharvestingatourstandaloneMassbuildandMasswarehousestores;dual flush cisterns; and low flow taps and fixtures at selected facilities. In addition,Massmart isintentonmanaging thewaterused inouroperations responsibly and in amanner thatdoesnotcontribute to the pollution of natural and municipal water resources. To do this we have arefocusedonstormwaterandwastewatermanagementandthetimeousandeffectivecleaninganddisposalofspilledproductswhichposeawaterpollutionrisk.

Underground Fuel Bunkers (UFB) are present in some of our stores and facilities around SouthAfrica. To ensure that existing UFBs are appropriatelymaintained and the potential for soil andgroundwater contamination is mitigated, Massmart has developed testing and managementproceduresforUFBs.


*G4-EN10.Percentageandvolumeofwaterrecycled

Makro reclaims water via condensate harvesting from its refrigeration facilities at all its newerstores (11).Water reclaimwas estimated at 9270 kL for 2015. Capturedwater is redirected towaterstoragetanks.Quantitiesareestimatedfromdatacollectedduringthefillingofthetanksonsite.

Massmart does not have any water intensive operations which would legitimise on site wastetreatmentplantsrequiredforreuseandrecyclingofwastewater.

BiodiversityG4-EN11toEN14.Biodiversityimpactsofprotectedareas

Massmartdoesnotown,leaseormanageanylandinoradjacenttoprotectedareasorareasofhighbiodiversity value. Environmental impact assessments are conducted as part of all new storedevelopmentsandsitedeveloperswork tominimiseanynegative impact theymighthaveon theenvironment. Two of our divisions (Makro &Masscash) currently contribute funds towards theWildlands Trust Rehabilitation Program, investing in the planting of indigenous seedlings forreforestationprojects.

Emissions*G4-EN15.Directemissions(Scope1)

Massmart’stotal2015globalScope1emissions(includingnon-Kyotogases)were51649.09tCO2e(non-Kyotogasesaccountfor7592.40tCO2eofthetotal).

QuantificationofScope1GHGemissionsalongwithemissionsfactorsourcesweresourcedinlinewithglobalbestpracticefromthosepublishedintheIPCC’sFourthAssessmentReport(AR4,2007)forCO2,CH4,N2O,HFCsandPFCs.

ForthosegasesusedbyvariousoperationswithinthebusinessbutnotlistedintheKyotoProtocol,theMontrealProtocolor theDEFRAscheduleofGWPs, the followingassumptionsweremade: ItwasassumedthatR404,R406andR408werethesameasR404A,R406AandR408Arespectively.ItwasassumedthatthequantityofLPGreportedwaskg(andnotm3),andthatthetypeofLPGgasused was Propane (R290) as for 2011. It was assumed that R507A gas was the same as R507.R407AisablendedgasandwasassumedtobeaKyotogasasallconstituentgasesareKyotogases.

MassmartappliesanoperationalcontrolapproachtothereportingofGHGemissions.

MassmartdoesnothaveoperationalGHGemissionstargetsforScope1.

*G4-EN16.Energyindirectemissions(Scope2)

TheGroup’s2015totalScope2(gridenergy-associatedemissions)amountedto456023.60tCO2e(increase of 3% on 2014). Scope 2 emissions account for 76% of Massmart’s total emissionsfootprint.


Increases in energy consumption and related emissions can be attributed to the opening of newstores; higher environmental temperatures which put pressure on refrigeration and air-conditioningsystemsandincorporationofpreviouslyomittedAfricastoresandfacilities.

GWPcalculationswerebasedonmaterialfromthefollowingsources:

Category Source

Scope2(SouthAfrica) Eskom(2015)

Scope2(Africa) Econometrica(2011)

Toviewamorecomprehensiverecordofassumptionsandemissions factorsusedwithregard toemissionscalculations,pleaseconsultour2016CDPsubmissionandverificationstatement(Section8.6a,attachment&Section7.4,attachment).

