SUSTAINABILITY REPORT 2008

Vision Our vision is to be a world class producer and supplier of quality natural ethanol products, focusing with passion on building strong partnerships to grow with our customers. Mission NCP Alcohols is dedicated to the cost effective production and distribution of Customer defined alcohol products. Values *We’re passionate about ourselves, the Company, what we do. We honor our commitments, cooperating unselfishly in pursuit of improved performance. We do this to make business pleasurable. *Quality – we set uncompromising global standards in leadership, manufacturing, products and the building of partnerships with our Customers. Above all in creating an environment where our people can develop to enhance the companies competitive performance. *Honesty is important for us to grow. We’ll do this by accepting constructive criticism, encouraging openness, frankness, challenge and debate to build trust while behaving with Integrity and Respect. *We keep it Simple.

ENVIRONMENT SAFETY

HEALTHQUALITY

& PEOPLE

MANAGING SUSTAINABILITY

OUR DEFINITION OF SUSTAINABILITY

OUR FOCUS AREAS

For NCP Alcohols sustainability means managing the social, economic and environmental impacts and opportunities around us to produce lasting benefits, locally and globally.

• HEALTH

CONTENTS

1 Introduction Achievements 2 Chairman’s message 3 Chief Executive’s Statement 4 NCP in brief 5 SHEQ Policy 6 Sustainable development management 7 Performance areas 7.1 Environment 7.1.1 Energy 7.1.2 Effluent 7.1.3 Waste 7.1.4 Air Quality Our efforts at developing a sustainable society 7.2 Safety 7.2.1 Fire Protection 7.2.2 Food Safety 7.3 Health 7.4 Quality Performance 7.5 People Broad-Based Black Economic Empowerment Employment Equity Preferential Procurement Skills Development Enterprise Development Socio Economic Development Feedback and Contacts

INTRODUCTION

NCP’s Sustainability Report 2008, is the third publicised report and covers the period from January 1, 2008 to

December 31, 2008, in concert with our fiscal year. This report is a management and accountability tool that sets out our sustainability objectives and describes our plans for achieving them, and our performance to date.

Producing the report helps us better understand our strengths and weaknesses as well as the things we can or need to do to improve our performance. For the NCP team, the report provides a benchmark from which we can measure progress and make adjustments as necessary. For the public, it offers a window on our activities and sustainability performance and serves as a basis for constructive discussion and feedback.

OUR SUSTAINABLE DEVELOPMENT ACHIEVEMENTS IN 2008 INCLUDE;

Implementing a broad-based black economic empowerment (B-BBEE) plan whilst achieving our first

BEE certified rating at the end of August 2008.

Double gold for our products at the Monde Selection’s most prestigious quality awards during the 2008

International Monde Selection.

Implementing Information Technology to secure, improve and simplify our

Enterprise Content Management across the company.

ISO 14000 and HACCP accreditation

ISO9000 and ISO 14000 integration.

Commissioning and installing two gas boilers to replace coal burning boilers.

Increased development of staff skills focusing on scarce and critical occupations

for workplace experience positions and apprenticeships.

Developing and sponsoring an Environment Maintenance Enterprise to maintain

and rehabilitate the natural areas along the Umgeni River near it’s mouth into the Indian Ocean.

Financial and non-financial support in the form of volunteering staff to four Emerging Medium

Enterprises.

Increased training and development spend on employees at all levels.

Increased training focus with the appointment of a Training Coordinator and the

development of training systems to facilitate our training delivery.

Zero Disabling Injuries

Substantial reduction in First Aid Cases.

Development of Improvement Opportunity System to support our goals of continuous improvement.

CHAIRMAN’S MESSAGE

Sustainable Development is about ensuring a better life for all, now and for

generations to come. NCP Alcohols focuses on that very simple idea of improving people’s lives through its business practices and the potable ethanol we manufacture. Our manufacturing excellence and innovation is captured in every part of our business. Areas that have received the greatest emphasis over the past year have been the environmental and quality measures. We have seen an improvement in our Carbon Footprint with the replacement of our coal fire boilers to that of gas fired boilers while we have achieved the ISO 14000 and HACCP accreditation.

