Sustainability and governance

  
Sustainability and stakeholder review  
 

Global Reporting Initiative Index

The Group’s Sustainability Report and review contains details regarding the respective aspects. This table provides specific reference as to where in the report the performance indicators as per the GRI reference guidelines can be found.

  GRI
ref  		   GRI indicator     JD Group status     Page
ref  		  
  Strategy   
  1.1     Statement from senior decision maker on the relevance and importance of sustainability to the vision and strategy of the Group.    
  • See the Executive Chairman’s statement in this report.  
   Click Here    
  1.2     Description of key impacts, risks and opportunities.    
  • Key risks and opportunities are covered in various sections of the report, in particular the Corporate Governance report.  
   Click Here    
  Organisational profile    
  2.1     Name of the reporting organisation.    
  • JD Group Limited.
   Inside back cover    
  2.2     Primary brands, products and/or services.    
  • The brands are outlined and explained in the Operations review and overview.

  • The product range is described in this Sustainability Report under “Product Range”.   
   Click Here   

and  
Here  

  
  2.3     Operational structure of the organisation.    
  • The structure is depicted in the Operations review and overview.  
   Click Here
and  
Here  		  
  2.4     Location of the organisation’s headquarters.    
  • JD House, 27 Stiemens Street, Braamfontein, Johannesburg, South Africa.  
   Inside back cover    
  2.5     Countries in which organisation’s operations are located.    
  • South Africa, Botswana, Namibia, Swaziland, Mauritius and Poland.  
   Click Here  
and  
Here  		  
  2.6     Nature of ownership/legal form.    
  • The Group’s holding company is a public company incorporated in South Africa and listed on the Johannesburg Stock Exchange. It has approximately 3 778 private and institutional investors as shareholders.  
   Inside back cover    
  2.7     Markets served.    
  • Predominantly the mass middle market.  
   Click Here    
  2.8     Scale of reporting organisation.    
  • Scale details are expressed in various sections of the report, in particular the financial statements.  
  