*G4-EN17.Otherindirectemissions(Scope3)

Massmart’sScope3emissionsforthereportingperiod(2015)were91500.55tCO2e.

MassmartmeasuresScope3(upstreamanddownstream)emissionsassociatedwiththefollowingactivities:

• Businesstravel(airtravelandcarrentals)• Transportation(seaandroadfreight)• Wastegeneration(operational)• Paperusage• Waterconsumption

Scope3Category SourceScope3(Travel,FreightandWaste) DEFRA(2015,v2.0);IPCCAR4(2007)Scope3(PaperUsage) Sappi80gsm(2013)

Scope3(WaterUsage)

Friedrich, Pillay & Buckley 2007 "The use ofLCA inthewater industryandthecase foranenvironmental performance indicator."WaterSA,Vol.33

*G4-EN18.Reductionofemissions

AllGHGemissionsintensitiesarereportedastCO2epersquaremetreofarea-under-roof(GLA).

Scope1&2emissionsintensity(2015):0.21tCO2e/m2.

GasesincludedintheScope1and2calculationincludethefollowing:CO2,CH4,N2O,HFCs,PFCsaswellasseveralrefrigerantgases,R134,R134A,R407C,R404,R404A.R407A,R507,R507A,R408,R408A,R410A,R23andCO2.


Scope3emissionsintensity(2015):0.04tCO2e/m2.

*G4-EN19.Reductionofgreenhousegas(GHG)emissions

MassmartdoesnothaveGHGemissionsreductiontargetshowever;Massmarthasenergyintensityreductiontargets.ImprovingenergyefficiencyandinvestinginrenewableenergyhelpsMassmartreduce Scope 2 emissions which make up the bulk of the Group’s overall GHG emissions. ThetargetsarereferredtoinG4-EN6above.

OurnewpilotPhoto-voltaicprojectwhich includes3newphoto-voltaic installations indicatethatcumulatively theywill reduce energy-related carbon emissions by over 2000 tonnes per annumwhenoperatingoptimally.

*G4-EN20.Emissionsofozone-depletingsubstances

Massmart’s2015ODSemissionsequateto4194.62tonnesofHCFCs(7592.40tCO2e).

G4-EN21.NOX,SOX,andothersignificantairemissions

Massmart’sScope1disaggregatedGHGemissionsfor2015areasfollows:

Source CO2 CH4 N2O HFCtCO2e tCO2e tCO2e tCO2e

Scope1 22835.75 9.27 163.34 21048.33

EffluentsandWasteG4-EN22.Totalwaterdischargebyqualityanddestination

No unplanned water was discharged outside of rainwater and sewerage discharge throughmunicipalfacilities.

*G4-EN23.Totalweightofwastebytypeanddisposalmethod

In2013weconfirmedourcommitmenttominimisingthevolumeofoperationalwastewesendtolandfill.Ourpriorityremainstheseparationandrecyclingofboard,plasticandpaperproducedatourstoresandDistributionCentres.

Based on our 2015 waste assessment, 83% of all Massmart stores are actively separating andrecyclingtheirwaste,(anincreaseof9%from2014).Ouraimisfor100%ofstorestoseparateandrecycletheirwaste.Fortotalvolumesofwasterecycled,pleaseseetablebelow:


Year Totalvolumeofwasterecycled(t)2013 15438t2014 89383t2015 20178t2016(January-March) 4917t

The overallwaste diversion rate for theGroup is currently at 43%.Although this has decreasedfrom2014, inwhich thediversion ratewas53%, this changecanbeattributed tomoreaccurateinformation provided by third parties and stores in 2015 has resulted in a more accurate andreflectivediversionrate.

Fortotalvolumesofnon-recyclablesgenerated,pleaseseetablebelow:

Year Totalvolumeofnon-recyclablesgenerated(t)

2013 14056t2014 50358t2015 23828t2016(January-March) 5365t

ThisinitiativeofrecyclingwasteisnotonlyduetoMassmart’scorporateresponsibilityasawastegenerator,butalsoformspartofWalmart’sZeroWastetoLandfillby2025goal.