The global trend for more sustainable choices by consumers without trading performance of value in, is an exciting business challenge for us and we believe that our unique approach to innovation will enable us to meet those demands within our sustainability goals, every year.

Our steady stream of high quality product, operational and organisational excellence is what enables us to have so much success with our customers, staff and other stakeholders. In the pages that follow, you’ll see how NCP is on track to achieve its sustainability goals.

We are encouraged by our performance, but we know it’s the long term that matters most and we will continue to be accountable for business and sustainability results in the years to come.

Charles Albert-Peers Chairman

MESSAGE FROM THE CEO

Since the release of NCP’s first Sustainability Report in 2006, our world has continued to change with ongoing challenges regarding natural resources a catalyst for us to re-shape and grow our business in order to enhance economic return and better serve our customers, and to partner with our many stakeholders.

The past year have seen intense changes at NCP. We have realigned the company into divisions to improve functionality and improved interaction between teams. As we move forward, we will continue to embed sustainability by leveraging and capitalising on our past performances to improve our business systems, accelerate employee engagement efforts and enhance our ability to track progress and measure Company and stakeholder value related to our efforts.

NCP is now poised to deliver even greater value for our shareholders and stakeholders. Sustainable growth, in partnership with our customers is our overall goal in order to benefit both shareholders and staff. To achieve this we have adopted a Game Plan that is a strategic management system that tracks our performance from four key balanced perspectives. Our strategies in each of the Game Plan perspectives form a value chain: from our employees to the internal process, to customers and ultimately our growth. This value chain epitomizes “One Team – One Goal”. Are we perfect? Far from it, but we are committed to be part of a process to get us there while also recognizing that we are on a path of continual learning. In every decision we make in our day-to-day work – small or large – sustainability is a value that is always in our minds. Through our values, ethics and goals – and a relentless spirit to succeed – I believe that we have helped raise the standards on sustainability performance within our industry, and our ongoing evolution will enable us to continue to do so into the future. Peter Starling Chief Executive Officer

NCP IN BRIEF

What we do - is produce ethanol from molasses, a non-

crystallisable sugar source from the sugar industry. Microbial yeasts ferment the carbohydrate sugar source of molasses into ethanol. This fermented molasses or “beer” is then processed via an evaporator plant. This process separates the insoluble materials (CMS) and the volatile components. The CMS is sold as an animal feed supplement and fertilizer. The evaporator process thus creates a viable product (CMS) from components that otherwise would be considered waste. The second stream from the evaporation process contains the volatile components of evaporation with an ethanol strength of 13% and is called clear beer. The clear beer is distilled through a series of specialised distillation columns that yields a final product of 96.4% strength and exceptional quality. Various side streams of the distillation process are sold in relatively small volumes to appropriate markets.

Our history - dates back to 1868 when the first rum distillery in South Africa was built on the site. We became Umgeni Distillers in the early 1920’s and in 1944 we were acquired by National Chemical Products (NCP), a company founded in 1935 for the production of ethanol from maize, mainly used for blending with petrol for use as motor fuel. Capacity was increased and in 1967 NCP became a founder member of the Sentrachem Group, creating a large diverse South African chemical company. In 1997 The Dow Chemical Company acquired Sentrachem Ltd. with specific interest in their agricultural chemicals and polypropylene businesses. In February 2001 NCP Alcohols was purchased by AlcoFinance S.A., a Belgian based company, part of the Alco Group, and one of the largest alcohol trading and distribution organisations in the global ethanol market, with existing facilities on four continents. Our history thus far has afforded us the opportunity to embark on a capacity expansion program with enhanced market access and expert global logistical support. Today, part of the original building is still in use, overlooking our modern, state-of-the-art distillation facility on the banks of the Umgeni River.

