Exxaro Wins Nkonki Top 100 Integrated Reporting Awards 2014

Exxaro Resources Limited scooped the top spot in the 2014 Nkonki Top 100 Integrated Reporting Awards. The company has been making steady progress in the quality of its integrated reports since starting off in the 28th position in the inaugural awards in 2010. This year, a total of 107 companies were considered (with a market capitalisation of R7,4-trillion as at 2 January 2013) based on the 2013/2014 financial year.

“For us integrated reporting is not an event but a journey. It is in the way we think and do things, and it permeates throughout everything we do,” said EXXARO Executive Head of Strategy and Corporate Affairs, Mzila Mthenjane.

Standard Bank Group Limited and Sasol Limited took up the second and third positions respectively, while the rest of the top 10 was respectively made up of Nedbank Group Limited, Pretoria Portland Cement Limited, Anglo American Platinum Limited, Barloworld Limited, AngloGold Ashanti Limited, ArcelorMittal South Africa Limited, Harmony Gold Mining Company Limited and (tied in tenth place) Mediclinic International Limited. ArcelorMittal South Africa, Anglo American Platinum, AngloGold Ashanti, and Mediclinic International are all first time entrants into the Top 10. Twenty two companies achieved an “A” rating in 2014. This is significant when considering that, when the awards were launched in 2010, none of the Top 10 companies had “A” rated reports (above 80% scoring). At a sector level, the top performers were telecommunications, healthcare, and technology respectively. “Integrated reporting is about communication and while there have been some major strides made, there is still room for improvement in how companies communicate how they are complying with the laws and required standards,” said Prof Steven Firer, Technical Partner at Nkonki. Despite the improvement on the part of listed companies, the report also noted some areas of concern. These include the tendency of some companies to report in silos, information that is presented in a manner that is not user-friendly, and a lack of disclosure by some companies on the remuneration of directors.

Joelene Moodley, Acting Principal Executive of the Government Employees Pension Fund (GEPF) which won the award for the most responsible investor, emphasised the importance of integrated reports for investors.

“We don’t only want to know about a company’s past records, we want to know where a company is going. Integrated reports give us that complete picture,” she said. The GEPF has an asset base of R1.5 trillion, a large sum of which is invested in listed companies. Speaking at the awards ceremony, Prof Mervin King, Chairman of the King Committee on Corporate Governance in South Africa, said: “The critical issue is to ultimately strive for integrated thinking, everything a company does needs to be interconnected. It is encouraging to note that South Africa is a global leader in this space,” he said.

The Nkonki Top 100 Integrated Reporting Awards are adjudicated by a team of experts from Monash South Africa (a subsidiary of Australia’s Monash University).

TOP 10 WINNERS

  1. Exxaro Resources Limited – Overall Winner
  2. Standard Bank Limited – 2nd Place
  3. Sasol Limited – 3rd Place
  4. Nedbank Group Limited – 4th Place
  5. Pretoria Portland Limited – 5th Place
  6. Anglo American Platinum Limited – 6th Place
  7. Barloworld Limited – 7th Place
  8. Anglogold Ashanti Limited – 8th Place
  9. ArcelorMittal South Africa – 9th Place
  10. Harmony Gold Mining Company Limited – 10th Place
  11. Mediclinic International Limited – 10th Place

EXCELLENCE AWARD WINNERS

  1. Anglo American Platinum Limited
  2. AngloGold Ashanti Limited
  3. ArcelorMittal South Africa Limited
  4. Barclays Africa Group Limited
  5. Barloworld Limited
  6. Exxaro Resources Limited
  7. Gold Fields Limited
  8. Grindrod Limited
  9. Harmony Gold Mining Company Limited
  10. Illovo Sugar Limited
  11. Kumba Iron Ore Limited
  12. Mediclinic International Limited
  13. MTN Group Limited
  14. Murray & Roberts Holdings
  15. Nedbank Group Limited
  16. Pretoria Portland Cement Limited
  17. Royal Bafokeng Platinum Limited
  18. Sanlam Limited
  19. Sasol Limited
  20. Standard Bank Group Limited
  21. Sun International Limited
  22. Woolworths Holdings Limited

SECTOR WINNERS

  1. Basic Materials Sector -Exxaro Resources
  2. Consumer Goods Sector -Illovo Sugar Limited
  3. Consumer Services Sector -Woolworths Holdings Limited
  4. Financials Sector -Standard Bank Group Limited
  5. Health Care Sector -Mediclinic International
  6. Industrials Sector -Pretoria Portland Cement Limited
  7. Oil & Gas Sector -Sasol Limited
  8. Technology Sector -Datatec Limited
  9. Telecommunications Sector -MTN Group Limited

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