Managing sustainability

Defining sustainability and reporting on the subject within Bidvest’s multi-faceted, decentralised organisation proves to be an ongoing challenge. Key issues in one division could be completely irrelevant in another, while material issues at a business unit or even divisional level could be perceived as immaterial from a Group perspective. The need to drive the concept of sustainability throughout the Group led to the formation of the sustainability committee, a sub-committee of the risk committee. Its role is to enable sustainability to be championed and coordinated from the centre, while maintaining the decentralised ethos so core to Bidvest’s success. The committee consists of sustainability champions drawn from each division. Initially the focus has been on the South African businesses, as our international operations are generally well advanced.

The sustainability committee’s management structures largely mirror those of the risk committee.

Divisional workshops expose management to sustainability concepts and issues. Focus areas include:

	Acceptance of leadership role by management A common understanding of what sustainability means for Bidvest has been defined, enabling a strong and clear message to be communicated across the Group: Sustainability at Bidvest offers employees a fresh way of thinking that inspires them and enables a new generation of entrepreneurs to create business value that integrates evolving financial, social and environmental needs and expectations. Each division is expected to develop its own sustainability strategy and management framework. Once the collation of data is sufficiently robust and complete, each business unit and division will set relevant targets, with some already having done so. Clearly, some issues are common across the divisions and divisional input will shape Group targets. Another key driver is the leadership of the Group and of the divisional chief executives as they champion the roll-out of sustainability across the Group.
	Making effective use of the sustainability data collection tool An internet-based sustainability data collection tool has been implemented. Regional workshops were held to raise awareness of sustainability and explain the data collation process and tool. The tool has improved the data collation process substantially, but some indicators are not yet fully and uniformly understood and reported. Systems for measuring certain indicators still need refinement. Feedback on the process has been positive, with recognition that the tool will provide management information.
	Identifying material sustainability issues Key sustainability issues material to Bidvest have been identified following several years of experience across the Group: Achieving the benefits of a unified approach to common sustainability issues within a multifaceted, decentralised environment Ensuring ongoing transformation of South African operations Finding and retaining world-class talent in a highly competitive market Setting up more effective programmes for managing HIV/Aids in the workplace Exploring environmental risks and opportunities (the energy crisis, regulatory, physical, reputational exposure) Material issues at Group, divisional and business unit level inform the sustainability actions taken by divisions and their businesses.
	Engaging across the Group to progress sustainability Bidvest’s philosophy of decentralisation extends to sustainability. Some businesses are more advanced in their practices than others and an opportunity exists for businesses to engage and learn from each other. 3663 in the UK makes extensive use of biodiesel made from recycled cooking oil collected from customers. Caterplus is exploring the same idea and operates a pilot project in George. 3663 in the UK has redesigned its packaging, saving significant costs in the process. By buying locally, the business reduces carbon miles per product supplied and supports local communities. Other companies have pioneered smart water cleansing systems and energy-saving devices.

Corporate office promotes sustainability practices by drawing on outside expertise, sharing success stories and communicating sustainability initiatives and practices. Communication channels include the sustainability committee, the Bidvest South African financial directors’ forum, divisional management meetings, seminars, the Bidvest Academy, the Graduate Academy (which included projects on green-business opportunities), Bidvest’s website, Bidvoice, electronic newsletters and roadshows.

Champions within divisions are engaging with one another and building the momentum that will raise understanding across the Group and strengthen Bidvest’s response to social, economic and environmental challenges.

Employee engagement
Bidvest is a significant employer affecting the lives of workers, their families and communities. We employ 106 225 people, 89 316 in South Africa, of whom 87,1% are black. Women make up 42,5% of the workforce (46,4% in South Africa).

Staff representation

The resignation rate decreased from 18,5% to 17,1%
Absenteeism decreased from 2,5% to 2,2%
The number of employee disputes, including wrongful dismissal, rose from 637 to 1 148.
Forty-eight cases were found in favour of the employee

Disabled persons

201 disabled persons are employed, 167 in South Africa
55 disabled South Africans were trained at a cost of R131 081

Bidvest and operational companies engage with employees through numerous channels. Employee representation through trades unions internationally and in South Africa is 34,9% and 24,1% respectively. Other forms of engagement mandated by law include South African employment equity forums.

Responsibility for union negotiations lies with human resource management and managing directors at divisional and business unit level.

Businesses comply with all relevant legislation, including the South African Labour Relations; the Basic Conditions of Employment; the Skills Development, the Employment Equity; the Broad-based Economic Empowerment; Unemployment Insurance; and the Occupational Health and Safety Acts or international equivalents.

Codes, policies and procedures guide recruitment, business conduct, non-discrimination, industrial relations, employment equity, grievance and dispute settlement, HIV/Aids and other life-threatening diseases, employee conduct, freedom of association, ethics and sexual harassment. Most of these are guided by legislation; some are the result of negotiation or consultation. Policies and procedures are communicated to staff through orientation workshops, notice boards and employment agreements.

Review of operations

Managing sustainability