Limited assurance report of the independent auditor, Deloitte & Touche, to the directors of ArcelorMittal South Africa Ltd on their sustainability performance indicator disclosures as presented in the integrated annual report for the year ended 31 December 2014.
Scope of our work
We have undertaken a limited assurance engagement on selected ArcelorMittal South Africa Limited (AMSA) sustainability indicators presented in the integrated report for the year ended 31 December 2014 (the report).
The selected sustainability performance indicators are as follows:
- Lost-time injury frequency rate;
- Total number of work-related fatalities;
- Total number of permanent employees;
- Demographics of permanent employees based in South Africa, by race;
- Group corporate social investment (CSI) spend; and
- Total number of employees within the AMSA development pipeline.
- Total direct energy consumption (tonnes);
- Total indirect energy consumption (TWh);
- Total greenhouse gas emission (Scope 1 and Scope 2) (tCO2e); and
- Carbon emission intensity per tonne of liquid steel. Economic
- Externally verified broad based black economic empowerment (B-BBEE) scorecard.
- Liquid steel capacity utilisation.
The directors are responsible for the preparation of the integrated annual report for the year ended 31 December 2014. This responsibility includes the identification of stakeholders, stakeholder requirements, and material issues, for commitments with respect to sustainability performance and for the design, implementation and maintenance of internal control relevant to the preparation of the report that is free from material misstatement, whether due to fraud or error.
Our responsibility is to express our limited assurance conclusion on the above sustainability performance indicators for the year ended 31 December 2014 based on the procedures we have performed and the evidence we have obtained. We conducted our limited assurance engagement in accordance with the International Standard on Assurance Engagements 3000, “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” (ISAE 3000). This standard requires that we plan and perform our engagement to obtain limited assurance about whether the selected key performance indicators are free from material misstatement.
A limited assurance engagement undertaken in accordance with ISAE 3000 involves assessing the suitability, in the circumstances, of AMSA’s use of internally developed methodologies as the basis of preparation for the selected key performance indicators, assessing the risks of material misstatement of the selected key performance indicators whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the selected key performance indicators.
A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. The procedures we performed were based on our professional judgement and included inquiries, observation of processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records. Given the circumstances of the engagement, in performing the procedures listed above we:
- Interviewed 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;
- Inspected documentation to corroborate the statements of management and senior executives in our interviews;
- Reviewed the process that AMSA has in place for determining material selected key performance indicators to be included in the report;
- Tested the processes and systems to generate, collate, aggregate, monitor and report the selected key performance indicators;
- Performed a controls walkthrough;
- Inspected supporting documentation on a sample basis and performed analytical procedures to evaluate the data generation and reporting processes against the reporting criteria;
- Evaluated the reasonableness and appropriateness of significant estimates and judgements made by the directors in the preparation of the key performance indicators;
- Undertook site visits; and
- Evaluated whether the selected key performance indicators presented in the Report is consistent with our overall knowledge and experience of sustainability management and performance at AMSA.
This engagement was conducted by a multidisciplinary team including health, safety, environmental and assurance specialists with extensive experience in sustainability reporting.
We do not express a reasonable assurance opinion about AMSA’s selected key performance indicators.
Our independence and quality control
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. In accordance with International Standard on Quality Control 1, Deloitte 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.
Based on the procedures we have performed and evidence we have obtained, nothing has come to our attention that causes us to believe that for the year ended 31 December 2014 the selected key performance indicators set out above are not prepared, in all material respects, in accordance with the Global Reporting Initiative (GRI) guidelines, supported by AMSA’s internally developed guidelines.
Restriction of liability
Our work has been undertaken to enable us to express a limited assurance conclusion on the selected sustainability information to the directors of ArcelorMittal South Africa Ltd in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than AMSA for our work, for this report, or for the conclusion we have reached.
Deloitte & Touche
Per – AN le Riche
10 March 2015
National Executive: *LL Bam Chief Executive, *AE Swiegers Chief Operating Officer, *GM Pinnock Audit, DL Kennedy Risk Advisory, *NB Kader Tax, TP Pillay Consulting, *K Black Clients & Industries , *JK Mazzocco Talent & Transformation, *MJ Jarvis Finance, *M Jordan Strategy, S Gwala Managed Services, *TJ Brown Chairman of the Board, *MJ Comber Deputy Chairman of the Board
A full list of partners is available on request *Partner and Registered Auditor