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GRI - G3.1 SUSTAINABILITY REPORT 2011

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Page 1: GRI - G3.1 SUSTAINABILITY RepoRT 2011

GRI - G3.1 SUSTAINABILITY RepoRT 2011

Page 2: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 2

1. ABOUT OUR COMPANY

1.1 Statement from the CEO 2-3

1.2 Organisational Profile 6-27

1.3 Governance, Commitments & Engagement 28-31

2. REPORT PARAMETERS

2.1 Approach 32

2.2 Report Scope & Boundary 32

2.3 Determining Report Content 33

3. PERFORMANCE INDICATORS

3.1 Economic Performance Indicators 34

3.1.1 Economic Performance 34

3.2 Environmental Performance Indicators 42

3.2.1 Materials 42

3.2.2 Energy 43-45

3.2.3 Water 46-47

3.2.4 Biodiversity 47

3.2.5 Emissions, Effluents & Wastes 47-53

3.2.6 Compliance 53

3.2.7 Overall 53

3.3 Social Performance Indicators 54

3.1.1 Labour Practices & Decent Work 54

3.3.1.1 Employment 54-57

3.3.1.2 Labour-Management Relations 57-58

3.3.1.3 Occupational Health & Safety 58-60

3.3.1.4 Training & Education 60-61

3.3.1.5 Diversity & Equal Opportunity 61

3.3.2 Human Rights 61

3.3.2.1 Non-discrimination 61

3.3.2.2 Indigenous Rights 62

3.3.2.3 Remediation 62

3.3.3 Society 62

3.3.3.1 Corporate Social Responsibility 62-64

3.3.3.2 Public Policy 65

3.3.3.3 Anti-competitive Behaviour 65

3.3.3.4 Compliance 65

3.3.4 Product Responsibility 66

3.3.4.1 Marketing Communications 66

3.3.4.2 Compliance 66

4. ANNEXES

4.1 Annex 1 - GRI content index 67-70

4.2 Annex 2 - CSR Contributions by Company 71

4.3 Annex 3 - List of Abbreviations 72

Omnicane GRI G 3.1 Sustainability Report 2011

Omnicane GRI G 3.1 Sustainability Report 2011

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Omnicane GRI G 3.1 Sustainability Report 20113Omnicane GRI G 3.1 SuStaInabIlIty RepoRt 2011 2

1.1 STATEMENT FROM CEO

1. ABOUT OUR COMPANY

Omnicane’s primary activity is the cultivation of sugarcane and the production of refined sugar and energy.

Omnicane is an ecologically responsible enterprise which strives to make sustainable use of the natural resources at its disposal, for the benefit of all, and to develop and produce cleaner, more reliable energy to power the nation’s further economic development.

We consider sustainability as an integral aspect of our decision-making process and of the way we do business on the economic, social and environmental fronts. As from this year, we have a dedicated department under the responsibility of our Group Chief Sustainability Officer to ensure that our present and new projects are in line with sustainability principles. Protection of the environment is also one of our priorities and is given utmost consideration. We have deliberately included the concept of industrial ecology in our projects and actions, and while working towards “zero waste”, we are continually exploring ways to optimise our resources and to reduce waste and emissions to a minimum. Because our responsibility also extends to the communities where our business units are implanted, we established Omnicane Foundation as our dedicated entity to implement our Corporate Social and Environmental Responsibility programme for the benefit and empowerment of the vulnerable groups of our society.

Following the 36% reduction in the price of sugar that resulted from the 2006 reform of the EU Sugar Regime, the whole Mauritian sugar industry has had to contend with a significant fall in revenue. It has done so by increasing productivity through cost cutting and increased output and by generating other revenues through diversification and the creation of value-added products.

In October 2010, after a mid-term review of Mauritius’s Multi-Annual Adaptation Strategy (MAAS) for the sugar sector, Omnicane underlined the necessity of closing down its sugar mill at Union St Aubin, and cessation of the mill’s operations was approved in March 2011.

Omnicane’s modern flexi-factory cluster set up at La Baraque as from 2007 today processes 100% of the sugarcane produced in the south of Mauritius. The cluster’s state-of-the-art refinery produces direct-consumption sugar for the EU market, for which it has to meet strict quality and food hygiene norms. Omnicane is also an important generator of electricity for Mauritius and supplies around 28% of the country’s annual requirements from its bagasse/coal power plant at La Baraque and its coal power plant at St Aubin. Our 90MW bagasse/coal power plant at La Baraque is the largest coal/bagasse cogeneration plant in Mauritius and generates more than 30% of the island’s renewable bagasse-based electricity. The cluster at La Baraque will be complete with the coming into operation in 2013 of our bioethanol distillery, which will produce “green fuel” from cane molasses both for the national transport sector and for export.

Omnicane is also engaged in some non-cane agriculture, notably in the cultivation of potatoes, as the latter is a strategic crop for the food security of Mauritius. Our potato production in 2011 amounted to 2,450 tonnes, representing an increase of 17% on 2010.

We believe that team work, fairness and commitment are human-resource fundamentals, and we promote an environment that encourages personal and professional development.

We also believe in good corporate governance, with open and transparent dialogue with all stakeholders, including our shareholders, since they have legitimate interests in the activities and performance of the Group. Adopting the Global Reporting Initiative as from 2010 has enabled us to communicate our economic, environmental and social performances to all our stakeholders in a transparent manner. The 2011 GRI report takes us further in this commitment to meet the triple bottom line as we extend the scope of our reporting by covering 46 performance indicators compared with 12 in 2010. GRI reporting can also be a tool for us to benchmark our economic, social and environmental performance against the industry’s best practices, thereby enabling us to work towards continual improvement on the basis of achievable objectives and targets.

Product and process quality is a prime concern in all our operations. Our sugar refinery operations are certified to BRC standards in compliance with strict norms for entry on the EU market. Production of molasses from at our sugar mill at La Baraque is certified to GMP B2 and more recently was granted International Sustainability and Carbon Certification too. Pursuing along this line, we have embarked on a project to implement the ISO 9001 quality management system progressively within all entities of Omnicane, starting from the year 2012. For its part, moreover, Omnicane Thermal Energy Operations (La Baraque) Limited is already moving towards adoption of the ISO 14001 environmental management system and plans to achieve certification by end 2012.

Economic development and business expansion are essential to long-term resilience to external shocks. With this in mind, Omnicane has embarked on two main projects, namely the creation in Kenya of a cane cluster similar to that at La Baraque, and the setting-up of a hydroelectric power plant in Rwanda. Furthermore, sustainable property development on strategically positioned land around the airport in Mauritius is being planned starting with the construction of a business hotel that hairnesses sustainable design initiative and it is expected to be operational by the end of 2013.

We are happy with our progress made so far and we are willing to go the extra mile for further achievements. I would like to thank my Omnicane colleagues for their contribution to our success and I am confident that with their valued collaboration and investment we will take the company to new heights.

Jacques M. d’UNIENVILLE

Chief Executive Officer

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1.2 ORGANIZATIONAL PROFILE

1.2.1 Vision

Our vision is to make the utmost sustainable use of the natural resources at the Company’s disposal, for the benefit of all our stakeholders both locally and regionally.

1.2.2 Mission

To become a major operator in renewable/sustainable energies

To consolidate and add value to our milling assets and operations

To unlock further value and secure alternative income streams

To dispose of non-core assets to reinvest in mainstream activities

To encourage the preservation of land under sugarcane cultivation in the south of Mauritius.

1.2.3 History

Omnicane was born in July 2009 of the strategic rebranding of Mon Trésor Mon Désert Limited (MTMD), a long-established sugar group in Mauritius whose origins can be traced back to the 1850s. MTMD was owned by various companies over time, the last three of which were Lonrho, Illovo Sugar Limited (1997-2001), and the holding company BBHM from 2002 to 2009.

To understand the emergence of Omnicane, it is important to consider the Mauritian sugar industry’s restructuring and centralisation process in its historical perspective, culminating with the implementation of the Multi-Annual Adaptation Strategy – Action Plan 2006–2015 (MAAS).

The MAAS Action Plan built on and augmented the Sugar Sector Strategic Plan 2001-2005 (SSSP) which it succeeded in a bolder and broader effort to ensure the long-term commercial viability and sustainability of the sugar sector so that the latter might be able to continue its much-needed multifunctional role in the national economy following the EU Sugar Regime reform of 2006 and its accompanying 36% reduction in the price of sugar over four years.

The pillars of the MAAS Action Plan are cost reduction, mainly through centralisation of the island’s sugar factories from 11 to 4, accompanied by workforce rightsizing in field as well as milling operations; the generation of additional revenue

through value-added products such as refined sugar and special sugars; the optimisation of sugarcane by-products such as electricity from bagasse and ethanol from molasses; and a pro-poor approach throughout with socially acceptable retrenchment plans.

As regards the south of Mauritius specifically, where seven sugar factories were in operation in 2001, the SSSP and MAAS together provided for a reduction of that number to just one – in the form of a modern flexi-factory complex constituting the core of a sugarcane subcluster at La Baraque comprising a sugar mill, a bagasse/coal power plant, a sugar refinery, and a bioethanol distillery. Such reduction was well under way with the regrouping, in 2002, of the milling interests of Britannia, Mon Trésor, Union St Aubin, Riche en Eau, and Savannah at La Baraque, under a “société civile” (partnership), Société Usinière du Sud (SUDS). As and when centralisation of their respective operations on La Baraque was completed, the factories of Britannia (2003), Mon Trésor and Riche en Eau (2006), and finally Union St Aubin (2011) were closed down, in full compliance with the Blue Print on the Centralisation of Sugar Milling Operations in Mauritius. The other two factories in operation in 2001, Rose Belle and St Félix, were closed down in 2002 and 2006 respectively.

The following timeline highlights the coming into being of the flexi-factory complex at La Baraque as well as developments relating to the ownership of its components:

• 2007: Completionoftheupgradingoftheexistingsugarmilltoenableittoaccommodatetheentirecaneproductionof the south of Mauritius

Setting-up of the bagasse/coal power plant, under the ownership of Compagnie Thermique de Savannah Limitée (CTSav).

• 2008: ConversionofSUDSfromapartnershiptoa limited-liabilitycompany,CompagnieSucrièreduSudLimitée(CSS), to accommodate the entry of cane planters into ownership of the complex’s milling and refining operations

Acquisition by MTMD of (a) 79.999% of CSS through two 80%-owned subsidiaries, and (b) 60% of CTSav.

• 2009: RebrandingandreorganisationofMTMDasOmnicane

Inauguration of the sugar refinery.

• 2013: Plannedcompletionofthebioethanoldistillery.

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 20118 9

1.2 ORGANIZATIONAL PROFILE

1.2.4 Products/Services

Sugarcane

Sugarcane cultivation is the core activity of Omnicane Agricultural Operations Limited. It encompasses three main regions, namely Mon Trésor, Benares, and Britannia, all in the south of Mauritius. Each region is managed by a Field Manager and two Section Managers who report to the Chief Operations Officer. In 2011, 237,486 tonnes of cane were produced from the 2,759 hectares harvested across the three regions, giving an average cane yield of 86.1 tonnes per hectare and a sugar yield of 9.1 tonnes per hectare, both 2% higher than in 2010.

YearTotal Area under Cane Cultivation

(Ha)

Harvested Area (Ha)

Cane (Tonnes)

Tonne Cane per Hectare

2011 3,074 2,759 237,486 86.10

2010 3,105 2,779 237,610 85.5

Because of adverse climatic conditions which affected sugarcane growth and sucrose accumulation, the start of the 2011 crop was delayed to late June. This also had an impact on the cane yield achieved per hectare.

The Mon Trésor region was the most affected by the drought which prevailed in 2011, and its cane yield was 79.0 tonnes per hectare. The Britannia region, on the other hand, performed very well, with a yield per hectare of 102.4 tonnes cane and 10.5 tonnes sugar produced. This was the second best crop recorded at Britannia, which once more was the island’s best-performing region.

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201110 11

1.2 ORGANIZATIONAL PROFILE

Refined Sugar

In 2011, Omnicane completed the centralisation of its milling operations with the closure of its Union St Aubin factory, the last unit to cease operations in the south after Mon Trésor and Riche en Eau in 2006. All the cane produced in the south was from then on processed by the Company’s sugar mill at La Baraque, which thus became the biggest sugar factory in Mauritius, processing in 2011 a total of 1,335,087 tonnes of sugarcane harvested on 17,917 hectares of land across the region.

The 2011 harvest extended over 166 crushing days, starting on 22 June 2011 and ending on 29 December 2011. From the 1,335,087 tonnes of cane crushed, the factory produced a total of 136,925 tonnes of plantation white sugar for refining. The table below shows the considerable improvement in the tonnage of cane crushed per day at La Baraque in the period from 2009 to 2011

Production at the Omnicane refinery spanned the period from 6 January to 31 December 2011, with an annual stoppage from 17 to 23 May 2011 which coincided with the planned maintenance of the adjacent power plant run by Omnicane Thermal Energy Operations (La Baraque) Limited. Pending the resolution of certain technical problems associated with lumping of sugars in containers, initial production figures of 165,000 tonnes were revised downwards. Comparative data for 2011 and 2010 are as follows:

Omnicane Milling Operations Limited - Refinery 2011 (tonnes) 2010 (tonnes)

Amount of refined sugar loaded in containers 139,821 101,867

Amount of refined sugar destined for local market 8,500 1,053

Total 148,321 102,920

Number of operational days 352 305

Evolution in Crushing Rate (Tonnes Cane per Day – TCD) at La Baraque

2011

8015

2009

6906

2010

6802

(Ton

nes

Can

e p

er D

ay –

TC

D)

Year

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201112 13

Electricity generation

Since the closure of Omnicane milling operations Limited - Union St Aubin, including the mill’s power generation capacity from bagasse, in March 2011, Omnicane has only two entities involved in energy production: Omnicane Thermal Energy Operations (La Baraque) Limited and Omnicane Thermal Energy Operations (St Aubin) Limited.

The Omnicane Thermal Energy Operations (La Baraque) power plant is one of the largest coal/bagasse cogeneration plants in the world and is equipped with two units of 44.5 MW each. These are of the condensing type with extraction and use either bagasse or coal as fuel. During the 2011 sugarcane harvest season, the plant received 447,655 tonnes of bagasse from the sugar mill at La Baraque, which it used to generate steam and electricity for the sugar factory and refinery while exporting surplus electricity to the national grid. Outside the harvest season, the plant operated only on coal, producing steam for the sugar refinery and electricity for the grid.

For its part, the Omnicane Thermal Energy Operations (St Aubin) power plant is equipped with a coal-based 34.5MW condensing type turbine and uses coal only to produce electricity.

