Stakeholder engagement

Stakeholder strategy

A well-designed and executed stakeholder strategy is critical to defending PPC's current and future position in the market.

This strategy is aligned with our tactical plans for the short, medium and long term to deliver shared value for stakeholders across a range of constituencies.

Our engagement process ensures all stakeholders understand how they participate in PPC's gains and losses, and how we balance competing claims by different groups.

Stakeholder management

PPC recognises that an inclusive approach to stakeholders is a central tenet for business prosperity. To ensure inclusivity, we prioritise stakeholder mapping to align strategic issues that cut across the company's operations, industry, countries and the continent.

This approach also enables us to integrate the six capitals while repositioning capitalism as the engine of shared prosperity and considering the sources of value creation: our shareholders, capital providers, employees, customers, suppliers, regulators and communities in which we operate.

We have identified the following as critical for PPC's business:

These priorities are driven by our strategic initiatives (detailed on page 8) focused on finance, operations and human capital.

Beyond Partnerships

How our strategic principles fit into our stakeholder universe
Stakeholder engagement is an ongoing process
Addressing stakeholder issues
Financial
Shareholders, capital providers and rating agencies
ISSUES   OUR STRATEGIC RESPONSE

Requirement for a BBBEE top-up
(BEE III transaction)

 

Engaged to create a better understanding of PPC's investment direction

Leadership changes

 

PPC has improved governance at board and executive level

Liquidity

 

Restructuring of debt, two-year capital repayment holiday in DRC

Investment grade rating

 

Maintain and improve investment grading

Risks

 

Opportunities

Lack of investor confidence

 

Demonstrating our drive to deliver performing assets, including strengthened balance sheet

 

Implement initiatives that do not destroy shareholder value

 

Operational
Regulators, communities, customers and suppliers
ISSUES     OUR STRATEGIC RESPONSE

Requirement for a BBBEE top-up
(BEE III transaction)

   

Engaged regulators, communities, customers and suppliers to ensure that compliance is achieved and their interests are addressed

Historical social issues (community socio-economic development)

   

PPC engages and implements socio-economic development projects across the communities where it operates through our social and labour plans (SLPs), corporate social investment (CSI), enterprise and supplier development and legacy projects

Radical economic transformation

   

Engaged with relevant government departments to ensure PPC adheres to the correct foreign labour quotas and explain the rationale for using foreign labour

Environmental concerns (ie water shortage, carbon emissions)

   

Actively participated in water-saving initiatives

 

Proactively engaged local communities to jointly develop solutions for socio-economic development (enterprise and supply development, corporate social responsibility and SLPs)

 

We implemented measures in the Western Cape to mitigate the impact of the ongoing drought. From the demand side, PPC is working with local government, given that construction is viewed as a priority economic sector. The situation is closely monitored

Competition and customer demands (emerging new players)

   

Implemented strategic price adjustments
Improved efficiencies and reduced costs
Launched new innovative products

Output cost and efficiencies

   

Slurry SK9 kiln launched to address operational efficiencies, emission controls and output cost

Complying with policy and regulatory regimes, particularly in South Africa

   

As (largely) a mining company, PPC is closely monitoring negotiations on targets in the third mining charter. We engaged with the DMR directly and as part of the mining and business advocacy/multilateral groups in shaping our policy environment

Risks     Opportunities

Directives for non-compliance

   

Create harmonious existence between surrounding communities and PPC

Withdrawal of social licence to operate

   

Be a partner for development (across the continent) by integrating our CSI and SLPs into our strategy to address real community needs

Political risks exist in all our operating countries, which we endeavour to mitigate by conducting our business ethically, at all times

   

Beneficiation: as PPC beneficiates 100% of usable run-of-mine production, we believe it appropriate to lobby the DMR for approval to claim the full offset of 11% against the ownership target

 

Communities
ISSUES     OUR STRATEGIC RESPONSE

Initiatives that address real needs

   

We believe community engagement is a two-way process: fostering a collaborative relationship on developmental matters to create resilient and more sustainable communities where we operate. Through negotiation, and as a responsible corporate citizen, we are implementing local economic development projects under our SLPs that address identified needs. To ensure a holistic approach, community engagement through local forums is aligned with municipal integrated development plans

 

Human capital
Employees and organised labour
ISSUES     OUR STRATEGIC RESPONSE

Organised labour, community members and government

Use of foreign labour at SK9 (Slurry)
(PPC awarded the R1,2 billion tender to construct the new kiln at Slurry in the North West province to CBMI Construction
)

   

We timeously assured stakeholders that the majority of employees were South African. We also ensured that the project included both local labour and scarce skills sourced abroad, and that skills were transferred

BBBEE top-up transaction

   

Our BEE III transaction was designed to create value for all beneficiaries, including communities, employees and black entrepreneurs without destroying value for shareholders

Employee value proposition (group)

   
  • Rolled out revised group values throughout the business
  • Introduced new talent management initiatives
Risks     Opportunities
  • Operational disruptions
  • Violent protests
  • Reputational damage
  • Withdrawal of social licence
   
  • Strengthening relations between employees and their union representatives
  • Improve relations to lessen industrial action