Page 104 - Capricorn IAR 2020

REMUNERATION REPORT BOARD SUSTAINABILITY GLOSSARY OF TERMS AND ETHICS REPORT
for compliance using the Bank Windhoek Permit Manual, ensuring that the client takes care of the health and safety of employees, and ensuring that all risks to the environment and society is mitigated through sound management.
Once due diligence is completed, Bank Windhoek works with clients to bridge possible gaps identified by the ESMS process.
During the year Bank Windhoek assessed 1,832 low risk, 3,356 medium risk and 850 high risk loans, resulting in the bank’s portfolio being concentrated in medium environmental and social risk loans.
No changes have been made to the Bank Windhoek exclusion list, which is used to assess clients against activities that are not permitted due to unacceptable environmental and social impacts. No applications were declined on account of high risk, the exclusion list or any other environmental or social related reasons. No loans were turned down on account of the ESMS and there are no clients at risk of material breaches of environmental laws and regulations or unacceptable social and environmental impacts.
Read more about environmental aspects in the section on material matters from page 41 and the Group CEO’s report from page 23.
Anti-corruption
Capricorn Group is determined to maintain a culture of high ethical and moral standards, honesty and opposition to fraud
and corruption. As a listed entity, Capricorn Group complies with King IVTM, which requires a statement by the board confirming compliance with all applicable laws. This includes the Namibian Anti-Corruption Act, 8 of 2003, which criminalises corrupt conduct and practices.
The BSEC oversees ethics reporting. The Group’s various policies aim to prevent corruption internally and externally, including the Group Code of Ethics and Conduct Policy, Group Procurement Policy, Group Whistleblower Policy, the Bank Windhoek Forensic Policy and the Group Financial Crime Risk Framework.
The Procurement Policy includes a Suppliers’ Code of Conduct, which requires suppliers to adhere to standards of good conduct towards employees and the environment and in relation to anti-bribery, anti-corruption, reporting and disclosure.
We create awareness of anti-corruption through induction training, internal communication and annual conferences held for branch administrators that cover anti-corruption.
No cases of corruption or bribery were reported or investigated within or against the Group.
Read more about ethics in the Group chairman’s message from page 10 , in the section on material matters from page 41 and in the governance report from page 55.
Future focus areas
Our priority for the next financial year will be to deal with the changes brought about by the COVID-19 pandemic and emerging needs of stakeholders. These are most notably the plight of our customers, safety of our employees and the Group’s sustainability.
To further embed corporate social responsibility and sustainability programmes in subsidiaries, we will prioritise the following:
• Embedding the Capricorn Foundation as the Group’s vehicle for its corporate social responsibility initiatives.
• Bank Windhoek will continue to support clients through tailor-made financial solutions where appropriate during the COVID-19 pandemic and beyond. In addition, the bank will continue to provide support to vulnerable communities through projects aligned with national priorities.
We call on all stakeholders to be vigilant and help us eradicate corruption, crime, fraud and unethical behaviour. Capricorn Group has an independent, anonymous and confidential hotline available where you can report any incident safely. Reports will be routed to our head of forensics and the Group head of compliance and anti-money laundering to take action, if required.
Call the toll-free number 0800 001 050
Email: capricorn@tip-offs.com
Website: www.tip-offs.com
This forms part of our ethics programme and aims to give employees, customers and suppliers a way to tell us about unethical conduct.
• CAM will focus on creating a platform for our clients to co-contribute with CAM to a larger scope of worthy initiatives and will cover poverty and hunger alleviation, conservation, healthcare, education and sport.
• Entrepo’s focus areas will likely remain unchanged for the foreseeable future. We remain committed to making a significant social impact in the food and education sectors of Namibia.
• Bank Gaborone intends to support its clients through payment holidays where COVID-19 pandemic impact is evident. The bank will continue to provide support to the diabetes apple project. We continue to focus on existing sustainability priorities, which is the reduction in paper, power, fuel and water usage. This entails ongoing tracking of expenditure and leveraging the benefits from our new “green” head office building.
• Cavmont Bank will continue providing assistance to customers that are affected by the COVID-19 pandemic through tailormade financing solutions. In this regard Cavmont Bank will participate in the Bank of Zambia’s Medium Term Refinance Facility to make affordable funding available to financial institutions so that the capacity exists to support customers affected by COVID-19.
Reporting oversight
Members of BSEC were involved in developing and approving the Group’s material matters, as set out on page 41. The committee had oversight of the non-financial key performance indicators that are linked to the material matters. It was involved in the process of reviewing and recommending the integrated annual report for approval to the board. The committee recommended the inclusion of the 2019 integrated annual report in annual feedback to the UNGC.
Compliance statement
There was no non-adherence with codes of best practice applicable to the areas within the committee’s mandate brought to its attention. The committee has no reason to believe that any such non-compliance or non-adherence occurred.
The committee is satisfied that it fulfilled its responsibilities in accordance with its terms of reference.
Gida Nakazibwe-Sekandi
Chairperson: board sustainability and ethics committee
01 September 2020
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