The two power plants exported to the national grid of Mauritius a total of 2,480,385.6 GJ (688,996 MWh) of electricity in 2011, with breakdown and comparison with 2010 as follows:

1.2 ORGANIZATIONAL PROFILE

Power Plant

Electricity Exported in 2011

(GJ)

Electricity Exported as a Percentage of

Total Electricity Generated in

Mauritius in 2011

Electricity Exported in 2010

(GJ)

Electricity Exported as a Percentage of Total

Electricity Generated in Mauritius in 2010

Omnicane Thermal Energy Operations (La Baraque)

1,660,132.8 GJ (461,148 MWh)

18,95% 1,604,728.8 GJ(445,758 MWh)

19.06%

Omnicane Thermal Energy Operations (St Aubin)

820,252.8 GJ (227,848 MWh)

9,36% 704,563 GJ(195,712 MWh)

8.37%

Omnicane milling operations Limited - Union St Aubin

- - 53,420.4 GJ(14,839 MWh)

0.63%

Total 2,480,385.6 GJ (688,996 MWh)

28,31% 2,362,716 GJ(656,310 MWh)

28.06%

The total of electricity exported to the grid by the Group was higher with two power plants in 2011 than with three Power plants in 2010 owing to increased energy demand from the Central Electricity Board in 2011.

Electricity Exported in 2010 & 2011 in MWh

461,148445,758

195,712227,848

14,839

20112010

Omnicane Thermal EnergyOperation (La Baraque)

Omnicane Thermal EnergyOperation (St Aubin)

Omnicane MillingOperations - Union St Aubin

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201114 15

Potatoes and Other Agricultural Produce

Omnicane Agricultural Operations are also engaged in food crop cultivation and supports the Food Security Programme initiated by the Government of Mauritius. We currently cultivate potatoes, palm trees and freshwater prawns for the domestic market.

Potatoes production by Omnicane Agricultural Operations in 2011 amounted to 2,450 tonnes, compared with 2,050 tonnes in 2010 – an increase of 17% due largely to good agricultural practices. The Company’s potato operation is fully mechanised from plantation through pesticide application to harvest.

The table below summarises Omnicane’s non-cane agricultural production:

Area Production Yield

Potato Production

2011 100 Ha 2,450 tonnes 24.5 tonnes/Ha

2010 98 Ha 2,050 tonnes 20.9 tonnes/Ha

Freshwater Prawn Production

20114920 m2 pond

0.208 tonne 0.042 kg/m2

2010 0.2 tonne 0.041 kg/m2

Palm Production

2011 24.68 Ha 5,235 units 212 units/Ha

2010 24.68 Ha 4,578 units 185 units/Ha

The Company has also invested with other strategic partners from the south of Mauritius in a post-harvest potato plant, Copesud, with a storage capacity of 2,500 tonnes in cold rooms. These facilities are also available to small planters of potatoes in the south-east, who for reasons of size are not able to invest in large post-harvest installations. Omnicane’s engagement in potato cultivation is strategic at two levels, namely:

(1) Enhancing the food security of Mauritius by participating in the implementation of Government’s Blueprint on agricultural diversity (Source: Government of Mauritius(2008). Blueprint for a Sustainable Diversified Agri Food Strategy for Mauritius 2008–2015, Ministry of Agro Industry and Fisheries, Port Louis, Mauritius.)

(2) Supporting small planters as a matter of corporate responsibility. The Company also rents out some 100 hectares of land to small planters for cultivating potatoes and other food crops, and grows various vegetables on approximately 20 hectares yearly.

1.2 ORGANIZATIONAL PROFILE

152,020.84

97,603.12

152,261.16

63,707.15

34,056.42

1,776.18

31,713.06

2,788.65

20112010

CoalSugar Canes Others (Fertilisers, Cement, etc)

Material transported in tonnes

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201116 17

1.2.5 Future Projects

The projects in the pipeline at Omnicane are the bioethanol distillery to be added to our flexi-factory complex at La Baraque; the Carbon Burn-Out plant; the wind farm at Britannia; the regional expansion with Kwale International Sugar Company Limited; the hydropower project in Rwanda; and property development on land owned by Omnicane in the south of Mauritius.

1.2.5.1 Bioethanol Distillery

Omnicane Ethanol Holdings Limited was set up to acquire control of Alcodis Ltd to produce bioethanol in Mauritius. Relevant authorisations from the regulatory authorities are being sought before proceeding with implementation of the project. The project consists in relocating part of the existing distillery equipment of Alcodis Ltd from Rose Belle to La Baraque. The fermentation section will be completely replaced, and a new state-of-the-art effluent-treatment plant will be built to ensure strict adherence to the national environmental standards pertaining to effluent release. Project costs include renovation of the existing equipment, construction of the new fermentation unit and effluent treatment plant, a new dehydration unit, and plant automation. The renovated distillery will be designed to process molasses accruing to the Mauritian community of planters (small, medium, and large) – i.e. up to 90,000 metric tonnes per year – to produce up to 22.5 million litres of ethanol annually. Initially, the unit will process 65,000 tonnes of molasses annually to produce some 15 million litres of bioethanol. The bioethanol produced can be dehydrated and blended with gasoline for marketing fuel blends of up to 10% ethanol (E10) in Mauritius. Should more molasses be available for transformation, the excess ethanol produced will be exported to Europe. Government’s new policy, enunciated on 13 August 2010 by the Minister of Finance and indicating that an environmental fee will be levied on exports of molasses as from the 2012 crop to encourage local value addition in the form of E10 fuel, favours the production of dehydrated ethanol for that purpose. Our ethanol company will produce liquid fertiliser from vinasse and food-grade carbon dioxide in addition to ethanol.

1.2 ORGANIZATIONAL PROFILE

Cyclone Deduster

Bag Filter

Gas Analyser(O₂, CO₂, CO, CH₄, H₂, CxHy,N₂)

Recycling Handling

Electrical Heating

Fluidized Bed

Steam Generator

DIAGRAMME DE PRINCIPE

Circulating Bed

Secondary Air

Dosing Unit

Primary Air

Transport Air

T

T

T

T

T

T

TP

P

P

P

P

P

T

T

1.2.5.2 Carbon Burn-Out (CBO) Project

The fly ash and bottom ash resulting from the burning of coal in travelling grate boilers in Omnicane’s power plants of La Baraque and St Aubin are at present buried in land cavities and depressions. However, as such sites are limited, it is imperative to seek alternative modes of disposal. Various researches have been carried out across the world about using fly ash and bottom ash in industry, notably in the construction industry. Blended cement has the global environmental benefit of lowering carbon dioxide emissions. The CBO project will burn the extra carbon in the fly ash and bottom ash so as to reduce their carbon content from 20% to 5% to enable the final product to be mixed with bulk cement.

CARBON BURN-OUT SCHEMATIC DIAGRAM

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201118 19

1.2.5.3 Wind Farm at Britannia

In its endeavours to expand its activities in the field of renewable energy, Omnicane embarked in 2009 on preliminary studies with a view to setting up a 22MW wind farm at Britannia. The results of continuous wind assessment carried out over the thirteen months from February 2009 to March 2010 confirm the good wind regime of the site as initially identified in 2009 on the basis of eight months of wind data. The project is in line with the Maurice Ile Durable concept and fits in with the long-term (2009–2025) energy strategy of Mauritius. It has already been presented to the authorities for consideration.

1.2.5.5 Regional Project: Rwanda Hydropower Station

The project is to build a power plant at the confluence of two rivers (the Mushishito and the Rukarara) in the south-west of the Republic of Rwanda. The capacity of the three turbines to be installed will be of 6 MW and is expected to produce about 36 GWh yearly. The project will cost about USD 15 million and will be structured on a project-financed basis with a debt-to-equity ratio of 70:30. A Power Purchase Agreement for 25 years of electricity production has already been signed with the Rwandan authorities and is now subject to some amendments at the request of the banks. This is being finalised by our Rwandan partners.

.

1.2 ORGANIZATIONAL PROFILE

1.2.5.4 Regional project: Kwale International Sugar Company Limited (KISCOL)

Our Vision extends beyond our borders to places where cane can be grown, harvested and transformed responsibly. We have recently signed an agreement with a company in Kenya to develop a sugarcane cluster that will produce sugar, electricity from a cogeneration plant, and bioethanol from molasses. The Kwale International Sugar Company Limited (KISCOL) in Kenya aims to process 725,000 tonnes of sugarcane per year to produce 74,000 tonnes of refined sugar, 230,000 tonnes of bagasse, and 22,000 tonnes of molasses. About 87 GWh of electricity will be produced by the cogeneration plant, and 5 million litres of ethanol in the form of extra-neutral alcohol will be produced by the distillery. Refined sugar will be marketed locally, and surplus energy will be sold to the national grid.

1.2.5.6 Property Development – Airport Hotel

As a start for our real-estate portfolio creation, an airport hotel development project was identified early in 2011. The project location, 700 metres from SSR International Airport’s passenger terminal, makes it an attractive project, which will benefit from the Government’s plans to expand the airport and make Mauritius a business, education and leisure hub. Discussions with a leading business and airport hotel brand and the relevant design, costing and feasibility work are due to be completed by end of July 2012, and the start of construction is tentatively scheduled for the last quarter of 2012. If all goes according to plan, the new hotel will start its operations in the second half of 2013.

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201120 21

Cane Growing

Omnicane Agricultural Operations Limited 100%

Sugar Milling

Omnicane Milling Holdings (Mon Trésor) Limited 80%

Omnicane Milling Operations Limited 16.85%

Omnicane Milling Holdings (Britannia Highlands) Limited 80%

Omnicane Milling Operations Limited 83.149%

Energy Production

Omnicane Thermal Energy Holdings (St Aubin) Limited 100%

Omnicane Thermal Energy Operations (St Aubin) Limited 60%

Omnicane Holdings (La Baraque) Thermal Energy Limited 100%

Omnicane Thermal Energy Operations (La Baraque) Limited 60%

Omnicane Wind Energy Ltd 100%

Omnicane Britannia Wind Farm Operations Ltd 100%

1.2 ORGANIZATIONAL PROFILE

Ethanol Production

Omnicane Ethanol Production Limited 100%

Omnicane Ethanol Holdings Limited 100%

Haulage

Omnicane Logistics Operations Limited 100%

Hospitality

Airport Hotel Ltd 100%

Investment Companies

Omnicane International Investment Co. Ltd 100%

Omnicane Africa Investment Ltd 100%

Floreal Ltd 100%

Page 13: GRI - G3.1 SUSTAINABILITY RepoRT 2011

OmnicaneLimited

Coal Terminal (Management)

Co. Ltd.

FlorealLimited

OmnicaneMilling

OperationsLimited

OmnicaneAgricultural Operations

Limited

FAW Investment

Limited

100% 100% 100% 100%

100%

60%

23.37%

70.25%

83.149%

80%

16.85%

80%

100%

100%

Omnicane Thermal Energy

Operations (La Baraque)

Limited

Omnicane

Thermal Energy

Holdings (La Baraque)

Limited

OmnicaneMilling

Holdings(Britannia Highlands)

Limited

(Mon Trésor)

OmnicaneMilling

Holdings

Limited

OmnicaneInternationalInvestment

Co Ltd

Exotic Exports Limited

OmnicaneLogistics

OperationsLimited

AirportHotel

Limited

100%17.35%

60%

Omnicane Thermal Energy

Holdings (St Aubin)

Limited

Omnicane Thermal Energy

Operations (St Aubin)

Limited

100%

100%

100%

100%

100%OmnicaneBritannia

Wind FarmOperations Ltd

OmnicaneWind

EnergyLtd

OmnicaneAfrica

InvestmentLtd

OmnicaneEthanol

HoldingsLtd

OmnicaneEthanol

ProductionLtd

100%

80%

OmnicaneHoldingsLimited

OMNICANE GROUP PROFILE - 2011

OmnicaneManagevment & Consultancy

Limited

Omnicane GRI G 3.1 Sustainability Report 2011 22

1.2.6 Group Profile

Omnicane GRI G 3.1 Sustainability Report 201123

Page 14: GRI - G3.1 SUSTAINABILITY RepoRT 2011

OPERATING LOCATIONS & OPERATIONS

Omnicane GRI G 3.1 Sustainability Report 2011 24

Port Louis

Highlands

Britannia

Union St Aubin

Benares La Baraque

Mon Trésor

1.2.7 Location of organisational Headquarters and other operations

Omnicane Management & Consultancy Limited, which is the Group’s headquarter organisation, is located in Anglo-Mauritius House in the Mauritian capital city of Port Louis.

Our agricultural operations are based in the south of Mauritius, in the regions of Britannia, Benares and Mon Trésor.

Omnicane’s flexi-factory complex, which includes our milling operations, is located at La Baraque, L’Escalier, and the Group’s two thermal power plants are situated at La Baraque, adjacent to the milling operations, and at St Aubin, Rivière des Anguilles.

Omnicane Logistics Operations Limited, with its garage and maintenance workshop, is based at Britannia.

Omnicane GRI G 3.1 Sustainability Report 201125

Cane Sugar energy Haulage

Land Growing Milling production Development

Mon Trésor

Britannia

Highlands

Benares

omnicane Milling operations Limited

omnicane Thermal energy operations (St Aubin) Limited

omnicane Thermal energy operations (La Baraque) Limited

omnicane Logistics operations Limited

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1.2 ORGANIZATIONAL PROFILE

1.2.8 Number of Countries where the Organisation Operates

All of our major activities are at present carried out in the Republic of Mauritius. However, future activities are also planned in respect of Kenya and Rwanda. (See section 1.2.5 Future Projects).

1.2.9 Nature of Ownership and Legal Form

Omnicane Limited is a limited liability company incorporated and domiciled in Mauritius and is ranked 23rd by turnover in the Top 100 companies of Mauritius according to the Stock Exchange of Mauritius. It is represented by its Chief Executive Officer, Mr Jacques Marrier d’Unienville. The address of its registered office is 7th Floor, Anglo-Mauritius House, Adolphe de Plevitz Street, Port Louis, Mauritius.

Shareholding Structure

The holding structure of the Company as at December 31, 2011 was as follows:

Share ownership

The following shareholders held more than 5% of the Company’s issued share capital at 31 December 2011.

