CDP. Module: Introduction. Page: W0. Introduction. CDP 2014 Water 2014 Information Request W0.1. Introduction

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1 CDP CDP 2014 Watr 2014 Information Rqust Barloworl Moul: Introuction Pag: W0. Introuction W0.1 Introuction Plas giv a gnral scription an introuction to our organization. BARLOWORLD (BAW) is a istributor of laing intrnational brans proviing intgrat rntal, flt managmnt, prouct support an logistics solutions. Th cor ivisions of th group compris Equipmnt an Hanling (arthmoving, powr sstms, matrials hanling an agricultur), Automotiv an Logistics (car rntal, motor rtail, flt srvics, us vhicls an isposal solutions, logistics managmnt an suppl chain optimisation). BAW offrs flxibl, valu aing, intgrat businss solutions to customrs back b laing global brans. Th brans BAW rprsnts on bhalf of its principals inclu Catrpillar, Hstr, Avis, Aui, BMW, For, Gnral Motors, Maza, Mrcs Bnz, Toota, Volkswagn, Mass Frguson an othrs. Barloworl has a provn track rcor of long-trm rlationships with global principals an customrs. BAW has an abilit to vlop an grow businsss in multipl gographis incluing challnging trritoris with high growth prospcts. On of its cor comptncis is an abilit to lvrag sstms an bst practics across chosn businss sgmnts. BAW is committ to sustainabl vlopmnt an plaing a laing rol in mpowrmnt an transformation. Th compan was foun in 1902 an at 30 Sptmbr 2013 ha oprations in 25 countris aroun th worl with approximatl 70% of just ovr mplos in South Africa. BAW is committ to crating long-trm sustainabl valu for all its stakholrs. BAW s commitmnt to crating long-trm valu for all its stakholrs, rivn b its Valu Bas Managmnt approach, inclus, intr alia: o Proviing customrs with intgrat an nvironmntall soun solutions th rquir to mt thir sustainabl vlopmnt objctivs; o Acting in th bst intrsts of principals an rprsnting thm in a mannr that rflcts thir sustainabl vlopmnt objctivs; o Ensuring an inspiring climat for mplos to work in an within which all hav qual opportunit to fulfil thir aspirations an b prou ambassaors of th group; o Dlivring sustainabl rturns to its sharholrs that ar not achiv at th xpns of futur gnrations; an o Bing rgar as a rsponsibl corporat citizn b all its stakholrs, incluing communitis in which it oprats. This commitmnt is unrscor b intgrat managmnt approach which rquirs accountabilit an rsponsibilit for conomic, social an nvironmntal aspcts of businss activit. BAW has aopt a risk managmnt approach, stakholr ngagmnt an stratgic planning framwork which allows for activitis an managmnt focus to b structur on th group s 6 stratgic focus aras: Intgrat customr solutions; Popl; Empowrmnt an transformation; Sustainabl vlopmnt; Financial rturns; an Profitabl growth.

2 Th sustainabl vlopmnt stratgic focus ara positions watr stwarship as an important aspct of th group s long trm valu cration objctivs. Although non of group s irct oprations ar particularl watr-us intnsiv, BAW is nonthlss committ to mor fficint watr us through ruc withrawals, incras rccling an watr harvsting initiativs. Th majorit of watr withrawals in th group is sourc from municipal an local govrnmnt watr suppl sstms, an lgall ischarg back into such sstms aftr rquir filtration an sparation procsss. Washing of plant, quipmnt an vhicls constituts th compan's major us of watr. BAW us 848 ML of watr in FY2013 an rccl 14.3%. BAW os not bliv that th watr-rlat risks in its suppl chain ar of a significant natur, givn its gographic an inustr ivrsification an th globall laing principals it rprsnts. BAW is minful of customr watr stwarship objctivs whn offring proucts an srvics. BAW rprsnts laing intrnational brans an ngags with worl class principals who conuct thir oprations in an nvironmntall rsponsibl mannr an ar continuousl vloping nw proucts an aapting xisting proucts which assist customrs in achiving thir own sustainabl vlopmnt objctivs. W0.2 Rporting Yar Plas stat th start an n at of th ar for which ou ar rporting ata. Prio for which ata is rport Mon 01 Oct Mon 30 Sp 2013 W0.3 Rporting Bounar Plas inicat th catgor that scribs th rporting bounar for companis, ntitis, or groups for which watr-rlat s ar rport. Companis, ntitis or groups ovr which control is xrcis W0.4

3 Exclusions Ar thr an gographis, facilitis or tps of watr inputs/outputs within this bounar which ar not inclu in our isclosur? No W0.4a List of Exclusions Plas rport th xclusions in th following tabl Exclusion Plas xplain wh ou hav ma th xclusion Furthr Information Moul: Currnt Stat Pag: W1. Contxt W1.1 Plas rat th importanc (currnt an futur) of watr qualit an watr quantit to th succss of our organization

4 Watr qualit an quantit Importanc rating Plas xplain Dirct us: sufficint amounts of goo qualit frshwatr availabl for us across our own oprations Dirct us: sufficint amounts of rccl, brackish an/or prouc watr availabl for us across our own oprations Inirct us: sufficint amounts of goo qualit frshwatr availabl for us across our valu chain Inirct us: sufficint amounts of rccl, brackish an/or prouc watr availabl for us across our valu chain Nutral Important Important Important Th major watr us within th group is for washing quipmnt which os not ncssaril rquir goo qualit frshwatr. BAW unrstans that much of th watr suppli b watr utilitis is frshwatr that has bn sourc from ams tc. Although th Group has watr rccling plants, th watr from ths plants is insufficint to mt all th watr ns of th Group. Hnc, an aquat suppl of watr from th watr utilitis is important for th continu oprations of th Group. BAW prominatl uss watr for washing quipmnt. A sufficint amount of rccl or trat watr is rquir for this purpos. Limit accss to sufficint amounts of watr coul rsult in intrruptions to oprations an ma on customr satisfaction. BAW s valu chain (supplirs an customrs) maks us of watr suppli b watr utilitis an/or municipalitis. Th watr suppli is oftn sourc from ams, rivrs or laks (frshwatr). An aquat suppl of watr is rquir for supplirs to manufactur proucts (for xampl, th stl that is us in machins). Som customrs also rl on frshwatr to prform thir oprations an watr shortags can rsult in intrruptions to ths oprations. BAW s principals rl on rccl or trat watr in th manufacturing procss. Man of ths principals hav or ar consiring implmnting watr tratmnt an/or watr rccling facilitis. Man of th principals also rl on input matrials/machin parts that rquir watr in th manufacturing procss. Without rccl or trat watr, th principals woul xprinc intrruptions in oprations which coul rsult in inabilit to o businss. Th sam is tru of a numbr of BAW s customrs. W1.2 Hav ou valuat how watr qualit an watr quantit affcts /coul affct th succss (viabilit, constraints) of our organization's growth? Ys, valuat ovr th nxt 5 ars W1.2a Plas xplain how our organization valuat th ffcts of watr qualit an watr quantit on th succss (viabilit, constraints) of our organization's growth?

5 BAW s stratgic framwork outlins 6 stratgic focus aras to which Excutiv tams giv priorit to nsur sustainabl valu cration for all stakholrs. Sustainabl vlopmnt, which ncompasss watr stwarship, is on of th six stratgic aras. Stakholr ngagmnt an consultation informs an guis group activitis. This approach is institutionalis through structur stratgic planning an risk managmnt initiativs. Th stratgic planning initiativs consir a rang of s, incluing whr rlvant th ffcts of watr qualit an quantit on th growth. Risks an opportunitis, incluing thos prsnt b changing watr qualit an quantit, ar trmin b th ivisions an provi to th Risk an Sustainabilit Committ (RSC). Th RSC, a sub-committ of th Boar rviws th consoliat information. This information is us uring th stratgic planning procss to unrstan th of watr-rlat risks an opportunitis in trms of ralising th growth. Th timfram consir is fiv ars, aligning with th stratgic planning procss. Mor spcificall, s on th growth ar as follows: Dirct : Intrruptions to oprations: Watr is prominantl us for washing of vhicls, plant an quipmnt. Changs to watr quantit ma rsult in oprational intrruptions which coul la to customr issatisfaction. Th oprational intrruptions an an customr issatisfaction coul ngativl on BAW s abilit to achiv its growth. Dirct : Incras xpnitur: Watr shortags ma rsult in th n for aitional xpnitur on infrastructur such as watr rccling an harvsting plants. Th invstmnt rquir for watr-rlat infrastructur ma isplac invstmnt in othr businss growth opportunitis or la invstmnt. Inirct : Changs in prouct man an suppl: Changs to watr qualit an quantit coul BAW s customrs an supplirs, altring man an suppl pattrns for proucts/srvics. Extrm wathr vnts such as floos an roughts ma rsult in amag or struction or rlocation of communitis outsi of BAW s istribution aras. This ma rquir BAW to shift th focus of its growth to nw aras, markts or proucts/srvics. W1.2b What is th main rason for not having valuat how watr qualit an watr quantit affcts /coul affct th succss (viabilit, constraints) of our organization's growth, an ar thr an plans in plac to o so in th futur? Main rason Currnt plans Timfram until valuation Commnt W1.3

6 Has our organization xprinc an trimntal s rlat to watr in th rporting prio? No W1.3a Plas scrib th trimntal s xprinc b our organization rlat to watr in th rporting prio Countr Rivr Impact inicator Impact Dscription of Ovrall Rspons Dscription of rspons W1.3b Plas choos th option blow that bst xplains wh ou o not know if our organization xprinc an trimntal s rlat to watr in th rporting prio an an plans ou hav to invstigat this in th futur Primar rason Futur plans Furthr Information Th group has not xprinc an matrial watr-rlat s in th past rporting prio. Nonthlss, th group has invst in a numbr of initiativs to improv th watr fficinc of oprations. Watr fficinc initiativs inclu incras rccling an watr-harvsting initiativs. It is xpct that th implmntation of watr fficinc initiativs will bnfit th group in trms of cost savings an oprational capabilit an rsilinc.

