B-BBEE initiatives and supply chain management
Sasol’s values inform our behaviour and how we work with our key stakeholders, including our customers, suppliers, shareholders, partners and the communities we serve. The Sasol supply chain function controls Sasol’s external spend and is responsible for ensuring the sustainable supply of utilities, goods, services and products. Our preferential procurement practices and local content requirements provide a valuable opportunity to drive social and economic transformation within our sphere of influence.
2017 AT A GLANCE
This year we implemented our supply chain governance framework, which provides a set of minimum standards aimed at ensuring sound and standardised execution of Sasol supply chain processes, within applicable legal, regulatory and Sasol-specific requirements. We have been implementing group-wide controls to mitigate the risks within each of the following four priority areas:
- significant safety or environmental incidents;
- ensuring compliance with legal requirements;
- business enablement through the required technology; and
- avoiding disruption of supply of material and services.
In South Africa and Mozambique, we focus specifically on promoting local spend around our major operating hubs, as well as targeting black-owned enterprises to support Broad-Based Black Economic Empowerment (B-BBEE). We have implemented a supplier set-aside strategy to accelerate achievement of our preferential procurement targets, and increase our spend in South Africa on exempted micro-enterprises (EMEs) and qualifying small enterprises (QSEs) to meet our B-BBEE commitments in line with meeting our goal of reaching at least a level 4 status by 2020. This has required moving from our traditional consolidation of suppliers to a more fragmented approach, as well as following a regional approach to increase local spend.
We have identified specific ‘set-aside commodities’, where business will be directed only to new EME and QSE black-owned suppliers who have little to no previous experience. These suppliers have been identified and are being assisted in terms of our supplier application and accreditation process. We have also implemented a support structure to assist the suppliers in their day-to-day operational challenges to ensure they conform with our requirements. Our enterprise supplier development teams continue to provide new and existing suppliers with targeted interventions and financial support aimed at enhancing their business.
- We conducted approximately 621 supplier safety audits based on standard Sasol supplier requirements.
- Our combined preferential procurement expenditure in the Sasolburg and Secunda regions increased in 2017 to R2,6 billion, up from R2,2 billion in 2016.