VALUE DEFINITION AND MATERIALITY

Framed by our Purpose and our Vision (see Purpose-led value creation), our New Strategic Future strategy defines the primary drivers of shareholder value for the Group, which remains the primary measure of our ability to harmonise the interests and deliver positive value outcomes for all our stakeholders:

• Achieving sufficient diversification of earnings potential and risk exposure to secure sustainable growth;
• Deepening our differentiation as a contractor, employer and strategic partner, to ensure sustainable competitiveness;
• Enhancing our relevance to our stakeholders, as a purpose-led, profitable, ethical and responsible multinational organisation, aligned to the global advancement of sustainable human development;
• These aspirations are contingent on the inculcation of the Group culture (guided by our Values and operationalised by our philosophy of Engineered Excellence) in all our businesses.

Within this value construct, Murray & Roberts defines material issues as factors that substantively affect our ability to sustain our strategic, operational and financial performance. These factors and the way we respond to them are likely to influence a stakeholder’s assessment of the Group’s ability to enhance enterprise value over time.

Managing our material issues, details the process followed to determine our material issues and sets out our priorities at Group and platform levels in relation to these value drivers and outcomes.

INTEGRATED THINKING

The Board committee structure has overlap in membership, and together with the Group’s organisational, integrated assurance and sustainability frameworks, promote operational visibility and integrated decision-making through clearly defined policy, approval and assurance processes. The Group’s governance frameworks align to King IV requirements and oversight processes are regularly reviewed and adapted in line with changes in the Group’s opportunity and risk profile. Continual improvement in the Group’s standards, systems, best practices and reporting, in response to the operating environment and the needs of stakeholders, as well as performance outcomes, embed accountability for integrated thinking at every level of the Group.

PROCESS DISCLOSURES

The integrity of the integrated and sustainability reports are supported by a mature and effective process, with the following features:

• The reporting team, with support from specialist external reporting partners, is led by the Group Investor and Media Executive, who has unfettered access to the Group chairman, Group executive and platform leadership during the process of report preparation.
• A paper setting out the reporting approach and areas of improvement, based on developments in reporting frameworks and the disclosure expectations of stakeholders, is presented to the Murray & Roberts Limited and Holdings Boards at the outset of report planning, giving the directors the opportunity to guide the process.
• The material issues, which provide the basis for preparing the integrated and sustainability reports, entail independent analysis of Group and platform business plans and stakeholder insights from key relationship owners; the output of which is considered by a specifically convened forum comprising the Group chief executive, financial director, and the Group executives in charge of risk, sustainability, and investor relations and stakeholder communication. The material issues are tested against interviews with Group leadership, including the chairman for Board insight, and the platform chief executive officers’ reports for platform insight.
• The information in the report is drawn from various sources; predominantly the Group and platform business plans for the following three-year planning horizon, interviews with the Group chairman, chief executive officer and financial director, as well as the Group’s register of top risks and material governancerelated information.
• The platform chief executive officers are responsible for drafting the platform reviews, based on a detailed briefing paper that sets out the Group’s expectations in line with the requirements of integrated and sustainability reporting.
• The Group chief executive officer and financial director review all content during the drafting process, and the non-executive directors are given the opportunity to review and comment on the drafts, before formal approval by the Group audit & sustainability committee, whose responsibility is delegated to it by the Board.

REPORTING FRAMEWORKS

The information included in this integrated report is provided in accordance with IFRS, the South African Companies Act, 71 of 2008 (as amended), the JSE Listings Requirements and King IV¹. The Board has considered the requirements of King IV and adheres to its principles. We have applied the IIRC International Framework (January 2021) in preparing our integrated report. The Board is of the view that the integrated report applies all the principles and content elements of the Framework in 2021; however, they are presented in a way that is meaningful to the Group, and consistent with how we communicate with, and account to, our stakeholders. Our sustainability report has been prepared in accordance with the GRI Sustainability Reporting Standards at a core application level.

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BOARD RESPONSIBILITY STATEMENT

The audit & sustainability committee is responsible for overseeing the preparation and presentation of the integrated report, and ensuring its integrity. The committee believes that the integrated report addresses all the material issues that have a bearing on the Group’s ability to create value over the short, medium and long term. The committee recommended it for Board approval, which was obtained on 01 September 2021.