7 Moul: Risk Assssmnt Pag: W2. Procurs an Rquirmnts W2.1 Plas slct th option that bst scribs our procurs with rgar to assssing watr risks an provi an xplanation as to wh this option is suitabl for our organization Watr is intgrat into a comprhnsiv, compan-wi risk assssmnt procss incorporating both irct oprations an suppl chain W2.1a You ma provi aitional information about our approach to assssing watr risks hr Risks, incluing thos associat with watr, ar intifi through tail, robust sstmatic stratgic planning, risk assssmnt procurs. Ths procurs ngag all lvls of th organisation an involv continual rviw an rporting at managmnt, xcutiv an boar lvls. Intification an assssmnt of th risks bgins with ivisional managmnt at asst lvl. Ths risks ar rport to th group Risk an Sustainabilit committ bi-annuall. This committ assists th boar in rcognising all matrial risks an in nsuring that th rquisit risk managmnt cultur, practics, policis an sstms ar progrssivl implmnt an functioning ffctivl. Spcific focus is plac on rucing watr consumption, improving fficinc, ngagmnt with laing principals an gographic an inustr ivrsification as was of managing watr-rlat risks. W2.2 Plas stat how frquntl ou unrtak watr risk assssmnts, what gographical scal an how far into th futur ou consir Frqunc Gographic scal Timfram

8 Frqunc Gographic scal Timfram Risk assssmnts ar conuct on an ongoing basis at an asst lvl b ivisional managmnt. Ths risks ar rport to th Risk an Sustainabilit Committ (RSC). Th RSC consoliats all risks at compan lvl an rports to th Boar on a six-monthl basis. Th natur of oprations an th rat of chang in lgislation hav rsult in th n for rporting on a bi-annual basis. In aition to th abov, a spcific watr-rlat risk assssmnt is also conuct on an annual basis. Th assssmnt consirs watr-rlat risks from a compan-wi prspctiv. Givn that Barloworl is not a significant watr consumr an that watr is prominatl us for washing of vhicl, plant an quipmnt, prforming a watr-rlat risk assssmnt on an annual basis is appropriat for th group in ths circumstancs. Businss unit Businss unit Barloworl s risk assssmnt procss consirs risks to th oprations in th short (1-3 ars), mium (3-5 ars) an long (>5 ars) trm. Significant watr-rlat risks that coul potntiall th Group ar intifi. Th risks ar assss in trms of timfram, liklihoo of occurrnc, magnitu of an qualit of controls. Barloworl s risk assssmnt procss consirs risks to th oprations in th short (1-3 ars), mium (3-5 ars) an long (>5 ars) trm. All watr-rlat risks that coul potntiall th Group ar intifi. Th risks ar assss in trms of timfram, liklihoo of occurrnc, magnitu of an qualit of controls. W2.3 Plas stat th mthos us to assss watr risks Mtho WRI Aquuct WRI watr strss finition Intrnal compan knowlg W2.4 Which of th following contxtual issus ar alwas factor into our organization's watr risk assssmnts?

9 Issus Choos option Plas xplain Currnt watr availabilit an qualit paramtrs at a local lvl Currnt watr rgulator framworks an tariffs at a local lvl Currnt stakholr conflicts concrning watr rsourcs at a local lvl Currnt implications of watr on our k commoitis/raw matrials Currnt status of cosstms an habitats at a local lvl Estimats of futur changs in watr availabilit at a local lvl Estimats of futur potntial rgulator changs at a local lvl Rlvant, inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu Currnt local watr availabilit an watr qualit hav a irct on BAW s oprations an, as such, ar consir in BAW s risk assssmnt procss. Watr is prominantl us for washing of vhicls, plant an quipmnt. As a rsult, watr shortags coul rsult in intrruptions in oprations. Watr shortags an ruc watr qualit ma rquir unplann xpnitur on infrastructur such as th installation of watr rccling, rainwatr harvsting or watr tratmnt facilitis. Both rgional an local rgulations an tariffs ar factor into BAW s risk assssmnts. Th cost of complianc an th risks of non-complianc ar consir in th risk assssmnt procss. BAW s oprations must compl with all watr-rlat rgulations govrning watr consumption an ischarg volums an qualit. Currnt watr tariffs ar also consir in th risk assssmnt procss as it contributs to th oprational cost bas of th Group. BAW strivs to conuct its activitis in a rsponsibl mannr an to uphol its rputation as a rsponsibl corporat citizn. With this in min, BAW ngags with stakholrs on an ongoing basis which allows BAW to intif currnt conflicts at a local lvl an this information is factor into th risk assssmnt procss. Whr ncssar mitigation masurs ar put in plac to ruc risks to both stakholrs an th Group. BAW consirs risks associat with its suppl chain. Howvr, ths risks ar mitigat through association with global laing principals an brans that conuct thir oprations in a rsponsibl mannr. Ths principals ar activl ngag in nvironmntal stwarship an rlat sustainabilit initiativs. This risk is also minimis through ivrsification. BAW has oprations across 25 countris an is ngag in a numbr of iffrnt businss activitis. Although BAW os consir th currnt status of cosstms an habitats in its risk assssmnt procss, watr us within th Group is prominantl for washing of vhicls, plant an quipmnt. Th majorit of watr us is sourc from municipal an local govrnmnt watr suppl sstms an lgall ischarg back into such sstms aftr rquir filtration an sparation procsss, having limit on th cosstms an habitats at a local lvl. Futur changs in watr availabilit coul rsult in incras xpnitur on infrastructur such as watr rccling an rainwatr harvsting. Watr shortags coul rsult in intrruptions in oprations as watr is rquir for washing vhicls, plant an quipmnt. Extrm changs in watr availabilit pattrns ma rsult in rlocation of communitis which ma ngativl affct man for th Group s proucts, particularl whr rlocation is outsi BAW's istribution aras. Futur potntial rgulator changs coul on BAW s abilit to o businss an, as such, ar consir in th risk assssmnt procss. An xampl is th introuction of rgulation which incrass watr tariffs. An incrass in watr tariffs woul rsult in incras oprational an coul rquir invstmnt in watr rccling an harvsting to ruc watr withrawals. Rgulator changs coul

10 Issus Choos option Plas xplain also customrs, affcting man for BAW's proucts an srvics. BAW strivs to conuct its activitis in a rsponsibl mannr an to uphol its rputation as a rsponsibl corporat citizn. With this in min, BAW ngags with stakholrs on an ongoing basis Estimats of futur potntial Rlvant, which allows BAW to intif an futur potntial conflicts at a local lvl an this information is factor stakholr conflicts at a local lvl inclu into th risk assssmnt procss. Whr ncssar mitigation masurs ar put in plac to ruc risks to both stakholrs an th Group. BAW consirs th futur implications of watr on supplirs in its risk assssmnt procss. This is Estimats of futur implications of Rlvant, consir whil baring in min th Group s gographic an inustr ivrsification an ngagmnt watr on our k commoitis/raw inclu with laing, worl class principals an brans which ar likl to go a long wa towars mitigating futur matrials watr-rlat risks in th suppl chain. Dspit not bing a significant consumr of watr, BAW consirs th of potntial changs in Estimats of futur potntial changs in cosstms an habitats in its risk assssmnt procss. Watr is mainl us for washing of vhicls, Rlvant, th status of cosstms an habitats plant an quipmnt. Th majorit of watr us is sourc from municipal an local govrnmnt watr inclu at a local lvl suppl sstms an lgall ischarg back into such sstms aftr rquir filtration an sparation procsss, having limit on th cosstms an habitats at a local lvl. Availabilit of sufficint watr at th right pric an qualit is consir in BAW s risk assssmnt Scnario analsis of availabilit of procss. BAW rquirs watr for washing of vhicls, plant an quipmnt. Watr shortags coul caus sufficint quantit an qualit of watr Rlvant, oprational intrruptions an coul la to customr issatisfaction. This issu coul also rsult in rlvant for our oprations at a local inclu incras invstmnt in rainwatr harvsting an watr tratmnt. BAW s supplirs an customrs ar lvl also pnnt on th availabilit of sufficint quantit an qualit of watr. BAW's risk assssmnt procss consirs changs in watr tariffs or rgulations at a local lvl. An incrass in pric will irctl oprational. Highr watr prics ma giv ris to th n for Scnario analsis of rgulator an/or Rlvant, incras capital xpnitur for rccling an rainwatr harvsting in an attmpt to ruc watr tariff changs at a local lvl inclu withrawals. Customrs ma also b affct, rsulting in r-nginr prouction/ xtraction procsss, which ma ruc man for BAW's proucts/srvics. BAW strivs to conuct its activitis in a rsponsibl mannr an to uphol its rputation as a Scnario analsis of stakholr rsponsibl corporat citizn. As such, stakholrs form an important part of th risk assssmnt Rlvant, conflicts concrning watr rsourcs at procss. Through ongoing ngagmnt with stakholrs, BAW intifis an conflicts concrning watr inclu a local lvl rsourcs. Th risk is valuat in th risk assssmnt procss an whr ncssar mitigation masurs ar put in plac to ruc th risks to both th stakholrs an th Group. Watr-rlat risks coul supplir's abilit to manufactur raw matrials. Various manufacturing Scnario analsis of implications of procsss ar pnnt on a rliabl watr suppl. If raw matrials ar not availabl as a rsult of Rlvant, watr on our k commoitis/raw watr shortags this coul on BAW s prouct offring an, in turn, rvnu. Hnc, th inclu matrials implications of watr on BAW's suppl chain an rlat raw matrials ar consir as part of th risk assssmnt procss. Scnario analsis of potntial changs Rlvant, BAW's risk assssmnt procss consirs various scnarios rgaring changs to cosstms an

