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In accordance with King III and the JSE Listings Requirements, the Group has included sustainability reporting in the Integrated Annual Report for the period under review.

This document reports on key areas of sustainability for the Group but should be read in conjunction with the operational reviews, financial results, governance report, remuneration report and the Risk Committee and Risk Management report as these documents all form part of the sustainability framework within the Group and reflect our commitment to sustainability reporting and the development of improved processes towards sustainability and the measurement thereof.

This sustainability report has been produced at an AfroCentric Health level of business within the Group, unless stated otherwise, and includes our sustainability impact and developments with regards to BEE, our employees, Corporate Social Investment and the environment.

The Group had considered providing further reporting according to the principles and guidance from the Global Reporting Initiative (“GRI”) for sustainability reporting. The Group has concluded that due to the nature of the business activities as well as the current content of reporting, the GRI would not provide any further material and meaningful information to the readers of this report. Hence, no GRI index has been prepared.

Most of the initiatives reported on for sustainability have been implemented recently and require further processes and procedures to develop a framework for performance measurement and targets. These will be developed over time as part of the Group’s ongoing support for sustainability.

Value added statement

Value added is defined as the value created by the activities of a business and its employees and, in the case of AfroCentric, is determined as turnover less the cost of services. The value added statement reports on the calculation of value added and its application among the stakeholders in the Group. This statement shows the total wealth created and how it was distributed, taking into account the amounts retained and reinvested in the Group for the replacement of assets and development of operations.

Wealth created is defined as the value generated from the income generating activities of the business and is determined as total revenue less cost of merchandise, services and other costs.

In 2014, the Group created wealth of R1.68 billion, which is 12% higher than the R1.5 billion generated during the prior financial period. The table below shows how the total wealth created by the Group was distributed to stakeholders, while retaining sufficient capital for continued investment in the growth of the business.