Management of Social, Ethics and Transformation in Afrox July 2013

03/09/2015 FußzeilePage 2 The Companies Act & King III requirements

03/09/2015 FußzeilePage 3 The Companies Act: Social and Ethics committee should be Implement by 1 May 2012 COMPANIES ACT: Stakeholder governance model in SA (Not just shareholders – also refer King III) −To Monitor the companies activities, having regard to relevant legislation, to other legal requirements, or prevailing codes of best practice −To draw matters within it’s mandate to the attention of the board −To report to shareholders at the AGM KING III: ● Ethical leadership & corporate citizenship ● Compliance with laws, codes, rules & standards ● Governing stakeholder relationships Principle 8.1. – Stakeholder perceptions Principle 8.2. – Manage stakeholder relationships Princiople balance all stakeholder groupings Principle Transparency in communication ● Integrated reporting 9.1. – 9.3 – refer detail slide Scope of matters – Detail from ACTS Social and economic development Good corporate citizenship Environment, health and public safety Consumer relationships Labour and employment

03/09/2015 FußzeilePage 4 Social and Ethics Committee Approach

Vision, Strategy and policy May 2013

03/09/2015Page 6 Corporate Responsibility Vision At African Oxygen Limited (Afrox) we are accountable for our actions and strive to be transparent in all decisions and activities that may impact the environment and society in general. Everything we do is based on integrity, honesty and equality and we have great respect for all stakeholder interests, the rule of law, human rights, and international standards of behavior.

03/09/2015Page 7 Corporate Responsibility Strategy - Draft At Afrox we are seen as a leader in Corporate Responsibility that creates shared value. We contribute to sustainable wellbeing and economic growth for our company, society and the environment… We ensure that we have the right culture and leadership making corporate responsibility core to our values and the way we do business. We have good governance in all our processes, have the highest standards of integrity and will maintain an ethical relationship of responsibility between the company and the society in which we operate. We show our commitment to social and environmental considerations in our decision-making and are accountable for the impacts of our decisions and activities. We support the development and transformation goals of the South African Government and align both local and global legislative and other requirements thus ensuring our good standing as a responsible corporate citizen. We maintain our level 3 BBBEE rating and our inclusion in the SRI index and other socially responsible indices and show our support for the UNGC 10 principles We consider the interests of all stakeholders when deciding on the best interest of the company. We are a total solutions partner to our stakeholders. We have measurable CR policies and will follow a rigorous reporting and review cycle and will have specific metrics associated with each CR goal. This will culminate in the annual Sustainability report.

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Economic development Market presence BBBEE position in market Spend on local suppliers Localisation Transformation / Employment equity Decent work - GES Employee health & Wellness Education of employees Corruption prevention Consumer protection King III JSE SRI criteria for ethics Federal Sentencing guidelines SACEI Index Community development Donations & sponsorships Consumer relations Sustainability reporting and communications Environmental impact Employee Safety Public health & safety

03/09/2015Page 10 Corporate Responsibility Policy

STRUCTURE

03/09/2015 FußzeilePage 12 Linde Corporate Responsibility organisation Governance structures

03/09/2015 FußzeilePage 13 Afrox Social, Ethics & Transformation (SET) Sub-committee & working committees SET BOARD Committee (Focus on Sustainability) Coordinating DRI CSR Manager Quarterly Updates “deep dive” per topic Chairman: Dr Khotso Mokhele 3 Independent Non- exec board members Economic Sustainability GM Risk & Strategy Social Environment CSR Manager Environmental Sustainability GM SHEQ Workplace Sustainability GM HR Ethics & Compliance Company Secretary SET WORKING Committee (Focus on Sustainability) 3 Internal Committee members Integration with business Co-ordinating DRI: Provides feedback to Linde

03/09/2015 FußzeilePage 14 Leading Advanced Standard Foundation Linde Corporate Responsibility Roadmap Focus on risk management Scope of CR manage-ment: own operations CR reporting in acco- rdance with interna- tional standards Global KPIs and data management systems for all CR areas Quantitative targets for all CR focus areas Solid management of stakeholder enquiries Compliance with laws Management of high- risk issues Reacting on stakeholder enquiries Basic CR reporting Integration of CR in business strategy and financial reporting Collective action with stakeholders on high priority issues High scoring in CR rankings and ratings CR as a differentiator in business Advanced reporting (GRI A+, Advanced Level UNGC) Focus extended on sustainability opportunities Inclusion in main CR ratings Scope extended on suppliers and customers Active stakeholder inclusion     in place;beyond reach with current set-upin progress;         

03/09/2015Page 15 BasicStandardAdvancedLeading CR organisation Responsibilities for CR topics defined CEO commitment CR department coordinating activities DRI’s for CR for all aspects Active involve-ment of board members in CR decision making  Direct CR responsibility of at least one board member DRIs for CR actively involved Virtual cross- functional CR teams  Reporting line from regional DRIs to Group Corporate Responsibility  CR commitment and standards Commitment to comply with legal requirements CR integrated into company culture (Linde Spirit) Commitment to UN Global Compact Commitment to WBCSD   Code of conduct for employees Code of conduct for suppliers Regular review of standards  Public statements for all main issues of interest to stakeholders (e.g. human rights, conflict minerals, etc.)  KPIs, targets and monitoring CR KPIs for RAF Collection of RAF targets  KPIs monitored for all CR topics External assurance for selected CR KPIs Qualitative targets  Assurance for all major CR KPIs, targets and progress against targets Quantitative global targets  Quarterly monitoring of KPIs and progress against targets  CR roadmap CR Management (1) LeadingAdvancedStandardBasic = in place;  = in progress;  = not in place

03/09/2015 Page 16 BasicStandardAdvancedLeading Stakeholder dialogue Ad-hoc reaction on stakeholder enquiries Systematic evaluation of stakeholder expectations Integration of stakeholder expectations into CR strategy     Pro-active and structured engagement with stakeholders  Collective action with stakeholders on high priority issues  Materiality analysis Qualitative approach Driven by CR department Based on stakeholder expectations   Quantitative approach Involvement of issue owners in evaluation process  Active involvement of stakeholders in evaluation process External assurance of process Annual update  Separate analysis for each step of the value chain Reporting in annual report  CR reporting Annual CR report CR report in accordance with established standards (GRI, UN Global Compact) Assurance of selected parts of CR reports  Best possible GRI rating A+ “Global Compact Advanced” report Assurance of complete report Additional regional CR reports  CR reporting fully integrated into financial report Better report than competitors Better report than peers  CR roadmap CR Management (2) LeadingAdvancedStandardBasic = in place;  = in progress;  = not in place

EXECUTE & REPORT

03/09/2015 FußzeilePage 18 Integrated reporting Sustainability report content used

03/09/2015 FußzeilePage 19 Opportunities Ongoing management of day to day operation with a Sustainability lens