We are committed to conducting business fairly, ethically and transparently and to complying with applicable laws and regulations. Responsible business practices underpin how we engage with our employees, customers, suppliers, communities and other stakeholders and support the long-term sustainability of the group.
Corporate governance
Our group is overseen by strong governance structures, from the KAP board to our divisional boards and management structures, as outlined in our Corporate governance report on page 78, and governance framework, available on our website. It sets out our framework for ethical business practices, governance, risk management and internal control. Our policies and procedures are set at a KAP level, which includes approval by the board, and adoption at a divisional level to ensure that we have high standards in place for core issues, such as ethics, anti-bribery and corruption, human rights and responsible tax practices.
Compliance with laws and regulations
We have divisional compliance trackers to assess the status of legal compliance with applicable material legislation in relation to the operational activities at divisional sites. Any potential areas of non-compliance are reported at divisional audit and risk committee meetings and monitored at KAP compliance committee meetings.
We follow a robust process of reporting and mitigating environmental incidents, including any deviations from legal requirements. Our approach is based on an incident classification system, which includes assessing incidents based on their potential to create significant degradation or pollution of the environment. We collaborate with authorities on environmental inspections conducted at our sites. Our responses to findings include key remedial interventions aimed at sustaining compliance.
The group was compliant with all applicable material legislative requirements during the year.
Ethics and integrity
Our code of ethics
Our code of ethics sets the standards for ethical conduct across the group and addresses areas including conflicts of interest, anti-bribery and corruption, political contributions, accurate financial record-keeping, human rights, labour practices, health and safety, environmental stewardship and the protection of confidential information. The code is supported by specific policies and procedures and forms part of employee induction.
Employees, suppliers and communities can report suspected illegal or unethical behaviour, including mismanagement, discrimination, harassment, vandalism, bribery, corruption, violence, theft and human rights abuses, through KAP’s independently managed ethics line. The ethics line is available 24 hours a day, seven days a week, available in all official South African languages during working hours (English outside of working hours). The ethics line is confidential and non-retaliatory and is available to both national and international callers. Ethics line reports are investigated and, where allegations are substantiated, appropriate remedial action is taken. Ethics line activities are reported to the sustainability, social and ethics committee, the audit and risk committee and the board. The ethics line contact details are available on the landing page of our website and posters are displayed throughout the group, illustrating behaviours that should be reported and encouraging employees to make use of our ethics line.
During FY26, 80 ethics line cases were reported, compared with 84 in the prior year. Investigations have been concluded for 64% of the cases, of which 25% were found to be valid. Investigation into the remaining cases is ongoing. Although our code of ethics stipulates what is deemed ethical behaviour in the group, ethics training provides employees with practical guidance on ethical conduct.
Our code of ethics prohibits direct or indirect political contributions to political organisations. No such contributions were made during the year.
Human rights
We are committed to respecting internationally recognised human rights and have a human rights policy informed by the South African Constitution, the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights, the International Labor Organisation’s Declaration on Fundamental Principles and Rights at Work, the Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises and the UN Global Compact.
The policy addresses key human rights considerations across our operations, including non-discrimination, safe working conditions, fair remuneration, freedom of association, prevention of child and forced labour, privacy and community engagement. Human rights requirements are also incorporated into our supplier code of conduct. We expect our suppliers to adhere to human rights principles, although we do not yet do audits to assess our suppliers’ adherence to our supplier code of conduct.
Read more: Human rights policy
Responsible procurement
We recognise the importance of sourcing materials and services responsibly, in line with our commitments to ethical labour practices, human rights and environmental performance. Our sourcing practices are guided by our supplier code of conduct, which sets out our principles and expectations regarding how existing and new suppliers of goods and services are to conduct business with us. Our divisions include the supplier code of conduct in their suppliers’ contracts and some also include it in tender documentation or as an onboarding requirement.
Compliance
We maintain processes to monitor compliance with material legislation relevant to the group’s operations. Potential areas of non-compliance are reported through the relevant divisional and group governance structures and corrective actions are implemented and monitored.
The group was compliant with applicable material legislative requirements during FY26.
Tax practices
Our tax strategy and approach
Our approach to tax is to pay the correct amount of tax in the correct jurisdiction, in compliance with applicable tax laws and aligned with our broader governance and risk management framework. Tax considerations are included in significant business and investment decisions, including the use of available incentives and exemptions where appropriate. We maintain professional, transparent and constructive relationships with tax authorities, seeking to resolve queries and disputes appropriately and in a timely manner. Where relevant, we engage on tax-related legislative and regulatory developments directly or through representative professional bodies.
The board has ultimate oversight of the group’s tax affairs, with operational responsibility delegated to the CFO, supported by the tax executive and centralised group tax function. Tax risk is managed through the group’s combined assurance and risk management frameworks.
Extent of exposure to countries and jurisdictions recognised for their lack of tax transparency and tax haven status
The group operates in sub-Saharan Africa, Australasia and the United Kingdom. Our operating companies are not present in jurisdictions recognised for lack of tax transparency or tax haven status. The group owns investment holding companies in Mauritius and Singapore to support expansion into Africa and other territories.
Government incentives and tax disclosures
Through external service providers, the group avails itself of tax incentives provided by the South African government through special allowances in terms of the Income Tax Act, No. 58 of 1962. The most material of these is a R248 million benefit relating to section 12I allowances for PG Bison’s MDF line. Note 10 in our FY26 AFS includes further detail on the various incentives as well as the group’s effective tax rate reconciliation.