InSouthAfrica,electronicwaste(e-waste)hasbeen identifiedbygovernmentasaprioritywastestream as it contains potentially hazardous components which can contribute to environmentaldegradation. Massmart has seen this as an opportunity to support the recycling of e-waste byproviding the space for drop off and collection of these items. This initiative is conducted at allMakrostoresaroundthecountry.Fortotalvolumesofe-wastecollected,pleaseseetablebelow:

Year Totalvolumeofe-wastecollected(t)2013 130t2014 139t2015 143t2016(January-August) 69t

G4-EN24.Numberandvolumeofsignificantspills

As a retail industry, it is unlikely that there will be significant or catastrophic environmentalincidents;however, there is thepotential forminorhazardousspills tooccur. In instanceswherethisdoeshappen,Massmarthasdevelopedahazardousspillsclean-uppolicywhichisfollowedbyusingitemsfoundinthestore’shazardousspillkit.Ifamajorspilldoesoccur,storesarerequiredtoinformtheirdivisionalriskmanager,aswellastheMassmartEnvironmentalteam.


ProductsandServicesG4-EN27.Mitigationofenvironmentalimpactsofproductsandservices

TheimpactsofproductssoldthroughMassmartstoresduringtheproductioncycle,usephaseandattheendoftheirusefullifearenotcurrentlymeasured.

Massmart does, however, have an internal Environmental Management System (EMS) which isbased on ISO14001 standards. This EMS is used Group wide as a tool to mitigate againstenvironmental impacts and incidents that can be caused by hazardous spills, improper wastemanagement,etc.

Massmart isamemberoftheRSPOthroughitsparentcompanyWalmartStoresInc.andisalsoamemberofGreenPalmthroughwhichitsupportscertifiedsustainablepalmoil.ThroughGreenPalmcertification,100%ofMassmart’sprivatelabelpalmoiluseiscertifiedassustainable.

To determine the scope and scale of mitigation actions Massmart should take regardingenvironmental impactsofproducts it sources,aproductscreeningprocessofseafoodandtimberproductsisconductedonanannualbasis.In2015,30timberspeciesand22seafoodspecieswereevaluated.Massmartcurrentlysourcesnored-listedspecies.

*G4-EN28.Percentageofproductssoldandpackagingreclaimedbycategory

Asignificantpercentageofsupplierpackagingiscurrentlyrecycledpriortosellingproductstotheendconsumer,althoughexactpercentagesarenotmeasured.Wecanconfirmthatapproximately83%ofstores(74%in2014)separatedsecondarypackagingin2015,thebulkofwhichcomprisespaper-boardandplastic.

Ourpost-consumere-wastetakebackprogrammeatallMakrostores,inpartnershipwithSamsungelectronics,iscontinuingtomakegoodprogress.Theprogrammeiscurrentlythelargestretaillede-wastetake-backprogramme.Since its inceptiontheprogrammein2008,739tonnesofe-wastehasbeenprocessed,143tonnesofwhichwasprocessedin2015.Thesedataareacquiredfromthee-wasteserviceproviderDESCO.

ComplianceG4-EN29.Finesandsanctionsfornon-compliancewithenvironmentallawsandregulations

AtMassmart,regulatorycontacts,finesissuedandenvironmentalincidentsagainstthebusinessarereported and tracked througha central systembyMassmart employeesor via theMassmart callcentre.AllfinesissuedarepaidforviaacentralpaymentssystemwithinMassmart.

Fortheyear2015,Massmarthasnotreceivedanysignificantfinesornon-monetarysanctionswithrespecttonon-compliancewithenvironmentallawsand/orregulations.


