Unqualified conclusions

1. We obtained reasonable assurance that the total number of employee and total number of contractor fatalities, is fairly stated in all material respects in accordance with the internally developed Eskom reporting standards (refer here);
2. Nothing has come to our attention that causes us to believe that the reported performance information is not fairly stated in all material respects, in accordance with the internally developed Eskom reporting standards: (limited assurance) for the following performance indicators;

   total black economic empowerment expenditure company and group

   demand-side management savings

   unit capability factor, unplanned grid separations

   number of system minutes lost, number of major incidents

   system average interruption frequency index, system average interruption duration index

   coal purchased

   net specific water consumption

   capital expenditure on new build

   relative particulate emissions, emissions of carbon dioxide and sulphur dioxide

   volume of low level radioactive waste, volume of intermediate level radioactive waste

   employment equity including: race; gender; disabilities



3. Nothing has come to our attention that causes us to believe that the qualitative disclosures relating to the continuity of supply and climate change are not fairly stated in all material respects (limited assurance).
4. Nothing has come to our attention that causes us to believe that management’s assertions relating to the application of the Global Reporting Initiative G3 principles for sustainability reporting are not fairly stated in all material respects (page x (ten of the small pages) (limited assurance).

Qualified conclusions/disclaimer of opinion

Lost time incident rate (LTIR) including occupational diseases (here) and total number of environmental legal contraventions (here).

With respect to the lost time injury rate (LTIR) and the total number of environmental legal contraventions, our review identified process and control weaknesses that prevent complete, consistent and accurate reporting of the performance data in accordance with the internally developed Eskom reporting guidance, as discussed in the report here and here. As a result, based on our work performed, we are unable to form a conclusion on the LTIR and total number of environmental legal contraventions data reported.

Commentary

1. Eskom has successfully applied the Global Reporting Initiative G3 principles (materiality, stakeholder inclusiveness, sustainability context, completeness, balance, comparability, accuracy and timeliness) to identify, manage and report its key sustainability risks and opportunities. Although in the current year the report does not indicate a G3 application level, Eskom has developed a road map to ensure alignment with best practice in sustainability reporting. In the coming year a more comprehensive stakeholder engagement process should be put in place to ensure all significant risks and opportunities are captured.
2. The findings from our review have been communicated to management and the audit committee. Eskom has demonstrated that sustainable development is key to its business and has already commenced on resolving issues. Reporting definitions and standards should be reviewed and clarified where necessary to allow for consistent reporting throughout the organisation.