Imperial Logistics achieves milestone level 2 BBBEE rating
Supply chain and logistics leader Imperial Logistics has achieved a Level 2 BBBEE certification.
“This year’s record rating represents a significant milestone in our transformation efforts, with year on year improvements once again realised across all categories of the scorecard,” comments Imperial Logistics transformation director, Sibongile Zikalala. She says that the group’s BBBEE certification and its “Value Add” status translate into significant benefits for clients.
“Since the introduction of the first BEE Codes in 2007, Imperial Logistics has worked tirelessly to be recognised as a leader in the development of human capital at all levels – with the prime objective being the closer alignment of the group’s employee and leadership profile with the national demography. We are very proud of this year’s BEE highpoint, which has been 10 years in the making.”
Enterprise development and socio-economic development were areas in which Imperial Logistics scored full points on its latest scorecard. Zikalala notes that the organisation’s preferential procurement spend with QSEs, 51% black owned and 30% black woman owned businesses was more than double the target percentage. “Going forward, we will continue to actively seek out opportunities to partner with QSEs, EMEs and other designated group suppliers that are 51% black owned and 30% black woman owned in order to facilitate maximum benefit for our clients in terms of their own procurement scorecards,” she stresses.
“Imperial Logistics has also made strides on the employment equity front, achieving 66% of the target points. We have proudly achieved 95% of the ownership target score and in terms of economic interest (net value), Imperial Logistics has 22% equity ownership fully vested in the hands of black shareholders. Not many logistics service providers – or even many other South African companies – can claim this level and scale of ownership transformation.”
This year, Imperial Logistics added further impetus to its drive to address South Africa’s skills deficit and youth unemployment through initiatives that include partnering with the Ekurhuleni Metropolitan Municipality in a youth development programme run by the Imperial Logistics Academy – the company’s dedicated training facility. “Our approach to transformation is much more than just meeting targets. We are committed to constant evaluation of our achievements, as well as rising to challenges and seizing new opportunities to improve our performance.”
Zikalala states that the group views the new BBBEE codes as one such opportunity. “They represent an opportunity to keep doing the things that have earned Imperial Logistics the position of an industry leader in some BEE indicators, and to push harder in areas where we may be falling short.” He notes that, like all players in the road freight industry, Imperial Logistics’ latest BEE scorecard was issued on the old codes. “Until the new codes are gazetted, it is the only valid scorecard for the transport industry.”
While she concedes that the tougher new BEE scorecard raises the transformation bar, particularly for large organisations, she says that Imperial Logistics views this as an incentive. “We have already aligned our BEE initiatives to the Amended Codes of Good Practice which came into effect on 1 October 2013, and we are already measuring our operating companies in terms of these new codes. Our BEE roadmap gives a clear indication that Imperial Logistics will achieve a competitive recognition level under the new codes and it is anticipated that we will achieve Level 4 status in 2018 and will actively target Level 3 status by 2022. We will strive to achieve “51% Black Owned” status through securing the appropriate voting rights and economic interest for black people in the JSE listed, Imperial Group.”
Expanding on Imperial Logistics’ strategy in terms of the revised codes, Zikalala reveals the group’s key objectives are maintaining its leadership position; maximising clients’ preferential procurement recognition; supporting clients’ Qualifying Small Enterprise (QSE) and Exempted Micro Enterprise (EME) spend; and enabling diversity across the business.
“We regard the new codes as the next phase in our transformation journey. We will continue to pursue and enhance all facets of empowerment – regardless of the BEE measurements. We will continue to accelerate transformation in an effort not just to achieve recognition in terms of the revised codes, but to entrench transformation within our organisational culture and continue to lead the industry as a truly South African business,” she concludes.