SUSTAINABLE DEVELOPMENT GOAL (SDGs) CONTRIBUTION

ENVIRONMENTAL PERFORMANCE

The impact of environmental and climate change are critical to the viability of our business. Potential consequences on environmental and natural resources risk can be financial, physical and intangible. As such, this necessitates the Group to take appropriate measures to minimise impacts on the environment, climate and natural resources which are considered as capital for the business.

PRIORITIES

  • Efficient use of materials in production and products.
  • Managing waste material disposal and recycling.
  • Managing efficient use of energy and water resources.
  • Ensuring set targets are achieved.
  • Contributing to climate change mitigation.

MANAGEMENT APPROACH

The Group is committed to ensure operations are in compliance with environmental laws, voluntary and international best practices in managing environmental, climate and natural resources.

The Group’s approach is to identify potential environmental and climate hazards, evaluate the risk and take appropriate measures to control or eliminate the risk. Group units have standard environmental policies which
must be followed to minimise impacts on the environment, climate and biodiversity. The Group ensures that its response to environmental impacts is recognised as a contribution to Sustainable Development Goals (SDGs).

The Group contributed to the following United Nations supported SDGs through sustainability reporting performance indicators:

SDG THEME OUR BUSINESS RESPONSE(S)

‘Ensure availability and sustainable
management of water and sanitation’.

The Group enhanced the utilisation of water resources in management of water and sanitation’. its operation by effectively managing the resource in way that meets regulatory requirements and avoiding harming the water sources.

‘Sustainable and modern energy ’.

The Group monitors energy utilisation and continue to work towards clean energy in business operations.

’Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all’.

The Group enhanced its production efficiency for materials used to minimise waste, production energy and waste disposal.

SUSTAINABILITY PERFORMANCE

Sustainability performance for the Group is based on business units remaining following the unbundling of Quick Services Restaurants (now Simbisa Brands Limited), Speciality Retail and Distribution (now Axia Corporation) and Disposal of SPAR Retail stores and Distribution (Spar Franchise). Sustainability Performance data from the unbundled units was excluded to reflect the prevailing position as of 30 June 2016 and comparatives have been adjusted to show like for like numbers.

KEY MATERIALS

The table below summarises key material consumption by the Group

Materials Used Unit 2016 2015
Cereal and Starch Tons 675,289 695,223
Meat – Pigs and Birds Tons 1,411 1,119

Major materials consumed by the Group reflect materials consumed by the remaining business units following the unbundling of Simbisa Brands Limited and Axia Corporation Limited. Simbisa Brands Limited operates a chain of quick service restaurants which largely consumed cereals and starch, meat, oils, potatoes and ice creams. Materials consumed by Simbisa Brands, Axia Corporation Limited and SPAR operations have not been included in the above figures.

Percentage of materials used that are recycled input materials

Materials Unit 2016 2015
Overall Material Recycled % 6 12

ENERGY

Achieving energy efficiency is an integral ambition through the Group’s energy policy that promote innovation and efficient energy usage in all our operations. Achieving energy efficiency remains the Group’s priority for innovation and cost cutting. Business units continue to explore potential clean energy sources and capital investment. The table below shows the Group’s energy consumption during the reporting period.

Energy Consumption – Within the Organisation

Energy Type Unit 2016 2015
Electricity MWH 970,683 661,450
Heating (Coal) Tons 3,997 2,303
Fuel for Ovens Litres 2,746,268 2,818,076

Electricity and heating coal increased by 47% and 74% respectively from 2015. The increased use of electricity was largely influenced by constant supply of electricity during the year as compared to prior year. The increase was also largely to support increased production activities during the year. Fuel for ovens decreased by 3% due to improved heating efficiencies.

Energy Consumption – Outside the Organisation

Energy Type Unit 2016 2015
Diesel Litres 6,930,370 5,423,142
Petrol Litres 165,223 135,509
TOTAL   7,095,593 5,558,651

Fuel consumption outside the organisation is associated with delivery to customers and collection of production materials. Fuel consumption of both diesel and petrol outside the organisation increased by 27% and 22% respectively due to increasing delivery activities and growth in delivery areas covered.