No of Shares Held % Holding

•OmnicaneHoldingsLimited 47,074,792 70.2479

•NationalPensionsFund 6,784,944 10.1249

Analysis of Shareholding at 31 December 2011

Defined Brackets Shareholder Count Ordinary Shares Percent

1 - 500 802 143,725 0.21

501 - 1000 243 193,900 0.29

1001 - 5000 576 1,378,766 2.06

5001 - 10000 172 1,216,878 1.82

10001 - 50000 212 4,286,037 6.40

50001 - 100000 27 1,887,399 2.82

100001 - 250000 13 1,891,095 2.82

250001 - 500,000 3 908,640 1.36

Over - 500,000 4 525,105,964 82.2

Total 2,052 67,012,404 100

Others

OmnicaneLimited

OmnicaneHoldings

Ltd

70.25%

NationalPensions

Fund

10.13% 19.62%

1.2 ORGANIZATIONAL PROFILE

Summary by Shareholder Category

Count Shares Percent

Individuals 1,846 8,103,367 12.09

Insurance & assurance companies 13 1,105,074 1.65

Pension & provident funds 13 7,333,558 10.9

Investment & trust companies 16 106,463 0.16

Other corporate bodies 164 50,363,942 75.2

Total 2,052 67,012,404 100

1.2.10 Markets Served

To date, the two main products and services of the Group are refined sugar and grid-fed electricity. The sale of refined sugar is carried out through the Mauritius Sugar Syndicate (MSS). Although Omnicane has direct contacts with its client regarding the quality of refined sugar, the marketing aspects are handled by MSS. Similarly, Omnicane’s sole client for the sale of electricity is the Central Electricity Board (CEB), which is the national utility responsible for power generation, purchase, transmission, distribution, and sale. The sale and marketing of potatoes produced by Omnicane is carried out by our partner Copesud.

1.2.11 Scale of Reporting Organisation

In the context of Mauritius, which is a Small Island Developing State (SIDS) with an area of only 1,864 km2 and a population of around 1.3 million inhabitants, the definition of local community encompasses the whole country.

The significant locations of operations based on criterion LA1 for total labour force are those of the Group’s head office and operational entities, which are as follows:

• OmnicaneManagement&Consultancy,PortLouis

• OmnicaneMillingOperations,LaBaraque

• OmnicaneThermalEnergyOperations(LaBaraque),LaBaraque

• OmnicaneThermalEnergyOperations(StAubin),StAubin

• OmnicaneLogisticsOperations,Britannia

• OmnicaneAgriculturalOperations,MonTrésorandBritannia.

These are highlighted in the Group Profile found on page 22 - 23 of the report.

1.2.12 Significant Changes during the Reporting Period

In our 2010 Sustainability Report, we anticipated the closure of Union St Aubin sugar mill. This closure took place in March 2011 and completed the centralisation of sugarcane milling activities in the south of Mauritius on the Omnicane sugar mill at La Baraque in time for the 2011 harvest. This brought an additional 350,000 tonnes of cane to the mill, which since then processes the entire cane production of the south of Mauritius.

Furthermore, Exotic Exports Ltd was closed down in 2011 as a result of operating losses.

During the year 2011, there were also the creation of new companies, namely Omnicane Wind Energy Ltd, the holding company of Omnicane Britannia Wind Farm Operations Ltd; Omnicane Ethanol Holdings Limited, the holding company of Omnicane Ethanol Production Limited; Airport Hotel Ltd; Omnicane International Investment Co. Ltd; and Omnicane Africa Investment Ltd.

1.2.13 Awards Received in the Reporting Period

During the year under review, no awards were received by Omnicane. However, we are pleased to announce that Omnicane won the 2011 edition of the Mauritius Business Excellence Award organised by the Mauritian Ministry of Industry and Cooperatives and presented on 29 June 2012. This award aims to foster best business practices among Mauritian enterprises for sustained competitiveness in the global trading arena.

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1.3 GOVERNANCE, COMMITMENTS & ENGAGEMENT

The Board of Directors of Omnicane Limited and the Group’s Management are firmly committed to sound corporate governance. Omnicane Limited subscribes to a set of ethical values that foster integrity, respect, honesty and openness, inter alia. The Group endeavours to incorporate into its actions the interests of all its stakeholders, including investors, employees, suppliers, customers and the communities in which it operates. The Company also fosters public accountability and transparency through regular and clear communication with its stakeholders. We are at present working on a formal Code of Ethics which will be made available to Omnicane’s stakeholders by end 2012. (Source: Omnicane Annual Report 2011)

1.3.1 Governance Structure

The Omnicane Board provides strategic leadership to the direction and control of the Company. It consists of twelve directors (two executive and ten non-executive). The roles of the Chairperson and the Chief Executive Officer are separate, and the Chairperson is a non-executive independent director.

The Board meets quarterly and at any additional times that may be required. There is a provision in the Company’s Constitution for decisions taken between meetings to be confirmed by way of directors’ resolutions. Board meetings are also attended by senior members of staff, who report on operations, and by the Company’s consultants, who provide expert advice. At the quarterly meetings, a report on the financial performance of the Company is presented by the Chief Executive Officer, and actual results are compared with those of the previous year’s corresponding period and with the budget. The report summarises issues affecting the Group’s business, notably in its agricultural, milling, refining and energy operations as well as its property development plans and new initiatives in Mauritius and elsewhere.

1.3.2 Board Committees

The Board has four subcommittees which have been established to assist it in discharging its responsibilities. These committees play an important role in ensuring good corporate governance and improving internal controls, thus enhancing the performance of the Company. They are:

• TheAuditCommittee

• TheCorporateGovernanceCommittee

• TheInvestmentCommittee

• ThePropertyDevelopmentCommittee.

Each Board committee acts according to its written terms of reference approved by the Board. They set out its purpose, membership requirements, duties, and reporting procedures.

Audit Committee

The Audit Committee is governed by a charter, and its primary objective is to assist the Board in fulfilling its oversight responsibilities. It consists of independent directors, and its meetings are also attended by the Chief Executive Officer, the Chief Finance Officer, the internal and external auditors, and any other managers as deemed necessary.

The Audit Committee’s terms of reference include:

• Considering the independence of the external auditors andmaking recommendations to the Board on theappointment or dismissal of the external auditors

• Considering and reviewing the reliability and accuracy of financial information and the appropriateness ofaccounting policies and disclosure practices

• Examiningandreviewingthequarterlyfinancialresults,annualfinancialstatements,andanyotherdocumentationto be published by the Company

• Reviewingcompliancewithapplicablelawsandbestcorporategovernancepractices,accountingstandardsandregulatory requirements

• ReviewingtheeffectivenessoftheGroup’sriskassessmentprocessandtheadequacyofitsaccountingrecordsand internal control systems

• Monitoringandsupervisingthefunctioningandperformanceofinternalaudit.

The committee is also responsible for reviewing the adequacy and overall effectiveness of the Group’s risk management system.

The committee has fulfilled its responsibilities for the year in compliance with its terms of reference.

1.3 GOVERNANCE, COMMITMENTS & ENGAGEMENT

Internal Audit

The Group’s Internal Audit Department is headed by a fully qualified accountant, who carries out a continual audit of the Group’s operations. At each meeting of the Audit Committee, the Internal Auditor reports on all internal audit issues of the Group, highlighting any deficiencies and recommending corrective measures. The Internal Audit Department uses a risk-based methodology for auditing, whereby compliance with policies and procedures is reviewed in areas of significant inherent risk. It also has unrestricted access to review all activities and transactions undertaken within the Group and to appraise and report thereon if necessary.

The Internal Audit Department provides independent assurance to the Audit Committee as to the adequacy and effectiveness of the internal control and risk management processes. It operates in line with the Internal Audit Charter and has the objective of:-

(i) Providing high quality information in its reports

(ii) Providing added value to the Group throughout all the assignments carried out.

The Internal Audit Department works closely with the external auditors to further ensure best practice in this area.

The Internal Auditor is entitled to convene a special meeting of the Audit Committee to deal with any matter which he considers to be urgent.

During the year ended 31 December 2011, the main tasks carried out by the Internal Audit Department for the Group were as follows:

• ConductingofinternalauditreviewsinaccordancewiththeInternalAuditPlan

• FinalisingofactionplansandcorrectiveactionplanswithManagement

• ReportingonauditissuesandprogressreportsofsubsidiariestotheAuditCommittee

• Collaboratingwiththeexternalauditorsandsharingofauditissues

• AttendingtospecialreviewsandassignmentsattherequestofManagementasandwhenrequired

• FacilitatingtheimplementationofaRiskManagementRegister.

Corporate Governance Committee

The Corporate Governance Committee encompasses the Nomination Committee, as well as the Remuneration Committee. It consists exclusively of independent directors, and the Chief Executive Officer is invited to attend meetings.

The main role of the committee is to advise and make recommendations to the Board on all aspects of corporate governance which should be followed by the Company, so that the Board remains effective while complying with sound and recommended corporate practices and principles.

Investment Committee

The Investment Committee was set up primarily to ensure that the Company’s investments are in line with the Board’s strategy. The committee also reviews the detailed investment plans of the Group, to ensure that the projected risk-adjusted returns are within acceptable norms. It monitors and reviews progress on the Group’s investment objectives and the strategic plan laid out to achieve them.

Property Development Committee

The Property Development Committee oversees procedures relating to all the Company’s land development projects to ensure that they are conducted in a transparent manner and in the best interests of the Company. It focuses on identifying, assessing and selecting the best contractors, through tenders, and on monitoring progress in the works involved, to ensure their timely execution. It also deals with all land-related matters and makes recommendations to the Board accordingly.

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1.3.3 Engaging with Stakeholders

Omnicane recognises the importance of stakeholder input in determining potential impact on long-term corporate profitability and actively engages with stakeholder groups. Stakeholders include, but are not limited to, employees, trade and labour unions, shareholders, investors, analysts, providers of capital, regulators, raw-material suppliers (e.g. outgrowers), suppliers and service providers, Government, local communities, traditional and civil society, sugar industry representative structures, and trade and consumer bodies. Omnicane appreciates the benefits derived from stakeholder dialogue and endeavours to maintain active and productive relationships, identifying and addressing relevant issues on an ongoing basis.

1.3.4 Shareholder Communication

The Company communicates to its shareholders through its Annual Report, the publication of its unaudited quarterly results, its dividend declarations, and its Annual Meeting of Shareholders.

1.3.5 Omnicane Limited Share Price Performance

1.3 GOVERNANCE, COMMITMENTS & ENGAGEMENT

January

68.0

2,024.04 2,026.772,005.55

2,063.01 2,079.75 2,097.74

2,026.95

1,950.66

1,886.66 1,883.01 1,864.08 1,888.38

73.5073.00

68.50

71.0071.00

72.0072.00

70.50

72.5072.00

75.0074.50

70.0

72.0

74.0

76.0

78.0

80.0 2,200.0

2,100.0

2,000.0

1,900.0

1,800.0

1,700.0

1,600.0

1,500.0

FebruaryMarch April May June July

AugustSeptember

OctoberNovember

December

Omnicane Semdex

Omnicane Semdex

Share Price Performance from January to December 2011

Omnicane’s share price outperformed the Semdex, the index of the Stock Exchange of Mauritius. Whereas the Semdex fell by 4.7% in 2011 as the financial and euro crises continued to adversely affect Mauritian companies’ performance and investor confidence, the share price of Omnicane Limited was down by only 0.7% during the same period.

The above can be explained by the restructuring already carried out at Omnicane through the sugar reform, and the return to profitability of the sugar segment. The Company’s extensive property holdings also represent an area for development. Valorisation of the Company’s land holdings in the south-east of Mauritius was the subject of strategic thinking in 2011. Their proximity to the airport and to the beach and the ease of access afforded to urban centres by the adjoining motorway contribute unquestionably to the tremendous potential of these land assets.

In 2011 Omnicane ranked 11th in Mauritius in terms of market capitalisation (Rs 4,925.4 million), and 12th in terms of annualised return from listing (19.3%). Its comparative ranks in 2010 were 9th and 14th respectively. (Source: http://www.stockexchangeofmauritius.com/official_marketactivity.

1.3.6 Dividend Policy

The Company does not have a predetermined dividend policy. Payment of dividends is subject to the profitability, cash flow, working capital, and capital-expenditure requirements of the Company. For the year under review, the Company has declared a final dividend of Rs 2.75 per share against Rs 2.50 per share the previous year.

1.3 GOVERNANCE, COMMITMENTS & ENGAGEMENT

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2. REPORT PARAMETERS

2.1 Approach

This Sustainability Report 2011 is the second edition of the GRI Report series compiled by Omnicane Limited to provide a transparent assessment of the economic, social and environmental activities associated with its core business, taking as a basis the Global Reporting Initiative (GRI) G3.1 Guidelines. Level C reporting has been maintained. For the year under review, a comparison with the 12 indicators reported in 2010 has been carried out. In addition, 34 new performance indicators are reported across the Social, Economic, Environment categories. Additional indicators are also reported under Labour Practices & Decent Work, Human Rights, and Product Responsibility.

The objectives of this report are:

• TodemonstratehowOmnicaneinfluencesandisinfluencedbyexpectationsaboutsustainabledevelopment

• ToprovideabalancedandreasonablerepresentationoftheGroup’ssustainabilityperformance

• TocomparetheGroup’sperformanceof2011withthatof2010.

A complete index of the performance indicators is given on page 67-70, in the GRI Content Index.

2.2 Report Scope & Boundary

The Sustainability Report 2011 covers the reporting period from 1 January 2011 to 31 December 2011. It includes information pertaining to the six main operating entities of Omnicane Limited that define the boundary of the present reporting. These entities are:

1. Omnicane Management & Consultancy Limited

2. Omnicane Milling Operations (La Baraque) Limited

3. Omnicane Thermal Energy Operations (La Baraque) Limited

4. Omnicane Thermal Energy Operations (St Aubin) Limited

5. Omnicane Limited - Agricultural Operations

6. Omnicane Logistics Operations Limited.

Omnicane’s GRI G3.1 Sustainability Report 2010, which was issued in March 2012, is the most recent previous report. It will be used as benchmark for comparative analysis. The present report will be submitted in August 2012, and the reporting cycle will be annual, covering the period from January to December of the previous year, 2011. Furthermore, since Omnicane is the first company in Mauritius to produce a GRI report, it can assess itself only with respect to its own operations and activities. The only performance indicators included in this report are those for which adequate and reliable information was available.

Omnicane GRI G 3.1 Sustainability Report 2011 32 Omnicane GRI G 3.1 Sustainability Report 201133

2.3 Process for Defining Report Content

Reporting Diligence

The following criteria have been observed in preparing this report:

• Stakeholderinclusiveness

• Sustainabilitycontext

• Completeness

• Balance

• Comparability

• Accuracy

• Timeliness

• Clarity

• Reliability.

Materiality

We have employed a number of processes to determine materiality, priority of topics, and stakeholder audiences for this report. The primary processes used include the following:

• Collectingandreviewingofdatabyadedicatedteam,communicatingwiththeCompany’sexecutivesandmanagersand with delegates from companies within the report boundary

• InternalbenchmarkingusingfiguresfromtheSustainabilityReport2010.