11 Issus Choos option Plas xplain in th status of cosstms an habitats at a local lvl Othr inclu Rlvant, inclu habitats. BAW is not a significant watr consumr as th us of which is limit to washing of vhicls, plant an quipmnt. Th majorit of watr us is sourc from municipal an local govrnmnt watr suppl sstms, an lgall ischarg back into such sstms aftr rquir filtration an sparation procsss, having limit on th cosstms an habitats at a local lvl. Watr-rlat risks potntiall ing BAW s customr bas ar consir in th risk assssmnt procss. BAW ngags rgularl with customrs to intif risks rlat to watr such as changs in prcipitation lvls an changs in th rgulator framwork. An important part of BAW s risk assssmnt procss is intification of mitigation masurs that coul assist customrs in allviating th of watr-rlat risks an provi insight into customr's futur commrcial viabilit. W2.4a Which of th following stakholrs ar alwas factor into our organization's watr risk assssmnts? Stakholr Choos option Plas xplain Customrs Emplos Invstors Rlvant, inclu Rlvant, inclu Rlvant, inclu BAW is committ to livring sustainabl valu through opn, mutuall bnficial rlationships that inspir th trust an confinc of its stakholrs. Ongoing ngagmnt with customrs allows for information sharing aroun risks an opportunitis an provis BAW with an opportunit to bttr unrstan an mt customr ns. Clos rlationships with customrs nhanc BAW s capabilit to intif an livr uniqu intgrat solutions bas on customr rquirmnts. BAW is committ to rgular ngagmnt with mplos. This procss is both to facilitat valu a for an b mplos, attract an rtain skills at th sam tim as facilitating information sharing on risks an opportunitis an crating gnral awarnss. BAW ngags with sharholrs an provirs of capital on issus aroun th sustainabilit of th businss an its oprational an prformanc. As watr-rlat risks an opportunitis hav th potntial to on th sustainabilit of th businss, its risk profil an its prformanc, BAW activl ngags with invstors to iscuss an bat ths issus uring th risk assssmnt procss an th vlopmnt of its growth. Local communitis Rlvant, BAW strivs to b rsponsiv to th ns of th communitis in which it oprats. Th ns of local communitis ar

12 Stakholr Choos option Plas xplain NGOs Othr watr usrs at a local lvl Rgulators at a local lvl Statutor spcial intrst groups at a local lvl Supplirs Watr utilitis/supplirs at a local lvl Othr inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu Rlvant, inclu factor into th stratgic planning procss. BAW also invsts in local communitis through Corporat Social Invstmnt which is viw as an invstmnt in th group s popl globall an its various communitis. Us of watr os not irctl affct thm or prjuic thir livlihoos. BAW is committ to allocating a minimum of 1% of nt profits aftr tax to CSI initiativs. BAW ngags with a numbr of NGOs on nvironmntal an watr-rlat initiativs. BAW provis funing for som of ths NGOs that support its valu bas managmnt approach. Ongoing ngagmnt with NGOs allows for information sharing an for unrstaning forthcoming rgulation an important watr-rlat issus an initiativs at a local lvl. Whr possibl an appropriat BAW ngags on bst practic an shars larnings with othr companis through tra associations such as th National Businss Initiativ, Businss Larship South Africa an Businss Unit South Africa. Eithr irctl or through ths tra associations, BAW ngags with othr watr usrs on watr-rlat policis an rgulation on an appropriat basis. Usuall through tra associations, BAW ngags with govrnmnt on watr-rlat policis an rgulation on an appropriat basis. This inclus ngagmnt with rgulators such as th Dpartmnt of Watr Affairs. BAW provis input an commntar on raft lgislation through participation in tra associations such as th National Businss Initiativ. BAW ngags irctl with rgulators whr appropriat. Whr rquir BAW woul ngag with spcial intrst groups for th purposs of unrstaning local watr-rlat challngs an trmining whr BAW can bst support causs that align with its valu bas managmnt approach. BAW is committ to oprat as a rsponsibl corporat citizn an ngagmnt with spcial intrst groups is on mtho of aligning to bst practic an aling with local watr-rlat challngs appropriatl an ffctivl. BAW ngags with supplirs in orr to unrstan risks an opportunitis prsnt b watr in th suppl chain. BAW consirs watr-rlat risks an th that ths risks coul hav on supplirs. Watr utilitis ar factor into th compan s risk assssmnt procss as ths utilitis ar cntral to maintaining a rgular suppl of goo qualit watr for BAW an its customrs an supplirs. Risks to watr utilitis an th ns of ths ntitis ar factor into th risk assssmnt procss. W2.5 Do ou rquir our k supplirs to rport on thir watr us, risks an managmnt?

13 No W2.5a Plas provi th proportion of k supplirs ou rquir to rport on thir watr us, risks an managmnt an th proportion of our procurmnt spn this rprsnts Proportion of k supplirs % Total procurmnt spn % Rational for this covrag W2.5b Plas choos th option that bst xplains wh ou o not rquir our k supplirs to rport on thir watr us, risks an managmnt Primar rason Plas xplain Othr: Laing Global Principals BAW's k supplirs ar its principals. BAW rprsnts worl-class principals, which hav robust risk procsss. Whilst BAW os not rquir its supplirs to sparatl rport on ths issus, thr is xtnsiv ngagmnt btwn BAW an its principals. Also ths supplirs provi information in publicall availabl ocumnts. Hnc, BAW is abl to us irct ngagmnt an th publicall-availabl information an currntl sparat rporting has not bn rqust. Furthr Information Moul: Implications Pag: W3. Watr Risks

14 W3.1 Is our organization xpos to watr risks, ithr currnt an/or futur, that coul gnrat a substantiv chang in our businss, oprations, rvnu or xpnitur? Ys, irct oprations onl W3.2 Plas provi tails as to how our organization fins substantiv chang in our businss, oprations, rvnu or xpnitur from watr risk BAW has a robust an sstmatic risk managmnt procss in plac which asssss risks on thir probabilit, svrit an qualit of th control nvironmnt an givs ach risk a rsiual risk scor. Risks with a rsiual (oppos to Inhrnt) scor of critical or high ar consir substantiv to BAW's businss. Dspit having multipl oprations across 25 countris, in xcss of 60% of th Group s rvnu is riv from South African oprations. Th South African oprations consist of ovr 300 oprational sits across BAW s two major ivisions which span multipl inustris. Th Group s major us of watr is for th washing of plant, quipmnt an machinr an os not form part of th prouct. Principall all watr is appropriatl filtr an trat an ischarg back into th local rticulation sstms. Givn this lvl of ivrsification an th natur of watr-us, no singl opration has th abilit to substantivl th Group s businss, oprations, rvnu or xpnitur. In sctions W3, 5.2, 5.3, 5.2, 5.3a, 5.4 an 5.5 BAW has rspon on a countr lvl rathr than a facilit lvl. Th risks an watr quantitis isclos blow rlat to South Africa, givn its contribution to th Group s rvnu, which if cumulativl b a risk ma hav th abilit to substantivl th Group s businss, oprations, rvnu or xpnitur. Th risks isclos ar howvr not ncssaril xclusiv to BAW's South African oprations. BAW has not assss an of its risks as having th potntial to substantivl its businss as fin abov. Nonthlss, BAW has for information purposs isclos a numbr of risks on an Inhrnt basis that hav th potntial to th businss. BAW strivs to minimis th of its oprations on this rsourc an to manag all watr rlat risks appropriatl, incluing installing watr rccling an rainwatr harvsting initiativs at a numbr of its oprations. W3.2a Plas complt th tabl blow proviing information as to th numbr of facilitis in our irct oprations xpos to watr risks that coul gnrat a substantiv chang in our businss, oprations, rvnu or xpnitur. Plas also provi ithr th proportion of cost of goos sol, global rvnu or global prouction capacit that coul b affct across our ntir organization at th rivr lvl

15 Rivr Numbr of facilitis within th rivr xpos to watr risk Rporting mtric Proportion of chosn mtric that coul b affct within th rivr South Africa Othr: All rivr s within South Africa W3.2b Plas list th inhrnt watr risks that coul gnrat a substantiv chang in our businss, oprations, rvnu or xpnitur, th potntial to our irct oprations an th stratgis to mitigat thm Countr Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Rputational- Ngativ mia covrag Bran amag BAW coul b xpos to rputational risks if stakholrs prciv th group is not aquatl intifing an rsponing to watr-rlat issus. Currnt-up to 1 ar Unlikl High Othr: Stakholr ngagmnt Low Rspons : Risks rlat to rputational amag ar manag through nsuring accurat an transparnt communication with stakholrs. Matrial watr ata is assur b th group

16 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an xtrnal auitors to nsur accurac of isclosurs. BAW is also committ to communicating its actions rgaring nvironmntal stwarship with stakholrs through sustainabilit avrtising in th mia an publications rlas b th group. BAW ngags with worl class principals an supplirs that activl manag watr consumption an watrrlat risks. Engagmnt an clos rlationships with all

17 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an stakholrs assists in rucing th liklihoo of rputational amag. Cost: Th cost is not ringfnc an is incorporat into th cost bas of th Group. Exampls ar th cost incurr for assuring sustainabilit information an avrtising which was in xcss of R0.7m for th rporting prio. Timfram: BAW is alra an will continu to ngag with stakholrs an rport on watr-rlat risks an