Transport*G4-EN30.Environmentalimpactoflogistics

Emissionsduetosupply-sidefreightasaresultofimportsofproductsbysea,landandairtotalled17422.85tCO2ewhileon-roaddelivery toand fromdistributioncentresandstoresamountedto34776.73 tCO2e.Businessairand road travel emissions for thepurposesof staffbusiness travelaccountfor6.72%ofourtotalemissions(6148.13tCO2e).Massmartdoesnotmeasureemissionsresultingfromstaffmemberscommutingtoandfromtheworkplace.

OverallG4-EN31.Environmentalprotectionexpensestype

Nonecurrently.

LabourPracticesandDecentWork

Employment*G4-LA1Staffturnoverandinjuries

In2015,wehadastaffturnoverofanestimated13.07%.

Massmart utilizes a number ofmanagement systems tomonitorHealth and Safety performance,suchasCIRCandMakroOpsPortal.TheserisksystemsareabletoassistwithtrackingInjuriesonDuty (IODs), non-compliances and lost days (among others). Independent third parties are alsousedtoconducthealthandsafetystoreauditsandresolveissuesatstorelevel.CurrentlynositeshaveOHSAS18001certification.Thenumberoflostdaysin2015was2642,and1030for2016uptoAugust.

Ifanincidentorinjuryoccursonsite, it isrecordedinanIncidentReportwhichisthenreviewedand,dependingonthescopeoftheincident/injury,escalatedtoseniormanagementatHeadOfficelevel.Aninvestigationwill thenbeconductedatthesite,witnessstatementswillbetakenandallsupportinginformationreportedtoseniormanagementforactionand/orremediation.

G4-LA2.Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees

Ourpart-timeemployeesareexcludedfromthefollowinglistofbenefitsavailabletothemajorityoffull-timeemployees:

• Lifeinsurance• Disabilityinsurance• Privatemedicalbenefits(63.66%ofstaff)• FreeHIV/AIDStreatment• Accesstoprimaryhealthawarenesseducation• AccesstoEAPcounsellingprogrammes


• RetirementorProvidentfundmembership• Bursaryprogramme• Shareownership• Staffdiscounts• Incentiveandbonuses

Labour-ManagementandRelations

G4-LA4.Minimumnoticeperiodsregardingoperationalchangesincludingwhetherspecifiedincollectiveagreements

Ourminimumnoticeperiodincludedincollectiveagreementsforthemajorityofouremployeesis30 days. This is not a stipulation included in collective agreement. Senior level managementagreements,however,varybetween30and90days.

TrainingandEducation*G4-LA9-LA11.Employeetraininganddevelopment

At Massmart, we believe that each of our people brings a unique set of skills, experiences,perspectives and ideas that give us the competitive edge. We believe people drive their owndevelopment,butit isourdutytoprovideandenvironmentthatisconducivefornurturingtalentandcreatingopportunitiesforthem,in2015,wespentanestimatedR2963.61percapitatraininginvestment.

Diversity*G4-LA12. Employee breakdown by gender, age, minority group membership and otherindicatorsofdiversity

1. TopManagement–0.2%2. SeniorManagement–3.9%3. Professionally qualified and experienced specialist and mid-management – 6.9% of staff

complement4. Skilled technical and academically qualified workers, junior management – 30% of staff

complement5. Semi-skilledanddiscretionarydecisionmaking–41.6%ofstaffcomplement6. Unskilledanddefineddecisionmaking–17.3%complement7. TotalACIemployees88.75%• African–68.45%• Coloured–11.53%• Indian–8.75%

8. Femaleemployees–46.1%ofstaffcomplement9. Disabledemployees–0.8%ofstaffcomplement


HumanRights

InvestmentG4-HR1. Investment agreements or contracts that included human rights clauses or thatunderwenthumanrightsscreening

All import and local merchandise supply agreements include clauses covering compliance withapplicable laws in respect of the manufacture, sale and distribution of goods, including thoserelatingtocustomsandexcise, taxationand labour. Conditions listed includestipulationthat thegoodsbearauthenticcountryoforiginmarkingsandarenotmanufactured insweat-shopswhicharedefinedasthosewhichusechild-labourorotherlabourpracticesthatareregardedasillegalinthe Republic of SA. These terms are also included in all significant service level agreements andservicesupplyagreements.

