MEDIA RELEASE
2 June 2006

SAPREF’S 2005 SUSTAINABILITY REPORT LAUNCH

SAPREF today released its annual report to stakeholders entitled “Sustainability In Focus”.

For the last five years SAPREF has provided verified information on its operational, economic, environmental and social performance. For the last two years, the report has started followed some of the Global Reporting Initiative (GRI) guidelines for sustainability reporting. In this year’s report SAPREF expanded its reporting on people matters.

MD Wayne Pearce explained “Our business strategies are focused on the three components necessary for a sustainable business (economic, environmental and social) and our business processes require that we set objectives, and report and review performance regularly. Our annual report is an extension of this philosophy and our commitment to openness. This report highlights progress in 2005, as well as the areas where we need to do more and also recognizes the challenges facing our business. ”

The report details the following: :
 

• SAPREF has continued to invest in the development of people and particularly in supporting the national skills development strategy through a learnership programme. The annual budget invested in training and development totals some R23m. • Very good progress has been made with achieving employment equity targets and increasing BEE spend. Particularly on the cleaner fuels project where more than R24m or 32% was spent with BEE companies.
• SAPREF’s clean fuels project was completed on time and ahead of Government’s 1 January 2006 deadline. An investment of R700m delivered the facilities to produce petrol with no lead and diesel and petrol with reduced sulphur. In addition lead has not been replaced with any other additives. During the construction 1000 people from neighbouring communities worked on the project
• Since 1997 sulphur dioxide emissions have reduced by 60%, including operating to a self imposed limit of 20 tonnes of sulphur dioxide per day averaged over the year. Performance in 2005 has been better than this self imposed limit.
• Recommendations of an independent study into SAPREF’s transfer pipelines between the refinery and the Island View storage facilities initially recommended that two lines be recoated. At the time SAPREF said it would go beyond the recommendations by coating all seven pipelines. During the bidding process for the work an alternative bid was offered to replace the lines and after careful review and investigation, it was decided to replace all seven pipelines.
• Staff and contractors achieved six million safe hours without a lost time injury. Safety performance contributed to a total recordable frequency rate of 1.5 and the second-best performance in 2005 of all Shell manufacturing sites.
• The SAPREF Community Liaison Forum met eleven times in 2005 and has two Task Teams, one focused on the environment and the other on social development. Credit should be given to representatives of the 14 organisations and local authorities who regularly attend the meetings and who make an enormous contribution.
• In terms of social investment, we started the development of another science laboratory, this time at Zwelihle High School in Umlazi, we continued to offer a self-development programme to local educators, learners from surrounding schools and we invested in a pilot soccer development programme and tournament initiated by the SAPREF Community Liaison Forum.

  I am pleased with our progress in 2005, particularly the completion of the Cleaner Fuels project and developments in the Community Liaison Forum. I would like to thank community members who are making a valuable contribution in our improvement journey. We recognise that there is it still much to do,” said Pearce. “We welcome comments on the report and have provided a feedback form and envelope to facilitate this”
  
  For further information please contact:
  
  Prudence Mbatha
  Communications Officer
  SAPREF
  Tel: (031) 480 1303
  Fax: (031) 468 1111
  Email: mbathap@sapref.com