18 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an opportunitis. Effctivnss : Currntl, ngagmnt with stakholrs on a rgular basis an transparnt rporting is ffctiv at managing rputational risks. It is xpct to rmain ffctiv going forwar. South Africa Othr: All rivr s within South Africa Phsical- Flooing Closur of oprations Flooing coul amag proprt, rsulting in closur of oprations or sctions throf an incras xpnitur on infrastructur to ovrcom rlat ifficultis. If svr, it ma ultimatl rquir changs to xisting businss mol. Floos coul hav a significant on th agricultural Currnt-up to 1 ar Probabl Mium Incras insuranc covr Lowmium Rspons : BAW insurs for an phsical an consquntial amags. All BAW facilitis maintain businss plans that incorporat mrgnc rspons actions an businss

19 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an inustr rsulting in crop amag an shifting arabl lan aras. Mining oprations coul also b. This coul man for BAW s agricultural an mining proucts. continuit. Th gographic ivrsification of BAW minimiss th s associat with this risk as flooing is tpicall confin to spcific rgions at an givn tim. Inustr ivrsification is also anothr mtho of managing th risk. BAW oprats across a numbr of inustr sgmnts which spras th risk an rucs th associat with floos on th group. Th group has insuranc

20 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an protction in rspct of losss incurr as a rsult of an insur vnt. Cost: Significant insuranc covr is provi at group lvl which xtns to phsical amag an consquntial amags. Th cost of this insuranc was approximatl R31m, of which a small portion was in rspct of flooing. Timfram: Th rspons is alra implmnt as BAW has insuranc an th facilitis all hav businss plans that hav

21 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Phsical- Incras watr scarcit Highr oprating Watr scarcit ma rsult in: 1. ruc availabilit of watr of th rquir qualit at a rasonabl pric 2.incras xpnitur on infrastructur to ovrcom rlat ifficultis 3.intrruptions in oprations as watr is rquir for washing vhicls, plant an quipmnt 4.incras watr prics rsulting in incras oprating cost bas for th group 5.rlocation of Currnt-up to 1 ar Probabl Mium Othr: Divrsificatio n Lowmium mrgnc rspons actions an businss continuit. Effctivnss : Th rspons is xpct to b ffctiv as significant insuranc covr is availabl Rspons : BAW has aopt a MAR (Masur, Avoi an Ruc) approach to managing watr. Watr monitoring sstms ar in plac at most major sits to allow monitoring of consumption trns, intification of

22 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an communitis an inustrial aras, ngativl affcting man for th group s customr offrings. anomalis an mitigation against xcssiv an/or unncssar us. BAW is committ to mor fficint watr consumption through ruc us, incras rccling an watrharvsting initiativs. Th us of MAR as a watr managmnt approach rucs th of watr shortags, ruc qualit an incras watr prics b rucing watr consumption in group oprations. BAW manags th s

23 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an associat with th risk of incras watr strss through gographic an inustr ivrsification. Divrsification is an ovrarching managmnt rspons to risks an rlat s. BAW has oprations in 25 countris which rucs th of gographicallconfin watrrlat risks. Cost: Th ar not ring-fnc, but incorporat into th cost bas of th compan Timfram: Various aspcts of th

24 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an rspons hav alra bn implmnt. BAW alra follows th MAR approach to watr managmnt. Rainwatr harvsting an watr rccling initiativs hav alra bn implmnt. BAW will continu to follow th MAR approach an will implmnt aitional rainwatr harvsting an rccling initiativs as an whn rquir. Effctivnss : Th rspons has bn ffctiv at incrasing rccling an rainwatr

25 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an harvsting activitis. BAW s watr usag incras b onl 6% against incras activit lvls rflct b an 11% incras in ar-on-ar group rvnu. BAW also rccl 14.3% of its total watr usag in FY2013. It is xpct that th rspons will b ffctiv at rucing th risk associat with watr scarcit an th of highr oprating going forwar b rucing watr withrawals an incrasing

26 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Rgulator- Highr watr prics Highr oprating Incras watr prics woul incras BAW's oprational. Highr watr prics ma also giv ris to incras capital xpnitur for rccling an rainwatr harvsting initiativs in an attmpt to avoi/ ruc watr withrawals. Customrs ma also b affct, rsulting in r-nginr prouction/ xtraction procsss, which ma ruc man for BAW's customr offrings. Currnt-up to 1 ar Highl probabl Infrastructur invstmnt Lowmium Lowmium rainwatr harvsting initiativs. Rspons : BAW has aopt th MAR (Masur, Avoi an Ruc) approach to managing watr. Watr monitoring sstms ar in plac at most major sits to allow monitoring of consumption trns, intification of anomalis an mitigation against xcssiv an/or unncssar us. BAW is committ to mor fficint watr consumption

27 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an through ruc us, incras rccling an watrharvsting initiativs. Th us of MAR as a watr managmnt approach rucs th of incras watr prics b rucing watr consumption in group oprations. BAW manags th s associat with th risk of incras watr prics through gographic an inustr ivrsification. Divrsification is an ovrarching managmnt rspons to

28 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an risks an rlat s. BAW has oprations in 25 countris which rucs th of gographicallconfin watrrlat risks. Within BAW's two major ivisions, thr ar a numbr of iffrnt oprations an businss activitis. This nabls th group to ruc th of watr-rlat risks on th group shoul such risks onl affct spcific businss activitis. Cost: Th ar incorporat into th Group cost bas an

29 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an not ringfnc. Timfram: BAW alra follows th MAR approach to managing watr an has alra implmnt watr fficinc initiativs, rccling an rainwatr harvsting. BAW will continu to implmnt initiativs going forwar as an whn rquir. Effctivnss : BAW s watr usag incras b onl 6% against 11% incras activit lvls as rflct b ar-on-ar group rvnu. BAW also

30 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Rgulator- Incras ifficult in obtaining oprations prmit Othr: Ruc man for goos/srvic s BAW ma b ngativl through 'prmitting' ifficultis xprinc b its customrs. For xampl, nw or xisting mining oprations that fail to obtain watr us licnss ma n to halt oprations until licnss can b obtain. This coul ruc man for 4-6 ars Probabl Mium Engagmnt with customrs Low rccl 14.3% of its total watr usag in FY2013. This inicats that th rspons has bn succssful in rucing watr withrawals which will ruc th of an watr pric incrass. It is xpct to b ffctiv going forwar. Rspons : BAW is in constant contact with customrs in orr to unrstan th prssurs customrs ar xprincing an to assist in allviating ths prssurs an

31 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an BAW's goos an srvics. proviing solutions that mt customrs ns. Gographic, inustr an prouct ivrsification also assists in minimising th of this risk as it is tpicall confin to spcific rgions an/or activitis. This risk is also minimis through association with global laing principals an brans that conuct thir oprations in a rsponsibl mannr. Ths principals ar activl ngag in nvironmntal

32 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an stwarship an rlat sustainabilit initiativs. Cost: Costs for ngagmnt with customrs form part of th oprational cost bas of th Group Timfram: Th rspons is alra in plac as BAW is ngaging on an ongoing basis with customrs. Effctivnss : Th rspons is xpct to b ffctiv as constant ngagmnt with customrs provis an opportunit for BAW to provi assistanc.

33 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Rgulator- Manator watr fficinc, consrvation, rccling or procss stanars Othr: Incras oprational an/or capital xpnitur Th introuction of manator watr fficinc, consrvation, rccling or procss stanars coul rquir aitional capital invstmnt in rainwatr harvsting tanks, watr tratmnt sstms, watr fficinc/rccling initiativs or monitoring sstms. Also, watr harvsting, rccling an monitoring procsss alra implmnt ma not mt th manator stanars implmnt, rsulting in aitional in upgraing ths facilitis in orr to mt th rquir stanars. 4-6 ars Probabl Othr: Divrsificatio n Lowmium Lowmium Divrsification rucs th of an risk in trms of customrs not obtaining approvals. Rspons : BAW is committ to fficint watr us through ruc withrawals, rccling, harvsting an monitoring initiativs. This is monstrat b th invstmnt ma on ths initiativs. Having alra invst in watr fficinc initiativs, th group is prpar for manator watr-rlat

34 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an stanars. Th us of MAR (Manag, Avoi an Ruc) as a watr managmnt approach rucs th of watr shortags, ruc watr qualit an incras prics b rucing watr consumption in BAW. BAW manags th s associat with th risk of manator stanars through gographic an inustr ivrsification. Divrsification is an ovrarching managmnt rspons to risks an

35 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an rlat s. BAW has oprations in 25 countris an multipl sits within th countr which rucs th of gographicallconfin watrrlat risks (such as phsical an rgulator risks). BAW has 2 major ivisions (Equipmnt an Hanling, Automotiv an Logistics). Within ach ivision, thr ar a numbr of iffrnt oprations an businss activitis. This nabls th group to ruc th of watr-rlat

36 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an risks shoul such risks onl affct spcific businss activitis. Cost: In 2013FY th Group invst R2.5m in watr rccling, rainwatr harvsting an fficinc initiativs. Timfram: BAW alra follows th MAR approach to watr managmnt an has implmnt various watr fficinc, rccling an harvsting initiativs. Th phas implmntation of watr rccling, harvsting an monitoring, alra mbark on

37 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an b BAW, will also ruc th burn of complianc that coul othrwis b xprinc in a singl prio, thus assisting in BAW's cashflow. Effctivnss: In 2013, BAW s watr usag incras b onl 6% against 11% incras activit lvls as rflct b ar-on-ar group rvnu. BAW also rccl 14.3% of its total watr usag in It is xpct that this approach will continu to