In addition, supply agreements contain that relevant suppliers are required to participate in theWalmart/MassmartResponsibleSourcingprogramwhichrequiressuppliertoadheretoWalmart’sStandardsforSuppliers.

Non-DiscriminationG4-HR3.Incidentsofdiscriminationandactionstaken

Massmart is committed to achieving the highest standards of ethical behaviour in the way thatbusinessisconductedwithemployeesandstakeholders.Massmart’sCodeofEthicalPracticeshouldguidethestandardofbehaviour.TheCodereinforcestheideathatMassmartwillnotbreakthelaworengagein“morallysuspect”behaviourinthewaythatbusinessisconducted.

MassmartcontinuedtooperateanindependentlyrunEthicsLinebyDeloitteTipOffsAnonymousto which any third party, member of staff or supplier may report a suspected unethicalpractice.ContactingtheMassmartEthicsLineismadeeasybyeitheraFreeCallnumber0800203246,bysendinga‘pleasecallme’SMStoadedicatednumber,FreeFaxoremail.

During 2015 there were no staff disciplined or dismissed due to non-compliance with anti-corruptionpolicies.

In theperiod of 2015 therewereno incidents relating to human rights violation. In instances inwhichHumanrightsrelatedincidentsarereported,anethicsincidentis logged,whereafterafullinvestigation is initiated.Depending on the nature of the incident in questionMassmart Internalaudit as well external investigators and subject matter experts will be engaged as part of theinvestigation.Uponcompletionoftheincidentinvestigationareportwillbeissuesandremediationanddisciplinarymeasureswillbeimplementedasrequired.

Inincidencesofreportedhumanrightsviolationinthesupplychain,afullinvestigationisinstitutedto evaluate the nature and validity of the report/compliant. Depending on the location of theincident,thisinvestigationwillbeconductedeitherinternallybytheWalmartResponsibleSourcingteam or by preapproved third party responsible sourcing auditors. Based on the findings of the


investigation,remedialmeasureswhichcouldinvolvethedevelopmentofacorrectiveactionplanorsupplierdelistingmaybeinstituted.

Through theMassmart regulatoryvisitsportalall regulatoryvisitsand findingsare reportedandrelevant action plans are developed. In total, 159 labour related regulatory visits have beenreported,however,Massmarthasnotpaidorbeenissuedanyfinesforfailingtocomplywithlabourstandardsduringtheperiodunderreview.

FreedomofAssociationandCollectiveBargaining*G4-HR4.Infringementsorthreatstotherighttoexercisefreedomofassociationandcollectivebargaining,andmeasurestakentosupporttheserights

Massmart views the percentage of unionized staff as one of the indicators of commitment tofreedomofassociation38.83%ofourtotalstaffcomplementiscurrentlyunionized.Noincidentsofathreattoexercisefreedomofassociationwerereportedfortheperiod.

ChildLabour*G4-HR5.Eliminationofchildlabour

Massmart regularlycommunicates itsCodeofEthicalPractice to suppliersandserviceproviders,and attempts to ensure that they complywith our ethical standards.Massmart’s formal tradingagreements detail ethical practices that suppliers are expected to uphold; and relevant suppliersare required to participate in the Massmart/Walmart Responsible Sourcing program whichspecifically looks for child labour in the supply chain. In 2014,we de-listed 1 supplierwhowasinvolvedinchildlabour.

ForcedorCompulsoryLabourG4-HR6.Eliminationofchildlabour

No forced or compulsory labour is one of the standards required as part of the ResponsibleSourcingprogram.NoincidentsofforcedorcompulsorylabourwerereportedforMassmart.

