Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

No. 13.

King IV Principles

Apply and Explain

Compliance governance The governing body should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a way that supports the organisation being ethical and a good corporate citizen. Remuneration governance The governing body should ensure that the organisation remunerates fairly, responsibly and transparently to promote the achievement of strategic objectives and positive outcomes in the short-, medium- and long-term. assurance services and functions enable effective control environment, and that these support the integrity of information for internal decision making and of the organisation’s external reports. Assurance The governing body should ensure that

Rand Water Group has a dedicated Group Regulatory and Compliance function that assists the Board, relevant Board Committee, Top management, Management and appropriate staff members in discharging their responsibility to comply with applicable compliance obligations through the provision of compliance risk management services. Compliance is implemented through a risk-based approach using a decentralised model that has been adopted by the Board. This denotes that compliance risk management accountability is assumed by each business unit, and regular engagements that are undertaken through regulatory and compliance services ensure compliance throughout the organisation. Compliance systems and processes are in place and are continuously improved to mitigate the risk of non-compliance with the regulatory requirements. The Board has approved the Remuneration Policy which outlines principles of: • Fair remuneration, • Attracts and retains human capital by having remuneration policies that are competitive in the market, and • Motivates and rewards human capital by making provision for incentives and performance bonuses. The organisation has adopted a combined assurance model that integrates and aligns risk management and assurance processes across all lines of defence. This ensures that significant risks are adequately identified and mitigated, and that assurance is provided in a coordinated manner to support the integrity of financial and performance reporting. Internal Audit, reporting functionally to the Group Audit and Risk Committee, plays a key role in evaluating the adequacy and effectiveness of controls and provides independent assurance. The function provides objective, risk-based assurance on the effectiveness of governance, risk management, and internal control. The governing body receives quarterly combined assurance reports, highlighting: • Key risks and how they are being managed, • Assurance coverage from all lines of defence, and • Emerging issues and areas requiring attention.

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Rand Water | Integrated Annual Report 2025