38 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Rgulator- Rgulation of ischarg qualit/volum s laing to highr complianc Othr: Incras oprational an/or capital xpnitur Th introuction of rgulations that rais stanars for watr ischarg qualit or rstrict ischarg volums ma on BAW's oprations. Th rgulations coul rquir aitional xpnitur/invstmn t on watr tratmnt sstms an/or watr rccling initiativs onsit, giving ris to incras oprational an/or capital. 4-6 ars Probabl Low Othr: Divrsificatio n Lowmium b ffctiv going forwar. Rspons : BAW maks us of nvironmntall frinl trgnts which limits th pollution lvls of th ischarg watr. This risk is furthr mitigat b rccling initiativs. BAW also rccl 14.3% of its total watr usag in FY2013. In orr to minimis th of this risk, BAW is focus on rucing watr consumption b implmnting watr fficinc

39 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an initiativs an rusing watr at som of its' major oprations. Th of this risk is furthr ruc b th ivrsifi natur of th group. BAW has oprations in 25 countris which rucs th of gographicallconfin watrrlat risks (such as phsical an rgulator risks). BAW has two major ivisions (Equipmnt an Hanling, an Automotiv an Logistics). Within ach ivision, thr ar a numbr of iffrnt

40 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an oprations an businss activitis. This nabls th group to ruc th of som watr-rlat rgulator risks as ths risks ma b confin to spcific countris, rgions or activitis. Cost: In 2013FY th Group invst R2.5m in watr rccling, rainwatr harvsting an fficinc initiativs. Timfram: BAW has alra implmnt som of th rspons as it maks us of nvironmntall

41 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Rgulator- Rgulator uncrtaint Othr: Dla cision making Rgulator uncrtaint rgaring watr coul rsult in oprational intrruptions, ruc man for goos an srvics an incras oprating. Possibl or impning changs to rgulator framworks crat uncrtaint in th businss nvironmnt, incras aministrativ burn, businss cisions b th group 4-6 ars Highl probabl Lowmium Othr: Divrsificatio n Low frinl proucts an rccls watr. BAW also currntl trats th watr bfor ischarging it into th municipal sstm. Effctivnss : Th rspons is xpct to b ffctiv going forwar. Rspons : Th of possibl or impning changs to rgulator framworks is ruc through gographical, inustr an principal ivrsification. Th group oprats in 25

42 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an an its customrs, on issus such as comptitiv proucts, srvics an customr offrings, sctors in which to oprat, businss mols an optimal locations. countris an consists of logistics, rtail an srvicorint businsss. Th group ngags with a numbr of iffrnt principals an supplirs. Th ivrsifi natur of th group minimiss th s associat with th risk of rgulator uncrtaint as nw lgislation is tpicall introuc within a singl rgion or countr an covrs spcific oprations or activitis. BAW ngags with customrs to intif risks an

43 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an opportunitis an to nsur that customr ns ar mt. Cost: Th ar not ring-fnc, but ar incorporat into th cost bas of th compan. Timfram: Th rspons of ivrsification an ngagmnt with customrs is alra implmnt. Effctivnss : It is xpct that th rspons will b ffctiv going forwar givn that rgulations ar countr or rgion spcific an tpicall activit spcific.

44 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Rgulator- Statutor watr withrawal limits/changs to watr allocation Othr: Ruc man for goos/srvic s Incras invstmnt for on-sit watr tratmnt, watr harvsting an watr rccling sstms. Inabilit to clan vhicls, plant an quipmnt which coul ngativl on its abilit to srvic vhicls, plant an quipmnt an on customr satisfaction lvls rsulting in a ruc man for goos/srvics. Limitations on watr withrawals ma hav a significant in customrs, ngativl affcting man for BAW's goos an srvics. >6 ars Probabl Othr: Divrsificatio n Lowmium Lowmium Hnc, ivrsification is likl to ruc th risk of rgulator uncrtaint. Rspons : BAW has aopt th MAR (Masur, Avoi an Ruc) approach to managing watr. Watr monitoring sstms ar in plac at most major sits to allow monitoring of consumption trns, intification of anomalis an mitigation against xcssiv or unncssar us. BAW is committ to fficint watr

45 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an us through ruc withrawals, incras rccling an harvsting initiativs. Th us of MAR as a watr managmnt approach rucs th of limitations plac on watr withrawals b rucing watr us in th group. BAW manags th s associat with th risk of limitations on watr withrawals through gographic an inustr ivrsification. Divrsification is an ovrarching

46 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an managmnt rspons to risks an rlat s. BAW has oprations in 25 countris which rucs th of gographicallconfin watrrlat risks. BAW has two major ivisions, within which thr ar a numbr of iffrnt oprations an businss activitis. This nabls th group to ruc th of watr-rlat risks shoul such risks onl affct spcific businss activitis. Cost: Th ar not ring-

47 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an fnc, but ar incorporat into th cost bas of th Group. Timfram: BAW has alra aopt th MAR approach. BAW s watr usag incras b 6% against 11% incras activit lvls as rflct b ar-on-ar group rvnu. BAW also rccl 14.3% of its total watr usag in Various watr rccling an harvsting initiativs implmnt across th group hav rsult in an annual savings of som 100

48 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an million litrs within on businss unit that woul hav othrwis bn rawn from municipal watr sstms. Storag capacit for rainwatr harvsting an rccling in Automotiv oprations alon is som 1.2 million litrs. Effctivnss: A ruction in watr withrawals will ruc th of this risk. Hnc, th of rucing watr withrawals through fficincis, rccling an rainwatr harvsting will continu to b

49 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Phsical- Inaquat infrastructur Othr: Disruption of oprations Inaquat ὊÿĈ infrastructur can la to isruptions in suppl, ruc qualit an incras, ing oprational it to clan quipmnt, plant an vhicls. A cras in watr availabilit ma rquir incras invstmnt in rlat an ncssar infrastructur such as rainwatr harvsting an watr storag on sit. Disruptions to watr suppl to BAW customrs coul rsult in a ruc man for BAW's goos an srvics. Currnt-up to 1 ar Probabl Mium Othr: Divrsificatio n Mium ffctiv. Rspons : BAW s rspons is to ruc watr withrawals through fficincis an to focus on rainwatr harvsting activitis in orr scur a suppl of watr. BAW has aopt a MAR (Masur, Avoi an Ruc) approach to managing watr. Watr monitoring sstms ar in plac at most major sits to allow monitoring of consumption trns,

50 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an intification of anomalis an mitigation against xcssiv an/or unncssar us. BAW is committ to mor fficint watr consumption through ruc us, incras rccling an watrharvsting initiativs. BAW manags th s associat with th risk of incras watr strss through gographic an inustr ivrsification. Divrsification is an ovrarching managmnt rspons to

51 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an risks an rlat s. BAW has oprations in 25 countris which rucs th of gographicallconfin watrrlat risks. Within BAW's two major ivisions, thr ar a numbr of iffrnt oprations an businss activitis. This nabls th group to ruc th of watr-rlat risks on th group shoul such risks onl affct spcific businss activitis. Cost: Th cost of th rspons is not ring-fnc

52 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an an forms part of th ongoing cost bas of th compan. Timfram: Watr rccling an rainwatr harvsting initiativs hav alra bn implmnt. BAW will continu to follow th MAR approach an install rccling an rainwatr harvsting initiativs whn rquir in orr to rspon to this risk. Effctivnss : Th us of MAR as a watr managmnt approach rucs th of watr shortags b rucing watr

53 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an South Africa Othr: All rivr s within South Africa Phsical- Dclining watr qualit Othr: Incras capital xpnitur Dclining watr qualit ma rquir invstmnt in watr tratmnt facilitis in orr to purif th watr to allow for us. Dclining watr qualit ma also on th abilit to o businss an coul rsult in oprational isruptions or customr issatisfaction. 4-6 ars Probabl Othr: Divrsificatio n Lowmium Lowmium consumption in group oprations. BAW s watr usag incras b onl 6% against incras activit lvls rflct b an 11% incras in ar-on-ar group rvnu. BAW also rccl 14.3% of its total watr usag in FY2013. Rspons : Th risk is mitigat b: 1. Gographic ivrsification across 25 countris an multipl sits rucs th risk as clining watr qualit is usuall

54 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an confin to a spcific rgion; 2. Ruction in watr withrawals through fficinc initiativs, rainwatr harvsting an rccling. This woul ruc th of clining watr qualit as lss watr woul b rquir; an 3. Installation of watr tratmnt facilitis to purif watr to allow for us. Cost: Th of th rspons ar not ring-fnc an form part of th ongoing cost bas of th Group. Timfram: Various

55 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an aspcts of th rspons such as th ivrsification, rainwatr harvsting an rccling initiativs hav alra bn implmnt. Watr tratmnt facilitis to trat incoming watr will b implmnt as an whn rquir. Effctivnss : Th rspons is currntl an is likl to rmain ffctiv. BAW has focus on masuring an rucing watr consumption. BAW has alra implmnt rainwatr harvsting an

56 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an watr rccling. Various watr rccling an harvsting initiativs implmnt across th group, in on businss unit ths hav rsult in an annual saving of som 100 million litrs of watr that woul hav othrwis bn rawn from municipal watr sstms. Th combin storag capacit for rainwatr harvsting an rccling in Automotiv oprations alon is som 1.2 million litrs. Watr withrawals ar limit an,

57 Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an as such, th of clining watr qualit is ruc. BAW has an ovrall risk managmnt approach of ivrsification which limits th of an on risk. W3.2c Plas list th inhrnt risks that coul gnrat a substantiv chang in our businss oprations, rvnu or xpnitur, th potntial to our suppl chain an th stratgis to mitigat thm Countr Rivr Risk rivr Potntial Dscription of Timfram Liklihoo of potntial Rspons rspons Dtails of an W3.2