OUR PROCESSES

OUR PROCESSES

SHEQ POLICY

SSAAFFEETTYY HHEEAALLTTHH EENNVVIIRROONNMMEENNTT QQUUAALLIITTYY && FFIIRREE SSAAFFEETTYY PPOOLLIICCYY The NCP Alcohols integrated management system will encompass all aspects of the business

through identifying processes, risks and strategies to comply with or exceed customer satisfaction,

business growth and excellence through ISO 9001, 14001, HACCP Systems and OHSACT

compliance. The policy is communicated and available to all employees, stakeholders and to the

public.

As manufacturers and suppliers of Ethanol and Vinegar our objectives and commitments

are to:

Ensure the safety of our people, suppliers, the community and our customers.

Be environmentally responsible and conduct our business in a manner that

minimizes waste and prevents pollution and responds to community concerns.

Ensure that our products and operations comply with the applicable laws,

regulations and standards.

Provide the appropriate training to ensure the quality and integrity of all aspects of

manufacture, supply, or use of our product.

Provide our customers with product that is safe by effectively managing

contamination risks in the manufacturing process.

We are committed to the concept of Continual Improvement through regular auditing and

management reviews. It is the Company’s intention and desire to optimize customer

satisfaction and confidence in the excellence of our processes, products, services and to

recognize and respond to community concerns by minimizing and eliminating, where

possible, inefficiencies in all aspects of the business.

SUSTAINABLE DEVELOPMENT MANAGEMENT

We are committed to sustaining our

development and have included our performance measures in a Game Plan, our strategic management system, that tracks our performance from four key balanced perspectives; • Financial measures that highlight improved bottom line results and improved financial performance. • Customer related measures that indicate how well we focus on new opportunities in the market to grow with our current and potential customers. • Internal processes that ensure sustained operational excellence with improved costs and the use of assets while ensuring focus on those processes that support the development of growth partnerships with customers and new business opportunities in the market place.

• Learning and growth processes that aim to create an environment that encourage employee cooperation, commitment and focus. This will be achieved by focusing on and measuring success in key areas including personal competencies and development, effective cooperation and communication. We are achieving these ambitious targets for our customers, stakeholder and internal processes and continue to create an environment that encourages employee cooperation, commitment and focus. To make all this a reality we deeply commit to our current status amongst our various stakeholders and will align sustainable development to contribute to our goal of being a company of choice, improve our risk management and create long-term value for all. Through our commitment to our service-oriented goals, over the past year we have achieved: • An 25% increase in our total sales, • A 32% increase in export sales to international markets, • A 148% Increase in international trading activities, • Maintained a South African market share above 60%. • We continued to be the preferred supplier to South Africa’s liquor companies. • The 9.9 culture of cooperation and commitment rated as the dominant culture at NCP by an internal employee survey.

PERFORMANCE AREAS

ENVIRONMENTAL

Our company achieved ISO 14000 status in November 2007

and this in turn has directed our attention to a number of longer term objectives relating to reducing our environmental impacts. The manufacturing of vinegar and ethanol requires certain resources and generates various wastes. Monitoring these environmental indicators is essential in our efforts to minimise our environmental risks. We minimise our impact on the environment through our cleaner production strategy which consists of an evaporation process to extract and concentrate nutrient residues and solids into an animal feed supplement, Concentrated Molasses Solids (CMS). The resulting evaporated “high wine” is processed in the distillery to purify the alcohol and the remaining water stream is recycled with the excess, which is low in COD, being disposed of via the municipal sewer where it meets the stringent permit requirements.

