Capitals review
Creating value

Sustainable returns and long-term value for stakeholders – these objectives reflect the Grindrod vision. The business strategy defines how the company aims to achieve these objectives, which is to create a key competitive advantage to become the preferred integrated freight and logistics services provider. This advantage is achieved by investing in and utilising specialised assets and infrastructure, managed by people skilled in their areas of responsibility.

These objectives are achieved through processes and systems which are driven by, and monitored against, a sound governance structure. The governance structure has been developed to ensure that Grindrod fulfils its responsibility as a corporate citizen by ensuring the health and safety of people and respecting communities, people and the environment.

Six values guide Grindrod’s business execution:

  • operating with integrity;
  • respect for company stakeholders, its assets and the environment;
  • treating people with fairness;
  • acting with professionalism in service delivery to customers;
  • transparency in the disclosure of information to stakeholders; and
  • employee accountability to take full ownership of actions taken.

Grindrod ensures that these values are objectively adhered to through the implementation of internationally accepted guidelines, which include:

  • the laws of the countries in which it operates;
  • the ISO 9001 quality and ISO 14001 environmental management systems;
  • the OHSAS 18001 occupational health and safety management system;
  • IMO regulations;
  • the United Nations (UN) Universal Declaration of Human Rights;
  • the UN Global Compact Principles, which address the areas of human rights, labour standards, environment and anti-corruption;
  • the UN Sustainable Development Goals (SDGs), which defines best-practice targets for 17 sustainability goals; and
  • the JSE Listings Requirements.

Company communication with stakeholders are also determined by and measured against international benchmarks, including:

  • GRI, which provides guidelines for the disclosure of the most critical impacts on the environment, society and the economy;
  • the international GHG Protocol, which defines reporting parameters for GHG or carbon (C) emissions based on an operational control approach;
  • IFRS, issued by the International Accounting Standards Board (IASB); and
  • the International <IR> Framework issued by the IIRC.

The success of Grindrod’s reporting structure is evidenced by its inclusion for the second year in both the FTSE/JSE Responsible Investment Index and the FTSE/JSE Responsible Investment Top 30 Index. These indices are based on the Financial Times Stock Exchange (FTSE) environmental, social and governance ratings.

Ultimately, the purpose of reporting is to explain how an organisation creates value over time. Grindrod’s approach is an integrated one, reflecting quantitative and qualitative information, to combine traditional financial and performance feedback with triple-bottom-line information. This is achieved by structuring feedback in terms of the six capitals identified by the IIRC: financial, manufactured, intellectual, human, natural and social and relationship capital. These are the capitals that organisations use to target, create and measure value-add.

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