58 Plas choos th option that bst xplains wh ou o not consir our organization to b xpos to watr risks in our irct oprations that coul gnrat a substantiv chang in our businss, oprations, rvnu or xpnitur Primar rason Plas xplain W3.2 Plas choos th option that bst xplains wh ou o not consir our organization to b xpos to watr risks in our suppl chain that coul gnrat a substantiv chang in our businss, oprations, rvnu or xpnitur Primar rason Plas xplain Risks xist, but no substantiv anticipat Risks in th suppl chain ar not likl to gnrat a substantiv chang as: 1. BAW ngags with worl-class supplirs that ar managing risks; 2.BAW has a ivrsifi offring an oprats across iffrnt inustris an 25 countris. 3. BAW has insuranc protction for losss incurr as a rsult of a supplir s inabilit to livr aftr suffring an insur vnt. Ths ruc th inhrnt risk valu, giving a rsiual risk valu blow th thrshol to b fin as substantiv. W3.2f Plas choos th option that bst xplains wh ou o not know if our organization is xpos to watr risks that coul gnrat a substantiv chang in our businss oprations, rvnu or xpnitur an iscuss an futur plans ou hav to assss this Primar rason Futur plans

59 Furthr Information Pag: W4. Watr Opportunitis W4.1 Dos watr prsnt stratgic, oprational or markt opportunitis that substantivl bnfit/hav th potntial to bnfit our organization? Ys W4.1a Plas scrib th opportunitis watr prsnts to our organization an our stratgis to raliz thm Countr or rgion Opportunit Stratg to raliz opportunit Estimat timfram Plas xplain Companwi Companwi Cost savings Incras bran valu BAW has th opportunit to ruc oprational through th implmntation of watr fficinc initiativs. In orr to ralis this opportunit, BAW has aopt a Masur, Avoi an Ruc (MAR) approach to managing watr withrawals. Watr monitoring sstms ar in plac at most major sits to masur withrawals an intif opportunitis for fficincis. BAW has implmnt an continus to implmnt watr harvsting an rccling initiativs to ruc watr withrawals. BAW has th opportunit to gain a comptitiv avantag as a rsult of nhancing its rputation b managing watr-rlat risks an opportunitis ffctivl. In aition, BAW ngags with stakholrs on an ongoing basis in orr to manag its rputation an to nsur it mts xpctations. Currnt-up to 1 ar Currnt-up to 1 ar Th Group rccl 121ML (14.3%) of watr withrawn from municipal an govrnmnt suppl sstms. Various watr rccling an harvsting initiativs implmnt across th group, in on businss unit ths hav rsult in an annual saving of som 100 million litrs of watr that woul hav othrwis bn rawn from municipal watr sstms. Th combin storag capacit for rainwatr harvsting an rccling in Automotiv oprations alon is som 1.2 million litrs. BAW rprsnts worl class principals that striv to minimis th watr consumption of thir manufacturing procsss an proucts. Aitionall, BAW rports on its watr usag, monstrating its commitmnt to rsponing rsponsibl an BAW s commitmnt to transparnt rporting to its stakholrs.

60 or rgion Opportunit Stratg to raliz opportunit Estimat timfram Plas xplain Companwi Companwi Companwi Improv watr fficinc Sals of nw proucts/srvics Staff rtntion As mntion, BAW has th opportunit to improv watr fficinc in its oprations. In orr to ralis this opportunit, BAW has aopt a Masur, Avoi an Ruc (MAR) approach to managing watr withrawals. Watr monitoring sstms ar in plac at most major sits to masur withrawals an intif opportunitis for fficincis. BAW has implmnt an continus to implmnt watr harvsting an rccling initiativs to ruc watr withrawals. BAW has th opportunit to vlop an suppl nw proucts an srvics in collaboration with its principals. Ths proucts coul assist customrs in achiving thir sustainabl vlopmnt objctivs an in rmaining rsilint in th fac of watr-rlat risks. BAW coul also suppl proucts an srvics rquir for infrastructural vlopmnt n to allviat shortags an constraints in watr strss aras an arising from watr shortags. BAW has th opportunit to attract an rtain talnt b nsuring that nvironmntal stwarship is an important part of th mplo valu proposition. In orr to ralis this opportunit, BAW rports information on watr-rlat initiativs, risks an opportunitis to mplos in a transparnt mannr. BAW also ncourags mplos to b part of watrrlat initiativs. BAW is activl ngag in activitis to ruc its watr footprint. Currnt-up to 1 ar Currnt-up to 1 ar Currnt-up to 1 ar Th Group rccl 121ML (14.3%) of watr withrawn from municipal an govrnmnt suppl sstms. Various watr rccling an harvsting initiativs implmnt across th group, in on businss unit ths hav rsult in an annual saving of som 100 million litrs of watr that woul hav othrwis bn rawn from municipal watr sstms. Th combin storag capacit for rainwatr harvsting an rccling in Automotiv oprations alon is som 1.2 million litrs. BAW has vlop strong rlationships with its principals an customrs which facilitats information sharing about local markt conitions an trns, watr-rlat issus an customr ns. BAW collaborats with principals to vlop solutions that ar abl to mt customrs rquirmnts an arss thir watr rlat ns whr possibl. BAW strivs to crat a cultur of innovation, thical larship an businss practis through alignmnt, communication, involvmnt an influnc an mpowring its popl. BAW s Emplo Valu Proposition inclus minimum stanars on Sustainabilit Initiativs an Environmntal Stwarship. On of th minimum stanars is that mplos must hav accss to opportunitis to participat an contribut to sustainabilit initiativs which inclus watr-rlat initiativs. W4.1b Plas choos th option that bst xplains wh watr os not prsnt our organization with an opportunitis that hav th potntial to provi substantiv bnfit

61 Primar rason Plas xplain W4.1c Plas choos th option that bst xplains wh ou o not know if watr prsnts our organization with an opportunitis that hav th potntial to provi substantiv bnfit Primar rason Plas xplain Furthr Information Moul: Accounting Pag: W5. Watr Accounting (I) W5.1 Plas rport th total withrawal, ischarg, consumption an rccl watr volums across our oprations for th rporting prio Watr us Quantit (mgalitrs) Total volum of watr withrawn 848

62 Watr us Quantit (mgalitrs) Total volum of watr ischarg 806 Total volum of watr consum 42 Total volum of rccl watr us 121 W5.2 For thos facilitis xpos to watr risks that coul gnrat a substantiv chang in our businss, oprations, rvnu or xpnitur, th numbr of which was rport in W3.2a, plas tail which of th following watr aspcts ar rgularl masur an monitor an an xplanation as to wh or wh not Watr aspct % of facilitis Plas xplain Watr withrawals- total volums Watr withrawals- volum b sourcs Watr ischargs- total volums Watr ischargs- volum b stination Watr ischargs- volum b tratmnt mtho Watr ischarg qualit ataqualit b stanar fflunt paramtrs Watr withrawals ar masur an monitor as it irctl s BAW s oprational cost Lss than 1% Lss than 1% Lss than 1% 1-25 Watr withrawals ar masur an monitor as it irctl s BAW s oprational cost. Most watr is sourc from municipal an local govrnmnt watr suppl sstms. Som watr is captur in rainwatr harvsting tanks an this watr is mtr. Although this is not mtr, principall all watr is lgall ischarg into local rticulation sstms aftr propr tratmnt. Minimal volums of watr ar consum as watr os not form part of th prouct an is not rmov from th ara. Givn th natur of us an of BAW's oprations, watr ischarg volums hav bn assum to quat to 95% of watr withrawal volums. This is not mtr, but principall all watr is lgall ischarg into local rticulation sstms aftr appropriat filtration an tratmnt. Givn th natur of us an of BAW's oprations, watr ischarg volums hav bn assum to quat to 95% of watr withrawal volums. This is not mtr, but principall all watr is lgall ischarg into local rticulation sstms aftr appropriat filtration an tratmnt. Givn th natur of us an of BAW's oprations, watr ischarg volums hav bn assum to quat to 95% of watr withrawal volums. Principall th group s approach is for all watr ischarg to b within th lgal paramtrs. Filtration sstms ar install at rlvant facilitis with rgular monitoring whr ncssar. Routin filtr maintnanc ma inclu watr fflunt tsting. Prominant watr-us is washing vhicls, plant an quipmnt. Givn th ivrs natur of th

63 Watr aspct % of facilitis Plas xplain Watr consumption- total volum Watr rccling/rus-total volum Lss than 1% facilitis, th prcntag inicat is an stimat of facilitis an os not rflct watr volums ischarg. Watr is prominantl us for washing of vhicls, plant an quipmnt an os not form part of th prouct. Essntiall all watr is appropriatl filtr an trat an ischarg back into th local rticulation sstms. Small volums of watr ar consum b mplos, us for garning or vaporat uring washing, but this is not sparatl mtr. Givn th natur of us an oprations, consumption volums hav bn assum to quat to 5% of watr withrawal volums All watr rccl volums ar mtr at such facilitis. W5.3 Watr withrawals: for th rporting prio, plas complt th tabl blow with watr accounting ata for all facilitis inclu in our answr to W3.2a Facilit rfrnc numbr Countr Rivr Facilit nam Total watr withrawals (mgalitrs/ar) at this facilit How os th total watr withrawals at this facilit compar to th last rporting prio? Plas xplain th chang if substantial Facilit 1 South Africa Othr: All rivr s within South Africa This inclus all BAW oprations in South Africa. Th rivr for th countr has bn slct bas on th WRI Aquauct Watr Tool. Not that BAW has in xcss of 300 oprational sits in South Africa, most of which ar situat in Highr Watr consumption incras b 13% in South Africa ovr This is blow incras activit lvls of 18% ovr th sam prio, using rvnu as a prox for activit. Not: South African oprations account for 78% of th Group's 2013 watr withrawals. Th rmaining 22% was account for b th various oprations