Click Here
and
Here

  
  2.9     Significant changes during the reporting period.    
  • There were no significant changes in the organisation’s profile.  
   n/a    
  2.10     Awards received during the reporting period.    
  • See the various risk-related and customer service awards listed in this Sustainability Report.  
   Click Here    
   Report scope and boundary  
  3.1     Reporting period.    
  • The 12 months ended 31 August 2010.  
   n/a    
  3.2     Date of most recent previous report.    
  • The 12 months ended 31 August 2009.  
   n/a    
  3.3     Reporting cycle.    
  • Annual and interim reports at 12 and six months respectively.  
   n/a    
  3.4     Contact point for report.       Inside back cover    
  3.5     Process for defining report.    
  • The information contained in this report complies with the requirements of the Johannesburg Stock Exchange, the Companies Act and King III. The Group also provides relevant information of interest to its defined stakeholders.  
   Click Here  
Here  
and  
Here   		 
  3.6     Boundary of report.    
  • The report provides information on all operations, however, it should be noted that with regard to stakeholder reporting, the focus is mainly on its South African operations which generate the bulk of total revenue.  
   Click Here    
  3.7     Limitations on the scope or boundary of the report.    
  • The report is mainly South Africa focused, being the material part of the business.  
   Click Here    
  3.8     Reporting on joint ventures and other situations affecting comparability.    
  • No significant impacts or effects recorded, other than those noted in the Annual Financial Statements.  
   n/a    
  3.9     Data measurement techniques and the bases for calculations.    
  • The Group is IFRS compliant. The annual financial statements have been prepared in terms of AC 500.  
   Click Here    
  3.10     Restatements of information provided in earlier reports.    
  • Refer to note 1 of the Annual Financial Statements regarding the fair values of subsidiaries acquired.  
   Click Here    
  3.11     Significant changes in the scope, boundary or measurement methods applied.    
  • None.  
   n/a    
  3.12     Table identifying the location of the standard disclosures in the report.    
  • This GRI index table.
   Click Here    
  3.13     External assurance of the report.    
  • None.  
   n/a    
  Governance   
  4.1     Governance structure of the organisation.    
  • JD Group complies with King III and full disclosure of the governance structures is provided in the Corporate Governance report.
  • The macro governance framework is depicted in the Corporate Governance report.
   Click Here    
  4.2     Independence of Chairman.    
  • The Chairman is subjectively considered non-independent because of his executive status. As recommended by King III and the JSE Listings Requirements, the JD Group Board has appointed a Lead Independent Non-Executive Director to act in instances where the Chairman may be deemed to be conflicted.   
   Click Here    
  4.3     Number of Board members that are independent and that are defined as non-executive.    
  • Six of the seven non-executive directors are independent non-executive directors.   
   Click Here  
and
Here		  
  4.4     Mechanisms for shareholders to provide recommendations.     
  • A number of mechanisms exist and are utilised by shareholders for communicating with the Group, such as questions at road shows, shareholder interaction at AGMs, written communication by institutional shareholders, etc.  
   Click Here    
  4.5     Linkage between executive compensation and the achievement of objectives and organisation’s performance.    
  • A portion of executive remuneration is incentive based and linked to performance and varies from executive to executive.
  • The vesting of rights in respect of the share incentive scheme is directly linked to preset performance targets.  
   Click Here
199 – 200  		  
  4.6     Process of the highest governance body to ensure conflicts of interest are avoided.    
  • The process of managing conflicts of interest is settled in the JD Group Board, via the Board Charter and Board agenda and applied rigorously.
   Click Here    
  4.7     Process for determining the qualifications and expertise of the Board.    
  • The JD Group Nominations Committee verifies all directors’ formal qualifications and identifies skills and expertise required to ensure a balanced Board. This is verified by formal Board performance assessments.  
   Click Here    
  4.8     Mission statements, values, codes of conduct and principles relevant to economic, environmental and social performance.    
  • The Group’s vision, philosophy, values and code of conduct are outlined in the introduction to this annual report.  
   Inside front cover    
  4.9     Procedures for overseeing the organisation’s identification and management of economic, environmental and social performance.    
  • The Group Audit committee has been mandated to oversee the process of sustainability reporting.  
   Click Here    
  4.10     Processes for evaluating the highest governance body’s performance, particularly with respect to economic, environmental and social performance.    
  • The performance of the Board and its committees is continually monitored by analysts, the media and shareholders. The key Board and Board committees have undertaken performance self-assessments.  
   Click Here    
  4.11     Precautionary approach.    
  • The Group conducts a risk/quality assessment on new products before implementing them.  
   Click Here    
  4.12     Economic, environmental and social charters.    
  • Economic, environmental and social charters
    are not in place for the furniture and appliance industry. Discussions are currently in process with various stakeholders.  
   n/a    
  4.13     Industry and business association memberships.    
  • The Group subscribes to and holds memberships with various associations as stated in the Sustainability Report.  
   Click Here    
  4.14     List of stakeholder groups.    
  • The Board has identified the stakeholders with which it engages on a regular basis with emphasis on shareholders, customers, employees and communities.  
   Click Here    
  4.15     Identification of major stakeholders.    
  • The identification of stakeholder groups has been approved by the Board and is stated in
    the Sustainability Report.  
   Click Here    
  4.16     Stakeholder engagement.    
  • The Group makes use of various communication mechanisms to share information and
    obtain feedback from its stakeholders.
    The communication channels are outlined
    in the Sustainability Report.  
   Click Here    
  4.17     Key topics and concerns that have been raised through stakeholder engagement and how the organisation has responded to those key topics