WATER RESOURCE

Water remains a critical resource to the Group’s operations. Therefore, constant measurement and monitoring of sources where water is withdrawn is integral. Below is the distribution of the sources and quantities withdrawn from each source by our operations:

Source Unit 2016 2015
Surface (from dams) C/Litres 138,671 174,784
Ground Water (Borehole) C/Litres 807,544 934,438
Water Supplies C/Litres 146,514 293,797

Water usage decreased in 2016 from 2015 in line with production requirements and efficient utilisation. The year under review was largely affected by the El-Nino phenomena that affected the rainfall pattern in many Southern African countries prompting business units to take measures to conserve and efficiently utilise limited water supplies.

WASTE AND EFFLUENT

Managing waste disposal process in the Group is a critical function which requires appropriate attention to ensure disposal methods meet required and approved standards to avoid harming the environment and climate. The table below presents how waste disposal was managed:

Waste Type Disposal Method Unit 2016 2015
Solid Wastes Landfill and Compost Tons 1,897 2,966
Chicken manure Grass pasture spread Tons 6,543 7,560
Maturation (rich with Phosphate) Pond Irrigation Cubic ml 48,987 46,800
Sweepings mixed with sand Containerway disposal Tons 925 118
Inflammable Waste Council dumpsite Tons 167
Flammable Waste Incinerated in boilers Tons 246
Polyethylene Plastics Sold for recycling Tons 699 449

The Group continues to ensure that most waste is disposed appropriately and in a responsible manner. Efforts continue to be made to improve the measurement of data supporting the statistics above.


SOCIAL COHESION AND COMMUNITY INVESTMENTS

The Group strives to continuously improve and maintain human capital and community investments at appropriate standing for the purpose of ensuring the Group’s long-term business success and sustainability. To optimise human capital contribution into our performance, the Group provides a work environment based on the values of fairness, opportunity creation, integrity, non-discrimination, equal opportunities, empowerment, decent work conditions, good health facilities and motivation activities. The Group believes that society is an integral part of the business which the Group should continue to plough back to.

PRIORITIES

  • Providing employment opportunities.
  • Minimising workplace health and safety incidents.
  • Investing in Human Capital development.
  • Enhancing employees’ well being and capacity.
  • Supporting Community Development.

MANAGEMENT APPROACH

The Group is committed to ensure operations are in compliance with labour laws, voluntary and international labour practices and contribution to sustainable and community development. The Group’s approach is to identify potential health and safety risks, evaluate the risk and take appropriate measures to control or eliminate the risk. Group units engage with communities and other stakeholder groups to identify potential need and contribution. The Group believes that the wellbeing of the society is integral in providing business opportunities and human capital and is therefore a vital investment for the Group. The Group ensures that its response to environmental impacts is recognised as a contribution to SDGs.

SDG THEME OUR BUSINESS RESPONSE(S)

’Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all’.

Created and sustained employment and decent working conditions through health and safety, and wellness programmes.

’Promote peaceful and inclusive societies for sustainable development’.

  • Provided support to our employees and their families through wellness programmes.
  • Financial investment in various social, community development and charity activities.
  • Provided employees with training and education.

SUSTAINABILITY PERFORMANCE

Human Capital Management

The Group believes that employee engagement is linked to improved organisational performance, improved operational capacity and capability. The Group also believes that employee engagement is an outcome of maintaining employees motivated and compensated in accordance with performance, effort and contribution.

Employee Engagement

Total Employees Unit 2016 2015
Male Count 6,707 7,393
Female Count 1,641 1,848
Total Employees   8,348 9,241

During the year Innscor Africa Limited underwent many divisional restructuring exercises including unbundling of Simbisa Brands Limited and Axia Corporation Limited. The staff complement from the unbundled unit has not been included in the 2016 comparatives.

Work Related Accidents/Injuries

The Group observes strong consideration to incidents of safety and fatalities within our work places. Appropriate action is always taken where incidents that affect employees’ wellbeing are noted.

