Sustainability report - Letter from the CEO

Netcare subscribes to the widely accepted definition of sustainable development as “development which meets the needs of the present generation without compromising the ability of future generations to meet their own” . This is challenging us all to re-evaluate how we do business; a narrow focus on shareholder value only is no longer viable.

As pointed out in the third King Report on Corporate Governance the value of a company extends further than its balance sheet, as it is impacted by a range of non-financial issues. These include brand and reputation, its people, stakeholder relations and goodwill, an evolving and forward looking strategy, environmental sustainability, social responsibility and quality of governance.

The evolving understanding of sustainable development requires action across all these interdependent issues. Leading corporate citizens are active in employee development and training, play a constructive role in the communities in which they operate and make prudent use of natural resources, to ensure a sustained licence to operate. This ultimately contributes to a better quality of life for everyone, both in the present and for future generations.

At Netcare we are playing a key role in broadening access to affordable healthcare in all our areas of operation. In the southern African region this is being achieved by promoting primary healthcare through our Primary care network and our success in Public Private Partnerships (PPPs). Our corporate social investment initiatives are also focused on increasing access to quality healthcare at community level.

In the United Kingdom (UK) we have broadened access by increasing the number of facilities we operate; an estimated 89% of the UK population now live less than one hour from a BMI facility.

Our people are critical to our success. Accordingly, I am pleased to report that we were ranked fifth in the Large Companies category of the 2009 Deloitte Best Company to Work For Survey in South Africa (SA) and first in the healthcare sector in the CRF Institute’s BEST Employers™ South Africa 2009/10 Survey. Care for our employees translates directly into care for our patients, and also has positive impact on reducing absenteeism and voluntary turnover.

Over the years we have mitigated some of the risks associated with skills shortages through sustained investment in training and development. In 2009, Netcare trained over 3 800 learners in SA, which helps to ensure both the depth and quality of our staff base and that of the broader healthcare sector.

We continue working towards achieving the objectives of the draft Healthcare Sector Charter. Over the year Empowerdex rated Netcare as a Level 3 contributor in accordance with the Department of Trade and Industry Broad-based Black Economic Empowerment Codes of Good Practice.

The Copenhagen Summit in December 2009 is intensifying the focus on energy. While Netcare is classified as a low impact industry, we recognise our responsibility to move into the low-carbon economy. Our inclusion in the South African Carbon Disclosure Project (CDP) Leadership Index, where we were ranked 14th, is evidence of our commitment to this process.

Our people also remain key to mitigating our environmental impacts. In South Africa, staff have participated enthusiastically in our “Switch it Off” campaign, which challenges them to reduce electricity consumption. In the UK, GHG launched the “Big Turn Off” campaign as part of our carbon management programme. These initiatives are engaging staff and changing business practices across all facilities to help reduce our environmental impact.

With only five years to go before the 2015 Millennium Development Goals (MDGs) deadline, a recent United Nations’ report warns that overall progress has been too slow. This requires renewed commitment from all stakeholders and Netcare will continue to contribute to social progress to assist in reaching these targets as soon as possible.

We are currently engaged in a managed process to define a sustainable development strategy and integrate financial, social and environmental performance into our operations and our culture. This will help ensure that we can stand proud as a responsible and engaged corporate citizen walking together with government to create a better more sustainable future for all.

Richard Friedland
Chief Executive Officer