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< Previous10 BusinessBrief December/January 2023/24 Nestled at the base of the legendary Ghost Mountain in Mkuze, Northern KwaZulu-Natal, lies the enchanting Ghost Mountain Inn (GMI). T his intimate, award-winning hotel serves as an ideal gateway to explore Zululand and the Elephant Coast. From the captivating Lake Jozini to the wildlife-rich uMkhuze Game Reserves and the tranquil spa, provides exceptional venue, with an array of facilities to host a wide range of events, meetings, and special occasions. The Ndumu Conference Centre can accommodate up to 150 delegates and its indoor function space is designed to combine style and comfort with fully equipped facilities, catering to a diverse range of needs for gatherings. The versatility of this space allows it to be divided into two separate venues for smaller meetings. The centre is fully equipped to handle audio-visual presentations with automatic dropdown screens, projectors, built-in sound systems, and roving microphones in all meeting rooms. These facilities ensure the smooth execution of presentations and discussions during your event. The Mtwazi Meeting Room at GMI features a video conferencing system, facilitating seamless virtual and hybrid meetings to connect and collaborate with remote participants. TRAVEL & LEISURE Ghost Mountain Inn …explore the spirit of ZululandBusinessBrief December/January 2023/24 11 Additionally, the centre provides a private foyer, patio, and courtyard for coffee breaks, cocktail parties, or outdoor gatherings. With the perfect blend of meeting spaces and recreational options, GMI ensures that your event or corporate getaway is a memorable experience, accommodating up to 170 delegates in 74 guestrooms, including three large suites. Each room features private patios, air conditioning, tea and coffee making facilities, satellite TV, minibars, and safes. It’s time to explore the possibilities, experience Zululand hospitality at its finest, and create unforgettable memories in this breath-taking location. Explore the wildlife, history, scenery and cultural wealth of Zululand and the Elephant Coast with Ghost Mountain Safaris. Join their enthusiastic and knowledgeable rangers on a variety of excursions. From Game Drives or boat cruises and Tiger Fishing on Lake Jozini, to hikes and Zulu homestead visits. Our qualified guides are able to tailor-make itineraries for you. TRAVEL & LEISURE For more information or to book | www.ghostmountaininn.co.za | gmi@ghostmountaininn.co.za | +27 (0)35 573 1025 |12 BusinessBrief December/January 2023/24 Waste governance - can your cost burden become a value driver? Sustainability has risen to board level discussions in corporates, as they grapple with both the public’s demand for environmentally friendly products as well as the growing requirements of Environmental, Social and Governance (ESG) reporting. W ithout a doubt these demands are not only helping to drive a culture change across society, but they are directing waste producers and waste managers to work together to identify innovations that address key waste issues, while meeting changing legislative requirements. However, even in an environment where businesses are recognising the importance of integrating ESG considerations into their strategic decision-making processes, we still require a shift in mindset from the traditional linear production process - the take-make- dispose model - towards one that aims to reduce all unnecessary waste materials, as well as reducing the consumption of energy and raw materials and, where there is excess, to feed this back into the value chain. This is the definition of the ‘Circular Economy’ model, where waste created in one industry is re-purposed for use in other areas of industry and the economy, and where disposal is the final option, rather than the immediate go-to. Unlocking economic potential What organisations are now only learning, is that much of the 90% of waste currently disposed of to landfill in South Africa, (an estimated R17 billion worth), can be re- used as alternative secondary resources into the economy, when pre-sorted and managed effectively. With this realisation, together with sustainability and ESG remaining on the strategic agenda, directors are now expanding their understanding of these aspects of business, ones which didn’t necessarily receive board attention before. From a strategic perspective, companies not only need to be aware of various aspects related to waste management and incorporate them into their planning but should view these as a proactive way in which to manage risks and unlock value for their organisations. Yes, waste can be transformed from a cost burden to a value driver for a business. Let’s unpack this. Regulation, compliance & innovations Waste is governed by policies, regulations, norms, standards, and best practices, all of which guide the legal management, handling, treatment and disposal of waste in the country. As a result, managing waste effectively involves the development of a waste management plan, and must include strategies and plans to classify, minimise, reuse, repurpose, recycle, treat, contain, or dispose of all waste types. Companies should already be familiar with waste management regulations at local, regional, and national levels. Understanding and complying with these regulations is crucial to avoid legal and negative PR issues as well as potential financial penalties. However, not all businesses treat regulatory compliance as a driver of innovation. Think about it, given how South Africa’s waste legislation is continually evolving, this is forcing a change in thinking, and operating, across industries. It is also creating opportunities for new solutions and investments. Environmental implications Waste generation can have significant environmental implications and, yes, Kate Stubbs | Group Business Development and Marketing Director | Interwaste | kate@interwaste.co.za | VIEWPOINT COVER STORY PART 1 OF 4BusinessBrief December/January 2023/24 13 companies should strive to minimise waste and manage it effectively to reduce their environmental impact. Although understanding why, how, and where it is generated and what can be done with it, can be a challenge. However, if this step is not undertaken, then compiling waste management plans to effectively reduce, reuse, recycle, treat or responsibly dispose of waste will not necessarily deliver fully on its environmental and sustainability objectives. Take-make-waste to a circular economy The reality is that waste affects several areas of operations and if companies want to derive value from this, then they not only need to encourage practices that prioritise resource efficiency such as reducing packaging, optimising supply chain processes, recycling and reusing materials, but importantly, shift their business model from the traditional “take-make- waste” model to a circular economy one. This is not only a major change across business but requires collaboration and strategic, long-term planning. While many companies today have started the journey to a circular economy model by implementing aspects like zero- waste-to-landfill plans, this does not mean they have fully embraced the circular economy as a strategic approach. The Ellen Macarthur Foundation describes the circular economy as “a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.” VIEWPOINT ▶ In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. ”14 BusinessBrief December/January 2023/24 VIEWPOINT So, we can see it’s more than a zero waste to landfill plan, it’s about minimizing waste from the outset and developing opportunities to re-use any waste materials to secondary resources, which can and will lead to a reduction in environmental impact and cost savings in the long term. However, this also means understanding all costs (directly and indirectly) related to waste as well as the financial implications of waste disposal. It is this data that will provide insights and opportunities to allow businesses to explore alternative uses for waste, with innovations such as reusing products back into the manufacturing process, repurposing wastewater onsite or even waste-to- energy projects. This is how your waste can unlock sustainable business value. Data insights & financial implications Customers, investors and the public increasingly expect companies to demonstrate environmental responsibility. And yes, companies are prioritising more accurate and transparent reporting which does include reporting on elements such as waste reduction goals, recycling rates, and any initiatives aimed at minimizing the environmental impact of waste - but reporting and action are two different things. A driver for sustainable value The social impact of waste on communities should also be considered. Companies should evaluate their impact on communities from both a sourcing and operating perspective to find ways to partner with local entities to create more inclusive business models - this is circular economy thinking - and this creates greater shared value and sustainability for all. Integration into corporate strategies With the ongoing evolution of waste management legislation in South Africa and the rise of new technologies, companies have a great opportunity to explore alternative solutions to extract value from their waste, as well as improve waste management practices and lessen their full environmental footprint. However, only by incorporating these considerations into their strategic decision-making processes, will companies contribute to a more sustainable and responsible approach to waste management within their organisations. Not only will they be unlocking value from their waste but contributing to a more inclusive and economically viable way of operating, but an environmentally aware and socially conscious one as well. ▶ ...the rise of new technologies, companies have a great opportunity to explore alternative solutions to extract value from their waste, as well as improve waste management practices and lessen their full environmental footprint.. ”THE TRUTH, THE WHOLE TRUTH, AND NOTHING BUT THE There are many misconceptions regarding enterprise resource planning (ERP). This infographic dispels the most common myths. A company with as few as 5 employees can use an ERP system! ERP is only for large enterprises. 60% of businesses using ERP are non-manufacturers. It improves speed of delivery and overall customer experience. It also increases profit margins and attracts venture capital. Selecting an ERP partner who aligns with your objectives is key to success. Adopting ERP is ideally both an internal and external effort. 81% of organisations say ERP meets their ROI goals after 1 year. You can select core processes and add modules as and when needed. It offers significant customisation, flexibility, and scalability. Tailoring ERP access according to roles results in more streamlined efficiencies. A great many organisations operate with a hosted or hybrid solution. Continuous change management is important throughout the ERP lifecycle. The success of ERP is as much a human issue as a technology one. Continued participation ensures the best long-term value from ERP providers. ERP is a tool each division can use to achieve its business objectives. Cyber security is an ongoing process that evolves with the business. ERP is only for manufacturers. ERP only benefits the back end. ERP is just a cost-saving tool. ERP is a software-only solution. Everything can be outsourced. Payback is long term. ERP needs to be done all at once. ERP is a one-size-fits-all solution. ERP is difficult to use and manage. ERP is cloud-based only. ERP takes one big push. It’s all about the technology. Service provider communities don’t matter. IT is the sole custodian of ERP. ERP needs once-off data security. MYTHMYTHMYTH MYTHMYTHMYTHMYTH MYTH