Illovo Sugar Africa - News

28 NOVEMBER


2023


TOP STORY
ILLOVO CREATES 44 273 JOBS AND AN ESTIMATED R28.6 BILLION IN ECONOMIC IMPACT


“From a social perspective, evidence presented in the Group report points to our ability as a private business to use our resources, skills and capability to leverage genuine partnerships that help to make a difference in the African communities that host our operations.”

Durban, South Africa, 28 November - Illovo Sugar Africa, the continent’s leading and diversified sugar group, has announced the results of its latest independent impact assessment for the financial year ended August 2021. This report evaluates the Group’s Environmental, Social, and Governance (ESG) initiatives, building on its already substantial impact in the sectors of employment, renewable energy, and community investment. The Group’s total economic impact has been estimated at R28.6 billion, comprising R6.6 billion in direct impacts with the balance resulting from the multiplier effects of its business operations within the supply chain and wider economies, strongly supporting Illovo’s focus on social development in Africa.

More recently, the Group has set an ambitious target to cut water usage and carbon emissions by 30%, as part of a broader African business agenda that already supports 436 000 lives created by the direct employment of 44 000 people.

With the first economic impact assessment conducted in 2012/13, this is the third exercise of its kind conducted for the Group over the past decade, now broadened to include environmental impact. The assessments, comprising both Group and country-based reports over six operating countries, have been led on each occasion by Corporate Citizenship part of SLR, an independent and external global leader in social and community impact measurement based in the United Kingdom.

Gavin Dalgleish, Chief Executive Officer of Illovo Sugar Africa, said, “We believe that targeted social development within our value chains and driving business success go hand in hand. From a social perspective, evidence presented in the Group report points to our ability as a private business to use our resources, skills and capability to leverage genuine partnerships that help to make a difference in the African communities that host our operations. Our strengths are forming collaborative engagements with private and public sector partners to leverage resources for the benefit of these communities and countries. Our ambitious environmental targets to reduce water usage and carbon emissions align with a commitment to continue serving our consumers and customers across domestic and regional African markets, with a strong governance focus. Collectively our social development and business intent delivers on Illovo’s Thriving Community purpose.”

The Metrics Behind the Milestones
  • Economic Impact: In 2020/21, the Group's estimated total economic impact of R28.6 billion increased by 20% compared to the same period in 2016/17. In the latest study, 44 273 direct jobs were created with salaries, wages and benefits amounting to R2.9 billion and supporting approximately 435 652 lives.
  • Supporting local development: R5.4 billion was paid to local Governments in tax, including R1.5 billion in direct tax paid by the Group.
  • Investment in safety and human capital: The Group safety record, measured in terms of the “Lost Time / Accident Frequency rate” remained at 0.07 over the period from 2017, with R3 million invested in group safety training programmes. R213.5 million was invested in training 12 270 employees across the group within 2020/21.
  • Diversity and Inclusion: Women comprised 13% of the permanent workforce and of that, 23% were represented in management. Targets had been set by the Group's individual businesses to improve Diversity, Equity, Inclusion and Belonging (DEIB).
  • Community Investment: R91.3 million was invested in community benefits, including health, housing, and education. 17 145 COVID-19 vaccines were administered to employees and their dependents under a voluntary group vaccination programme.
  • Sustainable Agriculture: A total of 24 948 independent small, medium and large-scale growers delivered more than 8 million tons (59%) of cane to Illovo's 11 mills, with 6 million tons (41%) supplied by its own agricultural operations. 9 136 growers were educated on sustainable agriculture through grower development programmes, including climate change adaptation.
  • Serving local consumers and customers: In 2020/21, the Group produced 1.58 million tons of sugar of which 77% was sold domestically and within the African region.
  • Farming more sustainably: As part of the Group's multi-year plan to convert to more water efficient irrigation systems, about 5% of the irrigated land under cane had been converted to sub-surface drip irrigation by the end of 2020/21. Significant investments in sustainable agriculture, research and improvements were made in the period from 2017.
  • Energy Efficiency and Carbon Emissions: Illovo Sugar Africa achieved a 1.5 % decrease in Scope 1 & 2 emissions and increased the implementation of green cane harvesting to lower carbon emissions from cane burning before processing.
  • Renewable energy: Illovo generated 732 560 MWh of renewable energy, satisfying 91% of its own energy requirements and exporting 83 128 MWh to national grids in Eswatini, Mozambique and South Africa.
  • Supply Chain: As a Group, Illovo spent R13.9 billion on procurement, including R5.7 billion on cane from local growers and R6.7 billion to other non-cane suppliers.

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