We have identified the following key environmental issues and impacts:

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1 Environment As an organisation, we have embraced the importance of protecting the environment and have made sustainable development one of our overall strategic goals. We strive to achieve this goal in four key operational ways: being transparent about our environmental management; maintaining an environmental management system (EMS) that is compliant with ISO international standards; minimising our construction footprint by adhering to all legislative requirements, and by improving awareness throughout the organisation through training initiatives. Environmental risks and opportunities are considered in strategic decision making and planning processes and reported on using risk registers at site, division and executive management levels within the organisation. Ultimate responsibility for our environmental policy and management rests with the board via the Social and ethics committee. WBHO is an ISO certified organisation and a member of the Green Building Council of South Africa (GBCSA). We have identified the following key environmental issues and impacts: climate change; energy consumption; pollution control (water, soil and air pollution, such as CO2 and water emissions); and waste generation (recycling). For further information regarding our responsibilities and commitments, as well as the steps we are taking to minimise our environmental impact, please see our Environmental Management Policy (available for download as a PDF document within this section). Stakeholder engagement An important part of our environmental management process is engaging with stakeholders whose environment could be impacted by our projects or who could impact the environment within the vicinity of our projects. We engage with local communities, government, non-governmental organisations (NGOs), our clients, consultants and subcontractors in this regard.

2 Our performance Our achievements during the reporting period include: conducting nine ISO audits and becoming fully compliant as an organisation; retaining our Johannesburg Stock Exchange (JSE) Socially Responsible Investment (SRI) Index certification; participating in the Carbon Disclosure Project (CDP) for the fifth time; developing a Green Building management system and constructing 15 Green Building-related projects; and implementing legal and technical compliance training programmes for junior and middle management. Incidents and compliance We aim to achieve zero environmental incidents throughout all of our operations. We monitor, report, investigate and remediate any incidents and apply lessons learnt through root cause analysis to prevent similar events in the future. During the period under review, an environmental spill occurred near Steelpoort when a Light Duty Vehicle (LDV) that was towing a 1,000 litre diesel bowser was involved in an accident on a public road. A professional spill company was contracted to clean up and dispose of the contaminated material in a responsible manner. ISO certification ISO sets out the criteria for an effective environmental management system (EMS). Achieving full ISO certification provides stakeholders with assurance that our environmental impact is being measured and reported upon (the relevant certificates are available for download as PDF documents within this section). Certification is valid for three years and requires annual independent audits and quarterly internal audits. As of May 2013, all South African divisions of WBHO Construction (Pty) Ltd have now obtained ISO certification. The Australian operation operates within the requirements of AS/NZS ISO 14001: Through our EMS, we have documented targets and objectives in all key areas and we are starting to capture the quantitative measures that will enable us to establish and publish an accurate quantitative baseline during the next reporting period. From this baseline, we will begin setting quantitative objectives and targets in all key areas. For further information regarding our approach to environmental management, view our Environmental Management Policy. Carbon Disclosure Project (CDP) The CDP provides a framework through which a company can measure and disclose the size of its carbon footprint or greenhouse gas (GHG) emissions. WBHO participated in the CDP for the fifth time in FY13.

3 The results published in the following table reflect our FY11 and FY10 performance. Our FY12 emissions have been submitted, but the assessment of our performance will only be released towards the end of In the FY12 CDP report for South Africa, WBHO was ranked out of 76 participating companies (previous rank was 36), the disclosure score of the company improved from 77 to 82 and it remained in performance band D (a reasonable level of disclosure, but limited evidence of actions taken on mitigation or adaptation). During FY11, the South African operations of WBHO (excluding subsidiaries and joint ventures) produced the following carbon emissions: Source Tonnes of CO2 equivalent (tco2-e) FY11 FY10 Scope 1 26,833 43,275 (direct carbon emissions from the consumption of fuel in the form of diesel and jet kerosene) Scope 2 6,376 7,843 (indirect carbon emissions from our consumption of electricity produced by burning fossil fuel [coal]) Scope 3 10,742 10,824 (carbon emissions from our business travel [road and air]) Total carbon emissions: 43,951 51,118 The reduction in both Scope 1 and Scope 2 emissions was as a result of more refined and accurate on-site data capturing. The in-house data capture system has been developed and improved, leading to better and more verifiable data. In the case of Scope 2 emissions, for example, we are now recording actual kilowatt hours (kwh) rather than just the monetary value of electricity consumed. Our immediate objective is to further improve our carbon disclosure data and achieve a carbon emission baseline that is accurate enough to be able to start setting meaningful quantitative targets and objectives in this key area. Green Buildings Green buildings are designed, built and operated in an environmentally sustainable and energy-efficient manner. The Green Building Council of South Africa (GBCSA) rates buildings