64 Facilit rfrnc numbr Countr Rivr Facilit nam Total watr withrawals (mgalitrs/ar) at this facilit How os th total watr withrawals at this facilit compar to th last rporting prio? Plas xplain th chang if substantial an aroun Gautng provinc. in th rmaining 24 countris of oprations. Th scon highst withrawal volums onl account for 9% of total 2013 group withrawals. Furthr Information Pag: W5. Watr Accounting (II) W5.3a Watr withrawals: for th rporting prio, plas provi withrawal ata, in mgalitrs pr ar, for th watr sourcs us for all facilitis rport in W5.3 Facilit rfrnc numbr Surfac watr Grounwatr (rnwabl) Grounwatr (nonrnwabl) Municipal watr Rccl watr Prouc/procss watr Wastwatr Brackish/salt watr Facilit W5.4

65 Watr ischarg: for th rporting prio, plas provi th watr accounting ata for all facilitis rport in W5.3 Facilit rfrnc numbr Total watr ischarg (mgalitrs/ar) at this facilit How os th total watr ischarg at this facilit compar to th last rporting prio? Plas xplain th chang if substantiv Facilit Highr Principall all watr is lgall ischarg into local rticulation sstms aftr propr tratmnt. Minimal volums of watr ar consum as watr os not form part of th prouct an is not rmov from th ara. As ischarg volums ar assum to b 95% of withrawal volums, th ar on ar incras of 13% in ischarg watr volums for South Africa is irctl link to withrawal volums, which is blow th 18% incras in activit lvls ovr th sam prio using rvnu as a prox. W5.4a Watr ischarg: for th rporting prio, plas provi watr ischarg ata, in mgalitrs pr ar, b stination for all facilitis rport in W5.3 Facilit rfrnc numbr Surfac watr Municipal Tratmnt Plant Saltwatr Injction for prouction/isposal Aquifr rcharg Storag/wast lagoon Facilit W5.5 Watr consumption: for th rporting prio, plas provi watr consumption ata for all facilitis rport in W5.3

66 Facilit rfrnc numbr Consumption (mgalitrs/ar) How os this compar to th last rporting prio? Plas xplain th chang if substantiv Facilit 1 33 Highr Principall all watr is lgall ischarg into local rticulation sstms aftr propr tratmnt. Minimal volums of watr ar consum as watr os not form part of th prouct an is not rmov from th ara. As consumption volums ar assum to b 5% of withrawal volums, th ar on ar incras of 13% in watr consumption volums for South Africa is irctl link to withrawal volums, which is blow th 18% incras in activit lvls ovr th sam prio using rvnu as a prox. W5.6 For th rporting prio, plas provi an availabl watr intnsit valus for our organization's proucts or srvics across its opration Countr Rivr Prouct nam Prouct unit Watr unit Watr intnsit (Watr unit/prouct unit) Watr us tp Commnt South Africa S commnt. Th watr us within BAW os not form part of its proucts an is thrfor not transport outsi th rgion of us. Majorit of watr is us for washing vhicls, plant an quipmnt an is not part of th prouct or th prouction procss. In ths circumstancs no intnsit figurs ar provi in this sction. W5.7 For all facilitis rport in W3.2a what proportion of thir accounting ata has bn xtrnall vrifi?

67 Watr aspct % vrification What stanar was us? Watr withrawals- total volums Watr withrawals- volum b sourcs Watr ischargs- total volums Watr ischargs- volum b stination Watr ischargs- volum b tratmnt mtho Watr ischarg qualit ataqualit b stanar fflunt paramtrs Watr consumption- total volum Watr rccling/rus-total volum Not vrifi Not vrifi Not vrifi Not vrifi Not vrifi Not vrifi All watr is obtain from local authoritis (watr utilitis an/or municipalitis) in th aras whr BAW oprats. Watr withrawal volums ar inpnntl vrifi b th Group auitors using th Intrnational Stanar on Assuranc Engagmnts All watr is obtain from local authoritis (watr utilitis an/or municipalitis) in th aras whr BAW oprats. Watr withrawal volums ar inpnntl vrifi b th Group auitors using th Intrnational Stanar on Assuranc Engagmnts Not that som watr is captur in rainwatr harvsting tanks. This watr is us on-sit an, although masur, is not vrifi an os not form part of BAW s watr withrawal accounting. Watr ischarg is not vrifi. BAW uss watr to wash vhicls, plant an quipmnt. Watr os not form part of th prouct an is not rmov from th aras of sourc. Aftr propr tratmnt, it is lgall ischarg into local rticulation sstms. Watr ischarg is not vrifi. BAW uss watr to wash vhicls, plant an quipmnt. Th watr is not rmov from th aras of sourc. Aftr propr tratmnt, it is lgall ischarg into local rticulation sstms. Watr ischarg is not vrifi. BAW uss watr to wash vhicls, plant an quipmnt. Th watr is not rmov from th aras of sourc. Aftr propr tratmnt, it is lgall ischarg into local rticulation sstms. Watr ischarg is not vrifi. BAW uss watr to wash vhicls, plant an quipmnt. Th watr is not rmov from th aras of sourc. Aftr propr tratmnt, it is lgall ischarg into local rticulation sstms. All watr is obtain from local authoritis (watr utilitis an/or municipalitis) in th aras whr BAW oprats. No watr is rmov from th ara an watr os not form part of th prouct (it is us for washing of vhicls, quipmnt an plant). Small volums of watr ar consum b mplos an us to watr garns, but this is not sparatl mtr. Watr consumption is not vrifi b th Group auitors, but watr withrawal is vrifi. Th Group rccl 121ML (14%) of watr withrawn from municipal an govrnmnt suppl sstms. Various watr rccling an harvsting initiativs implmnt across th group hav rsult in an annual saving of som 100 million litrs of watr that woul hav othrwis bn rawn from municipal watr sstms. Watr rccl is masur on sit an is not xtrnall vrifi. Furthr Information Moul: Rspons Pag: W6. Govrnanc an Stratg

68 W6.1 Who has th highst lvl of irct rsponsibilit for watr within our organization an how frquntl ar th brif? Highst lvl of irct rsponsibilit for watr issus Frqunc of brifings on watr issus Commnt Iniviual/Sub-st of th Boar or othr committ appoint b th Boar Schulquartrl On a quartrl basis, information rgaring watr us an managmnt is gathr at a ivisional lvl, consoliat an rport to th group Risk an Sustainabilit Committ which is a sub-committ of th boar. Communication at ths quartrl mtings also inclus watr fficinc initiativs such as rainwatr harvsting an rccling that hav bn implmnt across th group. W6.2 Is watr managmnt intgrat into our businss? Ys W6.2a Plas choos th option(s) blow that bst xplain how watr has positivl influnc our businss Influnc of watr on businss Plas xplain Establishmnt of sustainabilit goals Sustainabl vlopmnt, which ncompasss watr stwarship, is 1 of 6 stratgic aras. Th stratgic intnt of sustainabl vlopmnt is unrpinn b a Masur, Avoi an Ruc approach which aims to minimis BAW s watr footprint. Th

69 Influnc of watr on businss Plas xplain Invstmnt in staff/training Watr rsourc consirations ar factor into nw prouct vlopmnt Watr rsourc consirations ar factor into nw markt xploration Publicl monstrat our commitmnt to watr group oprats in ovr 25 countris. Givn th localis natur of watr an th ivrsifi natur of th group, it os not mak sns to hav a group watr fficinc targt. Insta, oprations ar ncourag to st thir own targts whr appropriat. BAW s Intgrat Emplo Valu Proposition inclus minimum stanars on Sustainabilit Initiativs an Environmntal Stwarship. On of th minimum stanars is that mplos must hav accss to opportunitis to participat an contribut to sustainabilit initiativs which inclus watr-rlat initiativs. In orr to achiv this, sustainabilit champions riv watr-rlat initiativs an crat awarnss amongst mplos. BAW ngags with laing worl class principals to intif nw proucts. BAW has vlop strong rlationships with its principals an supplirs which facilitats information sharing about local markt conitions an trns, incluing information on watr-rlat issus an rgulator nvironmnts an stanars, which assists its principals in aapting an vloping customr solutions that iffrntiat an xpan thir prouct offrings. BAW ngags with principals to intif nw opportunitis. BAW has vlop strong rlationships with its principals an supplirs which facilitats information sharing about local markt conitions an trns, incluing information on watr-rlat issus, This assists in intifing nw markts for proucts an srvics. Watr rsourc consirations such as watr-rlat risks an opportunitis ar factor into nw markt xploration. BAW has a Barloworl Watr Us an Managmnt Polic' in plac, which is publicall isclos on its wbsit. Th polic r-affirms BAW s commitmnt to masuring, monitoring, managing an rporting its watr usag as an aspct of stanar businss practic an to proactivl implmnt initiativs to consrv watr. Th polic unrscors BAW s commitmnt to intifing an managing watr-rlat risks an pursuing opportunitis prsnt b managing watr ffctivl. W6.2b Plas choos th option(s) blow that bst xplains how watr has ngativl influnc our businss Influnc of watr on businss Plas xplain Incras capital Whil th businss has not bn ngativl influnc, in som instancs aitional hav bn incurr in th xcution of

70 Influnc of watr on businss Plas xplain xpnitur Incras insuranc covr th businss. Ths aitional rlat to th invstmnts in watr fficinc initiativs, incluing watr rccling an rainwatr harvsting. BAW insurs for an phsical an consquntial amags. Occurrnc of watr-rlat vnts such as floos an roughts coul rsult in insuranc having to pa out an a subsqunt incras th insuranc prmium which currntl sits at R31m. On xampl is hail amag from on spcific hailstorm in South Africa which rsult in som R5 million in rpair for th rntal flt. W6.2c Plas choos th option that bst xplains wh our organization os not intgrat watr managmnt into its businss an iscuss an futur plans to o so Primar rason Plas xplain W6.3 Dos our organization hav a watr polic that sts out clar goals an guilins for action? Ys, a publicl availabl compan-wi watr polic W6.4

