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ASSURANCE REPORT

PROGRESSING ON OUR INTEGRATED REPORTING AND ASSURANCE JOURNEY

Our approach to preparing our integrated annual report has evolved over the past few years.

For this year’s report we have focused on the virtual distribution model represented by the train analogy.

Furthermore, as part of this year’s reporting process we have identified focus areas for the next reporting cycle, including refining our approach to identifying our material issues, and following from this the way in which we monitor, measure and report on our value creation processes.

To this end, we have decided to not undertake external assurance on selected non-financial indicators as we have done for the previous years, so as to allow for our focus on refining our underlying systems and processes.

OUR MATERIAL ISSUE IDENTIFICATION PROCESS

At Blue Label, we consider materiality to be about identifying the issues that matter most to our business and our stakeholders. Through an enhanced understanding of our material issues and enhanced stakeholder dialogue, we believe this will help us to decide where to focus our internal resources, but will also help us to identify issues that stakeholders would like to see us cover in our reporting.

Blue Label is therefore embarking on a journey to enhance its process of determining the Group’s material issues. The key steps of this process would cover:

For this report, the main input elements into our process of establishing the material impacts and risks covered include:

OUR ASSURANCE APPROACH: TOWARDS COMBINED ASSURANCE

Blue Label will continue its efforts to enhance the process of combined assurance to ensure the appropriate application of integrated reporting principles and the integrity of data contained in the report.

External assurance in the current year was therefore limited to the audit opinion on the Group annual fi nancial statements until we have developed an assurance roadmap across the various assurance lines of defence in the following reporting cycles.

	Assurance providers		Focus areas
	Management		Provides the Board with assurance that it has implemented and monitored the Group’s risk management plan and necessary internal controls. This includes oversight of strategy implementation, performance measures, control self-assessments and the continuous monitoring of mechanisms and systems. Management oversight aims to establish and maintain a sound control environment for managing risk and governance.
	Internal audit (outsourced)		Overseen by the Group’s ARCC. Evaluate and make recommendations to improve the effectiveness of risk management, internal control and governance processes.
	Independent external assurance		Independent assurance functions provide independent and objective assurance on the overall adequacy and effectiveness of controls, governance and management of critical risks. During the current period, the Group received external assurance on certain aspects of the business, including: • annual financial statements; and • B-BBEE contributor level per subsidiary.
	Board and oversight committees		Mandated Board committees and the executive committees oversee the adequacy and effectiveness of the material issues and risk identification and management process. Board members may review and approve this report on the basis of assurance received from management, and taking into account feedback from our compliance functions, as well as our internal and external auditors.