4 according to a series of environmental and energy-related specifications and WBHO currently has eight projects that have achieved between 4 and 6-star ratings, with another seven projects pending ratification. The WBHO Green Building team has also developed a management system to streamline the approval process, helping sub-contractors to adhere to the specifications and submit the correct paperwork. WBHO is proud to be involved in the construction of the following projects. Project Green Star Rating Tool Certification Targetted Certification Received Menlyn Maine Nedbank Falcon Building Office V1 5 Star As Built Rating 5 Star As Built Rating Menlyn Maine Sage VIP Building Office V1 4 Star As Built Rating 4 Star Design Rating 115 West- Alexander Forbes Office V1 4 Star As Built Rating 4 Star Design Rating Alice Lane Phase 1 Office V1 4 Star As Built Rating 4 Star Design Rating Alice Lane Phase 2 Office V1 4 Star As Built Rating To be submitted Grundfos Offices Office V1 4 Star As Built Rating To be submitted 90 Grayston Office V1 4 Star As Built Rating 4 Star Design Rating Atrium on 5th Office V1 4 Star As Built Rating To be submitted Newtown Offices Office V1 4 Star As Built Rating To be submitted Majestic Offices Office V1 4 Star As Built Rating To be submitted NMMU Green Star PEB Pilot 4 Star As Built Rating To be submitted No.1 Silo's Office V1 6 Star As Built Rating 6 Star Design Rating Santam Office V1 4 Star As Built Rating 4 Star Design Rating Standard Bank Office V1 5 Star As Built Rating 5 Star Design Rating Lynnwood Bridge Phase 3 Office V1 4 Star Design Rating To be submitted Our GBCSA membership certificate is available for download as a PDF document within this section. Waste management initiative: recycling rubble to make bricks One of the requirements for Green Building accreditation is that a specified percentage of the waste produced at the site is recycled or reused, instead of ending up at a landfill. One ingenious way this requirement is being met is by converting building rubble into hydraform (interlocking) bricks for use in low-cost housing. Site waste, largely consisting of rubble, is processed through a series of crunchers until it reaches the required size. The fine aggregate is then mixed with admixtures and cement and fed into brick-making machines. Approved by the South African Bureau of Standards (SABS), the bricks are grooved so that they can be interlocked and used to make walls without cement. Pallets of bricks made from rubble generated at the WBHO Green Building project, Alice Lane Phase 2.

5 Training Environmental training remains a challenge as few courses are construction sector-specific; as a result, training is undertaken in-house on the whole. A training matrix is used to ensure that all employees undergo appropriate training on topics like general awareness, legal compliance, spill training, waste management, Green Building, ISO and protected areas and species. Ongoing training programmes include induction sessions and toolbox talks. Specific implementations during the reporting period included: a legal compliance exposure programme for junior management and an EMS and Green Building technical training programme for middle management. We have also trained members of the National Defence Force (NDF) in Tshwane who are responsible for NDF buildings regarding: their legal and regulatory responsibilities; the handling of construction materials; and general on-site environmental awareness protocols. Climate change As an organisation, we acknowledge that climate change is perhaps the biggest threat facing the planet; consequently, we are committed to making a concerted effort to operate in an ever more energy-efficient and sustainable manner. We also acknowledge that carbon emission reduction is an essential element in the fight against climate change and have participated in the international Carbon Disclosure Project (CDP) for five years. Senior responsibility for climate change-related issues has been give to Mr Paul Foley, Group Managing Director (MD) of our Building and Civil engineering division and a member of the Executive Committee (ExCo). He reports directly to the Chief Executive Officer (CEO). The risks and opportunities associated with climate change are regularly assessed and the overall impact of these risks and opportunities on the business are considered. Our approach is a balanced and cost-effective one that includes the following specific activities and objectives: retaining our ISO certification and setting quantitative targets and objectives from next year; remaining an active member of the GBCSA and developing energy-efficient buildings with lower emissions; minimising our waste footprint through the intelligent management, recycling and re-use of materials; and monitoring and reducing our emissions (through ongoing participation in the CDP). Our climate change policy is also informed by international and national governmental agendas, such as current proposals regarding carbon taxation, and we monitor the relevant green and white papers in this regard. For further information, see the official WBHO Climate Change Policy (available for download as a PDF document within this section).