Ethics

The Group has a formal code of acceptable business practices, endorsed by the Board of Directors, which has been issued to all employees. The code addresses the commitment of the Group to a policy of fair dealing and integrity in the conduct of its business and its relationships with stakeholders. The code covers the requirement to comply with laws & regulations, employment equity, the avoidance of conflicts of interest, the need for confidentiality, the maintenance of accurate records and compliance with all health, safety and environmental considerations.

The expectation that businesses will operate in an environment of open competition is embraced by the Group. In this regard the Group has formally adopted a policy which requires all employees to comply strictly with the competition laws of South Africa. The policy sets out the procedures and guidelines to be followed by all employees when dealing with any matters to which competition law may apply.

A formal “Ethics Line” or “Tip-Offs Line” has been established and employees are regularly reminded of its existence and the need to report any contraventions of the code. The line is independently operated and is totally anonymous.

Sustainability

Set Point acknowledges its responsibility to stakeholders and in line with the company’s role as a socially responsible employer we are embracing sustainable development, diversity, employment equity, skills development and social responsibility. Our vision is to be the preferred employer by providing an environment that enables, inspires, empowers and rewards our employees. We strive to foster balanced employees with responsible attitudes towards the company, themselves, society and the environment.

Two years ago Set Point set up a sustainable long term programme to promote chemistry as a future career choice for learners. The Company is providing funding for the Set Point School of Science, which provides extra science lessons to learners from six local high schools.
The School of Science currently assists 28 learners and lessons are provided for learners from grade 10, 11 and 12.

The school made numerous visits to the Sci-Bono Discovery centre in Newtown to attend the “Speak to a scientist” talks. During one of these visits our learner, Faith Mokwevhu, was noticed and asked to take part in an essay competition. Consequently, Faith was one of four winners from South Africa who attended a worldwide conference in Denmark in the first week of August 2009. Set Point assisted with the refurbishment of two science laboratories at the Buhlebemfundo High School, Tsakane. In addition, the Company supplied the school with 200 news desks, 400 chairs, 120 laboratory stools and 60 chairs for the staff room.Eighty Grade 12 learners from the school were invited to tour our laboratories in Isando. The day was very successful and both the learners and our staff, who thoroughly enjoyed playing hosts, had loads of fun. The Company presented the head master, Mr Godfrey Mononyana, with twelve new floating trophies for highest achievers in Mathematics, Physical science and Life science for grades 10, 11 and 12.

Other small projects have included the purchase of vital signs monitors, wall mounted ENT sets and baby scales for the children’s ward at the Khayelitsha Site B Hospital, the Johannesburg Children’s Home and Girls and Boys Town.We also support the United Cerebral Palsy Association, the East Rand Hospice and HIV/AIDS initiatives

Skills development

Training continues to be an important focal point in the Group’s activities. Employees are encouraged to develop themselves by undertaking courses relevant to their job disciplines. This is achieved through both formal external courses and in-house training.  More than 135 employees have undergone training interventions that acquire or improve work-related skills, with a large proportion of these employees having attended more than one intervention.

The adult-based education training (ABET) programme has continued to prosper over the last year with 60 learners either starting or continuing with studies in literacy, numeracy, natural science and life orientation. In the up-coming year it is planned to place another 15 learners onto ABET.

These skills are the basic, fundamental building blocks to the development of a sound skills and knowledge base for our employees within the Group. Competence in these skills provides a platform for more advanced, specialized skills training to be conducted. This provides the Group with a solid skills base whilst improving individuals and their scope for growth and promotion.

The charts on the right reveal some of the aspects of skills development in ABET:

The Chemical Operations Learnership has also progressed this year with four learners successfully completing their qualification and being awarded certificates of competency. A further three learners are currently awaiting moderation of their portfolios.

Plans are underway to expand the Learnership qualifications with a further two qualifications; Chemical Operations NQF Level 2 and Laboratory Analysis NQF Level 4. These new qualifications will enhance the existing qualification by expanding the level and range of skills. Additionally, learning facilities at some learning centres have undergone improvements with the upgrading of computer equipment and training software.

The hard work and dedication of learners was recognized through a number of award ceremonies being held within the Group. Learners were awarded for their academic achievements and their diligence in studies with presentations of trophies and certificates. Included in these, were a number of special awards made to learners who had shown particular application to their studies despite encountering hardships whilst studying.

Broad based black economic empowerment

The Group subscribes fully to the provisions of the Broad-Based Black Economic Empowerment Act 53 of 2003 and has adopted a transformational process in order to achieve progress according to the generic scorecards for both the narrow based and broad based measurements. The Group embraces diversity and subscribes to the thinking that Black Economic Empowerment is a strategic imperative and a pre-requisite for future prosperity in the new South Africa.  As far as reasonably possible, the Group will apply the principles of any Code of Good Practice or strategy on Black Economic Empowerment issued by the Minister of Trade and Industry.

Set Point is currently rated a level 4 BBBEE Group.
Download the Set Point 2012 Scorecard (PDF)

The Group has adopted a transformational process to achieve measurable progress on the following measures:

Equity Ownership
Set Point has achieved in excess of 30% BEE ownership during the year due to Mine Workers Investment Company buying more shares.

Management
Set Point is monitoring the progression of individuals within management over time in order to be able to track the increase in diversity at these employment levels.

Employment Equity
Set Point holds that people are its most important asset and that these people should reflect the demographics of its environment.  Accordingly an Employment Policy has been adopted that will incorporate effective targeted recruitment and selection, promotion and effective diversity management, as well as the provision of an enabling environment.

Skills Development
The Group is facilitating access to all employees with opportunities for economic empowerment, education, training and experience especially in professional fields and in management, and also at the basic education and literacy level.