Review of Environmental Indicators

PER ANNUM PER KL OF PRODUCT

RESOURCE USAGE 2006 2007 2008 2006 2007 2008

Coal (tons) Methane Rich Gas (GJ) Water Consumption (kls) Power (MWh) Steam (tons)

58756 0

628262 19913

404697

63742 0

666679 20830

398959

26624 762975 628716 18380

404107

1.19 0

12.72 0.21 8.19

1.25 0

13.1 0.21 7.8

1.36 25.1 12.6 0.22 8.10

EMISSIONS

Liquid Effluent (Kls) CO2 (tons) Solid waste (Kgs)

218400 21322

104

243688 19991

115

221430 22406

136

4.3 0.43 3.0

4.6 0.39 2.0

4.4 0.45 2.72

ENERGY

Gas Fire Boilers

Our 12t/hr at 10 bar water tube coal boiler No. 1 with an efficiency of 68% was replaced by a 30t/hr @ 13 bar gas fire tube boiler with an efficiency of 93%. The latter was commissioned on 9th May 2008. Our 30t/hr at 32 bar water tube coal boiler No. 3 with an efficiency of 77% was converted to a 35t/hr @ 32 bar gas water tube boiler with an efficiency of 91%. The latter was commissioned on 11th August 2008. Our coal to gas boiler conversion project will result in an estimated reduction of 11.3 % on the steam turbine alternator electrical load. For the latter half of 2008 a target of 1.5% imported power for our plant during normal running conditions has been set. Optimizing of electrical energy consumption within production constraints will form a feature of this endeavour. This includes the installation of Variable Speed Drive (VSD) electric motors in certain applications.

PERFORMANCE AREAS

Only one air compressor needs to operate instead of two due to an 18% reduction in compressed air usage during 2006 and 2007. Determining our carbon dioxide emissions will form part of our longer term goal of establishing a carbon foot print. VSD’s were installed on two fermentation plant cooling tower fans in Sept. 2008 with a further reduction of 18 – 20 KW/hr until the January 2009 shutdown. Linking up to the cooling tower thermostats should improve the savings to 28 – 30 kW/hr. Monitoring power consumption per plant and operating the smaller of two pumps whenever possible resulted in further savings and a site power consumption of 2500 kW/hr. Similar power saving initiatives are planned for 2009.

The fuel switch from coal to gas has resulted in a reduction of power consumption in our boilerhouse of 200kw bringing our total site consumption down to 2550kw.

EFFLUENT

PERFORMANCE AREAS

EFFLUENT QUANTITY, QUALITY RATIOS

2006 2007 2008

Kl/kl AA 4,3 4,6 4,4

Effluent kg COD/kl AA 46,0 33,0 30,9

As the incoming molasses to a distillery contains 23% water the plant is a net producer of effluent. Our goal of

reducing the effluent/alcohol production ratio by 5% was almost fully met. A reduction of 4,3% was achieved . Similarly our kg COD/CL AA was reduced by the same margin against a target of 5%. Our goal for 2009 is to achieve a 5% reduction in the effluent / production ratio and the kg COD in effluent / kl AA in production by the 4th quarter of 2009. To achieve reduced effluent rates, condensate return to the boilers plays an important role. Our goal is to improve on our returned condensate of 84% in 2008 to 85% in 2009. A 10% reduction of fermentation process water makeup is targeted for 2009.

CONDENSATE RETURN HISTORY

2005 2006 2007 2008

80% 77% 81% 84%

WASTE

General and hazardous waste are regularly monitored and figures for the period 2005 – 2008

were:

2005 2006 2007 2008

General waste (tons) 184 104 115 136

Total hazardous waste (tons) 58.5 39 8 21

Effluent sludge 147 44 153 333

The increase in effluent sludge was partly due to molasses quality and delays and challenges implementing specific projects to reduce sludge and solids to effluent. These projects are now underway and are expected to contribute to reduced levels in the last quarter of 2009.

Waste Drum recycling & disposal In 2008, NCP Alcohols commenced using the only Company which is SANS 10406 accredited and registered by the SABS to recondition industrial bulk packaging.

PERFORMANCE AREAS

This company is also ISO 9001:2000 certified. Used drums are accumulated and then collected for re-conditioning or disposal for which the relevant certificates are provided.

Waste map A detailed waste map highlighting all waste streams is to be drawn up during 2009. Each source of waste, having been identified, will be actioned for eliminating or reducing.

