BBBEE report

celebrating 20 years BBBEE report

Aspen's Broad-Based Black Economic Empowerment ("BBBEE") philosophy

Our heritage is firmly rooted in South Africa and the South African business remains a material contributor to the Group. As such, we are acutely aware of the need for transformation in South African society in order to overcome the consequences of previous discrimination and to create an equitable society in which all individuals have equal opportunities, free from prejudice. By so doing, South Africa will benefit from the social reparation of past injustices and the added economic contribution of inclusive and unrestricted participation by all citizens.

To this end, we are fully supportive of constructive measures introduced by government to facilitate effective transformation in South Africa. We have embraced the Department of Trade and Industry's BBBEE Codes and, through transformation, seek to harness the strength and power of our diversity, respecting each person’s individuality. We have embarked on a transformation process and made meaningful progress in this regard.

Based on the verification recently completed by Empowerdex, the Group scored 86,7 (2017: 83,7) points (100% procurement recognition level). Aspen achieved a Level 4 rating and was verified as an A-rated empowering (BBBEE contributor status) supplier, thus enabling its customers to recognise their procurement from Aspen in terms of the revised codes.

An overview of the Group’s progress towards compliance is outlined below:

2018 Element Progress Target under revised codes Verified score (Sept 2018) Verified score (Sept 2017)
Ownership Full ownership points were achieved due to BBBEE equity holding in Aspen and benefits retained on prior disposals of Aspen shares 25,0 25,0 25,0
Management control Score materially maintained due to stability in numbers of top and senior black management 15,0 plus
4 bonus points
7,4 8,3
Skills development Level of skills spend increased in the 2018 financial year. A significant number of learnerships were both entered into and completed during the year, while bursaries were advanced to external interns. An increased number of black people were absorbed by the Group and/or industry on termination of their learnership 20,0 plus
5 bonus points
14,2 13,1
Enterprise and supplier development Score increased due to the continued focus in the black- owned and black women-owned categories. Aspen has implemented an enterprise supplier development plan in terms of which loans to the value of R54,5 million were advanced to selected enterprise development beneficiaries in current and prior years. Procurement sourced from designated black group suppliers has been recognised 40,0 plus
4 bonus points
35,1 32,3
Socio-economic development (“SED”) Continued spend on SED projects which focus on the upgrading of clinics, improving access to healthcare and combating HIV/AIDS maintained. Continued contribution to the South African Public Healthcare Enhancement Fund made during the year 5,0 5,0 5,0
Overall score   118,0 86,7 83,7

The Group’s efforts in respect of employment equity, skills development, preferential procurement and SED are more fully dealt with in the Integrated Report. During the year, in terms of the BBBEE Codes, the Group invested 76,3% (2017: 81,0%) of its total measured procurement spend in South Africa on BBBEE-recognised locally based suppliers.

We will continue to implement measures we believe will assist in ensuring improved outcomes under the revised codes. These measures are specifically focused on the areas of skills development as well as the enterprise and supplier development elements.