Client solutions that enhance economic development and sustainability has been saved
Client solutions that enhance economic development and sustainability
Two years ago Deloitte Africa started to synthesise and consolidate our expertise, project experience and client offerings that deal with sustainability, responsible business, shared value, compliance linked to regulatory frameworks that seek to increase transformation, local ownership, Enterprise and Supplier Development (ESD), stakeholder management and community development.
Increasingly, in rapidly shifting market conditions and socio-economic circumstances, our clients not only need innovative business models to deal with cost, capital, efficiency, talent, technology and digitisation; but also new strategies to manage rising stakeholder demands, strategic risks related to their ‘social license to operate’ and increased regulatory requirements linked to socio-economic priorities.
A new paradigm is required, and companies need to find new innovative strategies to ensure both their economic sustainability as well as their ‘social license to operate’.
Some of our most noteworthy projects within this new paradigm include:
Enterprise and supplier development for a South African subsidiary of mining and metals company headquartered in Perth, Western Australia
Deloitte Consulting assisted the client with the design of an Enterprise and Supplier Development (ESD) strategy and enabled the achievement of their preferential procurement objectives, followed by an operationalisation framework which provided the client with a blueprint on how to execute the ESD programme.
Deloitte further assisted the client by providing managed services to run the ESD programme for a period of three years, continuously demonstrating how the ESD programme achieves the client’s ESD strategy.
Stakeholder collaboration and community development to increase shared value in the Northern Cape
Despite the investment of R1.2 billion during the last five years in the Northern Cape in South Africa on local economic and community development, the return on social investment has been insufficient.
Social volatility and dire socio-economic needs remain concerning. Through collaboration and incorporating innovative thinking, mines can have large-scale impact on their communities, creating shared value. Deloitte worked with a set of four major, mining companies to develop a portfolio of community development projects to increase jobs and skills for the future, and with a shared vision which encapsulates the interests and needs of the youth, communities, local government and mining companies.
Enterprise and supplier development for iron ore and manganese mining operations in Northern Cape, South Africa
Deloitte assisted with designing a non-profit legal entity to centralise an ESD programme for a mining client that has three decentralised mining operations, followed by an operationalisation framework that outlines how ESD will be executed to enable the achievement of their ESD strategy. Deloitte also assisted the client pilot strategic ESD projects with the aim of kick-starting collaboration between the three mining operations and to test the effectiveness of the designed ESD programme.
Automotive Industry Transformation Fund (AITF)
Deloitte assisted a group (seven) of Original Equipment Manufacturers (OEMs) operating in South Africa to collaboratively design a transformation fund aimed at increasing the levels of localisation and transformation in the automotive sector. Deloitte further assisted the OEMs operationalise the AITF by designing a blueprint of how ESD will be executed, designed, and also graded an organisational structure, and designed the Funds governance structure, developed a potential beneficiary pipeline which provided an overview of transformation gaps. Deloitte is currently assisting the client raise additional funds of R4bn.
Responsible sourcing in the platinum and palladium mining sectors
The Sustainability team in Risk Advisory assisted one of the world’s largest precious metals mining companies with establishing a management system for the responsible sourcing of platinum and palladium in accordance with the London Platinum and Palladium Market’s Responsible Platinum/Palladium Guidance (LPPM RPPG) and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. This included the development of a responsible sourcing policy and framework, ancillary documentation to support the responsible sourcing process, and facilitating numerous training sessions on responsible sourcing for various
stakeholders across the company. The company management system aimed to address the risks of money laundering, terrorist financing and gross violations of human rights in the platinum and palladium supply chain.
Conflict mineral assurance for gold refineries
The Sustainability team in Risk Advisory has conducted several responsible sourcing and conflict mineral assurance engagements for a number of gold refineries. The objective was to ensure that the requirements of the London Bullion Market Association’s (LBMA) Responsible Gold Guidance and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas were met through transaction data analysis and supplier due diligence reviews. This includes taking into consideration various environmental, social and governance elements when contracting with suppliers.
Social Return on Investment (SROI)
The Sustainability team in Risk Advisory is delivering an SROI engagement to a client that is providing potable water to a community in the Limpopo province. The overall objective is to understand and quantify the social value created, and whether this is impactful in the long run, by documenting and evaluating the effects of social changes using an outcomes based measurement approach. Certain environmental changes and unintentional consequences have also been included in the assessment, highlighting various impacts on different stakeholder groups.
The result of this engagement is a SROI report that will be used to demonstrate the impacts of the client project on the community.