and concerns.  		  
  • Key topics are highlighted in the Sustainability Report as well as the Corporate Governance Report and relate to a corporate governance issue raised at the AGM that was resolved.   
   Click Here    
  Economic performance indicators    
  EC1     Direct economic value generated and distributed.    
  • Refer to the value added statement.  
   Click Here    
  EC2     Financial implications and other risks and opportunities for the organisation’s activities owing to climate change.    
  • None.  
   n/a    
  EC3     Coverage of the organisation’s defined benefit plan obligations.    
  • The Actuarial Report indicates a satisfactory status.  
   Click Here    
  EC4     Significant financial assistance received from government.    
  • None.
   n/a    
  EC5     Entry level wage compared with local minimum wage for significant locations of operation.    
  • All minimum wages are aligned and are in full compliance with the “Area A” minimum wages as per the Sectoral Determination for the Wholesale and Retail Sector.   
   Click Here    
  EC6     Policy and spending on locally based suppliers.    
  • 97% of suppliers for the southern African Chain’s are locally based.   
   Click Here    
  EC7     Hiring of senior employees from the community.    
  • The majority of employees are South African citizens. All employees are hired to meet the Group’s skills requirements, in accordance with the Group’s Employment Equity goals.   
   Click Here    
  EC8     Description of infrastructure investment and services that provide public benefit.    
  • The Group has a corporate social investment (CSI) strategy through which communities and previously disadvantaged groups benefit. Details are set out in the Sustainability Report.  
   Click Here  
  EC9     The organisation’s significant and indirect economic impacts.    
  • By the nature of the Group’s business activities and its CSI strategy there are many indirect economic benefactors. Refer to the Sustainability Report.
   n/a    
  Environmental performance indicators    
  EN1     Materials used by weight or volume.    
  • Where available, details of materials used have been provided.†  
   cna    
  EN2     Percentage of materials used that are recycled input materials.    
  • Where available, details of materials recycled have been provided.†  
   Click Here  
  EN3     Direct energy consumption by primary source.    
  • Where available, details of energy consumption have been provided.†  
   Click Here  
  EN4     Indirect energy consumption by primary source.    
  • As indicated in EN3.
   Click Here  
  EN5     Energy saved owing to conservation and efficiency improvements.    
  • Where available, details of energy conservation have been provided.†  
   Click Here  
  EN6     Initiatives to provide energy-efficient or renewable energy-based products and services and reductions in energy requirements.    
  • Where available, details of energy, efficiency, renewable energy-based products and
    reduction of energy requirements have been provided.†  
   Click Here  
  EN7     Initiatives to reduce indirect energy consumption and reduction achieved.    
  • As indicated in EN6.
   Click Here  
  EN8     Total water withdrawal by source.    
  • Municipal water only.  
   n/a    
  EN9     Water sources significantly affected by water withdrawal.    
  • None.
   n/a    
  EN10     Percentage and total volume of water recycled or re-used.    
  • Mechanisms to enable the accurate measurement of water recycled or re-used will be enhanced over time.†  
   cna    
  EN11     Location and size of land owned, leased or managed that is in or adjacent to protected areas.    
  • No known sites.
  • Project has commenced for plotting of all sites.  
   cna    
  EN12     Description of significant biodiversity impacts or activities on protected areas.    
  • Not applicable.  
   n/a    
  EN13     Habitats protected or restored.    
  • Not applicable.
   n/a    
  EN14     Strategies, current actions and future plans for managing impacts on biodiversity.    
  • Mechanisms to enable reporting on current actions and future plans for managing impacts on bio diversity will be enhanced over time.†
   cna    
  EN15     Number of ICUN Red List species.    
  • Not applicable.  
   n/a    
  EN16     Greenhouse gas emissions.    
  • Where available, details of gas emissions have been provided.†  
   Click Here  
  EN17     Other relevant indirect greenhouse gas emissions and reductions achieved.    
  • As indicated in EN16.  
   Click Here  
  EN18     Initiatives to reduce greenhouse gas emissions and reductions achieved.    
  • Where available, details of gas emission reductions have been provided.†  
   Click Here  
  EN19     Emissions of ozone depleting substances by weight.    
  • Not applicable.
   n/a    
  EN20     NO, SO and other significant air emissions by weight.    
  • Not applicable.
   n/a    
  EN21     Water discharges.    
  • Not applicable.
   n/a    
  EN22     Weight of waste by type and disposal method.    
  • Where available, details of waste type and disposal method have been provided.†  
   Click Here  
  EN23     Significant spills.    
  • None.
   n/a    
  EN24     Weight of transported waste deemed hazardous.    
  • Not applicable.
   n/a    
  EN25     Identity, size, protected status and biodiversity value of water bodies and related habitats significantly affected by discharges to water and run off.    
  • Not applicable.
   n/a    
  EN26     Initiatives to mitigate environmental impacts of products and services.    
  • Mechanisms to enable accurate measurement of environment impacts of products and services will be enhanced over time.   
   cna    
  EN27     Percentage of products sold and their packaging materials that are reclaimed.    
  • This is currently estimated to be at 30% of the wrapping and packaging materials.†  
   n/a    
  EN28     Monetary, non-monetary value of significant fines and sanctions.    
  • None.  
   n/a    
  EN29     Significant environmental impacts of transporting products and other goods and materials used for the organisation’s operations and the transporting of members of the workforce.    
  • None other than those related to vehicles used for the delivery of product.  
   Click Here  
  EN30     Total environmental expenditure by type.    
  • Mechanisms to enable the accurate measurement of environmental expenditure by type will be enhanced over time.†  
   cna    
  Social performance indicators    
  Labour practices    
  LA1     Total workforce by contract type and region.     
    Employees outside RSA:
    1 362
    Employees in RSA:
    18 680
  Click Here  
  LA2     Total employee turnover by gender and region (as a percentage of total turnover).    
  • In South Africa
     