  Unit 2016 2015
Total Number of Injuries Incidence 344 354
Number of work related fatalities Incidence 0 1
Safety Training (days) Days 140 135

Health and Safety topics covered in formal agreements with Trade Unions

During the year, major topics discussed with Works Council and Trade Unions were mainly related to Breast cancer, Diabetes, Random Sugar Testing, STIs, Condom Use, HIV/AIDS, Basic hygiene, Hazards Identification and Risk Assessment (HIRA), Fire fighting, Machine Specific Safety and general safety in the work place.

Employee Wellness Programme

The Group continues to support and prioritise safety, health and well-being of employees and their families through the Wellness Programme. Our Wellness Programmes continue to provide employees and their dependents with many opportunities to foster a lifestyle sensitive and responsive to all the dimensions of the total wellbeing. The prevailing economic and operational environment has been challenging but our wellness interventions which include counselling and coaching has helped to mitigate some of the adverse effects on employees. Statistics of our Wellness activities showed a positive influence on the health and wellness behaviours of our employees and their families. Our employees and their dependents have access to our Primary Health Care facilities in Harare, Bulawayo and Kariba. The Harare Innscor Total Wellness Centre is an HIV Testing and ART Centre. All our centres are manned by experienced and trained personnel. The table below summarises wellness activities during the year:

PROGRAMMES ACTIVITIES & OUTCOMES
Annual Wellness Day
  • 5 years running the day event.
  • Event activities included cancer awareness, stress management and massage, general health check, men’s sexual reproductive health, eye testing, dental check-up, VCT, Blood typing, BP check, BMI; Glucose Testing and counselling.
  • Employees across the country participated in sporting activities which include soccer, netball and volleyball among others.
Outreaches
  • Employees participated in various events which included ‘General Wellness Talk’ and stress management.
  • Outreach activities were conducted across Zimbabwe.
Individual Meetings
  • Encouraged employees and their dependents to utilise the facility in Harare, with counselling facilities.
  • Zumba classes were started in Chitungwiza.
  • A Wellness Passport introduced as a pilot project.
  • A Feedback system introduced for employees.
Lectures and Workshops
  • Conducted workshops for Innscor Wellness Centre for employees and dependents.
  • 85% participation rate in all our meetings.
Breast Cancer Awareness
  • Initiated workplace based Breast Cancer awareness.
  • Breast Cancer Awareness breakfast meetings held in Bulawayo, Mutare, Masvingo and Kariba targeting Group employees and their dependents.
Wellness Staff Development
  • Skills and knowledge development of staff on training, team building, HIV Counselling, Testing and coaching etc.

Wellness Programs Attendance

Our wellness attendance and participation during the Annual Wellness day were as follows:

ACTIVITY UNIT ATTENDANCE
BMI/BP/BL SUGAR Counts 264
Massage & Wellness Counts 68
Men’s Health Counts 180
HIV Testing Counts 370
Counselling Counts 170
Blood Typing Counts 98
Cancer Awareness talks Counts 397
Dental Checks Counts 235
Visual Screening Counts 154

Learning and Development

Learning and development is a critical aspect of the Group’s philosophy of investing in human capital that is well motivated, technically sound and equipped to provide efficient and effective customer service and production. The table below presents the average employee training time invested by the Group:

Average Training hours per Employee – Internal Training Unit 2016 2015
Male Hours 35 38
Female Hours 29 32

Average training hours per employee decreased by 9% respectively from 2015. The Group continued to work toward equitable training for both male and female employees.
Due to resource constraints during the year, training activities were mainly concentrated to in-house training.