MYTH MYTH MYTH MYTH MYTH MYTH MYTH MYTH TRUTHTRUTHTRUTH TRUTHTRUTHTRUTHTRUTH TRUTH TRUTH TRUTH TRUTH TRUTH TRUTH TRUTH TRUTH TRUTH Copyright © 2023 SYSPRO. All rights reserved. All brand and product names are trademarks or registered trademarks of their respective holders. SYSPRO EMEA@SYSPRO_Africa this QR Code to download the compelling report from Frost & Sullivan entitled “16 ERP Myths & Truths: Dispelling Misconceptions About Enterprise Resource Planning Systems.” SCAN16 BusinessBrief December/January 2023/24 VIEWPOINT Ron Stuart | Partner | ESG Lead | KPMG South Africa | ron.stuart@kpmg.co.za | Embracing net zero - a global imperative! The last two years have seen many countries taking steps in the right direction towards Net Zero, even if most have a long way to go. W hile for South Africa, the greatest opportunities to move towards Net Zero at present comes from the private sector. We also know that there are financial pressures to delay such work, given how many companies locally are trying to survive, in a very slow economy, and therefore are not able to embrace additional measures linked to Net Zero. Challenges in regulatory reform More can be done to compel companies to decarbonise, whether through legislation or other measures, although some tax allowances are available. A June 2021 speech by President Cyril Ramaphosa discussed an expansion of renewable energy, which at present only provides a small proportion of the country’s electricity. Not only the pace of regulatory change but also subsequent project activation remains a challenge, including plans (stemming as far back as 2019) to break up the government- owned and coal-dependent power group, Eskom. The country’s energy regulator did license the plans in July 2023 to set up a separate transmission operator whilst focus remains on prioritising stability of current high emission generation. This does therefore continue to constrain the opportunity to increase renewable energy production in our energy mix. While certainly the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) as well as similar schemes elsewhere will provide the country’s heavy-emitting industrial companies with financial reasons to decarbonise, by applying charges on imports designed to match carbon taxes levied on domestic producers. In fact, a February 2023 paper published by South Africa’s Presidential Climate Commission found that EU countries imported an annual average of US$1.4 billion of products from South Africa that could attract charges under CBAM with iron, steel and aluminium production most likely to be affected. As a result, we have seen large companies, in the energy and natural resources sectors, working on CBAM programs for the last couple of years, but the large scale of the changes required means these will take time to implement. However, all South African companies need to have a strategy for Net Zero and must develop long-term plans based on these with a target Net Zero date and interim reduction targets. ESG reporting & compliance The reality is that companies will soon need to provide more information on how they will be affected by climate change and what they are doing to tackle it. We already have the International Sustainability Standards Board (ISSB), which countries including the UK have indicated they will incorporate into national rules. Other jurisdictions including the EU and the US are introducing their own regimes that build on the ISSB baseline BusinessBrief December/January 2023/24 17 VIEWPOINT with Japan planning to do likewise. In Africa, Nigeria, Kenya, Ghana and Zimbabwe have adopted these new standards and China is expected to compel climate related reporting from next year. South Africa is engaging across multiple stakeholder groups to agree the roadmap for future adoption. Furthermore, as reporting standards are phased in over the coming years, ESG assurance will begin to play a vital role in bridging the gap between intention and impact and providing necessary checks and balances that will drive meaningful change and contribute to a more sustainable global economy - and for many sectors become an economic driver itself. Beyond this, ESG assurance will also serve to enhance the public trust and will become a strategic support towards enhancing transparency, accountability and authenticity. Global shift towards renewable energy Lastly, renewable energy production is rapidly expanding around the world, investment is rising fast and there are indications that it is now becoming harder to raise funding for some fossil fuel projects. At present, fossil fuels - coal, natural gas and oil - provide 82 percent of the world’s primary energy but many of the global decarbonisation policy initiatives of the last two years have focused on extending low carbon energy. While China and India are adding both fossil fuel and low carbon generation to meet rapidly increasing demand, the International Energy Agency predicts that clean energy will receive US$1.8 trillion (in prediction for spending on clean energy) of investment globally in 2023. This should be reason enough for South African companies to want to scale up and drive their Net Zero target faster and more seriously, as this together with their ESG assurance requirements will ensure they remain competitive in a changing global marketplace. So, yes, delivering transformative change on Net Zero is currently hamstrung by significant barriers, including global public debt, domestic tensions, increased opposition to decarbonisation plans, and the need to guarantee energy supply, but in fast-growing economies, rapidly increasing energy demand is triggering investment. And therefore, becoming Net Zero is not just about climate but also about being globally relevant and competitive and seizing opportunities that emanate from this requirement. Start planning your 2024 IoDSA Membership today. We’ll support you in your cause to have better directors, better