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*

3.1 ECONOMIC PERFORMANCE INDICATORS

3. PERFORMANCE INDICATORS

3.1.1 Economic Performance

EC1: ‘Direct economic value generated and distributed’

Omnicane’s Group turnover represents the gross proceeds of sugar, molasses and bagasse, and income receivable for the supply of electricity to the CEB. Sugar and molasses proceeds are recognised on total production for the crop year. Bagasse proceeds are accounted as and when they are receivable for the Group. Sugar and molasses prices are based on prices recommended by the Mauritius Chamber of Agriculture for the crop year after consultation with the Mauritius Sugar Syndicate. Other revenues earned by Omnicane are as follows:

• Dividendincome-whentheshareholder’srighttoreceivepaymentisestablished

• Interestincome-onatimeproportionbasis,usingtheeffectiveinterestmethod

• SugarIndustryFundBoardcompensation-onanaccrualbasis.

The following table highlights and compares the Value Added Statements of Omnicane for the years 2011 and 2010

Direct economic Value Generated – Rs ’000 2011 2010

Group turnover 3,912,953 3,479,704

Plus Income from investment 6,950 5,419

Less Paid to growers of sugarcane (123,797) (110,637)

Less Manufacturing costs (1,978,728) (1,705,674)

Total direct economic value generated 1,803,478 1,668,812

Wealth Reinvested – Rs ’000

Retained profit 264,206 119,577

Plus Depreciation 379,723 399,073

Total wealth reinvested 643,929 518,650

Wealth Distributed – Rs ’000

To employees as salaries, wages and other benefits 351,076 362,721

To lenders of capital as interest 585,579 580,887

To shareholders as dividend 184,284 167,531

To Government as taxation 28,773 23,381

To communities as corporate social responsibility 9,837 15,642

Total wealth distributed 1,159,549 1,150,162

Group turnover rose by 12.7% in 2011 and hovered around the Rs 4 billion mark, with the energy segment still the main contributor at 67.2% (2010 – 69.6%) whereas the sugar segment contributed 32.8% (2010 – 30.4%).

The sugar segment, however, was the driving force behind the 54.6% improvement in the Group’s 2011 bottom-line results as compared with 2010. The main elements contributing to this performance were:

• Anincreaseinthesalesvolumeofrefinedsugarfrom104,483tonnesin2010to147,979tonnes2011

• TheclosureofOmnicaneMillingOperations’UnionStAubinsugarmillearlyin2011,whichgeneratedsignificantsavingsin operating costs

• ThehighersugarpriceofRs15,800pertonne(2010–Rs13,500pertonne)obtainedfromtheMauritiusSugarSyndicate(MSS).

In addition to the above, the rationalisation of activities and operations through several measures ensured that operating costs were kept to a minimum and the efficiency of operations and activities enhanced.

However, the energy segment’s result was adversely affected by higher repair and maintenance costs. These were incurred mainly in respect of the major overhaul carried out at the Omnicane Thermal Energy Operations (La Baraque) power plant after five years of operation.

On the debt-servicing side, despite a much lower gain of Rs 12.2 million on foreign currency exchange in 2011, compared with Rs 70.5 million in 2010, our finance costs were only marginally up, to Rs 585.6 million from Rs 580.9 million in 2010.

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Exceptional items, at Rs 271.5 million, is made up mainly of profit on sale of land plots, principally in the Highlands region.

Taxation was down to Rs 88.4 million in 2011 from Rs 132.8 million in 2010, because in 2010 there was a deferred tax adjustment in respect of our subsidiary Omnicane Thermal Energy Operations (La Baraque) Limited. As a result, the effective tax rate of the Group now stands at 15.3%.

Corporate Social Responsibility (CSR) contributions for a given year are calculated at 2% of the previous year’s net profit after income tax. However, since the Group’s net profit after tax was less in 2010 than in 2009, there was a 43.5% decrease in our CSR contribution in 2011. Also, Omnicane Limited’s CSR contribution was Rs 5,366,000 in 2010 (as its 2009 profit after tax was Rs 293,406,000), but nil in 2011, as shown in Annex 2:

EC2: ‘Financial implications and other risks and opportunities for the organisation’s activities as a result of climate change’

Warming of the atmosphere has also impacted the hydrologic cycle over the southwest Indian Ocean. Long-term time series of rainfall amount over the past century (1905 to 2007) show a decreasing trend in annual rainfall over Mauritius. In fact the average rate of decrease per decade is around 57 mm. The total decrease during the last ten years is about 8% when compared to the 1950s. (Source: Mauritius Meteorological Services)

The period from September to December 2010 was marked by a severe drought which affected the start of crop 2011. Mon Trésor and Britannia respectively received only 42 % and 55 % of their seasonal average rainfall. The first summer rains did not come until 11 January 2011. The height of the cane at Mon Trésor and Britannia respectively at the end of January 2011 was only 60% and 77 % of the seasonal average height for those regions. Fortunately, climatic conditions from mid-January were more favourable for cane growth, which then made up for the initial delay. Furthermore, the start of the 2011 harvest was deliberately postponed to the end of June to permit the cane to reach full maturity with a better sucrose content which would then go on increasing as the harvest progressed.

The Group’s operating entities have comprehensive insurance policies to cater for all material damages and cumulative losses with regard to natural catastrophes such as tropical cyclones and floods, as summarised below:

Operational EntityPremium related to climate change paid per entity (under Fire & Other perils) in 2011, Rs.

Omnicane Thermal Energy Operations (St Aubin) Limited 2,203,840

Omnicane Thermal Energy Operations (La Baraque) Limited 1,674,760

Omnicane Agricultural Operations Limited 151,081

Omnicane Milling Operations Limited 3,845,961

Total 7,875,642

3.1 ECONOMIC PERFORMANCE INDICATORS

One of the opportunities arising from the burning of bagasse to generate electricity is a contribution to mitigating climate change and avoiding CO

2 emissions through the substitution of fossil fuels. The Operating Margin for 2011

was 0.275 tCO2/GJ (0.99048371 tCO

2/MWh). The total bagasse-related electricity exported to the national grid by

Omnicane Thermal Energy Operations (La Baraque) Limited in 2011 was 521,701.2 GJ (144.917 GWh). Thus, the avoided emissions from the burning of bagasse per GJ electricity sold amounted to 143,467.8 tCO

2 in 2011 compared

with 117,000 tCO2 in 2010.

The Operating Margin was calculated using the “Tool to calculate the emission factor for an electricity system” (Version 2.2.1, EB63) – (Source: http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.2.1.pdf/history_view , and official statistics on electricity generation.)

EC3: ‘Coverage of the organisation’s defined benefit plan obligations’

The Group operates a defined contribution retirement benefit plan for all qualifying employees and their dependents. The latter are covered by a contributory Death and Retirement scheme administered by The Anglo-Mauritius Assurance Society Limited, and a contributory defined benefit scheme (Sugar Industry Pensions Fund 2) managed by the Sugar Industry Fund Board. The Group’s pension expenditure in 2011 is included in the figure given in the ‘To employees as salaries, wages and other benefits’ row in the Wealth Distributed table on page 34 of this report.

Other Retirement Benefits

Other retirement benefits relate to gratuities on death or retirement that are based on length of service and salaries at the date of death or retirement.

3.1 ECONOMIC PERFORMANCE INDICATORS

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3.1 ECONOMIC PERFORMANCE INDICATORS

The table below sums up the retirement benefit obligations contributed by the Group in 2011 and 2010.

Retirement benefit obligations THE GROUP

2011 2010 Rs’000 Rs’000

Amounts recognised in the statement of financial position:Defined benefit plan 14,017 10,600Other retirement benefits 73,502 78,388

87,519 88,988

Following the closure of the Union St Aubin sugar mill in March 2011, the Group’s total retirement benefit obligations decreased by 1.65% as our liability to provide retirement benefits to 152 of the mill’s employees ceased when the latter opted for the Blue Print package of benefits available to employees of a sugar factory being closed in the context of centralisation. The Union St Aubin Blue Print benefits included:

• Cashcompensationequivalentto2.5monthsperyearofservice

• Compensationinkindintheformofaplotoflandofanextentrangingfrom540to720squaremetreswithallinfrastructural works effected

• Variousotherbenefits,includingscholarshipsinspecificareasofstudyfortheemployees’children.

As at 31 December 2011, 99 workers out of 137 and 11 staff out of 15 opted for the Union St Aubin factory closure Blue Print. The rest are on a 2-year adaptation phase which will expire in March 2013.

As such, during the year 2011, there was an increase of 54% in infrastructure and social costs under the Voluntary Retirement Scheme (VRS) and Blue Print schemes as compared with 2010.

EC4: ‘Significant financial assistance received from Government’

As mentioned in our Sustainability Report 2010, Omnicane was expecting financial assistance from Government in relation to the closure of Union St Aubin factory. In April 2011, around Rs 97 million was obtained from Government to cater for cash compensation for workers in respect of the closure. This financial assistance was funded by the European Union in support of the sugar sector reform under the Multi Annual Adaptation Strategy.

EC5: ‘Range of ratios of standard entry level wage by gender compared with local minimum wage at significant locations of operation’

Omnicane is committed to promoting and maintaining a harmonious employment relations climate. It fully recognises the right of every worker to freedom of association and its own legal obligation under all relevant legislation, e.g. The Employment Relations Act 2008 (Act No. 32 of 2008) and the Employment Rights Act (Act No. 33 of 2008).

A proper channel of communication exists between Management and employees, and information is disseminated through Morning Assembly, departmental meetings, and the Group’s Web site and magazine, as well as by email and notices. Moreover, in case of conflicts, employees can refer to a grievance procedure whereby they can have the assistance of their union representative. Otherwise, with the open-door policy in practice, employees can voice their problems to their supervisor and appeal to a higher instance if their grievance is not resolved.

Omnicane also holds regular internal meetings with shop stewards as well as with the Joint Negotiating Panel (JNP) of the sugar industry, where major issues affecting the organisation of work are discussed with a view to finding a mutually acceptable solution. Collective bargaining in the sugar industry is a reality and has resulted in package deals for agricultural and non-agricultural workers as well as the staff. However, it is to be noted that collective bargaining is done at the level of the Mauritius Sugar Producers’ Association (MSPA), and this structure will soon shift to negotiations at enterprise level.

Even though the sugar industry is governed by Remuneration Orders, which recommend minimum wages, employees of Omnicane are paid higher salaries in accordance with package deals signed between the MSPA and the trade unions.

3.1 ECONOMIC PERFORMANCE INDICATORS

The table below is a sample to illustrate the difference between salaries under Remuneration Orders and those agreed with trade unions.

Category Monthly Wages, (ref January 2011 wages)PD:RO

Ratio

Remuneration Order, (RO) Rs. Package Deal, (PD) Rs.

Field Worker - Male 6,251.3 8,795 1.4:1

Field Worker - Female 4,974.3 7,273.7 1.5:1

Chief Motor Mechanic 9,147.6 13,044.6 1.4:1

As the body responsible for prescribing minimum wages and conditions of service nationally, the National Remuneration Board (NRB) prescribes different minimum wages and conditions of service for different sectors. The Remuneration Orders applicable to the sugar industry are the Sugar Industry Agricultural and Non-Agricultural Remuneration Orders.

Moreover, Omnicane Logistics Operations Limited is governed by the Road Haulage Remuneration Order, whereas Omnicane Thermal Energy Operations (La Baraque) Limited and Omnicane Thermal Energy Operations (St Aubin) Limited are governed by the Factory Employees Remuneration Order.

EC6: ‘Policy, practices and proportion of spending on locally based suppliers at significant locations of operation’

Local suppliers are usually chosen by the Group’s Central Purchasing Department for the purchase of the Group’s requirements in general materials and consumables, and 80% of our purchases are supplied by local suppliers. The latter are preferred as proximity offers a definite advantage in terms of payment facilities and after-sales service. Foreign purchasing is sought in situations where specific technical equipment/machinery or products are required.

7,273.78,795

4,974.3

6,251.3

9,147.6

13,044.6

Package Deal, (PD) Rs. Renumeration Order, (RO) Rs.

Field Worker - FemaleField Worker - Male Chief Motor Mechanic

Expenses – Supplies & Services (Rs.)

Omnicane Agricultural

Operations: Rs.238,184,636

Omnicane Thermal Energy Operations – La Baraque: Rs.1,004,841,350

Omnicane Logistics

Operations: Rs.43,503,377

Omnicane Milling Operations: Rs.411, 589,522

Omnicane Thermal Energy Operations – St Aubin: Rs.672,750,213

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EC7: ‘Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation’

Members of senior Management are chosen for their competence in their respective fields in light of academic qualifications, work experience and other skills required. New members are hired when the necessity for the prospective posts arises. As the table below indicates, 91% of the Group’s senior Management are Mauritian.

Name post Nationality

Omnicane Management & Consultancy Limited

Mr D’UNIENVILLE, Jacques M. Chief Executive Officer Mauritian

Mr AH-CHAM, Eddie Company Secretary Mauritian

Mr AUTREY, Jean-Claude Science and Technology Coordinator Mauritian

Mr BRUNEAU, Joël Head of Property Development Mauritian

Mr CHASTEAU DE BAYLON, Gérard Chief Strategy Officer Mauritian

Mr DOOKHUN, Avinash Group Systems Administrator Mauritian

Mr LUTCHMANEN, Rudley Financial Accountant Mauritian

Mr MIRTHIL, Nelson Chief Finance Officer Mauritian

Mr MOHUN, Navinduth Internal Auditor Mauritian

Mr PLANCHE, Gaëtan Chief Purchasing Officer Mauritian

Mr SEEBARUTH, Oudesh Group Accountant & Head of Treasury Mauritian

Omnicane Limited - Agricultural Operations

Mr AUDIBERT, François Chief Operations Officer Mauritian

Mr DALAIS, Jocelyn Cost Control and Budget Officer Mauritian

Mr MAMET, Patrick Field Manager, Britannia Mauritian

Mr MOTET, Jean Marc Field Manager, Mon Trésor Mauritian

Mr SEELARBOKUS, Hamid Human Resources Manager Mauritian

3.1 ECONOMIC PERFORMANCE INDICATORS

Name post Nationality

Omnicane Milling Operations Limited

Mrs AUFFRAY-MOONIEN, Sabine Human Resources Coordinator Mauritian

Mr CABOCHE, Jean Luc Factory Manager Mauritian

Mr DAVY, Lindsay Process Manager Mauritian

Mr. FAYOLLE, Lindsay Chief Operations Officer Mauritian

Mr JULIEN, Jean Pierre Maintenance Manager Mauritian

Mr KHAN ITOOLA, Rechard Group Database Administrator Mauritian

Mr KONG WIN CHANG, Jack Chief Operations Officer Mauritian

Mr NG MAN CHUEN, Jean Luc Accounts Manager – Sugar Cluster Mauritian

Mr RAMLUGON, Rajivsingh Chief Sustainability Officer Mauritian

Mr THEVENAU, Daniel Site Manager, Milling Operations Mauritian

Omnicane Thermal Energy Operations Limited - La Baraque

Mr BOREL, Emmanuel Power Plant Manager – La Baraque French

Mr CALLYCHURN, Prithviraj Assistant Plant Manager Mauritian

Mr SAGNIER, Pierre Project Development Manager French

Mr SOOBHANY, Imran Accounts Manager Mauritian

Omnicane Thermal Energy Operations Limited - St Aubin

Mr ROBERT, Frédéric Power Plant Manager – St Aubin French

Mr SOOBHANY, Imran Accounts Manager Mauritian

Omnicane Logistics Operations Limited

Mr DE GUARDIA DE PONTE, Joseph Garage and Logistics Manager Mauritian

Mr GOUPILLE, Roger Mée Garage and Transport Manager, Mon Trésor Mauritian

3.1 ECONOMIC PERFORMANCE INDICATORS

Page 23: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201142 43

33.2.1 Materials

EN1: ‘Materials used by weight or volume’

The most significant change in materials used was at Omnicane Milling Operations (La Baraque) Limited, where the raw house processed an additional 30% of sugarcane, and as a result the Group’s thermal power plant at La Baraque consumed 22% more bagasse in 2011 than in 2010. This was a direct consequence of the closure of the Union St Aubin sugar mill.

