Sasol Limited Sustainability Report 2021 - Book - Page 35
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SUSTAINABILITY PERFORMANCE AGAINST OUR FOCUS AREAS: GROWING SHARED VALUE – SASOL IN SOCIETY (CONTINUED)
Economic transformation and local content
We aim to achieve a diverse, transformed,
sustainable and high-performing supplier
base by accelerating the development of
small and transformed businesses. We
will do this through simplified processes,
impactful development support and funding
for the betterment of our communities
beyond the boundaries of Sasol.
Progress
SOUTH AFRICA
Our multi-pronged Enterprise and Supplier Development (ESD) approach enables us to
deliver programmes that are both aligned to Sasol’s strategy and that target the realities in
South Africa and our communities.
Our response to COVID-19 allowed us to expand our support and creatively reach more SMEs.
By communicating through webinars, we reached a wider SME audience. We also introduced
the Linkage digital platform, which aims to simplify connections between Sasol and SMEs.
The platform enables us to perform due diligence on the registered SMEs, creating greater
visibility of a rich pool of verified and credible SMEs that can be engaged to fulfil preferential
procurement objectives before they can be considered as Sasol suppliers. We launched digital
technical accreditation processes to ensure that high quality and competent suppliers are
introduced into our business. The virtual technical assessments help us to minimise COVID-19
exposure risk, thus safeguarding our employees and our suppliers. They also allow for a more
inclusive approach to SMEs across South Africa. We also implemented an automated reminder
system to prompt suppliers to update their B-BBEE certificate when it expires, which aims to
ensure certificates always remain valid.
We continued to drive preferential procurement and exceeded the Department of Trade,
Industry and Competition's B-BBEE compliance targets for preferential procurement spend
with empowering suppliers, spending with 51% black-owned businesses as well as the spend
with 30% black women-owned businesses.
Performance: South Africa
• Our expenditure with black-owned suppliers amounted to R23,8 billion for the
financial year 2021.
• Increased local procurement spend in Ekandustria from zero in 2018 to R1,5 million
in 2021.
• The loan book for enterprise and supplier development funding ended at
R728,5 million in 2021.
• To date, more than 1 000 SMMEs support bookings have been taken through the
Small Business Centre in Secunda.
At Sasol, we strive for excellence in the sustainable supply
and delivery of goods, services and products to maximise
shared value for our organisation and all our stakeholders.
We actively focus on building robust, mutually beneficial
relationships with our supply chain stakeholders, by ensuring
that we understand, translate and proactively deliver on
commitments, on time and at the required quality and price.
We are committed to developing our fenceline communities
and prioritising local procurement. Sound principles and
governance processes underpin our integrated approach.
• Reached 57% of our contracted South Africa-based suppliers with Level 1 and Level
2 B-BBEE ratings.
• Recorded nearly 31% of our active South Africa-based supplier base with 50-60%
black ownership, and similar representation for black women-owned suppliers.
2021 proved to be challenging not only for our company but
also for our communities. COVID-19 ravaged the livelihoods
and lives of many families, and the resulting economic
downturn directly affected our communities through reduced
spending and investment from the company as we focused
on a turn-around strategy.
Nonetheless, we continued to drive localisation and economic
transformation, centered around our fenceline communities,
in particular with exempted micro enterprises and qualifying
small enterprises . Our Siyakha fund assisted with relief
measures including payment holidays, loan restructures
and the allocation of turnaround specialists to some of
our suppliers.
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Sasol Sustainability Report 2021
MOZAMBIQUE
In the almost two decades in which we have operated in Mozambique, we have driven
socio-economic development through our investments and operations. We are committed
to further developing and using local Mozambican suppliers and labour and have partnered
with the Government of Mozambique to establish a comprehensive local content strategy
to support the transformation of the economy. Our commitment extends well beyond
compliance with Mozambican policy and legal requirements.
In 2021, we established a Small, Medium, Micro Enterprises (SMME) development fund in
partnership with BCI, a Mozambican financial institution, to provide low-cost loan funding
to qualifying SMMEs. We also set up an ESD programme to provide non-financial, technical
support and training based on a needs analysis that enhances the capacity of the SMMEs
to become operationally independent and sustainable.
Performance: Mozambique
• Despite reduced activity during the COVID-19 pandemic, Sasol spent
US$19,4 million (70% of operations spend) with Mozambique-registered or
-owned companies.
• Disbursed US$158 000 in low-cost loan funding to qualifying SMMEs.
• Agreed a local content plan with the Government of Mozambique for our drilling
campaign and production sharing agreement (PSA) project. We expect between
40% and 50% of the spend to be with Mozambique-registered or -owned
companies.
• Employed 251 Mozambican nationals in our business and operations. This includes
91% of our Senior Management in Mozambique and 94% of our highly skilled
professionals.