      Female:
      49,0%
     
      Male:
      44,4%
  • Outside South Africa
     
      Female:
      4,1%
     
      Male:  
      2,5%
  Click Here  
  LA3     Benefits provided to full-time employees that are not provided to temporary or part-time employees.    
  • Retirement Fund benefits;
  • Risk benefits;
  • Medical Scheme benefits; and
  • Vehicle allowance.
   Click Here  
  LA4     Percentage of employees covered by collective bargaining agreements.    
  • 62% of employees are covered by collective bargaining agreements.
   Click Here  
  LA5     Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.     
  • 60 days as specified in the respective collective bargaining agreements.  
   Click Here  
  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.    
  • 8% of total workforce is represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programmes.  
   Click Here  
  LA7     Rates of injury, occupational diseases, lost days, absenteeism and number of work related fatalities by region.    
  • Days lost due to work-related injuries in the last 12 months:
     
      49,0% In South Africa:
      78
     
      Outside South Africa:
      26
      No work related fatalities were recorded.   
  Click Here  
  LA8     Education, training, counselling, prevention and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases.    
  • Voluntary counselling and testing in respect of HIV/Aids is available to employees through the external healthcare service providers.
   Click Here  
  LA9     Health and safety topics covered in formal agreements with trade unions.    
  • This topic is managed by joint-participating structures, but not directly with trade unions only.  
   Click Here  
  LA10     Average hours of training per year per employee by employee category.    
  • As detailed in the Sustainability Report.   
   Click Here  
  LA11     Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.    
  • Various as outlined in this Sustainability Report.
   Click Here  
  LA12     Percentage of employees receiving regular performance and career development reviews.    
  • 54% of employees are receiving regular performance and career development reviews.  
   Click Here  
  LA13     Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity.    
  • The membership of the governance body for Employment Equity and Training Committee (EE&TC) has been detailed in the Sustainability Report.
   Click Here  
  LA14     Ratio % of basic salary of men to women by region.    
  • Ratio in South Africa is 110,4%.
  • Ratio outside South Africa is 98,2%  
   Click Here  
  Human rights    
  HR1     Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.    
  • Investment agreements have not undergone human rights screening as yet.  
   cna    
  HR2     Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.    
  • Suppliers and contractors have not undergone human rights screening as yet.  
   cna    
  HR3     Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.    
  • 1% of total employees were trained on policies and procedures concerning aspects of human rights that are relevant to operations.
  Click Here  
  HR4     Total number of incidents of discrimination and actions taken.    
  • No incident of discrimination has been reported.   
   Click Here  
  HR5     Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.    
  • No operations were identified within the Group or its suppliers where freedom of association and collective bargaining is at risk.  
   Click Here  
  HR6     Operations identified as having significant risk for incidents of child labour and measures taken to contribute to the elimination of child labour.    
  • No operations were identified within the Group or its suppliers where there is a risk of child labour.  
   Click Here  
  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.    
  • No operations were identified within the Group or its suppliers where there is a risk of forced
    or compulsory labour.  
   Click Here  
  HR8     Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects of human rights that are relevant to operations.    
  • The provision of security is outsourced.   
   cna    
  HR9     Total number of incidents of violations involving rights of indigenous people and actions taken.    
  • No incident of violations of rights of indigenous people has been reported.  
   Click Here  
   Society  
  SO1     Nature, scope and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting.    
  • Communication takes place prior to operations being opened within communities. Closing of operations are discussed with Organised Labour and employees. Details of such instances are provided in the Sustainability Report.  
   Click Here  
  SO2     Percentage and total number of business units analysed for risk-related to corruption.    
  • Policies and procedures are in place to manage risk, fraud and corruption across all operations in the Group and effectiveness thereof is audited by the Group’s Management Assurance function as part of its audit coverage programme.  
   Click Here
and  
Here  		  
  SO3     Percentage of employees trained in organisation’s anti-corruption policies and procedures.    
  • 18,87% of employees received training in anti-corruption and related policies and procedures.  
   Click Here  
  SO4     Actions taken in response to incidents of corruption.    
  • Any corruption identified is addressed via the disciplinary procedures and practices in a consistent manner.
  • The Group has a zero tolerance approach in respect of corruption.  
   Click Here  
  SO5     Public policy positions and participation in public policy development and lobbying.    
  • None.
   n/a    
  SO6     Total value of financial and in-kind contributions to political parties, politicians and related institutions by country.    
  • None.
   n/a    
  SO7     Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices and their outcomes.    
  • None.
   Click Here  
  SO8     Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.    