AIR QUALITY

From 2003 to 2006 we embarked on a continuous

improvement programme to reduce coal boiler particulate matter and Sulphur Dioxide (SO2) emissions. This included purchasing of higher quality coal, stack analysis, ambient air sampling and environmental dispersion modeling. During 2007 particulate matter emissions from the coal boilers were reduced by 15 % and SO2 content in the coal from 1.00% to 0.65%. Mid-way through 2008 we commissioned our gas boilers reducing carbon emissions by 37% for the year. The methane rich gas used in our boilers have extremely low emission levels (see chart below) with virtually no particulate matter emitting from the stack. Looking at the future, our carbon footprint will now be reduced by 50% aligning us with the Kyoto Protocol requirements to reduce carbon emissions. NOX

mg/m3 SOX mg/m3 CO mg/m3 CO2 tons

p/a PARTICULATES

mg/m3

2007 - Coal 235 268 118 151472 447

2008 - Methane Rich Gas + Coal 190 50 5 95643 10

Reduction 19,1 81,3 95,7 37% 97,8

Water Consumption A goal for 2009 is to map the areas of water consumption and target those areas which are the largest users. Recycling of incoming water from molasses (170 tons per day) results in decreased dependence on town’s water and the aim is to reduce this dependence further.

PERFORMANCE AREAS

site’s high priority makes it necessary for regular risk assessments of our Standard Operating Procedures (SOP’s). Fire Protection The flammable nature of our main product Ethanol makes it necessary to have an adequate response to deal with any fire emergency situation. The SHEQ Officer is responsible to ensure that all employees and contractors are trained on fire related matters. We have a fire engine on site, state of the art fire foam monitors and automated sprinkler deluge systems that will reduce the impact of fire damage should the need arise.

PERFORMANCE AREAS

SAFETY

Our challenge is to achieve a zero Disabling Injury Frequency Rate (DIFR) and manage our activities according to a

philosophy that we are all responsible for each other’s safety. During 2008 we had one disabling injury in our Boiler House. The accident was investigated, resulting in procedures being changed. These procedures were implemented and communicated throughout the company to prevent similar incidents. The culture of shared responsibility for each other’s safety and preventative measures all resulted in a DIFR of 0,57 during 2008. First aid cases also reduced from 8 the previous year to 4 during 2008. Our strict work permit system and risk analysis also contribute to our high safety standards. And an important goal for 2009 is to further educate and involve all staff in being responsible for each other’s and visitor’s safety on site. During 2009 our target is to reduce our DIFR from 0.57 to zero. Our Safety Health and Environment Committee will play an integral role in achieving this by ensuring that the reported near misses and non-conformances are acted on with immediate effect. We plan to be NOSA accredited early during 2010 and will have pre-audits during 2009 to ensure that we comply with the OHS ACT and NOSA requirements. Safety on

Safety is our first priority and one of our core values. Despite this we had a Disabling Injury Frequency Rate (DIFR) of 0,71 for 2006 and 2007 and in 2008 it was 0.57.

Disabling Injury Frequency Rate

2006 2007 2008

0,71 0,71 0,57

Food Safety During 2008 we achieved HACCP accreditation during our first audit. We adhere to the HACCP requirements to ensure that our raw materials and nutrients are of food grade standard. All our employees are trained on HACCP requirements within their areas of responsibility. Longer term goals heading into 2009 will be to integrate our ISO systems.

ACTION GUIDELINES ACTIVITY PERFORMANCE

ENVIRONMENTAL PRESERVATION

ACTIVITIES

Corporate management that realizes a sustainable balance among the environment, economics and society.

Inculcate environmental

awareness on an individual basis.

Use the risk based approach of ISO 14001 to reduce environmental aspects & impacts.

Continuous internal environmental audits. Promote green purchasing. Promote environmental management for significant impacts.

Promote of environmental awareness Reduce C02 emissions. Introduce environmentally friendly equipment.

Conduct appropriate control of chemical substances.

