17 January 2018

To: Our stakeholders

I am pleased to confirm that DNA Economics (Pty) Ltd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment, and Anti-Corruption.

Herewith our first annual Communication on Progress, where we describe our actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations.

We are also committed to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Matthew Stern
Managing Director

For and on behalf of DNA Economics (Pty) Ltd

The Constitution of South Africa, as the supreme law of the Republic of South Africa, contains the 'Bill of Rights'; and chapter two of the Bill of Rights protects the labour rights of all South Africans (Section 18 - Freedom of Association). Moreover, the South African Human Rights Commission (SAHRC) was inaugurated in October 1995 as an independent chapter nine institution and draws its mandate from the South African Constitution by way of the Human Rights Commission Act 54 of 1994 (SAHRC). The SAHRC is tasked with monitoring, both pro-actively and by way of complaints brought before it, violations of human rights, and seeks redress for such violations. It also has an educational role on Human Rights and raising awareness of human rights issues.

Drawing on the above, DNA Economics has developed and agreed on an internal Systems and Policy Manual which ensures that the company is compliant with all relevant legislation; guides our employees; influences and determines major decisions and actions; and ensures that all activities take place within the boundaries set by the Constitution and related institutions. Furthermore, our procedures emphasize the specific methods to be followed in actioning the day-to-day operations of the company.

DNA also developed and agreed on a set of company Values with its employees which were translated into a Code of Conduct Statement, signed by all employees, thereby confirming their commitment to uphold these Values.

Going forward DNA's goal is to create awareness amongst our employees and business partners with respect the Universal Declaration of Human Rights (UDHR) and environmental protection. Furthermore, we will publish information related to the UDHR on our website, to make our position clear to all our clients, suppliers, employees and partners.

DNA System and Policy Manual supports Human Rights in the company by preventing human rights violations in our work environment. The policy also makes provision for formal grievance mechanisms and procedures to mitigate any contravention of human rights.

DNA fosters a culture that respects each individual's right to privacy. We encourage and cultivate communication, collaborate on all decisions that impact on staff-well-being, and recognise employees through staff welfare initiatives.

Issues with regard to unfair treatment can be raised with the Managing Director directly and complaints are received by top management and discussed immediately to decide on appropriate action(s), which include consultation with affected parties for possible mediation.

Going forward, we have planned further consultations with staff to ensure that we live and review our company values, and where relevant, these discussions will reflect on our commitment to the United Nations Global Compact Principles.

DNA has a set of policies, systems, and contractual terms and conditions in place that require employees, clients and partners to act in accordance with the law and our procedures and principles. Any contravention must be reported and is acted upon. Going forward DNA will review its procedures and contracts against the Human Rights principles of the UNGC and the South African constitution and update if necessary.

The Bill of Rights is the cornerstone of democracy in South Africa. It protects the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom, including the labour rights of all South Africans. As stipulated in Chapter 2, Section 23: Labour Relations:
- Everyone has the right to fair labour practices;
- Every worker has the right to form and join a trade union and to participate in the union’s activities;
- Every worker has the right to strike
- Every employer has the right to form and join an employers’ organization and to participate in the activities of the organization; and
- Every trade union, employers’ organization and the employer has the right to engage in collective bargaining.

DNA's Systems and Policy Manual have been developed in accordance with the Constitution and include policies and processes addressing our employee's rights and responsibilities as guided by the Basic Conditions of Employment Act 75 of 1997, as amended; and the Labour Relations Act 66 of 1995, as amended, and state our employee rights and responsibilities.

Under the overall supervision of the Board of Directors, the company's remuneration committee consisting of Director and Managers are tasked with the responsibility to ensure fair compensation for DNA's employees.

Furthermore, the Managing Director leads the Senior Management Team and all other staff members in ensuring that the company complies with all applicable provisions of the Occupational Health and Safety Act 85 of 1993 as amended. We have dedicated resources that monitor and mandate environmental and safety risks.

DNA will continue to refine our human resource policies and procedures, as reflected in our Systems and Policy Manual, in support of the Global Compact Labour Principles.