  • None.
   Click Here  
  Product responsibility   
  PR1     Lifecycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant products and services categories subject to such procedures.    
  • Processes are currently under way to build these lifecycle studies.  
   cna    
  PR2     Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products.    
  • One incident reported and was amicably resolved.  
   Click Here  
  PR3     Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements.    
  • Product labelling is discussed and agreed with suppliers.  
   Click Here  
  PR4     Total number of incidents of non-compliance with regulations and voluntary codes concerning products, service info and labelling by type of outcomes.    
  • One. See PR2 for details.  
   Click Here  
  PR5     Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.    
  • Various customer satisfaction surveys are conducted across the Group. The details are reported in the Sustainability Report.  
   Click Here  
and  
Here  		  
  PR6     Programmes for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship.    
  • The Group adheres to all laws relating to marketing and communication.  
   Click Here  
  PR7     Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes.    
  • No incident of non-compliance with regard to marketing, advertising, promotions and sponsorships were reported/recorded.  
   n/a    
  PR8     Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.    
  • The Group faced one complaint from a customer regarding a breach of customer privacy. As there was contributory negligence on the part of the customer, an amicable financial settlement was reached.  
   Click Here  
  PR9     Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.    
  • None.
   Click Here  
   HIV/Aids reporting  
  1     Describe the organisation’s HIV/Aids policy.    
  • The Group’s HIV/Aids policy is focused on the elimination of unfair discrimination against employees who live with HIV/Aids. Details are reported in the Sustainability Report.  
   Click Here  
  2     Describe the overall strategy for managing the HIV/Aids risk.    
  • The Group monitors the HIV/Aids prevalence rates and has also engaged an external service provider to assist the Group to formalise an approach for managing any associated risks.  
   Click Here  
  3     Describe the extent of preparedness and contingency planning in anticipation of expected HIV/Aids impacts.    
  • The Group has, with the assistance of an external service provider, embarked on preparedness and contingency planning.   
   Click Here  
  4     Describe how the organisation monitors progress.    
  • The Group has not embarked on the roll-out of the project plan as yet.  
   n/a    
  5     Describe how the organisation involves stakeholders in the formulation of HIV/Aids policy, strategy and implementation.    
  • Organised Labour and other stakeholders, including employees, are involved through various consultation processes in the formulation of its HIV/Aids strategy and policy implementation.  
   Click Here  
  6     Indicate current and projected future HIV/Aids prevalence and incidence rates among relevant populations.    
  • The Group’s estimated prevalence rates are as follows:
      2005 – 21,6%
      2009 – 14,8%
      2015 – 13,5% (model extrapolation). 
  Click Here  
  7     Report current HIV/Aids-associated costs and exposures to the organisation.    
  • No record has been kept of HIV/Aids-associated costs and exposures.†  
   cna    
  8     Indicate total assumed future HIV/Aids-associated costs and exposures.    
  • The estimated costs associated with HIV/Aids will be determined by the preparedness and contingency planning the Group embarked upon. The direct cost of HIV/Aids fatalities for the Group cannot be accurately calculated due to the inefficient manner of reporting thereon in South Africa.   
   cna    
  9     Describe the workplace and workplace-related HIV/Aids programmes and interventions, and the extent to which they maintain a workplace environment respectful of human and legal rights.    
  • The Group supports and maintains a workplace environment respectful of human rights and has procedures in place to deal with any departure from the prescribed human and legal rights issues in the workplace.  
   Click Here  
  10     Indicate total allocated budget dedicated to HIV/Aids programmes per annum.    
  • No specific budget has been allocated to HIV/Aids programmes.   
   cna    
  11     Detail the organisation’s voluntary counselling and testing programme.    
  • No voluntary internal counselling and testing programmes are in place. The external healthcare service providers provide such a service.  
   Click Here  
  12     Describe other support and counselling programmes and measures.    
  • Affected employees receive support and counselling through their existing healthcare service providers.  
   Click Here  
  13     Describe the organisation’s HIV/Aids education and training programmes.    
  • No specific HIV/Aids education and training programme is currently in place.  
   Click Here  
  14     Describe the organisation’s condom and femidom distribution programme.    
  • No condom and femidom distribution programme is in place due to the distributed nature of the business.  
   Click Here  
  15     Describe the organisation’s general healthcare and wellness provision for employees and their families.    
  • Full-time employees are members of healthcare plans that provide benefits to them and their families. The Group subsidises healthcare plans elected by employees.  
   Click Here  
and
Here		  
  16     Describe additional benefits for employees sick, dying or deceased from HIV/Aids.    
  • No additional benefits are provided for employees sick, dying or deceased from Aids-related conditions.  
   Click Here  
†Mechanisms to enable the accurate measurement hereof will be enhanced over time.
n/a = not applicable       cna = currently not available