2011 2010

Renewable Material: Sugarcane

Milling raw house, La Baraque , tonnes 1,331,977 1,047,568

Milling raw house, St Aubin , tonnes - 307,783

Total sugarcane crushed, tonnes 1,331,977 1,355,351

Renewable Material: Bagasse

Thermal (La Baraque), tonnes 447,655 347,774

Milling, St Aubin, tonnes - 94,160

Total bagasse used, tonnes 447,655 441,934

Renewable Material: Plantation White Sugar

Milling/refinery, tonnes 183,601.86 137,905

Total weight of renewable direct materials used, tonnes 1,963,233.86 1,935,190

Non-renewable Material: Coal

Thermal (La Baraque), tonnes 190,499 200,301

Thermal (St Aubin), tonnes 132,184 114,499

Total weight of non-renewable direct material (coal) used, tonnes 322,683 314,800

Non-renewable Indirect Material: Plant Protection Products

Pesticides

Solid form, tonnes 1.3 6.4

Liquid form, litres 1795 1648

Herbicides

Solid form, tonnes 11.8 1.1

Liquid form, litres 28,600 49,415

Fertilisers

Solid form, tonnes 2,970 4,844

Non-renewable Indirect Material: Chemicals

Milling (raw house) / refinery, tonnes 2,126 3,220.6

Thermal (La Baraque), tonnes 196.38 207

St Aubin, tonnes 34.13 45.63

Total Weight of Indirect Non-renewable Materials Used

Solid form, tonnes 5,339.61 8,324.73

Liquid form, litres 30,395 51,063

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

3.2.2 Energy

EN3 – ‘Direct energy consumption by primary energy source’

The main direct forms of energy used by our operating entities are low-pressure steam, electricity, and diesel. The tables below summarise the direct energy produced, sold, purchased, and consumed during the years 2011 and 2010 with respect to one renewable source (bagasse) and two non-renewable sources (coal and diesel).

Direct Energy Produced

Renewable SourcesTonnes MWh GJ

2011 2010 2011 2010 2011 2010

Low-pressure steam produced by Milling, St Aubin

- 153,662.7 - - - 441,012

Electricity produced by Milling, St Aubin

- - - 22,388 - 80,596.8

Low-pressure steam produced from bagasse by Thermal (La Baraque) and sent to Milling, La Baraque

510,578 414,344 - - 1,443,404 1,171,350.8

Electricity produced from bagasse by Thermal (La Baraque)

- - 178,979 142,124 644,324.4 511,646.4

Total energy produced from renewable sources 2,087,728.4 2,204,606

Non-renewable Sources

Tonnes MWh GJ

2011 2010 2011 2010 2011 2010

Low-pressure steam produced from coal by Thermal (La Baraque) and sent to Milling, La Baraque

263,242 214,424 - - 744,185.13 606,176.6

Electricity produced from coal by Thermal (La Baraque)

- - 367,332 380,329 1,322,395.2 1,369,184.4

Electricity produced from coal by Thermal (St Aubin)

- - 248,488 216,742 894,556.8 780,271.2

Total energy produced from non-renewable sources 2,961,137.1 2,755,632.2

Direct Energy Sold

Renewable Sources

Tonnes MWh GJ

2011 2010 2011 2010 2011 2010

Electricity exported, made from bagasse by Milling (St Aubin)

- - - 14,917 - 53,701.2

Electricity exported, made from bagasse by Thermal (La Baraque)

- - 144,917 114,637 521,701.2 412,693.2

Direct energy sold, made from renewable sources

- - 144,917 129,554 521,701.2 1,896,321.6

Non-renewable Sources

Tonnes MWh GJ

2011 2010 2011 2010 2011 2010

Electricity exported, made from coal by Thermal St Aubin

- - 227,881 195,753 820,371.6 704,710.8

Electricity exported, made from coal by Thermal (La Baraque)

- - 316,108 331,003 1,137,988.8 1,191,610.8

Direct energy sold, made from non-renewable sources

- - 543,989 526,756 1,958,360.4 1,896,321.6

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Page 24: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201144 45

Direct Energy Purchased

The two main sources of energy purchased by Omnicane’s operating entities are: (1) electricity from the national grid, and (2) diesel for transport.

Electricity imported from CEB Milling Thermal LB Thermal SA

Agriculture& Logistics Management Total

Year 201124,332.4 GJ

(6,759 MWh)532.8 GJ

(148 MWh)741.9 GJ

(206 MWh)3,240 GJ

(900 MWh)367.2 GJ

(102 MWh)29,214 GJ

(8,115 MWh)

Year 201026,046 GJ

(7,235 MWh)460.6 GJ

(127 MWh)734.1 GJ

(203 MWh)2797.6 GJ

(800 MWh)459 GJ

(130 MWh)30,497.3 GJ

(8,495 MWh)

Fuel Consumption Milling Thermal LB Thermal SA

Agriculture & Logistics Total

Year 201148,860.2 GJ

(1,375,159 litresDiesel)

12,915.7 GJ(363,510 litres

Diesel)

3,364.6 GJ(94,697 litres

Diesel)

47,922.5 GJ(1,348,767 litres)

113,063 GJ(3,182,133

litres diesel)

Year 201050,489 GJ

(1,421,000 litres Diesel)

15,815.1 GJ(445,110 litres

Diesel)

3,069.2 GJ(86,384 litres

Diesel)

47,984.2 GJ(1,350,503 litres)

117,357.5 GJ(3,302,997

litres diesel)

Density of diesel = 0.82 kg/l at 20 degrees Celsius

Density of gasoline = 0.76 kg/l at 20 degrees Celsius

Non-renewable Source

Litres MWh GJ

2011 2010 2011 2010 2011 2010

Fuel Consumption 3,182,133 3,302,997 - - 113,063 117,357.5

Electricity purchased from CEB - - 8,115 8,495 29,214 30,497.3

Total direct energy purchased, made from non-renewable sources 142,277 147,854.7

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Energy Consumption (GJ)

20112010

(466,394.4)(521,707.2)

Minus Direct Primary Energy sold

2,087,728.42,204,606

Plus Direct Primary Energy produced

00

Direct Primary Energy purchased

1,738,211.6

1,566,021.2

Total Direct Energy Consumption

from renewable sources

Renewable Source

Non-renewable sourceGJ

2011 2010

Direct primary energy purchased 142,277 147,854.7

Plus Direct primary energy produced 2,961,137.1 2,755,632.2

Minus Direct primary energy sold (1,958,360.4) (1,896,321.6)

Total direct energy consumption from non-renewable sources 1,145,053.7 1,007,165.3

Year

DIReCT eNeRGY pRoDUCeD

DIReCT eNeRGY SoLD

DIReCT eNeRGY pURCHASeD

DIReCT eNeRGY CoNSUMeD

From Renewable Sources/GJ

From Non-

renewable Sources/GJ

From Non-

renewable Sources/GJ

From Renewable Sources/GJ

From Non-

renewable Sources/GJ

From Renewable Sources/GJ

From non-

renewable sources/GJ

From renewable sources/GJ

2011 2,087,728.4 2,961,137.1 1,958,360.4 521,701.2 142,277 - 1,145,053.7 1,566,021.2

2010 2,204,606 2,755,632.2 1,896,321.6 466,394.4 147,854.7 - 1,007,165.3 1,738,211.6

EN5: ‘Energy saved as a result of conservation and efficiency improvements’ / EN6: ‘Initiatives to provide energy-efficient or renewable-energy-based products and services and reductions in energy requirements as a result of these initiatives’

The sugar factory at La Baraque requires much electricity to run, as well as processed steam for all its heating and evaporation operations. Steam, however, is a precious resource in that it can also be used to generate electricity for the national grid. The factory’s consumption of steam and electricity is therefore a very sensitive issue. Omnicane lays much emphasis on energy efficiency through appropriate technologies such as process heat integration or in the form of such equipment as rising film evaporators and high-efficiency plate heat exchangers. This ultimately reduces dependence on fossil fuels.

We have chosen cane diffusion technology for juice extraction mainly to reduce the power consumption of the factory, which has been designed as an ‘energy optimised unit’, so as to spare maximum energy for export to the national grid by the cluster’s power plant. Two dewatering mills follow the diffuser to produce a bagasse of low humidity for the power plant. All the muds from the juice clarification are recycled back to the diffuser, thereby eliminating the need for mud filtration and scum production. Compared with a conventional mill tandem, the diffuser has enabled the Company to achieve 2 MW of power conservation.

Before centralisation, Omnicane Milling Operations Limited was consuming some 500 kg of steam per tonne of sugarcane processed. With the introduction of highly efficient technologies, steam consumption per tonne of sugarcane processed was brought down to 489 kg in 2011 from 530 kg in 2010. Furthermore, electrical consumption was reduced from 0.0864 GJ (0.024 MWh) per tonne of cane in 2010 to 0.0828 GJ (0.023 MWh) per tonne of cane during crop 2011.

Another initiative has been the increase in energy generated from bagasse with the processing of Union St Aubin mill’s bagasse by the Group’s power plant at La Baraque. The latter, being more efficient than the one at the Union St Aubin sugar mill, enabled the extraction of a greater fraction of energy from the same tonnage of bagasse. As a matter of comparison, the output of electricity produced at the Union St Aubin sugar factory was 0.2617 GJ (0.073 MWh) per tonne of cane whereas the energy extraction achieved by the power plant at La Baraque was 0.4838 GJ (0.134 MWh) per tonne of cane.

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Page 25: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201146 47

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

3.2.3 Water

EN8: ‘Total water withdrawal by source’

Most entities made an effort to reduce their water consumption. The more significant decrease came from milling activities whereby the percentage reduction of 60% was achieved in 2011 compared with 2010. This was due to the installation of a cooling tower enabling the recirculation of cooling water from the first and second dewatering mills. Agricultural operations’ water consumption, on the other hand, increased as a result of water shortage and drought, with more water used for irrigation purposes.

2011 2010

Surface Water (m3)

Omnicane Milling Operations Limited 545,235 865,000

Omnicane Agricultural Operations Limited 8,253,000 5,650,000

Omnicane Thermal Energy Operations (La Baraque) Limited 1,809,779 1,848,252

Omnicane Thermal Energy Operations (St Aubin) Limited 895,432 718,180

Total surface water used (est.) 11,503,446 9,081,432

Ground Water (m3)

Omnicane Agricultural Operations Limited (est.) 3,702,000 3,000,000

Tap Water (m3)

Omnicane Milling Operations Limited 10,485.2 19,064.16

Omnicane Agricultural Operations Limited 91,889.7 66,800

Omnicane Thermal Energy Operations (La Baraque) Limited 10,485.2 19,064.16

Omnicane Thermal Energy Operations (St Aubin) Limited 2,350 2,454

Omnicane Management & Consultancy Limited 1,305.18 900

Total tap water used (m3),est. 116,515.3 108,282.3

Total Water Used (m3),est. 15,321,961.3 12,189,714.3

EN9: ‘Water sources significantly affected by withdrawal of water’

None of our water sources are significantly affected by withdrawal of water as we have water rights on rivers by virtue of the Rivers and Canal Act 1863, whereby fractions of the river flow are allocated to us as shown below. The water available to Omnicane’s sugar estates is used to satisfy their milling and irrigation requirements. Regarding the water right on River du Poste (La Flora), it should be noted that no water is at present abstracted by the estate, whose share of the water is left to the river.

Water used in m3

3,702,000

11,503,446

3,000,000

9,081,432

108,282.3 116,515.3

20112010

Ground WaterTotal Surface Water used Total Tap Water used

Water Right Holder

Water Source

Share of River Flow

Flow (M3/Hr)

Volume Used in 2011, M3 Purpose

Mon Trésor & Mon Désert Limited

Ruisseau Les Mares du Tabac

9/10 288 2,073,600 Irrigation & factory

Mon Trésor & Mon Desert Limited

River La Chaux – Deux Bras Canal

1/5 406.8 Not used anymore -

Mon Trésor & Mon Désert Limited

River La Chaux – Plaisance Dam

1/4 1018.8 6,048,000, of which 265,000 m3 is shared with Thermal La Baraque (as emergency backup)

Irrigation, factory, power plant

Britannia S.E. River du Poste – La Flora Dam

9/50 127 Not used anymore -

Britannia S.E. River Dragon – Britannia Dam

80.48 shares 296 2,131,200 Irrigation

Benares S.E. River St Amand – Canal de Launay

1/2 140 1,008,000 Irrigation

Britannia S.E. Ruisseau Songes – Britannia Dam

All 100 720,000 Irrigation

Britannia S.E. Rivière des Anguilles – Britannia Dam

119.23 shares

305 2,196,000 Irrigation, factory

EN10: ‘Percentage and total volume of water recycled and reused’

High consumption of raw water results in large volumes of effluent to treat. During 2011, Mauritius suffered a severe drought. To cope with that unfortunate situation, the sugar factory at La Baraque applied the 3R philosophy (reduce, reuse and recycle) during crop 2011. A water survey was carried out on the factory’s consumption requirements, and appropriate technologies were applied in the form of such equipment as cooling towers and closed-loop heat exchangers. The result was a reduction in water consumption from 250 m3/hr to 100 m3/hr during 2011. All process water released from the Group’s milling and thermal operations at La Baraque is now available for reuse in the irrigation of sugarcane fields, and some 1,205,245 m3 of water were reused in 2011, compared with 1,618,588 m3 in 2010.

