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Performance against strategy | ESG review: Social - community | Next: ESG review: Governance

ESG review

Contributing to the upliftment of communities

Our focus areas

Our purpose is to improve lives by providing people with access to safe, quality and affordable products across the markets in which we operate. The logistics industry is pivotal to the growth and transformation of South Africa and other African economies. It supports the growth and development of industries, creates numerous employment opportunities and provides consumers with access to essential products at reasonable prices, which improve the quality of their everyday lives. In South Africa alone, the third-party logistics market is projected to grow at over 8% between 2020 and 20251. In our business activities, we also contribute towards infrastructure development through our warehouse capital expenditure, and create societal value through our tax contributions and gross domestic product uplift. Beyond our business activities, we leverage our knowledge and network to create value for our local communities.

1 https://www.mordorintelligence.com/industry-reports/south-africa-3pl-market#:~:text=The%20South%20African%20Third%2DParty,in%20the%20intra%2Dcontinental%20trade.

Enhance inclusive supply chain performance (South Africa only)

Procurement

34%

of total spend was with 51% blackowned businesses (internal target: 25%)

15%

of total spend was with 30% black women-owned businesses (internal target: 7%)

25%

of total spend was with exempted micro enterprises and qualifying small enterprises (internal target: 20%)

R30 million

South African NPAT target of 3% (F2020: R29 million). 15% of this spend was in the Unjani Clinics network and 36% was distributed as interest-free loans to black enterprises.




Ownership

During the year, Imperial concluded a B-BBEE transaction for the South Africa operation, which enhanced its black and women ownership. This enhanced B-BBEE ownership reiterates our commitment to sustainable empowerment and transformation in South Africa, and will increase our competitiveness.

  • Established a B-BBEE governance committee to lead our B-BBEE implementations and ensure that B-BBEE practices in our businesses are consistent with the B-BBEE Codes of Good Practice.
  • Established a centre-led procurement capability, which will provide guidance on preferential procurement practices to achieve our B-BBEE targets; and assist businesses with B-BBEE-compliant supplier data management.

Invested R5,6 million in Unjani Clinics, bringing Imperial’s investment to date to R42 million. The clinics provide primary healthcare to more than 60 700 patients each month and 346 people are permanently employed in the network, including 111 empowered professional nurses. We facilitated a donation for Unjani Clinics to receive 15 new, cutting-edge, robust and easy-to-use ultrasound devices, which will help the network meet the antenatal care needs of the communities it serves.

 

Improve employee localisation

Throughout Africa there is a drive for advancement and development. Local ownership and empowerment requirements differ from country to country and have been generally informed by the country’s particular political history and socioeconomic environment. We welcome the imperative of local beneficiation targets and the desire of African governments to see their people engaged in meaningful work. We are committed to the guiding spirit behind the requirements, one which envisages a country and a continent where all can aspire to dignified lives and equitable opportunity. As Imperial realises its strategic objective to grow its operations, this will translate into further employment opportunities for local people.

Strengthen CSI partnerships to increase impact

CSI spend

Group

R24,2 million

(F2020: R21,1 million)

Imperial and Motus
Community Trust

Group

As of 2020, Imperial has committed R5 million a year for five years to establish resource centres with libraries for under-resourced schools. This year, the Trust reached a milestone of over 52 resource centres, reaching over 62 000 learners and supporting over 60 jobs.

Gender-based violence (GBV)

Group

Partnered with the Department of Basic Education to identify 10 schools to pilot our Be safe, Be smart GBV programme. The initiative aims to change how GBV is identified and addressed in South African schools, creating a safe space for learners experiencing any form of GBV.



  • Market Access: invested USD1 million in a world-class eye hospital in Abuja, Nigeria, providing subsidised or free eye surgeries for under-served patients.
  • Logistics Africa: invested in the Central Gauteng Lion’s women’s league – this includes the Imperial Central Gauteng Lions Women, and the Imperial Women Saturday Premier League and Presidents League.
  • Logistics Africa: sponsored gsport, an online platform which for the past 15 years has provided exclusive 24/7 coverage of women’s sport, sport news and positive stories from around the world.
  • Logistics Africa: since 2019, the road safety awareness programme has reached 135 schools across nine provinces, delivering the K53 programme to approximately 88 100 aspirant drivers. Our Be safe, Be smart COVID-19 talks have reached 135 schools, reaching 57 105 learners in the Free State, Gauteng, Limpopo, North West and Western Cape provinces.
  • Logistics International: continued to support the SOS Children’s Village in Kecskemét, Hungary, covering the costs of accommodation, healthcare and education for around 60 children. During the year, the initiative provided mental health and financial support.
 

Social – communities priorities

  • Group (South Africa): maintaining Level 2 B-BBEE rating, as achieved in F2021, against the Road Freight Sector Codes and focus on improving our scores in the employment equity and skills development pillars.
  • Group (South Africa): explore an internal incubation programme for SMMEs.
  • Group: prioritise local appointees for management positions when vacancies and new positions are approved.
  • Group: advance strategic CSI initiatives and aim to grow reputable partnerships.


INTEGRATED REPORT 2021

Imperial company website