eXtract is committed to sustainable development, recognising that operating safely and responsibly underpins our licence to operate. The eXtract Way outlines the way in which we operate, which combines our vision, mission and values of the group, as well as our business ethics. It requires the active management by all employees.
Ensuring alignment with government, transformation is an executive priority for eXtract, and it forms part of the overall business strategy and operations. In order to better achieve our goals in this regard, a transformation committee was established in February 2015 to monitor, specifically spend on enterprise and supplier development. The division achieved a Level 3 B-BBEE rating in its stand-alone rating process.
Sustainability forms a key component of the way eXtract and its divisions conduct its business in South Africa and globally. As we are predominately a support services focused company, our overall environmental impact is low. Any work conducted on mining sites, for example, is classified under the mine's environmental impact.
Nonetheless, we are cognisant of the impact our operations may have on the environment and therefore we have procedures in place to ensure compliance with industry best-practice.
Road travel comprises the most material element of the group's carbon footprint. We therefore continually consider opportunities to reduce our carbon footprint where possible. We ensure that all vehicles are properly maintained, are not overloaded and that carbon emissions meet manufacturers' specifications.
Fleet Management and Logistics is currently testing AutoGas (Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) as a transportation fuel as part of its Green Fleet strategy. Currently AutoGas vehicles only make up 1.5% of the global automotive fleet. However, popularity is growing as gas is more cost-effective than oil. The technology is well developed and the environmental benefits are meaningful.
Recycling is practised throughout the company and its divisions. Significant emphasis is placed on the recycling of used oil and parts. Furthermore, the group makes use of natural capital management, identifying certain indicators to monitor consumption appropriately.
Bi-annual environmental audits and risk assessments are also conducted by the division's safety officers.
Thorough corporate governance principles underpin the board and management's vision of creating a sustainable business that operates in a responsible, ethical and transparent manner.
The group remains committed to embracing top corporate governance practices and it subscribes to the corporate practices and conduct set out in King III, the requirements of the JSE Limited and the Companies Act, as well as the International Integrating Reporting Framework.
The group remains committed to complying with all corporate governance legislation, regulations and good practice in the countries in which it operates. In guiding the group's development, the board attempts to balance and encourage entrepreneurial freedom within the boundaries of good corporate governance in order to achieve maximum shareholder value.