Sustainability framework

IDC sustainability strategy

The case for sustainability

In November 2010, the IDC Executive Management Committee approved a sustainability framework marking the formal beginning of its sustainability journey.

In the IDC context, we define sustainability as economic and social development that does not erode social and environmental value.

We are conscious that business can’t achieve success in undeveloped communities and that companies should behave responsibly to gain and return public trust in communities in which they operate. This is fundamental to our mandate, which is why we decided to formulate a framework for sustainability that forms the basis for our sustainability strategy. We since have a number of areas in which our sustainability aspects rest and the focus for the years 2013-2016 would be to co-ordinate these to achieve maximum impact.

In the year under review, we looked at our key drivers, risks and opportunities for the business so that we could identify priorities for our sustainability strategy. We have since achieved the following:
  • The IDC’s strategy is woven around the five capital model and takes into consideration requirements prescribed by King III and the GRI;
  • The determination of material issues was effected through a more participative approach; and
  • The material issues are aligned with the IDC strategy for the next three-year cycle.

As IDC’s sustainability strategy matures, it will increasingly be incorporated into our corporate strategy.

Natural capital – where we aim to reduce the IDC’s natural footprint, promote environmental stewardship to business partners, and reduce industry’s impact on the environment. We understand the potential we have to influence good business practices and know that our decisions impact on natural capital. Performance on these pertains to our carbon footprint, water usage and funding on energy initiatives. In the long term, we will look at how to influence more transparency in our business partners.

Social capital – we aim to promote effective governance and good ethical conduct, increase industrial development impact, improve customer satisfaction and align community spend to the development imperatives of the country. Performance on this is on number of jobs created, value of funding in rural areas, initiatives to maintain governance, customer satisfaction index, community trust funding and corporate social investment spend. In future, we will look at how we can build stronger communities around the projects that we fund.

Human capital – to develop our capacity to serve IDC’s customers effectively and fulfil its mandate to government. Through business support, we increase capacity within our business partners.

Manufactured capital – we can have a positive impact by enhancing efficiencies of manufactured capital to gain maximum value from our investments.

Financial capital – being a responsible financier, we aim to continue making considered investments that will make us sustainable for many generations to come.

The priorities or key performance Indicators for the different capitals are aligned to our material issues discussed here and are reported throughout this document.

The cross-cutting nature of sustainability is that it requires time to entrench, hence we have used this year as a base. We have also established a working group, made up of different departments, to work on these capitals. Different departments are collaborating to ensure that we achieve our objective. It is encouraging that there is now clarity on how we are going to achieve our sustainability outcomes. The work of collaborating departments is overseen by the Board Risk and Sustainability Committee, whose role is discussed in detail here.

CASE STUDY

Coega Dairy Holdings

Increased competition in the dairy value chain and import substitution in the cheese industry are key sector development goals, as is the need for increased farmer (and specifically B-BBEE) participation in dairy value-adding initiatives.

Coega Dairy Holdings

The IDC has identified increased competition in the dairy value chain and import substitution in the cheese industry as key sector development goals. We also singled out the need for increased farmer (and specifically B-BBEE) participation in dairy value-adding initiatives.

Windtown Lagoon Resort 

The newly built Windtown Lagoon Resort and Spa reflects the IDC’s focus to funding community-based projects that have potential to create employment opportunities in far-flung regions.


APPROVALS
R13.1 billion
DISBURSEMENTS
R16.0 billion
JOBS FACILITATED
18 922
JOBS SAVED
3 950
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