Brikor Limited
SUSTAINABILITY
REPORT
2022
THE SPIRIT OF BRICKMAKING
CONTENTS
1 SUSTAINABILITY AT BRIKOR
- United Nations Global Compact's Ten Principles
- Data collation
- ECONOMIC
- Direct economic value generated and distributed
- Procurement practices
- Anti-corruption
- Anti-competitivebehaviour
- ENVIRONMENT
6 Environmental Policy and management systems
6 Carbon footprint
8 Emissions
- Waste
- Rehabilitation
- Materials
10 Water and effluents
- Biodiversity
- Environmental initiatives
- Environmental compliance
- SOCIAL
12 Employment
- Labour/management relations
- Occupational health and safety
- COVID-19response
- HIV information and awareness
- Training and education
20 Human rights and non-discrimination
20 Underaged or compulsory labour
- Product responsibility
- BROAD-BASEDBLACK EONOMIC EMPOWERMENT (BBBEE)
- Scorecard
23 BBBEE Certificate
BRIKOR LIMITED Sustainability Report 2022 | 4 |
SUSTAINABILITY AT BRIKOR
The Board acknowledges that in addition to being responsible for corporate performance, it holds a responsibility for triple bottom line reporting. The Group's corporate culture is one of absolute undeniable integrity, transparency, competency and efficiency in decision-making and the fair and equitable treatment of its human and natural capital. From a moral point of view, the directors of the Group are expected to apply sound and reasonable judgement which can only be achieved through nurturing the social capital element, mutual respect for cultural, social or other differences and to foster transparent communication which detracts from subjective viewpoints.
The directors understand that transparency not only relates to a principle of freely, and without prejudice or subjective interests, disclosing information to stakeholders, but also to acknowledge the individual shortcomings which could jeopardise stakeholders. This report, once again, emphasises the Group's commitment to integrity and the benefit of the greater good of all the stakeholders.
The sustainability report has been prepared in alignment to the six capitals (financial, manufactured, intellectual, human, social and relationship, natural), the Global Reporting Standards and incorporating disclosure on the United Nations Global Compact's ten principles, as set out below and indicated throughout this report.
UNITED NATIONS GLOBAL COMPACT'S TEN PRINCIPLES
The UN Global Compact's ten principles in the areas of human rights, labour, the environment and anticorruption enjoy universal consensus and are derived from:
- The Universal Declaration of Human Rights;
- The International Labour Organisation's Declaration on Fundamental Principles and Rights at Work;
- The Rio Declaration on Environment and Development; and
- The United Nations Convention against Corruption.
The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption:
Human rights
Businesses should:
Principle 1: support and respect the protection of internationally proclaimed human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.
Labour
Businesses should:
Principle 3: uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
Businesses should:
Principle 7: support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption
Businesses should:
Principle 10: work against corruption in all its forms, including extortion and bribery.
Sustainability
1 | BRIKOR LIMITED Sustainability Report 2022 |
Sustainability
Sustainability report
continued
DATA COLLATION
Sustainability performance information was gathered, and data collated for publication in the Integrated Annual Report and on Brikor's website. Every effort has been made to ensure data accuracy and completeness. There is, however, the possibility of small inconsistencies due to human error in recording and collating, and differences in interpretation of definitions.
Data has mainly been collated for Brikor and its subsidiary, Ilangabi, for the economic, environmental and social indicators for the period 1 March 2021 to 28 February 2022, and sustainability data collation coincides with Brikor's financial reporting cycle.
Financial data has been extracted from the consolidated annual financial statements. Intergroup transactions have been eliminated.
The basis for reporting on the financial elements is in accordance with the Group's accounting policies, which are disclosed in the financial statements.
Data is only reported where considered to be of sufficient accuracy and are reported according to the Global Reporting Initiative's guidelines.
Ongoing efforts are being made to improve the data quality and to broaden the content in the range of material topics.
ECONOMIC
During the reporting period, Brikor generated revenue of R272,7 million (F2021: R257,9 million), all of which was generated in South Africa.
The Bricks segment generated revenue of R195,1 million (F2021: R144,9 million). Gross profit in the Bricks
segment amounted to R40,3 million (F2021: R27,4 million) with the gross profit percentage increasing to 20,7%
(F2021: 18,9%). The Bricks segment realised an operating profit before interest and taxation of R12,4 million
(F2021: R3,0 million).
The Coal segment generated revenue of R77,6 million (F2021: R113,0 million). Gross profit in the Coal segment
amounted to a gross loss of R0,7 million (F2021: gross profit R 37,6 million). The Coal segment realised an
operating loss before interest and taxation of R12,7 million (F2021: operating profit before interest and taxation of R18,0 million).
Overall, the operating loss before interest, taxation and earnings from associate amounted to R0,3 million (F2021: operating profit before interest and taxation of R21,0 million) with an operating margin of -0,11%
(F2021: 8,1%). Loss before taxation and earnings from associate was R6,0 million (F2021: profit before taxation
of R16,3 million) with a total tax credit of R2,7 million (F2021: tax expense of R4,3 million). An attributable loss
before earnings from associate of R3,2 million (F2021: attributable profit of R12,0 million) was generated for the reporting period.
Total fees paid to auditors of R1,2 million (F2021: R1,4 million) did not include any non-audit fees as non-audit services were not rendered by the auditors in either the current or the prior reporting period.
During 2022, operating lease commitments amounted to R39,1 million (F2021: R36,9 million).
BRIKOR LIMITED Sustainability Report 2022 | 2 |
Sustainability report
continued
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
Value added statement
Value added is the measure of wealth created by the Group in its operations by adding value to the cost of raw materials, products and services purchased. The statement below summarises the total wealth created and shows how it was shared by employees and the stakeholders that contributed to its creation.
Also set out below is the amount retained and reinvested in the Group for the replacement of assets and the further development of operations.
2022 | 2021 | ||
R'000 | R'000 | ||
Revenue | 272 707 | 257 914 | |
Less: Cost of goods and services | (233 084) | (192 934) | |
Value added from trading operations | 39 623 | 64 980 | |
Add: Interest received on investments | 548 | 889 | |
Total value added | 40 171 | 65 869 | |
Utilised as follows: | |||
Employees | |||
Salaries and benefits | 100 812 | 80 975 | |
Providers of capital | |||
Interest on borrowings and shareholders' loans | 1 785 | 1 046 | |
Government - Company tax | 81 | 1 506 | |
- Current | 81 | 1 506 | |
102 678 | 83 527 | ||
Retained for reinvestment | |||
Depreciation and amortisation | 10 743 | 7 743 | |
Income utilised in the business | (73 250) | (25 401) | |
(62 507) | (17 658) | ||
Total utilisation of value added | 40 171 | 65 869 | |
Exchanges with government, including amounts collected on their behalf
Further to this and in the furtherance of the economy and national development, the table below indicates exchanges between the Group and government, including amounts collected on their behalf:
2022 | 2021 | |
R'000 | R'000 | |
Employee taxes | 12 700 | 9 488 |
Company taxes | (344) | (342) |
Value added tax | 16 596 | 19 852 |
Royalty tax | 455 | 865 |
Carbon tax | 3 021 | - |
Sustainability
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Brikor Ltd. published this content on 07 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 July 2022 13:43:03 UTC.