boards, and better business in South Africa. Join the IoDSA today ...delivering transformative change on Net Zero is currently hamstrung by significant barriers, including global public debt, domestic tensions, increased opposition to decarbonisation plans, and the need to guarantee energy supply... ”18 BusinessBrief December/January 2023/24 VIEWPOINT Andra Nel | Marketing Manager - Brand and Purpose | KFC | andra.nel@yum.com | Giving is only the beginning of creating hope The most important part of corporate philanthropy is not where it starts nor how it ends, but in how it is sustained. The giving is only the beginning. Or, to put it another way, corporate social investment is not just for Christmas - it is for life. G iving is the essence of humanity. It is the thing that makes us good citizens, having an innate awareness of our responsibility and ability not only to give back but to create hope for others. The most important thing we can do it is to add hope that needs it most. “Hope” is a glorious word, possibly the most powerful. It speaks of a change to come, of offering light when there is nothing but darkness, comfort where there is little but pain, sustenance when there is the biting, debilitating pain of hunger. Creating hope To give hope, to create a lasting, real impact on the lives of those who need our help the most, Corporate Social Investment (CSI) programmes and campaigns must be sustainable, strategic and focused. Giving back, whether that be fund-raising, donations or volunteering your time and services, becomes sustainable when it is married with organisations who have the skills and reach to ensure that the funds raised are shown be working effectively towards your goal. You cannot just simply throw money at the problem. Many corporate social programmes in the past have made the mistake of being scattergun and unfocused, splashing the cash wide and far in the hope that it lands in the right place and gives the corporate a good return on investment. Good, sustainable CSI requires a well-thought-out strategy aimed at addressing the root causes of the issue. Sustainable giving There are essentials that must be followed in creating a sustainable CSI campaign. Among these are generating the funding; knowing what impact you hope to achieve and never losing sight of why you are raising the money; having a strategy; controlling costs; remaining true to the culture of your business; strong leadership; skills and infrastructure. Learning from the mistakes of other campaigns is vital to ensure you don’t make the same mistakes. The Wall Street Journal had an excellent article a few years ago in which they outlined the “Biggest Mistakes Companies Make With Corporate Social Responsibility”. These included “operating in silos”, “spare change, not real change”, having “arms-length approaches” and “going it alone”. Building lasting partnerships The biggest takeaway from that for me is that you cannot create a sustainable, long-term, impactful campaign by doing it by yourself as the corporate. Partnerships are vital across all sectors, from non-profit organisations, employees, the public and the consumer. That has been our approach with the KFC Add Hope campaign and the reason it has been such a success over the last 14 years.BusinessBrief December/January 2023/24 19 VIEWPOINT KFC Add Hope partners with over 130 Non-Profit Organisations (NPOs) who are part of the Add Hope beneficiary organisation network. To become a partner, the NPO must be registered and have been working for at least two years “offering a sustainable feeding programme for children from ages 0 and 18”. Through these partners, many of whom we have worked with since Add Hope was founded in 2009, we have served over 33-million meals to hungry children in 2022/2023. In total, we have served 283 million meals since 2009. Add Hope has raised over R953 milllion in 14 years. The soul of Add Hope began with the innovation of asking our consumers and the public to partner with us to create hope for hungry children by showing them how their small change can come together to make a big change. We give KFC customers the option to add a R2 donation, or more if they so wish, to their bill when they buy a meal. Our customers become part of the campaign and, thus, continue to contribute to Add Hope, which ensures its sustainability. We also donate a fixed percentage of sales to the fund each year and ensure that every part of the R2 Add Hope donations goes directly to the NPOs and ultimately to nutritious meals to feed children in need. The Kentucky Fried Chicken Social Responsibility Trust, administers the funds and is independently audited from a programme and financial perspective annually. We are always thinking about how we lift Add Hope to another level. This December, for example, we will be partnering with the quintessential, trusted embodiment of South African Hope both globally and locally - Gift of the Givers, which was also founded in 1992. On a logistical level, our Gift of the Givers partnership unlocks access to some of the most remote areas in South Africa that some NPOs can’t. Every Add Hope R2 raised in December will go to Gift of the Givers, and KFC will match the amount donated. Our partnership will also amplify the fact that while Gift of the Givers are active in global disasters, there is a disaster happening right on our doorstep that KFC and Gift of the Givers are both working to avert - hunger at home. Alleviating Hunger is not a competition. Working in silos dilutes the effort. We can do more if we combine forces. Like the Boks, Stronger Together. We live in what is perhaps the most pessimistic of times in South Africa. But, there is and must always be hope. Keeping that hope alive for the millions of starving children begins with R2. But, giving is only the beginning. We can make hope endure and be a real, tangible force for good with long-term, effective and sustainable programmes.Next >