KAP operates thirteen industrial facilities in Southern Africa, employing 4 681 people. Given the actual and potential societal and environmental impacts that our business has – both positive and negative – we are increasingly mindful of our responsibilities as good corporate citizens. It is our aim to be fully compliant with relevant legislation regarding employees, worker health and safety and our impacts on the environment. In this regard we have this year undertaken to deepen our understanding and response to the broader sustainability agenda. We see this as a process of continual improvement.
As a holding company, KAP has purposefully devolved day-to-day management of sustainability issues to our subsidiary companies within a broad group policy of requiring subsidiaries to be firstly, fully compliant with applicable legislation and secondly, for management at these companies to focus their energies and resources on sustainability issues that are material to stakeholders, society and the environment.
Group policy is for all industrial facilities to develop management systems that proactively and systematically address safety, health, environment and quality (SHEQ) risks, and to strive to attain and maintain internationally recognised certification standards for these management systems. Where practicable, sites are encouraged to develop integrated SHEQ management systems, as we see the management of these areas of our business as going hand in hand.
Integrated risk audits are conducted annually by independent professionals at all of our sites. These cover critical risk aspects of the businesses including fire, defence, security, safety (Occupational Health and Safety Act requirements) and environmental management. Twelve of the thirteen sites audited this year recorded improved scores.
Performance highlights in the area of environmental and social sustainability are outlined below.
All our facilities aim to be eco-efficient (in terms of the efficient use of energy, water and materials) and to minimise potentially harmful emissions to the environment. Energy and water conservation measures are in evidence at all our facilities, normally as part of on-site environmental management systems (EMS). In terms of air and waste–water emissions and solid waste disposal, our facilities comply in full with applicable environmental legislation. A number of sites in the group have achieved the internationally recognised ISO 14001 environmental management system (EMS) standard.
The health and safety of our workers is of paramount importance. All sites operate occupational health and safety committees that meet regularly and members of these committees receive appropriate accredited training covering key risk areas. Procedures are maintained to prevent incidents and risk audits of all sites are completed annually by external professionals to identify and remove weaknesses in our health and safety management systems.
There were no environmental, health and safety related fines or material incidents at any of our sites during the year under review.
Highlights of specific environmental, health and safety programmes include:
Hosaf Recycling (Pty) Ltd, based in Gauteng, receives up to 6 000 tons per annum of PET plastic bottles for recycling from consumers. At a conservative estimate, this initiative has created over 300 informal jobs among the collectors of these bottles, and has contributed significantly to the reduction of landfill space and visual pollution in the Gauteng area.
At our Mossop facility in the Western Cape, all unused evaporation ponds have been rehabilitated in full in compliance with the National Water Act and as confirmed by the South African Department of Water Affairs.
Glodina was one of the first companies in South Africa to be awarded simultaneous ISO14001 and OHSAS 18001 (Occupational Health and Safety Management System) certification and has retained this accreditation, along with its five-star National Occupational Safety (NOSA) rating.
During 2005, both Bull Brand feedlots (Taaiboschbult near Potchefstroom and Hurland near Magaliesburg) achieved ISO 14001:2004 certification.
Jordan has maintained a culture of compliance with the very strict international environmental standards of the Fair Labour Organisation, which has served to raise the bar above legislative requirement in terms of environmental issues, employee safety, security and employment policies.
Looking forward, KAP has initiated a group-wide programme of looking more closely at material environmental, health and safety KPI’s, to setting performance objectives and targets, and to reporting on performance against these in future reports.
World class production and product quality is a non-negotiable cornerstone of all of our businesses.
Highlights include:
Hosaf Fibres’ Durban and Cape Town plants comply with ISO 9001:2000 quality standard. The Jordan factory also complies with ISO 9001:2000. Both industrial footwear factories carry the South African Bureau of Standards (SABS) mark, as well as the European Standard (EN) mark on all products. Both factories are also ISO 9001:2000 compliant.
Feltex has secured various quality awards, including TS16949, VDA6 and QS9000. It was also with great pride that Feltex Fehrer received the International Regional Contribution Award for 2004 from Toyota Motor Corporation in Nagoya, Japan. This is the first time that any supplier in Africa has received this award.
The Krugersdorp operation of Bull Brand Foods, which has an overall EU export status, also achieved Hazard Analysis and Critical Control Points (HACCP) re-certification and the British Retail Consortium (BRC) certification this year. These stringent process and food safety certifications reinforce the company’s ongoing commitment to customers and ultimate consumers of the highest standards of quality and hygiene.
Glodina has scooped numerous awards from retailers and has taken home the prestigious Cotton Board award for six consecutive years. Glodina’s quality is what has drawn its devoted customer base. This quality has established Glodina as a preferred supplier to almost all the major retailers and hotel chains, with a 32% market share in the retail market and 95% of the major hotel chain market. Glodina was also one of the first companies in the textile industry to achieve the ISO 9001:2001 standard for quality.
Employee well-being is an integral part of the KAP business philosophy. Efforts that extend beyond compliance with applicable labour legislation and the creation of a stimulating and meaningful work environment include: mentoring, on-the-job training, learnerships and bursary schemes – this is evident at all our facilities. Specific highlights include:
Mossop offers training for employees at the Liri Tanning School of Technology, on-the-job training, bursaries and student loans as well as HIV/AIDS awareness education.
Feltex offers on-site medical facilities, HIV/AIDS awareness training, safe work practices training, bursaries, student loans and apprenticeships.
Bull Brand has successfully offered SETA-funded learnerships to employees, and has completed a full basic adult education cycle with both employed and unemployed learners. Bull Brand also offers mentorships to selected previously disadvantaged individuals.
Over the years, Glodina has made significant investments in its people. The company has committed to further training and development, on-the-job learnership programmes and mentoring and up-skilling unemployed individuals in nearby townships to serve as potential supplements to the workforce. Glodina has established clinics and AIDS awareness, education and testing programmes.
Jordan invests in its people by way of bursaries, further training and development, on-the-job learnership programmes and mentoring and training of unemployed individuals in neighbouring communities.
Community projects and corporate social investment
KAP recognises the economic and social impact our facilities have on surrounding communities and works with staff and other stakeholders to maximise the sustainability of the positive benefits of our operations. Given the small size of our head office, corporate social investment (CSI) activities are concentrated at the site level at the discretion of staff and management. Strong community involvement is encouraged at all sites. Highlights of our community involvement programmes include:
Hosaf takes an active interest in its community, meeting regularly with community relation groups, and it offers bursaries to the neighbouring high school for matriculants to study chemical engineering.
Mossop contributes to the work of local charities, sponsors sports teams in the region and offers financial support to neighbouring schools.
At the Taaiboschbult feedlot near Potchefstroom, Bull Brand sponsors a fully fledged primary school in conjunction with provincial education authorities. The company also contributes to various charitable organisations in its region and is a proud supporter of South African boxing.
Glodina supports various charities including AIDS projects, crèches, children’s homes and sporting institutions with either products or financial contributions.
Looking ahead, KAP will be critically examining its CSI strategy, with the view to improving intra-group synergies, better integration of efforts and improved quantification of total group spend as a percentage of company profit. The strategy will likely maintain a strong focus in the communities that we operate in and with an emphasis on education, poverty alleviation and HIV/AIDS awareness.
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