Measure no of risk assessment s performed during 2008. Review of internal environmental audits in Management Review meetings. Create new standards. Mitigate the significant (top 20%) aspects and impacts. Environmental Training Awareness and understanding. Conversion of boilers from coal to gas. Improved boiler efficiencies. Conduct hazardous chemical risk assessments to identify areas requiring attention. Reduce emissions of harmful chemical substances. Convert all energy savings to CO2 equivalents.

ENERGY CONSERVATION

Conduct environmental audit to measure performance against set criteria.

Set specific energy reduction goals. Promote energy conservation through continual process and operational improvements.

Reduce power consumption.

Continued monitoring of appropriate eco-indicators and assessing opportunities for reduction. Demand management awareness and training. Compressed air consumption reduction. Further use of variable speed drives.

RESOURCE CONSERVATION

& RECYCLING

Contribution to the formation of zero waste.

Observance of laws,

regulations and in-house management standards.

Continuous environmental

improvement.

Identification and management of all waste contributors.

Waste stream and storm water separation. Recycled water used for fermentation process. Resource conservation. Reduce packaging costs – inbound and outbound.

Understanding of potential for waste reduction. Construction of detailed effluent balance to target major sources of pollution.

Construction of detailed waste map to highlight opportunities for improvement. Introduction of high efficiency equipment eg variable speed drives and low energy lighting etc. Reduction of final waste volumes through in-plant recycling. Selection of environmental resource efficient equipment. Improved understanding of main contributors to effluent quality Reduce drum packaging mass Receive chemicals in bulk

FOOD SAFETY

Adhere to regulatory best practice in food safety.

Maintain our HACCP accreditation. Attained our HACCP certification.

OUR EFFORTS AT DEVELOPING A SUSTAINABLE SOCIETY

PERFORMANCE AREAS

PERFORMANCE AREAS

Occupational health Occupational health surveys and risk assessments are performed on a two yearly basis or when significant modifications have been made to the plant or process. Occupational health focuses on noise induced hearing loss and our records indicate the following: • 2006 - 38 audiograms conducted with 2 showing abnormal,

submitted to the workmen’s Compensation Commissioner. • 2007 - 31 audiograms conducted with no new cases identified.

2008 - 18 audiograms were conducted and all were found to be normal.

In terms of the Hazardous Substance Control Act every employee must have a periodic medical done at least every 2 years. An occupational health audit to identify other possible risks is scheduled for 2009.

HIV/Aids NCP takes a pro-active stance against epidemics such as HIV/Aids and this disease is being managed on a preventative basis to negate the impact on the business and the employees themselves. In addition to aids awareness campaigns, an in-house assistance programme offers employees assistance in total privacy.

Our contractors or temporary staff that works for longer than fourteen days also have entry and exit medical examinations.

HEALTH CARE

Our staff has access to health care that is clinic-based, focusing on

occupational health, primary health care and HIV/Aids. Our clinic is staffed by one doctor and one nurse.

Periodic medicals Our medical staff performs regular job-related medical check-ups along with tests, such as lung function and hearing tests as part of our general medical monitoring.

Environmental monitoring is carried out and anything identified that is hazardous

or harmful is listed and necessary medical tests are done to comply with

the relevant legislation.

PERFORMANCE AREAS

We play a leading role in the South African potable ethanol manufacturing industry and retain membership of various groups and associations that will promote the industry. We are a member of the following associations: • Aerosol Manufacturers, • Cosmetic Chemists • Cosmetic, Toiletry and Fragrance Associations • Cane Spirit Distillers Association and • Ethanol Producers Association of South Africa. Our close relationships with these industry associations allow us to participate in the development and monitoring of safety and quality standards with our customers and other industry members.

QUALITY PERFORMANCE Our strength lies in our focus on quality. NCP have been receiving Gold, Grand Gold and Double Gold medals from the International Monde Selection since 1961 with our 2008, 25 Year Special Trophy the highlight of the decade. Facing aggressive competition from other major producers of alcohol world-wide, and the fact that we are targeting high-end niche markets that will accept nothing but the best, we comply with the ISO 9000, 14000 and HACCP Quality Management Systems and all products are manufactured under stringent quality control measures to consistently meet the most demanding quality standards in the international beverage and alcohol sector.