DNA's Systems and Policy Manual stipulates the processes and procedures to be followed to lodge labour-related grievances, concerns and issues.

DNA has a zero-tolerance towards any form of discrimination and any contravention is addressed through the company's Disciplinary Code and process as part of the Systems and Policy Manual.

Any change in policies or procedures follows a process of consultation with employees for suggestions and inputs, to be discussed by the senior management team for consideration and feedback to employees.

The health and safety of all employees is a priority and dedicated first aid attendants are available during working hours to minimize possible injury. The content of the first aid kit is maintained as stipulated in the Occupational Health & Safety Act & Regulations, Act 85 of 1993, as amended and included in the DNA Systems and Policy Manual. All our employees know the location of the first aid kit.

DNA ensure that all Fire Fighting Equipment (fire extinguishers) in its offices are inspected by a qualified Inspector on an annual basis for maintenance purposes.

With the support of DNA's Landlord, fire precautions and procedures are adequate in terms of emergency evacuations, and fire drills and alarm checks are coordinated by the Landlord's Health and Safety Officer.

The South African Government has set up a special fund through the Compensation for Occupational Injuries and Diseases Act 1997 which applies to all employers to compensate employees for injuries or diseases resulting from work governed by the Occupational Injuries and Diseases Act 1997. DNA is registered with the Compensation Fund and pays the annual assessment fee. Therefore, our employees are protected from financial loss in the unfortunate situation of injury at work.

Performance of employees is managed by a formal Performance Evaluations System, which informs decision making by the remuneration committee around remuneration, bonus payments and promotions. The performance management process also identifies any mitigation or skills development needs.

In terms of the Skills Development Act 2003, as amended, DNA contributes 1% of its monthly salary bill to a skills development levy managed by the Sector Education and Training Authorities (SETAs) and the Skills Development Fund for training. The purpose of the fund is to improve the quality of life of workers, their prospects of work and labour mobility and to improve productivity in the workplace and the competitiveness of employers.

DNA supports its employees in their career development through training and internal skills transfer initiative, and the company employees are encouraged to identify training for consideration by the management team.

DNA has clear Disciplinary Procedures in place to prevent and manage discrimination of all kinds.

DNA ensures comparable pay for comparable work through a remuneration committee consisting of members of the Board and Management.

DNA ensures compliance with South African Labour Legislation and reports annually to the different Government Departments responsible for Labour and Skills Development.

Being mostly office based, the nature of DNA's operations makes the company's direct environmental impact relatively small. The environmental impact is mostly indirect via clients and suppliers.

DNA recognizes the promise, usefulness, and the need for environmentally friendly principles and technologies. DNA is committed to consider and invest in environmentally friendly technologies and the mitigation of environmental impacts, when economically viable.

DNA will strive to create more awareness amongst its employees, clients, and suppliers.

DNA will investigate initiatives and programmes to reduce waste material (recycling) and consumption.

DNA encourages its employees to reduce paper wastage and limit printing usage. Employees are requested to make use of the double-sided printing function and limit all colour printing to final document for external submission to clients. A recycling bin has been placed in the office to facilitate the recycling of paper material.

Currently, DNA does not have any formal measurements in place.

DNA has a zero-tolerance towards any form of corruption, bribery, and extortion. Anti-corruption principles are addressed through the disciplinary code and processes, defining and stipulating a schedule of offenses with clear guidelines on sanctions.

The management of DNA is responsible and accountable for the implementation of the company's disciplinary code and processes to address any form of corruption, bribery, or extortion.

DNA maintains a well recognized financial management system and full records are maintained with proof required for all expenditures. This information is verified monthly by an external accountant reporting directly to the Managing Director of DNA. The DNA Board Directors appoints an external audit firm by Board Resolution and DNA is subject to a statutory external audit annually.

DNA has not been involved in any legal cases, rulings or other events related to corruption and bribery.

DNA's annual financial statements are prepared by an external and independent auditor in accordance with International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Companies Act 71 of 2008.