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Our Material Issues

Defining our material issues

Petra defines a material topic as an environmental, social or governance (“ESG”) issue that could significantly impact the delivery of the Company’s strategy and future performance, and/or could have a material impact on individuals, groups or communities that are impacted by Petra’s operations. In the sustainability sphere, materiality encompasses a company’s impacts on the outside world and our definition therefore takes into account any issues which are deemed to have a significant economic, environmental or social impact on our stakeholders, as well as those which may significantly impact the Company.

While communication with our stakeholders and engagement about matters important to them is an ongoing part of our daily business, in FY 2020 a formal stakeholder engagement process was conducted to identify our material issues, alongside a Sustainability Strategy review.

This consisted of a survey that was conducted with both internal and external stakeholder groups, and could be completed either in hard copy or electronically. Internal stakeholder groups included the Board, the Executive Committee (“Exco”) and employees, while external stakeholder groups consisted of shareholders, noteholders and analysts, as well as key external stakeholders local to the Petra operations, including contractors, suppliers, local municipalities and NGOs. For a list of the Company’s key stakeholders, information on how we engage with them and examples of how we incorporate their concerns into our strategy, see the ‘Stakeholder engagement’ section of the Company’s 2020 Annual Report.

Petra identified its material topics in accordance with the GRI Standards process and guidelines. Following analysis of the results from the materiality survey, weighting was applied to the respective stakeholder groups with regards to specific material topics. The aggregated scores were therefore used to identify the issues most material to the Company, as confirmed by our internal and external stakeholders. In addition to the stakeholder views, consideration was also given to a combination of other internal and external factors, including broader societal expectations, the main topics prioritised by our sector, ongoing legal and regulatory developments relevant to Petra and key organisational values, goals and targets. The final list of material topics was then deliberated by the Exco before being presented to the Board for consideration and approval.

Material topics identified are aligned with internal governance processes and operational imperatives, and are therefore managed as part of internal processes that answer to both regulatory requirements and internal KPIs.

FY 2020 Material Issues

The following were identified as Petra’s ‘Material Aspects’, in accordance with the GRI process and guidelines.

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Workplace Safety

The health, safety and wellbeing of all Petra people remains our overriding priority and we are continuously striving to improve the systems and processes already in place to support our target of a zero harm working environment. Allowing our people to go home safe from work is Petra’s number one priority and ingrained into everything we do.

Stakeholders: All stakeholders

Topic Boundary: Applies to the Company and its local communities

Ethical behaviour

We are committed to upholding the high value placed on natural diamonds, which are given to celebrate life’s most special moments and are considered as prized possessions. As such, we expect every aspect of our business to be run in accordance with our Values. We also aim to obtain further assurances from our suppliers that they are similarly engaged in ethical business practices, particularly in relation to having internal measures in place to avoid bribery, modern slavery, tax evasion, money laundering and human rights abuses.

Stakeholders: All stakeholders

Topic Boundary: Applies to Petra’s business as a whole

Employee health and wellness

In addition to keeping our employees safe, we motivate and encourage a workforce that is healthy in both body and mind. In striving to prevent harm and positively influence the health and wellbeing of our employees, we aim to shape a Company culture that recognises the value of caring for our people, who are integral to Petra’s ultimate success.

Stakeholders: Employees, contractors, trade unions; local communities; host Governments, regulators, NGOs

Topic Boundary: Applies to the Company and its local communities

Water management

Water is a scarce resource and we have identified the management of water as one of Petra’s most important environmental prerogatives. Our operations are water intensive and changes in temperature may affect the availability of raw water for treatment processes and impact on natural water sources that sustain the communities around our operations. Petra is therefore committed to utilising water responsibly and efficiently, being mindful of the water scarcity in some of our areas of operation.

Stakeholders: Employees, contractors, trade unions; financial stakeholders; local communities; host Governments, regulators, NGOs

Topic Boundary: Applies to the Company and its local communities

Corporate Governance

Effective corporate governance is the backbone of Petra and enables each part of the business to operate efficiently, successfully and sustainably. It is essential from a mandatory perspective to comply with the various governance regulations in each of the jurisdictions in which Petra operates. However, it is also integral to the ethical conduct and culture of the business.

Stakeholders: All stakeholders

Topic Boundary: Applies to Petra’s business as a whole

Environmental management

We recognise that our value emanates from the natural world and therefore protecting the environment in which we operate is integral to how we run our business. Managing our environmental impacts is a priority for Petra and, in so doing, we align our interests with those of our local communities.

Stakeholders: Employees, contractors, trade unions; local communities; host Governments, regulators, NGOs

Topic Boundary: Applies to the Company and its local communities

Stakeholder engagement and management

Petra makes a valuable economic contribution to the countries and communities in which we operate. Maintaining supportive relationships and playing a positive role in our local communities is vital to the sustainable success of our operations.

Stakeholders: Employees, contractors, trade unions; financial stakeholders; local communities; host Governments, regulators, NGOs; suppliers

Topic Boundary: Applies to the Company and its local communities

Diversity

Petra recognises the importance of diversity, given numerous studies have identified the benefits to business of more diverse teams when it comes to improved problem solving and decision making. However, improving diversity is also a mandatory requirement for companies operating in South Africa and a best practice requirement for UK-listed companies.

Stakeholders: Employees, contractors, trade unions; financial stakeholders; local communities; host Governments, regulators, NGOs

Topic Boundary: Applies to Petra’s business as a whole

Community relations and development

Maintaining supportive relationships and playing a positive role in our local communities is vital to the sustainable success of our operations. Our mines are typically located in remote areas where there are limited employment opportunities and, as such, are crucial to the current and future prosperity of their local communities. We place great emphasis on engagement with our stakeholders in order to be able to better assess our impacts and to strategically address matters of mutual importance.

Stakeholders: Employees, contractors, trade unions; financial stakeholders; local communities; host Governments, regulators, NGOs

Topic Boundary: Applies to the Company and its local communities

Employee Development

To deliver on our ambitious growth plans, we require a skilled and engaged workforce, pulling together as a team to achieve our shared vision. Petra therefore has a wide range of personal development programmes in place in order to develop our people. Our ‘can-do’ company culture, whereby employees are empowered and held accountable for their actions, also plays a key part in staff retention.

Stakeholders: Employees, contractors, trade unions; local communities; host Governments, regulators, NGOs

Topic Boundary: Applies to the Petra business as a whole

Climate change and energy usage

We recognise the growing importance of climate change, both to our Company and to our stakeholders, and have a carbon reduction strategy in place to assist in minimising our impacts. Managing our energy usage is the most important method by which we can limit our emissions and therefore combat climate change, plus driving energy efficiency leads to significant operational and financial benefits to the Company.

Stakeholders: Employees, contractors, trade unions; financial stakeholders; local communities; host Governments, regulators, NGOs.

Topic Boundary: Applies to the Company and its local communities