In order to ensure our product is delivered in a safe and professional manner, while maintaining our excellent product quality, we contract hauliers that are acknowledged market leaders in the South African tank-truck industry. Our relationship with the Liquor Industry Sectoral Task group that investigates illegal procurement and production, distribution and sale of liquor allows us to offer our customers fair markets for the sale of legitimately produced liquor products that comply with the Department of Agriculture and South African Revenue Service’s (SARS) regulations.

Our Board of Directors is committed to the development of a broad-based BEE plan noting that:

It will contribute towards sustained economic growth, development and social transformation in South Africa, addressing racially based socio-economic disparities.

it will bring about an increase in skills and the number of black managers that manage own and control the economy of the country.

the adoption of a broad based plan should secure and enhance the company’s competitive performance.

During 2008 we embarked on our first audit and have achieved a level 6 status on the Department of Trade and Industry’s Generic Scorecard with the intention of achieving a level 4 in the coming years leading up to 2010. NCP, like other companies, face the challenges of delivering incremental returns, producing more cost effectively and delivering superb customer service in the face of growing global competition. B-BBEE is a mechanism that can assist our business in this regard and should be seen in this regard.

PERFORMANCE AREAS

PEOPLE

Black Economic Empowerment

We are aware of our responsibility to promote Black Economic Empowerment (BEE) in South Africa and our plan is to do that with our integrated approach which encompasses meaningful and sustainable participation of Black people at all levels of the company while we also promote interaction with our communities in the area where we operate. During 2008 NCP was audited by a SANAS accredited rating agency for the year ended 31 December 2007 and was rated a Level 6 Contributor on the Codes of Good Practice on the Black Economic Empowerment Scorecard.

PERFORMANCE AREAS

We are committed to employing, empowering and developing our employees through the development of competencies and skills in alignment with our overall Human Resources strategy. We create awareness and understanding of the equity process by using the following communications tools;

Training material, notice boards with a designated space for the posting of documents associated with Employment Equity.

Information sheets to sensitise all our employees on employment equity and anti-discriminatory issues and quarterly fixed meetings and ad-hoc as and when required.

The minutes of all the committee meetings are available to staff on a shared electronic portal.

Employment Equity We share the national interest that a broad-based pool of skills is developed for our industry to unleash the potential of all South Africans and in accordance with the Employment Equity Act No. 55 of 1998, our Employment Equity (EE) reports are submitted to the Department of labour biannually. Our policy and these reports continually redresses the inequalities present with regards to gender and disability in our employee base and accelerate the normalisation of this position through structured skills development programmes and the injection of talent, through our ongoing commitment to:

Ensuring that our workforce represents South African demographics in terms of race, gender and disability at all levels and that structured development plans are in place to achieve this.

Actively driving internal promotion opportunities through structured development programmes and career planning.

Encouraging the recruitment of black talent into the company.

B-BBEE requirements are taken into consideration when the committee participates in the selection process of new recruits and promotions.

Employment Equity (EE) African Indian Coloured White

2006 2008 2006 2008 2006 2008 2006 2008

Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female

35 5 44 16 33 10 29 10 2 0 2 0 14 8 14 7

Our EE policy is in line with our commitment towards Broad Based Black Economic Empowerment with a resulting increase in the number of females employed. With less than 150 employees we submit equity reports to the Department of Labour every second year.

Enterprise and Socio-economic Development

During 2008 we developed a Co-operative as part of our Enterprise Development in conjunction with and through the eThekwini Municipality and the Umgeni Estuary Conservancy. NCP established and supports this primary cooperative, the Umvubu Environment Management Services Co-operative trading as Umvubu Services to maintain and rehabilitate the sensitive Umgeni River Bank area.