3.2.4 Biodiversity

EN11: ‘Location and size of land owned, leased, or managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas’

Our operations are not located in or adjacent to protected areas or areas of high biodiversity value outside protected areas. Environmental impact assessment studies carried out in respect of our industrial operations at La Baraque and St Aubin have concluded that these are neither in nor adjacent to protected areas or areas of high biodiversity value outside protected areas.

EN12: ‘Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas’

Our activities, products and services had no significant impacts on biodiversity in protected areas or in areas of high biodiversity value outside protected areas.

3.2.5 Emissions, Effluents & Wastes

EN20: ‘NOx, SOx and other significant air emissions by type and weight’

As the table below shows, all of the parameters tested comply with the standards required under the Environmental Protection Act (EPA) 1998 regulations for air emissions. A correction factor of 15% O

2 is applicable for gaseous

concentrations and for comparison with environmental emission standards. Particulate matter load is at 12% CO2 and

measured in milligrams of particulate matter per cubic metres of dry flue gas at standard temperature and pressure (STP). Emission standard for particulate matter for coal burning plant is 200 mg/m3 whereas that for bagasse is 400 mg/m3.

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Page 26: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201148 49

Om

nic

ane

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3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Om

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3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Page 27: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201150 51

EN21 - Total Water Discharge by Quality and Destination

The amount of wastewater discharged is directly proportional to the volume of water consumed. There was a significant decrease in volume of wastewater discharged in 2011 compared with 2010 as a result of water reduction campaigns carried out in the milling plants in operation.

Water Discharge by Quality

An improvement was noted in the quality of the effluent discharged in 2011, as compared with 2010. Through good operating practice at the sugar mill at La Baraque, sugar losses were reduced, and organic load in the form of chemical oxygen demand decreased as a result. Further improvement is expected in 2012 with the segregation of process water streams and the implementation of phase 1 of the effluent treatment plant.

Milling La Baraque, Yearly Averages

2011 2010

Sucrose, ppm 295 415

COD, mg/l 546 661

pH 7.8 6.3

Temperature, 0C 43 35

Conductivity, μS/cm 653 152

Thermal La Baraque, Yearly Averages

2011 2010 Permitted

pH 7.4 8.1 5 - 9

Temperature, 0C 28.9 28.69 No Limit

Total suspended solids, TSS, mg/l 27 40.35 45

COD, mg/l 68 64.62 120

Chromium, mg/l 0.04 0.05 No Limit

Copper, mg/l 0.02 0.03 0.2

Iron, mg/l 0.31 0.4 5

Oil & grease, mg/l 6.0 4.95 10

Zinc, mg/l 0.06 0.03 2

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Volume of water discharge, m3 (estimates)

20112010

32,000 32,545

Thermal (St Aubin)

509,285.9452,845.4

Thermal (La Baraque)

1,109,303.3

752,400

Milling

720 1044.1

Management

Thermal St Aubin, Yearly Averages

2011 2010 Permitted

Temperature, 0C 29.7 28.6 40

Conductivity - 639.3

Turbidity - 37.2

Total suspended solids, TSS ,mg/l 19.5 28.2 300

pH 9.4 9.1 5 - 9

Total dissolved solids ,mg/l - 283.6

Copper ,mg/l 0.024 0.1 No Limit

Iron ,mg/l 0.086 0.1 No Limit

Zinc ,mg/l 0.022 0.1 2

Chromium, ug/l 0.07 0 500

Oil & grease, mg/l 4.4 NIL 20

Nitrate - 4.2

Sulphate - 24.7

EN22: ‘Total weight of waste by quality and destination’

Molasses is a by-product of sugar manufacture. Milling operations extracts the juice or syrup from the sugarcane. This syrup is then boiled, and sugar is produced through crystallisation. The remaining product is molasses, which contains small amounts of sugar, trace amounts of vitamins, and significant amounts of several minerals.

The molasses produced by Omnicane Milling Operations Limited is sold to Mauritius Molasses Co. Ltd for export to the European Union.

The Group’s power plant at La Baraque produces ash from both bagasse and coal, whereas the power plant at St Aubin produces ash from coal only. During the 2010 crop season the Union St Aubin sugar mill produced 60 tonnes/day of bagasse ash and 70 tonnes/day of scum over 150 days. Fly ash from bagasse is an organic material that contains important soil nutrients and negligible levels of trace metals. It is therefore used as a fertiliser. Present fly ash management practice in Mauritius consists in collecting the ash and applying it directly in the fields or mixing it with sugar factory scums to produce compost.

Coal ash on the other hand is composed mainly of inorganic coal constituents: oxides of silicon, aluminium, iron and calcium, and also some trace elements which are hazardous to the environment. The fly ash and bottom ash resulting from the burning of coal in grid boilers in the power plants at La Baraque and St Aubin are at present buried in appropriate land cavities and depressions. Such sites are limited, and it was imperative to seek alternative modes of disposal.

PROCESS BY-PRODUCTS

PROCESS BY-PRODUCT PRODUCED 2011 2010

Molasses, tonnes 43,559 46,983

Coal bottom ash – Omnicane Thermal Energy Operations (La Baraque) Limited, tonnes 25,503 27,574.54

Coal fly ash – Omnicane Thermal Energy Operations (La Baraque) Limited, tonnes 17,228 24,458.20

Bagasse fly ash – Omnicane Thermal Energy Operations (La Baraque) Limited, tonnes 30,089 21,757.95

Coal bottom ash – Omnicane Thermal Energy Operations (St Aubin) Limited, tonnes 12,766 8,799

Coal fly ash – Omnicane Thermal Energy Operations (St Aubin) Limited, tonnes 12,828 11,448

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

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Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201152 53

HAZARDOUS WASTES

HAZARDOUS WASTES PRODUCED 2011 2010

Lead acetate filter papers7,380 Kg @ MillingDisposal: Mare Chicose Landfill by encapsulation in concrete

6,900 Kg @ MillingDisposal: Mare Chicose Landfill by encapsulation in concrete and storage in hazardous waste cell

Disused cemented asbestos pipesNo disused cemented asbestos pipes reported

3,620 Kg @ MillingDisposal: Mare Chicose Landfill by burial in the compacted waste mass

Used Oil

Milling 2500 LThermal St Aubin 400 LLogistics 12,000 LTotal 14,900 L

Disposal: Collected by Ecofuel Ltd for treatment & recycling

Thermal La Baraque 600 LThermal St Aubin 425 LLogistics 20,280 LTotal 21,305 L

Disposal: Collected by Ecofuel Ltd for treatment & recycling

Batteries No waste batteries

Thermal La Baraque 46 batteriesLogistics 70 batteries

Disposal: Partly stored on site and collected by Steel Scrap Ltd

FiltersAwaiting critical volume for disposal, in meantime stored on site

1,800 filters @ LogisticsDisposal: Mare Chicose Landfill

E-wastesPlanning to dispose through e-wastes recycling company in 2012

Printing cartridges and toners – 27.3 kgPrinters – 10 kgComputers – 20 kgSource: Management & ConsultancyDisposal – All e-waste is stored and reused where possible while sustainable disposal is investigated

METALLIC WASTES

METALLIC WASTES PRODUCED 2011 2010

Scrap metal No scrap metal

Quantity: 12 tonnesSource: LogisticsDisposal: Collected by Steel Scrap Ltd for recycling

DOMESTIC WASTES

2011 2010

Domestic waste

Milling 199.7 tonnesThermal La Baraque 8 tonnesThermal St Aubin 15 tonnesAgriculture 925 tonnesManagement 0.423 tonnes (est)Total 1148.1 tonnes

Disposal : Mare Chicose Landfill

Milling 267.26 tonnesThermal La Baraque 8.2 tonnesThermal St Aubin 52 tonnesAgriculture 800 tonnesManagement 1.275 tonnes (est)Total 1,128.74 tonnes Disposal: Mare Chicose Landfill

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

EN23: ‘Total number and volume of significant spills’

There were no significant spills reported during the year 2011 on our operating sites.

EN24: ‘Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention’

Hazardous Wastes Amount Collected

Disposal Method

Batteries, old cell phones 23 kg Sent to recycling company

Engine, gear, and lubricating oils 14,900 litres Collected by Ecofuel Ltd for treatment & recycling

Insulating and heat transmission oils containing PCBs or PCTs

No PCBs N/A

Asbestos (dust and fibre) No asbestos N/A

Lead compounds (filters) 7,380 kg Mare Chicose Landfill, by encapsulation in concrete and storage in hazardous waste cell

3.2.6 Compliance

EN28: ‘Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations’

There were no significant fines or non-monetary sanctions for non-compliance with environmental laws and regulations reported in 2011.

3.2.7 Overall

EN30: ‘Total environmental protection expenditures and investments by type’

The construction of phase 1 of a state-of-the-art effluent treatment plant at La Baraque costing Rs 20 million started in December 2011 and will be completed in June 2012. Phase 2 of the plant will be constructed during the first semester of 2013 and will be fully operational by June 2013. This effluent treatment plant will cater for all industrial effluents from the sugar mill, the refinery and the future distillery. The setting up of this effluent plant forms part of a vast effluent management strategy launched within the La Baraque industrial cluster in 2007 with the objective of reducing, reusing and recycling as much effluent as possible, thereby contributing to the conservation of available natural resources while protecting the environment.

3.2 ENVIRONMENTAL PERFORMANCE INDICATORS

Page 29: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201154 55

3.3 SOCIAL PERFORMANCE INDICATORS3.

3.1

LAB

OU

R P

RA

CTI

CES

& D

ECEN

T W

OR

K

3.3.

3.1

Emp

loym

ent

LA1:

‘Tot

al w

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orce

by

emp

loym

ent t

ype,

em

plo

ymen

t con

trac

t, a

nd

regi

on, b

roke

n d

own

by

gen

der

OPE

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IING

EN

TITI

ES

STA

FFW

ORK

ERS

TOTA

L ST

AFF

TOTA

L W

ORK

ERS

TOTA

L EM

PLO

YEES

NO

RTH

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PPER

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RT

OF

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ND

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TH -

LOW

ER P

AR

T O

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LAN

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UTH

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OF

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MA

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MA

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ALE

FEM

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42

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nica

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71

40

100

30

30

00

00

00

253

28

Om

nica

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illin

g O

per

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ns

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ited

50

00

356

43

00

00

247

303

46

5356

061

3

Om

nica

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herm

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nerg

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a Ba

raqu

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Lim

ited

10

00

80

02

10

00

320

10

1134

45

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nica

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herm

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nerg

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per

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t Aub

in) L

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d0

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Perm

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from

the

sout

h of

the

isla

nd, w

here

the

Gro

up’s

mai

n op

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are

loca

ted.

3.3 SOCIAL PERFORMANCE INDICATORS

LA2:

‘Tot

al n

umb

er a

nd

rate

of n

ew e

mp

loye

e h

ires

an

d e

mp

loye

e tu

rnov

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y ag

e gr

oup,

gen

der

, an

d re

gion

Recr

uitm

ent p

lans

indi

catin

g th

e sk

ills

need

ed fo

r diff

eren

t act

iviti

es a

nd p

roje

cts

are

dete

rmin

ed in

con

sult

atio

n w

ith th

e H

ead

of D

epar

tmen

t con

cern

ed. F

or e

xam

ple

, sea

sona

l wor

kers

for

agric

ultu

ral a

nd m

illin

g op

erat

ions

, are

hire

d on

an

annu

al b

asis

dur

ing

the

crop

sea

son.

For

new

pro

ject

s su

ch a

s th

e se

ttin

g-up

of t

he s

ugar

refin

ery,

or f

or s

pec

ific

assi

gnm

ents

as

rega

rds

new

exi

genc

ies

per

tain

ing

to t

he e

nviro

nmen

t, em

plo

yees

are

enl

iste

d on

con

trac

ts o

f det

erm

inat

e du

ratio

n or

we

have

reco

urse

to jo

b c

ontr

acto

rs. S

easo

nal w

orke

rs a

s w

ell a

s p

art-

time

emp

loye

es a

re o

ffer

ed a

form

al c

ontr

act o

f em

plo

ymen

t. Fu

rthe

rmor

e, in

line

with

the

pro

visi

ons

of th

e Em

plo

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t Rig

hts

Act

200

8, p

artic

ular

s of

wor

k ag

reem

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re d

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fille

d in

.

OPE

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S

REC

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ATIO

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AR

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16-3

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16-3

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ars

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Year

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d

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ove

Om

nica

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Lim

ited

00

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015

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stic

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ne

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ent

and

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mite

d

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nica

ne

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erat

ions

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183

Page 30: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201156 57

3.3 SOCIAL PERFORMANCE INDICATORS

LA3: ‘Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations’

Omnicane believes that its employees are its greatest asset and spares no effort towards their well-being. Accordingly, a number of schemes have been set up and extended for educational or medical purposes, or for assisting employees in the event of catastrophe. Some examples in the case of Omnicane Milling Operations Limited are:

• Thecompany’sMotorCycleScheme,wherebyemployeescanobtainaloantopurchaseamotorcycle

• Thecompany’sSC/HSCScheme,whichprovidesfinancialassistanceintheformofloans,subsidiesorsponsorshipsto help employees to meet their children’s School Certificate and Higher School Certificate examination fees.

In the context of the Sugar Industry Reform, employees whose contract of employment have been terminated under the Blue Print Scheme following factory closures or who have opted for a Voluntary Retirement under the Voluntary Retirement Scheme (VRS) or the Early Retirement Scheme (ERS) have been offered training before their departure from the company to enable professional conversion. A sum of MUR 2,278,650 has been spent for training of 228 employees concerned by ERS and Blue Print, opting for same. 76 employees under VRS Scheme have been trained at a cost of MUR 763,980.