SecurityPracticesG4-HR7.Percentageofsecuritypersonneltrainedinhumanrightspoliciesorprocedures

Security staff receive training related to the legal procedures that they must follow whenapprehending an employee, customer or supplier suspected ofwrongdoing. Training of securitypersonnelensuresthattheyareawareofMassmart’sexpectationsofhumanrightsperformance.


IndigenousRights

G4-HR8.Violationsindigenousrightsandactionstaken

No violations were reported. Massmart’s general principle is that the dignity and rights of allindividualsberespectedandneverinfringedbythewayinwhichMassmartconductsitsbusinessinallcountriesinwhichweoperate.

SupplierHumanRightsAssessmentG4-HR10.Percentageofsuppliersscreenedusinghumanrightscriteria

Relevant suppliers are required to participate in the Massmart/Walmart Responsible Sourcingprogram which will require that factories be assessed according to the Walmart Standards forSuppliers.Todate,wehavereceiveddisclosureofallrelevantfactoriesinthesupplychain–somehavepreviouslybeenauditedastheyalsosupplytootherWalmartretailmarkets;andthosethathavenotwillbescheduledforauditonanon-goingbasis.

Society

LocalCommunitiesG4-SO1 and SO2. Percentage of operationswith implemented local community engagement,impact assessment and development programs and operations with significant actual andpotentialnegativeimpactsonlocalcommunities

Massmart‘smainfocusisonimpactassessmentspriortothedevelopmentofnewstoresites.Thereison-goinginteractionwithcommunityforumstoensurethatallpartiesaresatisfiedpriortotheopeningonnewstores.

Anti-CorruptionG4-SO3. Number and percentage of operations assessed for risk related to corruption, andrisksidentified

MassmarthasaCodeofEthicalConductwhichcontinuestobecommunicatedtostaffandstrategicsuppliersacrossallbusinessunits.Theoutsourcedanonymousethicshotlineimplementedin2011continuestobemonitoredbyDeloitte.

*G4-S04.Communicationandtrainingonanti-corruptionpoliciesandprocedures

Atotalof2195permanentandnon-permanentemployeessuccessfullycompletedtrainingthisyearinanti-corruptionForeignCorruptPracticesAct.

PublicPolicy


G4-SO61.Valueofpoliticalcontributionsbycountryandrecipient

Government liaison isconductedprimarilyatGroup levelwhereresponsibility issharedbetweentheCEO,theGroupCorporateAffairsExecutiveandtheChannelExecutive.TheChannelExecutiveis responsible for legislative and regulatory issues covering operational activities and Group’smerchandisepropositionwhilst theGroupCorporateAffairsExecutive is responsible forbroaderpublic policy issues. Public policy engagement efforts are made through written and verbalsubmissions to the appropriate parliamentary portfolio committee as well as participation inforumssuchasBusinessUnitySouthAfrica.

Anti-CompetitiveBehaviour

G4-SO7.Numberoflegalactionsofanti-competitivebehaviourandtheiroutcomes

Nolegalactionsofthisnaturewereinstitutedduringthereportingperiod.

ComplianceG4-SO8.Finesandsanctionsfornon-compliancewithlawsandregulations

None

ProductResponsibility

CustomerHealthandSafety*G4-PR1.Percentageofsignificantproductandservicecategoriesforwhichhealthandsafetyimpactsareassessed

AbroadrangeofproductssoldbyMassmartaresubjectedtoavarietyofvoluntaryandcompulsorystandardtestingprocedurestoensurethatahighlevelofhealthandsafetyismaintained.Regulartestingof foodproducts is conductedannuallyandsensitivecategoriesareanalysedquarterlyormonthly. In 2015, Massmart conducted 23 random product tests on general merchandise and12830randomfoodandliquorproductandfoodcontactsurfacetests.

Massmart’sformaltradingagreementsdetailthatsuppliersareexpectedtoabidebythelawsandregulations of the country, and that all products and servicesmust complywith legal and safetystandards.