PERFORMANCE AREAS

Enterprise and Socio-economic Development

We also provide operational space to an Emerging Micro Enterprise, J & H Pipe and Engineering, and have done so for the last eight years. Up until we upgraded our Coal Fire Boilers to Gas late last year we supplied YC Naidoo with ash which they in return supplied to small brick building operators. The ash was also used by Durban’s Bird Park to fill the potholes in their visitor’s parking space. NCP Alcohols acknowledges its Socio Economic Development responsibilities and the purpose of our social investment programmes is to make sure that a contribution is made towards making life better for disadvantaged communities and individuals.

Socio Economic Development (SED) is an important component of our corporate citizenship independent to our regular activities. These activities are directed at education, environment, welfare and safety. Looking after its own staff’s wellbeing too, NCP awards bursaries to qualifying children of employees.

Our SED focus for 2008 included:

Assisting the local community schools and crèches with limited and needed resources, such as stationery, books and food etc.

Assist children of employees to study by offering them bursaries.

Provide needy schools with recycled electronic equipment.

Support Girls and Boy’s Town revamping of their youth centre.

Ongoing support to Durban Care for the Aged.

Donations and staff volunteers at monthly Look Good Feel Great Make-over Workshops held at oncology wards for female cancer patients.

We provide employment to the local community (cleaning staff, contract labour) on an ongoing basis.

Donation of a Pilot Fermentor to the University of Stellenbosch to train post graduate students who are furthering their studies in fermentation.

PERFORMANCE AREAS

Preferential Procurement

Particular attention is given to preferential procurement from and outsourcing Black enterprises and services providers. Our Procurement policy aims to address the support of black businesses by ensuring that black suppliers have access to our procurement database. Our procurement policy is consistent with the Department of Trade and industry’s strategy on Broad-Based Black Economic Empowerment (B-BBEE).

Skills Development

In line with our commitment to our staff we pay great attention to our employee’s ongoing development of their skills. We make sure that this is carried out through the commitment of their managers and during 2008 we have acquired the skills of a Training Coordinator who will coordinate training and skills development performance.

PERFORMANCE AREAS

Our Annual Training Report (ATR) is linked to our Workplace Skills Plan (WSP) that is submitted to the Chemical Institute’s Education and Training Authority (CHIETA) on an annual basis. Staff and their children who qualify to further their education have access to an Educational Assistance and Bursary Scheme. All our operational staff goes for annual refresher training that covers the legality and responsibilities related to the issuing of work permits and general plant safety. International examinations in fermentation and distilling are offered to employees and to support our programme to develop and invest in the future of our youth, we have strong alliances with selected educational institutions. We have annual in-service students on registered workplace experience programmes in partnership with the Durban University of Technology and CHIETA – in the engineering, chemical engineering and chemistry fields. To retain skills to meet future demand and plan for succession, innovative strategies are used to retain and build a pool of skills. A number of these initiatives are focused development plans for key positions. These initiatives will gain momentum in 2009 with operations controllers being included in the developmental group.

During 2008 we employed 7 students from the Durban University of Technology for their workplace experience year in the fields of Mechanical, Electrical and Chemical Engineering, and BioTechnology.

NCP Alcohols Sustainability Report 2008 - Feedback Form We value your opinion and would like to know what you think of our sustainability report, please complete the form below and fax it back to us at (031) 560 1163 1. Did we address issues of interest to you in our sustainable development report? (please tick and/or supply information) Yes __ No __ Need more information ________________________________________________ Please list some issues that you would like to have included in our future reports: ____________________________________________________________________ ____________________________________________________________________ 2. Do you have any observation or questions about NCP Alcohols’ sustainability performance in general? ____________________________________________________________________ ____________________________________________________________________ 3. To which stakeholder group do you belong to? Employee ___ Customer ___ Supplier ___ NGO ___ Public Authority ___ Other (please specify) ________________ For more information contact: Key Contacts

E-mail: info@ncpalcohols.com Website: www.ncpalcohols.com Physical address: 121 Sea Cow Lake Road Durban, 4001, South Africa The Environment Health & Safety Manager Tel: +27 (0) 31 560 1111 Fax: +27 (0) 31 560 1163

FEEDBACK FORM & CONTACTS