Preferential Procurement
Set Point preferentially procures goods and services from business enterprises owned and managed by individuals from previously disadvantaged communities in South Africa, or businesses with a true commitment to Black Economic Empowerment.

Enterprise Development
The Group has teamed up with the Business Trust, an organisation that is founded on a corporate partnership of over 140 companies across industries and sectors in South Africa, which are raising awareness of the development challenge for the business community.  In addition, we are developing selected black owned companies who are current suppliers of goods and services to the Group.

Socio-economic Development
Set Point supports various economic empowerment and social upliftment projects. Set Point also donates funds to various relief organizations that promote the education of children and their leadership abilities.

Occupation health safety

One of Set Point’s most valuable assets is its people. In order to ensure that the Group remains strong and competitive this asset must be looked after. One aspect of this is ensuring the health and safety of employees whilst they are at work.

The Set Point Health & Safety programme has continued this year to improve and ensure healthy and safe working conditions for employees within the Group.  Health and safety activities are monitored monthly by a firm of independent health and safety management consultants, Makrosafe Holdings (Pty) Limited. Health and safety conditions are reported and findings are resolved through reviews and subsequent implementation of action plans.

An important aspect of managing H&S risks within the Group is through the development of an H&S culture. This is achieved through employee awareness and training and has been a focal point in H&S over the past year. Awareness has been promoted through H&S meetings, notices and newsletter articles. Training conducted throughout the Group includes the following:

• First Aid (External)
• Fire Fighting (External)
• The OHAS Act and Management
• The OHAS Act and Employees
• H&S Supervisors
• Fire Fighting Refreshers
• Personal Protective Equipment

Environment

All facilities aim to be eco-efficient (in terms of the efficient use of energy, water and materials) and to minimise potentially harmful emissions to the environment. Energy and water conservation measures are in evidence at all facilities, normally as part of on-site environmental management systems (EMS). In terms of air and waste–water emissions and solid waste disposal, all facilities comply in full with applicable environmental legislation.

Investments made in environmental management over the past year include the installation of dust extractors at sites to minimise and control particulate emissions to the atmosphere; the revision and subsequent improvement of spray painting facilities at sites to reduce and control the impact of spray painting processes on the immediate environment and the upgrading of chemical stores.  Solid waste at all facilities is disposed of, under supervision, by reputable, licensed specialist waste disposal companies. A lot of attention has been placed on chemicals; their storage, usage and disposal.  In administrative areas, the waste paper that is generated is being collected and removed by paper recycling companies.

A review of the Group’s paper, glass, tin, electronic and used compact fluorescent light wastes has been made and improvements made where possible. Environmental awareness amongst employees within the Group continues to be ongoing with employee awareness is being reinforced through Health & Safety meetings and the Group’s newsletters. Topics reviewed include:

• Efficient use of energy
• Global warming
• Compact fluorescent lights
• Carbon footprint

CARBON FOOTPRINT

A carbon footprint of a business is the measurement of its contributions of greenhouse gases (GHGs) made to the environment, expressed in terms of carbon dioxide emissions (tons CO₂e). It is used as a tool to both assess the impact a business makes towards Global Warming and to allow consequential reduction targets to be made through identification of high energy consumption areas and their subsequent lowering.

Scientific consensus attributes Global Warming to the increased levels of carbon dioxide present in the atmosphere. This traps heat, increasing global temperatures and causing climate change. A direct factor causing these increased carbon dioxide levels is the large-scale burning of fossil fuels which convert the existing stored carbon energy back into atmospheric carbon (carbon dioxide).

A carbon footprint is all-encompassing in that it examines both direct emissions (those made on-site or internally; for example, usage of generators or air conditioners) and indirect emissions (those made off-site, external, upstream or downstream; for example, usage of electricity or vehicles).

The Greenhouse Gas Protocol (GHG Protocol) is an international accounting and reporting standard and the most widely used tool for determining the carbon footprint of a business. It allows the compiling of a GHG inventory of the business which quantifies and manages greenhouse gas emissions. The GHG Protocol is based on the following principles:

• Relevance
• Completeness
• Consistency
• Transparency
• Accuracy

These principles ensure that the reported emission sources in the GHG inventory are relevant to the business; that they reflect the emissions made by a business and account for any exclusions; that the methodologies used allow for comparisons to be made; that information is documented and presented in a factual, coherent manner and that the quantification of emission gases is both systematic and accurate.

The GHG Protocol classifies emissions into the following source categories:

• Stationary combustion; where combustion of fuels in stationary equipment occurs (boilers, furnaces, turbines, heaters, etc).
• Mobile combustion; where combustion of fuels in mobile equipment occurs (cars, trucks, trains, ships, etc).
• Process emissions; where emissions from physical or chemical processes occurs (calcinations step in cement manufacturing, catalytic cracking in petrochemical processing, etc).
• Fugitive emissions; emissions from intentional or unintentional releases from equipment leaks (such as wastewater treatment, cooling towers, gas processing facilities, etc).

The emission data from these categories is then consolidated into three categories which are used to standardise GHG emissions and provide a comparable carbon footprint report. In this way benchmarks can be made, comparisons determined and quantitative targets set that can be evaluated. The categories are as follows:

• Scope 1 Emissions; where the direct emission sources of the business (from those listed above) are identified and reported on.
• Scope 2 Emissions; where the indirect emission sources from the consumption of purchased electricity by the business (from those listed above) are identified and reported on.
• Scope 3 Emissions; where the indirect emission sources from the upstream or downstream activities of the business (from those listed above) are identified and reported on.

The Group has embarked upon the measurement and reporting of its carbon footprint using the GHG Protocol as the accounting and reporting standards.