Illovo Sugar Africa - Sustainability

SUSTAINABLE


AGRICULTURE


6 MILLION


TONS OF CANE GROWN
ON OUR ESTATES


9 MILLION


TONS SUPPLIED TO
OUR MILLS BY 14 000
GROWERS


SUPPORTS


FARMER
LIVELIHOODS




We annually harvest approximately six million tons of cane on 61 000 hectares of land driven by robust optimisation initiatives to sustainably secure cane supply. Water to cultivate the cane is a valuable resource and our water stewardship strategy focuses on ways to reuse water, return it to source, and to minimise its losses, while maximising its efficiency.

Existing cane lands and farming activities are managed according to the SusFarMS environmental management system to ensure sustainable agricultural production with the least number of negative impacts on the environment.

 

Faced by limited opportunities in remote, rural areas, cane cultivation alongside nearby sugar mills offers private farmers the prospect of creating sustainable livelihoods for themselves and employment for others. We prioritise new cane developments through inclusive growth models and shared value in our supply chain to bring mutual benefit to both business and society.

Partnering with local farmers, transporters, contractors and other small, medium and micro-sized enterprises in the supply chain brings about multiplied socio-economic benefits to the communities in which we operate.

 

READ HERE about our South African Jobs Fund project which has benefitted more than 800 people.




VALUE &


QUALITY-DRIVEN


INDUSTRY


14


MANUFACTURING
SITES


15 MILLION


TONS OF CANE PROCESSED
BY 11 SUGAR MILLS


DOWNSTREAM


PRODUCTION AND CO-
GENERATION OF GREEN POWER


Under the Group’s cane sugar integrated business sustainability framework, we are committed to safe and sustainable operations, driving efficiency initiatives, and proactively looking towards diversification opportunities to expand our revenue streams. The activities and economic impacts driven via our inclusive value chains from source to final product are considerable, amounting to R23.8 billion annually. This is according to... This is according to our latest Socio-Economic Impact assessment.

Alert to the impacts of our manufacturing activities on the environment and on climate change, reducing greenhouse gas emissions through the use of bio-renewable energy is a key objective. Steam and electricity generated at our sugar factories by using renewable cane fibre as a boiler feed-stock, currently provides around 90% of the Group’s energy requirements, thereby minimising the use of fossil fuels.

READ MORE
 

See how Ubombo Sugar Limited earns approximately 35% of its annual profits from the sale of green power to the Eswatini grid




COMMUNITY


CONNECTED


SUPPORTS MORE THAN


70 000


DIRECT JOBS


SIGNIFICANT


REGIONAL ANNUAL
TAX PAYER


BUILDING OUR


THRIVING AFRICAN COMMUNITY


Illovo’s purpose is to create a Thriving African Community across the countries and markets where we operate, focusing on rural economic development, health, safety, and education and through collaborative engagements with private and public sector partners, to leverage development funding for the benefit of community projects and initiatives.

The Group operates... The Group operates four hospitals and 27 clinics, providing health care to employees and communities where no other medical facilities exist. Within the current COVID-19 pandemic, Illovo’s medical infrastructure in all six countries has become a critical support mechanism for rural communities. Education has also become a cornerstone activity of our community involvement, with 27 schools annually extending out to thousands of learners within our geographies.

READ MORE
 

Learn more about our collaborative engagement with the “DACCLA Women’s Club” in Malawi.




Working with internationally recognised NGO’s such as Landesa, Illovo has made considerable contributions towards the protection of land rights for our industry partners within our geographic footprint, particularly those of small-holder farmers and, in support of human rights in general, have adopted a zero-tolerance towards modern-day slavery practises.

 

Learn more about international land rights in a new report from Oxfam – “Shining a spotlight: A critical assessment of food and beverage companies’ delivery of sustainability commitments."




Illovo contributes to educating African consumers about sugar and the role it can play as part of a healthy balanced diet through regionalising AB Sugar’s “Making Sense of Sugar” Campaign. Central to this initiative on the website, information about sugar is provided in a way that is practical and informative. It addresses the myths around sugar, provides information on the different types of sugars and how they are used, as well as giving consumers guidance on how to interpret labels on food and drinks.

 

As part of ABSugar’s global reach campaign, dedicated local versions of the main site have been launched in Malawi, Zambia, and Tanzania, with translated media for local languages.




SUGAR


MARKET


LEADER


1.7 MILLION


TONS OF SUGAR PRODUCED
ANNUALLY


80%


OF ANNUAL
OUTPUT SOLD
LOCALLY


REVENUE


STREAMS FROM DOWNSTREAM
DIVERSIFICATION


Group revenues generated from sugar, cane, and downstream activities form the bedrock of Illovo’s financial sustainability. Our endeavors to become a world-class sales organisation are supported by our deep commercial and ‘route to market’ insights, expert sales, and operations planning, as well as a best-in-class logistics team, across both consumer and industrial sales sectors.

Our low-volume... Our low-volume opportunities through innovation and digitalisation, underpin the value of our growing diversification footprint.

Through our stakeholder engagement and advocacy initiatives we promote informed trade and industrial policy development based on robust and appropriate best practices in pursuit of new markets and product diversification. Our goal is to establish level playing fields for trade and investment in African sugarcane-based valuechains in African markets. (#africansugar4africanmarkets).

READ MORE
 

Learn more about the African sugar sector’s clear opportunity for investment and growth.




INDEPENDENT


SOCIO-ECONOMIC


IMPACT STUDY


ILLOVO SUGAR AFRICA


“POSITIONED TO POSITIVELY SHAPE THE SOCIO-ECONOMIC FABRIC OF THE ECONOMIES AND COMMUNITIES IN WHICH IT OPERATES”


In a Group-wide, external socio-economic impact study released in 2018 by Corporate Citizenship, an independent, global management consultancy specialising in social impact assessment, sustainability, and corporate responsibility, it has been found that “the Illovo Sugar Africa Group makes significant socioeconomic contributions within the sphere of its vast Southern African operational footprint.”

Please view Corporate Citizenship’s consolidated Illovo Sugar Africa group report, together with those of our six African businesses. For a quick, high-level view of total impact, please go to our group and country infographics.

As a major employer, purchaser of agricultural raw materials, and producer of sugar and downstream products distributed to largely domestic and regional markets, it was found in the financial year to March 2017, that the group’s total economic impact across its six countries of operation was a massive R23.8 billion (2014: R18.5 billion) comprising R5.0 billion in direct impacts from its own business activities and the balance from the multiplier effects of its business operations within the supply chain and the wider economy. The increase represents a considerable 29% jump in economic contribution over a period of only four years.

ABF - 2020 RESPONSIBILITY REPORT

“We expect our businesses to do the right thing and hold our leaders to account for ensuring their business operates according to the standards we expect.”

GEORGE WESTON

Chief Executive, Associated British Foods