Benefits received by full-time employees (staff and workers) are as follows:

AGRICULTURE & MILLING

STAFF WORKERS

Paid annual and sick leaves Paid annual and sick leaves

Medical insurance cover for employees and dependents Vacation leave

Overseas leave and allowance Pre-retirement leave

Pension Housing benefits

Group Personal Accident Scheme Estate hospital facilities

Pre-retirement leave Death grant and gratuity

Housing benefits Paid maternity and paternity leave

Estate hospital facilities Pension on retirement and medical grounds

Paid maternity and paternity leave Paid special leave and public holidays

Transport facility or allowance for children attending school Maternity allowance

Death allowance and gratuity Attendance bonus

Pension on medical ground Productivity bonus

Performance-related bonus scheme Optional retirement

Car scheme Bank sick leaves

Transport facilities or transport refund for workers’ children

POWER PLANTS

STAFF WORKERS

Paid annual and sick leaves Paid annual and sick leaves

Paid maternity and paternity leaves Paid maternity and paternity leaves

Car scheme Overseas leave

Gratuity on medical grounds

Death grant and gratuity

Paid public holidays

3.3 SOCIAL PERFORMANCE INDICATORS

LOGISTICS

STAFF WORKERS

Paid annual and sick leaves Paid annual and sick leaves

Medical insurance cover for employees and dependents Paid special leaves

Overseas leave and allowance Vacation leave

Pension Paid public holidays

Group Personal Accident Scheme Maternity leave and allowance

Pre-retirement leave Gratuity on retirement

Housing benefits Gratuity on medical grounds

Estate hospital facilities Death grant and gratuity

Paid maternity and paternity leave

Transport facility or allowance for children attending school

Death allowance and gratuity

Pension on medical grounds

Performance Related Bonus Scheme

Car scheme

LA15: ‘Return to work and retention rates after parental leave, by gender’

Under the Employments Right Act 2008, all employees are entitled to 3 months of maternity leave and 5 consecutive days of paternity leave. During the year under review, 9 male employees took the paternity leave, 5 female employees took the maternity leave, and they all returned to work after the leave.

3.3.1.2 Labour/Management Relations

LA4: ‘Percentage of employees covered by collective bargaining agreements’

Collective bargaining agreements apply only to employees working in our agricultural and milling operations, and the percentages of employees covered by those agreements in 2011 were as follows:

OPERATIONS

% Employees Covered by Collective Bargaining Agreements TOTAL %

STAFF WORKERS

Omnicane Limited 88.37 59.81 61.64

Omnicane Management and Consultancy Limited 40.00 Nil 35.71

Omnicane Milling Operations Limited 37.74 27.50 28.38

Total 48.57 40.82 41.57

% Employees Covered by Collective Bargaining Agreements

40

00

WorkersStaff

Omnicane Managementand Consultancy Limited

59.81

88.37

Omnicane Limited

Omnicane MillingOperations Limited

37.74

27.50

Page 31: GRI - G3.1 SUSTAINABILITY RepoRT 2011

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3.3 SOCIAL PERFORMANCE INDICATORS

All permanent employees of Omnicane Milling Operations Limited and Omnicane Agricultural Operations Limited, whether members of a trade union or not, are covered by one of two package deals applying to the whole sugar industry. Agricultural and non-agricultural workers are covered by one package deal, whereas staff are covered by another, which is concluded between the Sugar Industry Staff Employees Association (SISEA) and the Mauritius Sugar Producers’ Association.

LA5: ‘Minimum notice period(s) regarding significant operational changes, including whether it/they is/are specified in collective agreements’

Notice periods for the review of collective agreements are in line with the provisions of the Employment Relations Act 2008 under section 53, which is reproduced below:

1 A recognised trade union, a group of recognised trade unions, a joint negotiating panel or an employer may initiate negotiations with a view to reaching a collective agreement by giving to the other party a notice in accordance with subsection (3).

2 Where there exists a collective agreement, the parties to the agreement may initiate negotiations with a view to renewing or revising it by giving the other party a notice in accordance with subsection (3).

3 The notice shall:

(a) be in writing and signed by the party giving the notice;

(b) specify each of the parties to be involved in the negotiations;

(c) set out a summary of the issues to be discussed ; and

(d) specify the bargaining unit.

4 Any party served with a notice under subsection (1) or (2) shall be under the duty to start negotiations within 30 days of the date of receipt of the notice or such longer period as may be agreed by the parties.

5 Where any party refuses to start negotiations within the delay specified in this section, the party may apply to the tribunal for an order directing the other party to start negotiations and the tribunal, on hearing the parties, shall within 30 days of the day of receipt of the application, make such order as it thinks fit.

6 A party shall comply with an order made under subsection (5) within 14 days of the date of the order.

Moreover Procedural Agreements found in Collective Agreement reached between trade union of the Sugar Industry and the Mauritius Sugar Producers’ Association (MSPA), representative of the employers of the Sugar Industry mention the following:

1 Agreement between MSPA and Sugar Industry Labourers’ Union (SILU)

Duration of Procedural Agreement

This procedural agreement shall come into force and effect on the day of signature and shall remain in force for a minimum period of one year. It will thereafter continue to be in force unless and until either party gives 3 months’ notice of amendment on termination in writing, of the agreement..

2 Agreement between MSPA and the Organisation of Artisans Unity (OAU), the Artisans and General Workers Union (AGWU) and the Union of Artisans of the Sugar Industry (UASI)

3.3.1.3 Occupational Health & Safety

LA6: ‘Percentage of total workforce represented in formal joint management-worker health & safety committees that help monitor and advise on occupational health & safety programmes’

Workforce Representatives,

by Operating Entity

Total Workforce

in operating entities

Percentage

Omnicane Milling Operations Limited 20 613 3.3Omnicane Agricultural Operations – Britannia & Mon Trésor

10 670 1.5

Omnicane Thermal Energy Operations (La Baraque) Limited

10 45 22.2

Omnicane Thermal Energy Operations (St Aubin) Limited

8 38 21.1

Total 48 1,366 3.5

3.3 SOCIAL PERFORMANCE INDICATORS

Omnicane has a Group policy to ensure the safety, health and welfare of its employees at work. The main features of this policy are as follows:

• ItisfullycompliantwiththeOccupationalSafety&HealthAct2005(OSHA).

• The measures taken to protect the safety, health and welfare of employees are determined with the fullparticipation of all employees.

• Omnicaneisfullycommittedtoprovidingalltheresourcesrequiredtoimplementthepolicy.

• Therolesofemployeesinimplementingthepolicyareclearlydefined.

• TheCompanyencouragescontinuousimprovementofthepolicy.

Regular inspections are carried out by the Factory Inspectorate of the Ministry of Labour, Industrial Relations and Employment, whose recommendations are duly implemented. Omnicane has a qualified Safety & Health Officer as required under the OSHA, for its milling and agricultural operations. The role of the Safety & Health Officer is to look after the safety and health of employees and to ensure that Omnicane’s operations within his area of responsibility comply with the occupational safety & health legislation in force. Moreover, each of the Group’s operating entities has a Safety and Health Committee chaired by the head of the entity and which meets at regular intervals as prescribed in the OSHA to consider questions of safety & health at work. Requests made by workers’ representatives are given full consideration.

LA7: ‘Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender’

In 2011, no fatal accidents and no occupational deseases were reported. However, the total number of accidents and total mandays lost including absenteeism are listed below as per the high risk operational entities:

Accident Statistics 2011

Field GarageThermal

OperationsMilling

OperationsTotal

Male Female Male Female Male Female Male Female

Number of accidents 54 11 25 - 7 - 22 - 119

Total mandays lost including absenteeism

261 27 608 - 384 186 - 1,466

Percentage of total workforce

Omnicane Milling Operations Limited 3.3%

21.1% Omnicane Thermal Energy Operations (St Aubin) Limited

22.2% Omnicane Thermal Energy Operations (La Baraque) Limited

Omnicane Agricultural Operations – Britannia & Mon Trésor 1.5%

Page 32: GRI - G3.1 SUSTAINABILITY RepoRT 2011

Omnicane GRI G 3.1 Sustainability Report 2011 Omnicane GRI G 3.1 Sustainability Report 201160 61

LA8: ‘Education, training, counselling, prevention, and risk-control programmes in place to assist workforce

members, their families, or community members regarding serious diseases’

All health & welfare initiatives for the benefit of our employees are carried out through the HR Department whereas community-based actions are carried out through Omnicane Foundation, which is the Group’s dedicated CSR entity.

Project Cost (Rs) No. of Beneficiaries

Vaccination against cervical cancer 5186.15 251

Free medical check ups 46189.78 233

Overseas treatments 100,000.00 2

Blood donation campaign for employees at La Baraque 7075.00 62

Donation of commode chairs to bedridden persons in L’Escalier 11650.00 18

Donation to St John ambulance (stretcher and tent) 10,000.00

Donation of Femoral Prosthesis to Luxmi Dhooroo 70,000.00 1

Total 255,339.08 567

LA9: ‘Health & safety topics covered in formal agreements with trade unions’

Collective agreements signed between the Mauritius Sugar Producers’ Association (MSPA), representing the sugar industry employers, and the various trade unions of the sugar industry, cater for the following health & safety topics:

• Useofpersonalprotectiveequipment(PPE)

• Estatehospitalfacilities

• Grouppersonalaccidentscheme

• Medicalinsurancecoverforemployeesanddependents

• Welfareandoccupationalhealthissues.

3.3.1.4 Training & Education

LA10: ‘Average hours of training per year per employee by gender and by employee category’

The training policy at Omnicane is ‘learning by doing’, whereby training is carried out on the job. Competent employees are empowered, coached, and provided with appropriate training to meet new specific needs. Omnicane invests Rs 2 million annually in employees’ personal development through training and encourages polyvalence. Training for the acquisition of multiple skills enables employees to adapt to changes in job requirements as demanded by forces external to the Group. Omnicane also allocated a budget to trainees under the National Apprenticeship Scheme (NAS) or the National Empowerment Foundation (NEF) scheme and encourages students from institutions such as MITD and the University of Mauritius to undergo on-the-job training to build up their experience. Those who perform well in such cases stand a chance of being invited to join Omnicane’s team when suitable vacancies occur.

OPERATIONS

AVERAGE HOURS TRAINING PER EMPLOYEE

STAFF WORKERS

Male Female Male Female

Omnicane Limited 11.00 2.00 6.00No female

workers

Omnicane Logistics Operations Limited 12.00No female

staff9.00

No female workers

Omnicane Management and Consultancy Limited 10.00 8.00 3.00No female

workersOmnicane Milling Operations Limited 10.13 13.88 21.65 7.50Omnicane Thermal Energy Operations (La Baraque) Limited

13.00 5.00 14.00 10.00

Omnicane Thermal Energy Operations (St Aubin) Limited

12.00 5.00 15.00 5.00

Total 68.13 33.88 68.65 22.50

3.3 SOCIAL PERFORMANCE INDICATORS

LA11: ‘Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings’

In the event that new skills are required, job descriptions and profiles are prepared for each vacancy. The creation of new opportunities is assessed in the light of defined goals, the implementation of new projects, or the need for new levels of responsibility. The qualifications, experience, personal skills and abilities required are determined after careful job analysis, and the positions are then advertised both internally and externally.

Moreover, a database of past and current applicants and of students having successfully completed traineeships at Omnicane is constantly updated as a source of potential recruits, as is a record of skills newly acquired by our existing employees, whose development and responsibilities are reviewed at regular intervals.

In the context of the Sugar Industry Reform, employees whose contract of employment have been terminated under the Blue Print Scheme following factory closures or who have opted for a Voluntary Retirement under the Voluntary Retirement Scheme (VRS) or the Early Retirement Scheme (ERS) have been offered training before their departure from the company to enable professional conversion. A sum of MUR 2,278,650 has been spent for training of 228 employees concerned by ERS and Blue Print, opting for same. 76 employees under VRS Scheme have been trained at a cost of MUR 763,980..

3.3.1.5 Diversity & Equal Opportunity

LA13: ‘Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity’

A breakdown of employees per employee category according to gender and age group has already been given above in connection with indicator LA1. The breakdown in respect of the Company’s Board of Directors is given in the table below:

Category Male Female Total

> 35 years

Executive directors 2 Nil 2

Non-executive directors 10 Nil 10

Alternate non-executive directors

5 Nil 5

Total 17 Nil 17

All the directors are appointed following recommendations from the Corporate Governance committee based on their respective work experiences in the different sectors concerned. They are members of the local community and come from different ethnic backgrounds. Howerver, with regards to the Board, Omnicane shall strive to reduce this gender imbalance in the medium to long term.

3.3.2 HUMAN RIGHTS

3.3.2.1 Non-discrimination

HR4: ‘Total number of incidents of discrimination and actions taken’

There have been no incidents of discrimination reported during the year under review.

Omnicane fully complies with the Employment Rights Act 2008, and takes steps to ensure that all contractors that it employs comply with the legislation in force as well as internal rules and regulations. Moreover, the Company’s employee handbook, which is currently being finalised, stipulates that Omnicane will not tolerate direct or indirect discrimination against any person, for example on grounds of age, disability, gender, marital status, pregnancy/maternity, race, religion or belief, sex or sexual orientation, whether in the field of recruitment, terms and conditions of employment, career progression, training, transfer, or dismissal.

3.3 SOCIAL PERFORMANCE INDICATORS

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3.3.2.2 Indigenous Rights

HR9: ‘Total number of incidents of violations involving rights of indigenous people and actions taken’

Mauritius had no indigenous people when it was first settled by the Dutch in the 17th century.

3.3.2.3 Remediation

HR11: ‘Number of grievances related to human rights filed, addressed and resolved through formal grievance

mechanisms’

Most conflict cases are resolved through dialogue with the relevant Head of Department or the HR Department. The grievance procedure in place encourages employees to take advantage of it before having recourse to shop stewards, trade unions or the Ministry of Labour. In addition, regular meetings are held with shop stewards as well as with the Joint Negotiating Panel of the sugar industry.

Relationships are transparent, fair, open, participative, democratic, and honest. Each party is fully aware of its rights and obligations, and conflict resolution is built upon the common interest of the employee and the employer. In general, the employee is invited to formulate his/her complaint at different levels in the hierarchy, starting from his immediate supervisor up to the Chief Operations Manager through the HR Manager. For the sake of transparency, the employee can be accompanied by a union representative or by an officer of the Ministry of Labour, Industrial Relations and Employment. In the event that the conflict is not resolved, the employee can declare an industrial dispute.

For the year 2011, there were no grievances filed, addressed or resolved through formal grievance mechanisms in relation to human rights.

3.3 SOCIAL PERFORMANCE INDICATORS

3.3.3 SOCIETY

3.3.3.1 Corporate Social Environmental Responsibility

SO1: ‘Percentage of operations with implemented local community engagement, impact assessments, and

development programmes’

Corporate Social and Environmental Responsibility (CSER) is an integral part of the day-to-day life at Omnicane. CSER relates to the Company’s societal responsibility to establish real partnerships for sustainable human and community development around its industrial sites and in the country at large, while also protecting and enhancing the natural environment. To ensure better coordination and sustainability for the Group’s CSER initiatives in favour of the community, the Company created an exclusively CSER-dedicated entity, Omnicane Foundation, in October 2009. By virtue of its registration with the National Corporate Social Responsibility (CSR) Committee, the Foundation is able to initiate and implement projects pertaining to community development. These projects aim to promote human development and, in many instances, alleviate poverty, in harmony with the natural environment.