Storeauditsarealsoconductedbya3rdpartyauditingbodytoidentifynon-conforminggoodsandpracticestoensurethatgoodsarecertifiedandcomplywithcompulsoryspecifications.Numerousexternal organisations including; SABS (South African Bureau of Standards); NRCS (NationalRegulatorofCompulsoryStandards);andICASA(IndependentCommunicationsAuthorityofSouthAfrica)areconsultedtoassistwiththeprocedures.AuthenticationcertificationproceduresarealsofollowedforproductslabelledHalaalorKosher.

ProductandServiceLabeling


*G4-PR3. Product and service labeling requirements, and percentage of significant productandservicescategoriessubjecttosuchinformationrequirements

ThefollowingvoluntarylabellinginformationstandardsareusedonrelevantproductssoldbytheGroup:

• SABSMarkScheme• ISO(InternationalOrganisationforStandardisation)• ForestryStewardshipCouncil(FSC)• MarineStewardshipCouncil(MSC)• Fairtrade• EnergyStar• EuropeanEnergyRatingStandards

Inaddition,alllabellingmustcomplywithallregulationsrelevanttothecountryinwhichitissold.ApplicablelegislationinSouthAfricaincludesthefollowing:

• TheMedicine,TobaccoandLiquorActs;• TheNationalRCS(RegulatorofCompulsorySpecifications);• AgriculturalProductStandardsAct;• Food,CosmeticsandDisinfectantAct;• ConsumerProtectionAct;• ICASA(TheIndependentCommunicationsAuthorityofSouthAfrica;and• RICA(TheRegulationofInterceptionofCommunicationsandProvisionofCommunication-

RelatedInformationAct)

*G4-PR4. Incidents of non-compliance with regulations and voluntary codes concerningproductsandservicesinformationandlabeling,bytypeofoutcomes

Anew standard ofmerchandise labelling has been implemented to ensure future compliance. In2014, we reviewed 3000 labels. In addition, therewere 92 product recalls during the reportingperiod.Of these,22were food related,10were for liquorand60weregeneralmerchandiseandhomeimprovementrelated.

G4-PR5.Resultsofsurveysmeasuringcustomersatisfaction

Divisions continue to conduct regular customer surveys including focus groups to researchelements of the traditional value proposition to customers. As previously mentioned, customerinterceptresearch introduced in2009atGroup levelalso focusedoncustomersatisfaction levelsand includedattitudes toresponsibleconsumerism.Groupresearchconducted in2014, indicatedanoverallcustomersatisfactionscoreof87.7%Wehaveinvestedinanautomatedrecallsystemtoconduct effective, efficient recalls into all the stores. This enables faster response and moreaccurateresponsetimeforproductrecalls.

MarketingCommunicationsG4-PR7. Incidents of non-compliance with regulation and voluntary codes concerningmarketingcommunications,bytypeofoutcomes.


Nosignificantincidenceswerereported.

CustomerPrivacy*G4-PR8.Substantiatedcomplaintsregardingbreachesofcustomerprivacyorlossofcustomerdata

Massmart follows the Direct Marketing Association (DMA) Code of Conduct, the AdvertisingStandards Authority (ASA) codes of practice. In addition, steps are in place to comply with theAccess to Personal Information Act, Protection of Personal Information Act and the ConsumerProtectionAct. In 2014, therewere 103 complaints filedwith the ConsumerGoods and ServicesOmbud (CGSO). The CGSO has only been established in mid-2013, as the Alternate DisputeResolutionprocess(asreferredtointheCPA)thatimprovesconsumeraccessibility.Allcomplaintshavebeenclosedtothesatisfactionofallstakeholders.

Compliance*G4-PR9.Finesfornon-compliancewithlawsandregulationsconcerningtheprovisionanduseofproductsandservices

In 2014, we incurred fines amounting to R10511, for non-compliance of products with the SABureauofStandards.

Massmart Global Reporting Initiative 4: Questions and ... · 1 January 2015 – 31 December 2015...

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