Independent limited assurance report
To the directors of ArcelorMittal South Africa Ltd
We have performed our limited assurance engagement in respect of the selected non-financial key performance indicator (KPI) disclosures to be published in the ArcelorMittal South Africa (AMSA) integrated annual report for the year ended 31 December 2016.
The subject matter comprises the non-financial key performance indicators prepared in accordance with the Global Reporting Initiative G4 Guidelines (GRI G4) supported by management’s internal basis of preparation (the criteria) as prepared by the responsible party during the year ended 31 December 2016. The subject matter comprises the following:
- Lost-time injury frequency rate (LTIFR)
- Total number of work-related fatalities
- Total number of permanent employees and RSA-based employee demographic (race)
- Corporate social investment spend
- Total number of employees within the development pipeline
- Environment (scope 1) consumption
- Environment (scope 2) consumption
- Total greenhouse gas emissions
- Carbon emission intensity per tonne of liquid steel
- Externally verified B-BBEE score card
- Liquid steel capacity utilisation
The directors being the responsible party, and where appropriate, those charged with governance are responsible for the subject matter information, in accordance with the GRI and ArcelorMittal South Africa’s own internal basis of preparation.
The responsible party is responsible for:
- ensuring that the subject matter information is properly prepared and presented in accordance with the criteria against which the underlying subject matter will be assessed;
- confirming the measurement or evaluation of the underlying subject matter against the applicable criteria, including that all relevant matters are reflected in the subject matter information; and
- designing, establishing and maintaining internal controls to ensure that the subject matter information is properly prepared and presented in accordance with the criteria against which the underlying subject matter will be assessed.
Assurance practitioner’s responsibility
We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), assurance engagements other than audits or reviews of historical financial information. This standard requires us to comply with ethical requirements and to plan and perform our limited assurance engagement with the aim of obtaining limited assurance regarding the subject matter of the engagement.
We shall not be responsible for reporting on any non-financial performance indicator transactions beyond the period covered by our limited assurance engagement.
The firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Independence and other ethical requirements
We have complied with the independence and other ethical requirements of Parts A and B of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
Summary of work performed
We have performed our procedures on the subject matter, the non-financial performance indicators of the company, as prepared by management in accordance with the GRI G4 as supported by management’s basis of preparation for the year ended 31 December 2016.
Our evaluation included performing such procedures as we considered necessary which included:
- Interviewing management and senior executives to obtain an understanding of the internal control environment, risk assessment process and information systems relevant to the sustainability reporting process for the selected subject matter;
- Testing the systems and processes to generate, collate, aggregate, validate and monitor the source data used to prepare the selected subject matter for disclosure in the report;
- Inspected supporting documentation and performed analytical review procedures; and
- Evaluated whether the selected KPI disclosures are consistent with our overall knowledge and experience of sustainability processes at ArcelorMittal South Africa.
Our assurance engagement does not constitute an audit or review of any of the underlying information in accordance with International Standards on Auditing or International Standards on Review Engagements and accordingly, we do not express an audit opinion or review conclusion.
We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited assurance conclusion.
In a limited assurance engagement, the procedures performed vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether the non-financial performance indicators have been presented, in all material respects, in accordance with GRI G4 Guidelines, supported by management’s internal basis of preparation.
Based on our work described in this report, nothing has come to our attention that causes us to believe that the selected non-financial key performance indicators as set out in the subject matter paragraph (of our report) for the year ended 31 December 2016, is not prepared, in all material respects, in accordance with the GRI G4 supported by management’s internally developed basis of preparation.
Our report does not extend to any disclosures or assertions relating to future performance plans and/or strategies disclosed in the report.
The maintenance and integrity of the entity’s website is the responsibility of management. Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes to either the information in the website, the report or our independent assurance report that may have occurred since the initial date of presentation.
Restriction on use and distribution
Our report is made solely to the directors of ArcelorMittal South Africa in accordance with our engagement letter dated 22 November 2016 for the purpose of proving limited assurance over the subject matter disclosed in the ArcelorMittal South Africa integrated report for year ended 31 December 2016. We do not accept or assume liability to any party other than the entity, for our work, for this report, or for the conclusion we have reached.
Deloitte & Touche
1st Floor, The Square, Cape Quarter
27 Somerset Road, Green Point, 8005
Per AN le Riche
6 March 2017
National executive: *LL Bam chief executive officer, *TMM Jordan deputy chief operating officer, *MJ Jarvis chief operating officer, *GM Pinnock audit,
*N Sing risk advisory, *NB Kader tax, TP Pillay consulting, S Gwala BPaaS, *K Black clients & industries, *JK Mazzocco talent & transformation,
*MJ Comber reputation & risk, *TJ Brown chairman of the board
Regional leader: MN Alberts
A full list of partners and directors is available on request
*Partner and registered auditor
B-BBEE rating: Level 2 contributor in terms of the Chartered Accountancy Profession Sector Code
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