71 How os our organization's watr-rlat capital xpnitur (CAPEX) an oprating xpnitur (OPEX) uring th most rcnt rporting prio compar to th prvious rporting prio? Watr-rlat spning: % of total CAPEX uring this rporting prio compar to last rporting prio Watr-rlat spning: % of total OPEX uring this rporting prio compar to last rporting prio Motivation for ths changs Watr-rlat CAPEX an OPEX ar not ring-fnc but incorporat into BAW s ongoing cost bas. At this tim, it is not possibl to provi this information at a consoliat group lvl. Watr-rlat OPEX is xpct to b low givn that BAW is not a significant watr consumr compar to companis in othr inustr sctors. Watr-rlat CAPEX was incurr for invstmnt into watr rccling, tratmnt an rainwatr harvsting infrastructur. Furthr Information Pag: W7. Complianc W7.1 Was our organization subjct to an pnaltis an/or fins for brachs of abstraction licnss, ischarg consnts or othr watr an wastwatr rlat rgulations in th rporting prio? Ys, not significant W7.1a Plas scrib th pnaltis an/or fins for brachs of abstraction licnss, ischarg consnts or othr watr an wastwatr rlat rgulations an our plans for rsolving thm

72 Facilit nam Incint scription Financial pnalt or fin Currnc Incint rsolution Barloworl Equipmnt South Africa Barloworl Equipmnt South Africa Barloworl Equipmnt Russia Iron lvls xcing th prmitt lvls wr rcor. Th ischarg watr was tst on two conscutiv as rsulting in aitional tariff chargs. Th incras Iron lvls wr a rsult of washing min trucks which ha com onto our sit for maintnanc. Aitional tariff chargs for highr than prmitt lvls of COD (chmical oxgn man). Th COD tst is us to masur th amount of organic compouns in watr. A high COD rlats to solis in th watr. At th tim of th tst thr wr incras solis in th Isano main wash ba gras trap (it ma hav bn that th wash ba was particularl bus at this tim). This is an isolat incint as th gras traps ar rgularl clan b accrit srvic provir onc vr two wks. A pnalt was lvi b th local authoritis for highr than allow lvls of watr contaminats (oil) ZAR (R) ZAR (R) 2000 USD($) Trucks coming in for maintnanc will b wash prior to laving th rspctiv mining sit thus rucing th lvls of Iron in watr ischarg. As this was an isolat incint, thr is no spcific rsolution. Claning th gras traps vr two wks is still consir an appropriat frqunc. Th frqunc of us of th washbas will b monitor an shoul this incras, th frqunc of claning th gras traps will b rviw. Invstigation into th sourc of initial contamination was non-conclusiv. Quartrl srvic contract incluing sampl tsting is in plac with supplir of th watr purification plant. Sampl tsting has not rval an oil contamination in th last 12 months. W7.1b Plas inicat th total of all pnaltis an/or fins for brachs of abstraction licnss, ischarg consnts or othr watr an wastwatr rlat rgulations as a prcntag of total oprating xpnitur (OPEX) compar to last ar Highr Furthr Information

73 No watr-rlat fins or pnaltis wr rciv in th 2012 ar, hnc th 'highr' rspons in W7.1b. Pag: W8. Targts an Initiativs W8.1 Do ou hav an compan wi targts (quantitativ) or goals (qualitativ) rlat to watr? Ys, goals onl W8.1a Plas complt th following tabl with information on compan wi quantitativ targts (ongoing or rach compltion uring th rporting prio) an an inication of progrss ma Catgor of targt Motivation Dscription of targt Quantitativ unit of masurmnt Bas-lin ar Targt ar Proportion of targt achiv, % valu W8.1b Plas scrib an compan wi qualitativ goals (ongoing or rach compltion uring th rporting prio) an our progrss in achiving ths Goal Motivation Dscription of goal Progrss Othr: Rsponsibl watr stwarship an fficinc Watr stwarship Barloworl strivs to minimis th s of its oprations on watr rsourcs. Watr consirations Whilst no compan-wi ruction targts hav bn put in plac, a numbr of oprations hav implmnt

74 Goal Motivation Dscription of goal Progrss of us Othr: Rquir complianc with rlvant watr laws, othr stanars an cos of practic to which th compan subscribs Othr: Whr practical, nsur optimisation of watr utilisation, rccling, an harvsting an ischarg Othr: Ensur that watr us consirations form part of th compan s ovrall risk managmnt procsss Othr: Promot watr us awarnss in th compan oprations Bran valu protction Cost savings Risk mitigation Watr stwarship form an intgral part of ail businss activitis, incluing risk managmnt, stratgic planning, capital xpnitur an oprating procurs. Plas rfr to attach Watr Us an Managmnt Polic. BAW's Co of Ethics covrs aspcts such as Obing th Law an Protcting th Environmnt. Th Co of Ethics is a group-wi polic ocumnt to which all mplos must abi an uphol all principls contain thrin. As part of its Watr Us an Managmnt Polic, BAW commits to improving watr fficinc in th group an rucing consumption through th implmntation of rain watr harvsting an watr rccling initiativs. Th motivation bhin this goal is a combination of cost saving, organisational rsilinc an BAW s commitmnt to bing a rsponsibl corporat citizn. BAW is committ to unrstaning th of an transparntl isclosing risks pos to its oprations an valu chain from watr. For this rason, BAW s Watr Us an Managmnt Polic avocats that watr us consirations ar intgrat into th compan s ovrall risk managmnt approach. Th motivation for this goal is risk mitigation, but also watr stwarship. BAW s Watr Us an Managmnt Polic illustrats awarnss in th Group rgaring watr us. Th motivation for this goal is watr stwarship. Awarnss cration can also la to cost savings an th vlopmnt of nw proucts/srvics. watr rccling an watr harvsting initiativs. Apart from highlighting BAW's commitmnt to rsponsibl watr usag, ths initiativs ruc oprational an improv oprational rsilinc. Thr wr no significant fins or non-montar sanctions for non-complianc with nvironmntal laws an rgulations uring th rporting ar. BAW continus to monitor th vlopmnt of rgulation in orr to prpar for its introuction. This is achiv through rprsntation on inustr bois an tra associations. BAW s oprations ar progrssing towars achiving its goal. Various watr rccling an harvsting initiativs implmnt across th group, in on businss unit ths hav rsult in a saving of som 100 million litrs of watr that woul hav othrwis bn rawn from municipal watr sstms. Th combin storag capacit for rainwatr harvsting an rccling in Automotiv oprations alon is som 1.2 million litrs (install capacit of litrs in 2013 an litrs in 2012). Watr-rlat risks ar intgrat into th compan s risks managmnt procss. Risks ar intifi an assss on thir probabilit, svrit an th qualit of th xisting control nvironmnt. Through this procss, all risks ar givn a rsiual risk scor which inicats th importanc of th risk. In th rporting prio, climat chang an nvironmntal stwarship was intifi as on of th Group s top risks. BAW s Emplo Valu Proposition inclus minimum stanars on Sustainabilit Initiativs an Environmntal Stwarship. On of th minimum stanars is that mplos must hav accss to opportunitis to participat an contribut to sustainabilit initiativs which inclus watr-rlat initiativs. This is achiv through appointing champions from ach ivision to sparha sustainabilit initiativs an also proviing sustainabilit-

75 Goal Motivation Dscription of goal Progrss Othr: Dvlop contingnc procurs to al with unschul occurrncs an communit concrns. Othr: Rquir th maintnanc of opn ialogu with stakholrs to promot soun watr us practics Risk mitigation Watr stwarship This goal is rlat to th vlopmnt of plans that outlin mrgnc rspons actions an nsur businss continuit in th fac of unschul occurrncs. Th motivation bhin th goal is risk mitigation an rcommn sctor bst practic. BAW unrstans th importanc of stakholr ngagmnt, which ma inclu goals to promot soun watr us practics in its ialogus with stakholrs. This goal is aim at sharing bst practic, ncouraging rsponsibl watr stwarship an intifing watrrlat risks an opportunitis. bas training to mplos. All BAW facilitis maintain businss plans that incorporat mrgnc rspons actions an businss continuit. Ths plans inclu what to o whn xprincing unschul occurrncs. BAW's ivisions will inform, in a timl mannr, anon who ma b affct b conitions caus b th compan that might nangr th nvironmnt incluing saf watr consumption an ischarg. Th Group is committ to livring sustainabl valu through opn, mutuall bnficial rlationships with stakholrs. BAW ngags rgularl with invstors, supplirs, customrs, mplos an public sctor on watr-rlat challngs an bst practic. Som xampls inclu BAW s mmbrship of th National Businss Initiativ, its participation in workshops host b this organisation an its rspons on an annual basis to th CDP s Watr Programm. W8.1c Plas xplain wh ou o not hav an watr-rlat targts or goals an iscuss an plans to vlop ths in th futur Furthr Information Attachmnts /Shar Documnts/Attachmnts/Watr2014/W8.TargtsanInitiativs/barloworl-watr-us-an-managmntpolic.pf

76 Moul: Sign Off Pag: Sign Off W9.1 Plas provi th following information for th prson that has sign off (approv) our CDP watr rspons Nam Job titl Corrsponing job catgor Christophr Whitakr Excutiv: Stratg an Sustainabilit Othr: Group Excutiv Furthr Information CDP 2014 Watr 2014 Information Rqust