COMMUNITY DEVELOPMENT AND CHARITY SUPPORT

Community Development

  COMPANY ACTIVITY AREA/VENUE
Community Empowerment and Development Innscor
  • Donation for community development
Chegutu
National Foods
  • Donated to 2 hospitals
  • Supported assorted initiatives
Masvingo
Across the country
Colcom
  • Supported social and interaction initiative by the Zimbabwe National Army.
Across the country
Education National Foods
  • Supported 11 learning institutions and activities.
Across the country
Sport Innscor
  • 22 School girls Soccer Tournament
Avonlea Primary School
National Foods
  • Supported rugby tournament and fun runs.
Across the country

Charity Support

SUPPORT PRIORITY COMPANY SUPPORT ACTIVITY (IES) BENEFICIARY/ AREA
Disability support Innscor
  • Wheel chair support for a boy child with acute cerebral palsy, who had been waiting for a special wheel chair for 8 years.
  • Building wheel chair access points and bedroom for ex-employee injured after being involved in a horrific accident which rendered her paraplegic.
Chitungwiza
National Foods
  • Supported 3 disabled persons institutions.
Danhiko, Emerald Hill and Zimcare
Irvine’s
  • Supported 2 disabled persons institutions.
  • Monthly donation of eggs.
Danhiko Olympics and Jairos Jiri
Orphanage Colcom
  • Donated various materials and food stuffs to orphanages and children’s homes.
  • Supported Emerald Hill Children’s Home, St Joseph & St Marcellaines Homes, Chinyaradzo Children’s Home, Makumbe Children’s Home, Jairos Jiri and Shearly Cripps Orphanage.
Across the country
National Foods
  • Supported over 17 Orphanages.
Across the country
Irvine’s
  • Supported 4 children’s homes and orphanages in addition individual school fees.
  • Monthly donation of eggs.
St Joseph House, St Marcellains, Harare Children’s and Emerald Hill
Old People’s Homes Colcom
  • Supported with various materials and contributions to Athol Evans.
Harare
National Foods
  • Donated to over 15 old people’s homes.
Across the country
Irvine’s
  • Supported 5 old people’s homes.
  • Monthly donation of eggs.
Athol Evans, Harare Senior Citizens, Waterfalls Trust, Fairways & Valhalla Old People’s Homes
Arts, Social and Regional National Foods
  • Supported agricultural show and HIFA.
Across the country
Animal Welfare Colcom
  • Support to Animal Welfare Zimbabwe and the SPCA for animal welfare.
Harare, Tikki Hywood Trust
National Foods
  • Donated to wildlife and anti-poaching.
  • Supported SPCA show.
Dambari Wildlife and Harare Region.

ECONOMIC PERFORMANCE

The prevailing economic environment and global challenges impacts on the Group’s performance. Prevailing outlook in which major economies have been slowing down has had economic effects prompting the Group to take appropriate measures while considering various alternative business opportunities.

MANAGEMENT APPROACH

The Group is committed to building a business that will continue to be sustainable while creating value for our shareholders and stakeholders. The Group’s approach is to ensure that our experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity continue to manage all capitals deployed for value creation and sustaining in the short and long term. The Group ensures that its response to environmental impacts is recognised as a contribution to SDGs.

SUSTAINABLE DEVELOPMENT GOALS (SDGs) CONTRIBUTION

The Group contributed to the following United Nations supported SDGs through sustainability reporting performance indicators:

SDG THEME OUR BUSINESS RESPONSE(S)

’Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all’.

Distributed economic value created to support economic growth through taxes paid to government, employee welfare, supporting community development and local supply chain support in our business activities.

SUSTAINABILITY PERFORMANCE

Coverage of the Defined Contribution Pension Plan

The Group’s pension schemes are managed through 3 self-administered defined contribution plans for qualifying employees (Innscor Africa Limited Pension Fund, National Foods Pension Fund and Colcom Pension Fund) and 3 compulsory external schemes (National Social Security Authority Scheme & Workers Compensation Insurance Fund, and Catering Industry Pension Fund). Contributions to the schemes are presented below:

Information Unit 2016 2015
Amount paid USD 3,230,270 3,363,290

Coverage of defined Contribution Pension plan payment decreased by 4% from 2015 due to staff reduction.

Financial Assistance from Government

During the year under review, no government assistance was received.

Information Unit 2016 2015
Amount Received USD 235,924

The government assistance received in 2015, was mainly to our Appliance Manufacturing business unit associated with commissioning a new environmentally friendly plant. During 2016, the Group benefited from government sponsored initiatives in health, education, farming and food security.