Purpose and scope

MURRAY & ROBERTS DEFINES MATERIAL ISSUES AS THOSE ISSUES THAT SUBSTANTIVELY AFFECT ITS ABILITY TO SUSTAIN ITS STRATEGIC, OPERATIONAL
AND FINANCIAL PERFORMANCE, AND THOSE THAT ARE MOST LIKELY TO AFFECT OUR STAKEHOLDERS' ASSESSMENT OF THE GROUP'S ABILITY TO CREATE VALUE OVER TIME.

The Murray & Roberts' annual integrated report presents the strategy, governance, performance and prospects of the Group, and together with our sustainability report, addresses the key issues that matter most to our stakeholders and our businesses. Our sustainability information presented for the year ended 30 June 2017, is based on the Global Reporting Initiative's ("GRI") G4 guidelines and meets the GRI G4 core level. It covers our material sustainability issues and our economic, social and environmental frameworks, initiatives and performance.

MATERIALITY

Murray & Roberts defines material issues as those issues that substantively affect its ability to sustain its strategic, operational and financial performance, and those that are most likely to affect our stakeholders' assessment of the Group's ability to create value over time. The materiality determination process considered the top issues that the Board and management dealt with during the year, the Group's register of strategic risks, and issues raised through engagement with analysts and investors, business associations, non-governmental organisations ("NGOs") or other civil society structures, as well as those reported on in the media. These issues were workshopped into four broad material issues and related sub-issues for the Group, as well as issues specific to each business platform. The final step was to confirm these issues and discuss their inter-relationships with the Group executive. The sustainability report provides a more in-depth review on the material sub-issues highlighted in the diagram on page 3.

The scope of our sustainability information includes all Murray & Roberts' businesses, as well as subsidiaries and joint ventures under Murray & Roberts' control and excludes businesses that are independently managed. In April 2017, the Group sold the Infrastructure & Building business platform, in line with our strategic focus on global natural resources markets. The sale included all of the Group's South African civils, roads and buildings business activities.

In 2015, the JSE Limited partnered with FTSE Russell to promote corporate sustainability practices, and the JSE SRI Index, on which the Group was listed, was replaced by the FTSE/JSE Responsible Investment Index Series. The Group's current market capitalisation disqualifies it from a rating on the new index.

ONLINE
GRI G4 content index.


MATERIAL ISSUES

Material Issues Themes

OUR PURPOSE, VISION AND VALUES

Our Purpose, Vision and Values, as well as the principle of Engineered Excellence, provide the primary point of reference for what we aspire to. These cornerstones of the Group’s culture guide the service we provide to our clients and the way we conduct ourselves. Ultimately, they determine the Group’s reputation and the quality of our relationships with stakeholders, and therefore our success in advancing our strategy.

Murray & Roberts Holdings Limited