Omnicane Foundation was legally incorporated on 27 October 2009 and is officially registered with the National CSR Committee as a Special Purpose Vehicle, bearing Registration No. N/1283.

The Foundation has an internal CSER steering committee of 9 members. The committee assesses new projects and reviews progress in respect of ongoing projects. The following entities of Omnicane are represented in Omnicane Foundation:

• OmnicaneMillingOperationsLimited

• OmnicaneThermalEnergyOperations(LaBaraque)Limited

• OmnicaneThermalEnergyOperations(StAubin)Limited

• OmnicaneLimited

Figure 14: Percentage of CSR fund spent per sector with the largest segments being Vulnerable children, Education and Sports

Education 22%

Socio Economic Development 2%

Health 3%

Environment 4%

Sports 15%EAP Projects 4%

Social Housing 20%

Vulnerable Children 30%

• OmnicaneLogisticsOperationsLimited.

Priority Areas

Omnicane Foundation has identified four specific areas of priority for full compliance with its CSER guidelines. Each of these areas is deemed important for the progress and proper functioning of society. They are:

• Povertyalleviation

• Education

• Health

• Sports

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3.3 SOCIAL PERFORMANCE INDICATORS

The Foundation also gives special consideration to the following categories:

• Socialhousing

• Eradicationofabsolutepoverty

• Vulnerablechildren

• Preventionofnon-communicablediseases.

Regions

Given that our core operations, namely sugarcane cultivation and milling, sugar refining, and power generation, are situated in the south of Mauritius, we have defined our primary regions as the pockets of poverty and the vulnerable groups of this region, with priority to the following localities:

• L’Escalier/LaSourdine

• PleinBois

• Malakoff

• Batimarais

• CampDiable

• Britannia

• RivièredesAnguilles

• Souillac.

Nevertheless, national projects or projects in regions other than the south are also considered, on the basis of their nature and pertinence.

In accordance with our CSR guidelines for the year, 54% of the Foundation’s CSER funds was allocated to three mandatory areas in 2011: eradication of absolute poverty; vulnerable children; and social housing.

Projects per Region

As mentioned above, most of our projects are centred on the south of Mauritius. Our national projects generally consist in medical assistance for overseas surgery, and financing related to national sports competitions. The figure below shows the distribution of projects per region for the year 2011.

Figure 15: Distribution of projects per region

North

1 1

Centre National

10

East WestSouth

34

Num

ber

of P

roje

cts

0 0

3.3 SOCIAL PERFORMANCE INDICATORS

3.3.3.2 Public Policy

SO5: ‘Public policy positions and participation in public policy development and lobbying’

Our Chief Executive Officer, Mr Jacques Marrier d’Unienville, is an active member of the Strategic Committee of the Maurice Ile Durable (MID) project, whose objective is to advise Government on phase 2 of the MID Initiative. The committee operates in close collaboration with the MID Commission and reports to the Prime Minister’s Office.

In addition, our Chief Sustainability Officer, Mr Rajiv Ramlugon, and our Project Development Manager, Mr Pierre Sagnier, are active members of the MID’s working committees on the environment and energy respectively.

The main object of the MID concept is to make Mauritius a world model of sustainable development, particularly in the context of Small Island Developing States (SIDS). Whereas the project’s initial thrust was to minimise the island’s dependency on fossil fuels through increased utilisation of renewable energy and more efficient use of energy in general, the MID concept soon broadened to include all aspects of development – economic, social and environmental – as these are considered pivotal in the quest for a sustainable Mauritius. The MID project now rests on five designated Es, namely Energy, Environment, Education, Employment and Equity.

The MID process involves a participatory approach to elaborating a national strategy for sustainable development and aims to take on board the aspirations of society in its entirety in order to create a strong sense of belonging to the nation.

Pierre Sagnier is also an active member of the technical working group on Energy Industries set up by Government under the Technology Needs Assessment (TNA) project aimed at enabling Mauritius to implement technologies to reduce greenhouse gas emissions. Pierre’s involvement started around August 2011, and the project is due to be finalised in September/October 2012.

SO6: ‘Total value of financial and in-kind contributions to political parties, politicians, and related institutions, by country’

Political donations by the Company during the year 2011 amounted to Rs 200,000, compared with Rs 4,000,000 in 2010. The larger contribution made in 2010 was due to the holding of general elections in Mauritius that year. No contributions in kind were made to political parties, politicians, or related institutions.

3.3.3.3 Anti-competitive Behaviour

SO7: ‘Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices, and their outcomes’

The Competition Act 2007 was enacted by the Parliament of Mauritius to set up a Competition Commission to make better provisions for the regulation of competition in Mauritius. The Competition Commission of Mauritius was established in 2009. Omnicane is fully compliant with the Act and was not the object of any legal actions for anti-competitive behaviour, anti-trust, and monopoly practices, or of any report made to the Competition Commission of Mauritius in 2011.

3.3.3.4 Compliance

SO8: ‘Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations’

The Company Secretary reviews all the legal and regulatory requirements pertaining to the nature of business and activities of Omnicane by constantly checking the Government gazette for updates concerning the laws. He is further assisted in this task by our legal adviser and the Mauritius Employers’ Federation. There were no significant fines or non-monetary sanctions for non-compliance with laws and regulations by Omnicane in 2011.

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3.3 SOCIAL PERFORMANCE INDICATORS

3.3.4 PRODUCT RESPONSIBILITY

3.3.4.1 Marketing Communications

PR7: ‘Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes’

There were no incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship, by the Company in 2011.

3.3.4.2 Compliance

PR9: ‘Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services’

There were no non-compliance with laws and regulations concerning the provision and use of products and services, by the Company in 2011.

G3.1 Indicator

DescriptionReference

Page(s)Reporting

Level

STRATEGY & ANALYSIS 2-3

1.1Statement from the most senior decision-maker of the organisation

Y

ORGANIZATIONAL PROFILE

2.1 Name of the organisation. Cover Page Y

2.2 Primary brands, products, and/or services 8-19 Y

2.3Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures.

20-23 Y

2.4 Location of organisation’s headquarters 24 Y

2.5

Number of countries where the organisation operates, and names of countries either with major operations or that are specifically relevant to the sustainability issues covered in the report.

26 Y

2.6 Nature of ownership and legal form 26 Y

2.7Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)

27 Y

2.8 Scale of the reporting organisation 27 Y

2.9Significant changes during the reporting period regarding size, structure, or ownership

27 Y

2.10 Awards received in the reporting period 27 Y

REPORT PARAMETERS

3.1Reporting period (e.g. fiscal/calendar year) for information provided

32 Y

3.2 Date of most recent previous report (if any) 32 Y

3.3 Reporting cycle (annual, biennial, etc.) 32 Y

3.4 Contact point for questions regarding the report or its contentsRajiv Ramlugon

([email protected])

Y

3.5 Process for defining report content 33 Y

3.6Boundary of the report (e.g. countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)

32 Y

3.7State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope)

32 Y

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations

32 Y

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods)

32 Y

4.1 ANNEX 1 - GRI CONTENT INDEX

4. ANNEXES

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G3.1 Indicator

DescriptionReference

Page(s)Reporting

Level

3.11Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

27 Y

3.12Table identifying the location of the Standard Disclosures in the report.

67 Y

GOVERNANCE, COMMITMENTS & ENGAGEMENT

4.1

Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight.

28Y

4.2Indicate whether the Chairperson of the highest governance body is also an executive officer.

28 Y

4.3For organisations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members

28 Y

4.4Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

29 Y

4.14 List of stakeholder groups engaged by the organisation. 30 Y

4.15Basis for identification and selection of stakeholders with whom to engage

30 Y

PERFORMANCE INDICATORS

ECONOMIC

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

34-36 Y

EC2Financial implications and other risks and opportunities for the organisation’s activities as a result of climate change.

37 Y

EC3 Coverage of the organisation’s defined benefit plan obligations 37-38 Y

EC4 Significant financial assistance received from Government 38 Y

EC5Range of ratios of standard entry level wage by gender compared with local minimum wage at significant locations of operation

38-39 Y

EC6Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation.

39 Y

EC7Procedures for local hiring and proportion of senior Management hired from the local community at significant locations of operation

40-41 Y

ENVIRONMENTAL

EN1 Materials used by weight or volume 42 Y

EN3 Direct energy consumption by primary energy source 43-45 Y

4. GRI CONTENT INDEX 4. GRI CONTENT INDEX

G3.1 Indicator

DescriptionReference

Page(s)Reporting

Level

EN5Energy saved as a result of conservation and efficiency improvements

45 Y

EN6Initiatives to provide energy-efficient or renewable-energy-based products and services, and reductions in energy requirements as a result of these initiatives.

45 Y

EN8 Total water withdrawal by source 46 Y

EN9 Water sources significantly affected by withdrawal of water 46-47 Y

EN10 Percentage and total volume of water recycled and reused 47 Y

EN11Location and size of land owned, leased, or managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas

47 Y

EN12Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

47 Y

EN20NOx, SOx, and other significant air emissions by type and weight

47-49 Y

EN21 Total water discharge by quality and destination 50-51 Y

EN22 Total weight of waste by type and disposal method 51-52 Y

EN23 Total number and volume of significant spills 53 Y

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

53 Y

EN28Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

53 Y

EN30Total environmental protection expenditures and investments by type

53 Y

SOCIAL: LABOUR PRACTICES & DECENT WORK

LA1Total workforce by employment type, employment contract, and region, broken down by gender

54 Y

LA2Total number and rate of new employee hires and employee turnover by age group, gender, and region

55 Y

LA3Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations

56-57 Y

LA4Percentage of employees covered by collective bargaining agreements

57 Y

LA5Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements

58 Y

LA6

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes

58-59 Y

LA7Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender

59 Y

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4. GRI CONTENT INDEX

G3.1 Indicator

DescriptionReference

Page(s)Reporting

Level

LA8Education, training, counselling, prevention, and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases

60 Y

LA9Health and safety topics covered in formal agreements with trade unions

60 Y

LA10Average hours of training per year per employee by gender, and by employee category

60 Y

LA11Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

61 Y

LA13

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

61 Y

LA15Return to work and retention rates after parental leave, by gender

57 Y

HUMAN RIGHTS

HR4 Total number of incidents of discrimination and actions taken 61 Y

HR9Total number of incidents of violations involving rights of indigenous people and actions taken

62 Y

HR11Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms

62 Y

SOCIAL: SOCIETY

SO1Percentage of operations with implemented local community engagement, impact assessments, and development programmes

62-64 Y

SO5Public policy positions and participation in public policy development and lobbying

65 Y

SO6Total value of financial and in-kind contributions to political parties, politicians, and related institutions, by country

65 Y

SO7Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices, and their outcomes

65 Y

SO8Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

65 Y

SOCIETY: PRODUCT RESPONSIBILITY

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

66 Y

PR9Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

66 Y

OMNICANE FOUNDATION

2011 2010 2011 2010 2011 2010 2011 2010

CSR CONTRIBUTIONS RECEIVABLE FOR YEARS 2011 & 2010GROUP CONTRIBUTIONS BASED ON DECEMBER 2010 YEAR END & DECEMBER 2009 YEAR END

Profit after

Income Tax, Year 2010, Rs

’000

Profit after

Income Tax, Year 2009, Rs

’000

Profit on Disposal of Property,

Plant & Equipment,

Rs ’000

Profit on Disposal of Property,

Plant & Equipment, Rs

’000

Book Profit, Excluding Profit on Sale of

Property, Plant &

Equipment, Rs ’000

Book Profit, Excluding Profit on Sale of

Property, Plant &

Equipment, Rs ’000

CSR at 2%, Rs

’000

CSR at 2%, Rs

’000

Omnicane Ltd 347,362 293,406 (374,191) (25,111) (26,829) 268,295 - 5,366

Omnicane Thermal Energy Operations (St Aubin) Limited

82,967 81,957 - - 82,967 81,957 1,659 1,639

Omnicane Thermal Energy Operations (La Baraque) Limited

141,291 99,326 - - 141,291 99,326 2,826 1,987

Omnicane Thermal Energy Holdings (St Aubin) Limited

28,733 29,403 - - 28,733 29,403 575 588

Omnicane Holdings (La Baraque) Thermal Energy Limited

88,125 59,645 - - 88,125 59,645 1,763 1,193

Omnicane Milling Operations Ltd

(103,501) (21,844) (2,760) (30,437) (106,261) (52,281) - -

Omnicane Milling Holdings (Britannia Highlands) Ltd

(5,454) (12,676) (6,819) - (12,273) (12,676) - -

Omnicane Milling Holdings (Mon Trésor) Ltd

(4,403) (4,651) - - (4,403) (4,651) - -

Floreal Ltd 3,445 2,542 - - 3,445 2,542 69 51

Omnicane Holdings Limited (draft)

129,506 163,578 - - 129,506 163,578 2,590 3,272

Exotic Exports Limited

(223) (425) - - (223) (425) - -

Omnicane Management & Consultancy Ltd (draft)

15,778 76,493 - (156) 15,778 76,337 316 1,527

Omnicane Agricultural Operations Ltd

(14,127) 271 - (65) (14,127) 206 - 4

Omnicane Logistics Operations Ltd

2,020 1,498 - (7) 2,020 1,491 40 30

Total contributions (to be used by 31 December 2011)

711,519 768,523 (383,770) (55,776) 327,749 712,747 9,837 15,656

4. ANNEXES

4.2 ANNEX 2 - CSR CONTRIBUTIONS BY COMPANY

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GRI – Global Reporting Initiative

MAAS – Multi-Annual Adaptation Strategy

GMP – Good Manufacturing Practices

ISCC – International Sustainability & Carbon Certification

MTMD – Mon Tresor Mon Desert Ltd

USA – Union St Aubin

CBO – Carbon Burn Out

KISCOL – Kwale International Sugar Company Limited

MSS – Mauritius Sugar Syndicate

SIDS – Small Island Developing States

CSER – Corporate Social Environmental Responsibility

MSPA – Mauritius Sugar Producers Association

RO – Renumeration Order

PD – Package Deal

NRB – National Renumeration Board

EPA – Environmental Protection Act

PCB – Polychlorinated Biphenyls

ERS – Early Retirement Scheme

VRS – Voluntary Retirement Scheme

OSHA – Occupational Safety & Health Act

MID – Maurice Ile Durable

4. ANNEXES

4.3 ANNEX 3 - LIST OF ABBREVIATIONS