SUSTAINABILITY INITIATIVE OF SOUTH AFRICA (SIZA) SA Olive AGM 2 - - PowerPoint PPT Presentation

SUSTAINABILITY INITIATIVE OF SOUTH AFRICA (SIZA)

SA Olive AGM 2 February 2017

What is Sustainable Business?

People

• Social

Profit

• Economical

Planet

• Environmental

Origin of SIZA

• SIZA was formed by Fruit South Africa (FSA) in 2008
• Ensure compliant labour practices on fruit farms based on continuous

improvement, awareness and pro-active training programmes;

• Initial focus on ethical/labour module, with environment/food safety

modules to follow later.

Why SIZA ?

• Based on unique South African circumstance and SA legislation
• Agri-Wide multisector stakeholder programme
• Align to International and Local Market standards to provide consumer

assurance

• Single audit to comply with international trade/retailer requirements,

including the domestic market;

• Manage risks and support continuous improvement of labour conditions
• n farms
• Allows individual growers and regions to benchmark their management

practices against Labour Law requirements

• Offer confidence to markets (retailers and other stakeholders)

Achievements 2015/2016

The year 2015-16 was a turnaround year for SIZA

• SIZA completed its own electronic Data Platform – a world first
• SIZA was registered as free standing legal entity - Not-for-Profit Company
• SIZA has its own Board of Directors
• SIZA setup an office with permanent and full time staff
• Structures and systems were implemented

SIZA thus became a company in its own right who strive to become self- sustainable in the near future.

SIZA Management Structure

BOARD OF DIRECTORS CHAIRMAN GENERAL MANAGER ADMINISTRATION  SIZA  Sedex  Graduate Intern / Admin ADVISORY GROUPS  Ethical  Auditing  Sustainability CONTRACTORS  Platform (Technical)  Audit Oversight  Financial Management  Capacity Building

The SIZA Programme

SIZA Data Platform

• SIZA Data platform is an efficient well designed platform

which SIZA owned and is very proud of

• Data platform provides visibility of suppliers
• Access to accurate and credible data on the data platform
• Profiling of types of non-compliances, best practices and risks
• Pro-active corrective actions and awareness

SIZA Membership

SIZA membership is currently growing rapidly as guided by an effective and modern technology platform. At the end of 2015 we had a membership of 1272 members of which only 651 were active. Currently we have a membership of 1491 members with less than 180 who are not yet active on the Platform. We had 227 new registrations and 848 renewals since January 2016.

SIZA Membership

Total Membership of 1530 (Olives – 3 active members)

Commodity Membership

Deciduous (Pome/Stone fruit) 772 Citrus 482 Table Grapes 324 Wine Grapes 72 Subtropical Fruit 89 Vegetables 58 Flowers 12 Alternative Fruit 66 Meat/Dairy 187

SIZA Membership

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 Average Score 75.35% 79.55% 81.60% 82.48% 83.57% 87.04% 90.08% 85.85% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% 95.00%

MEMBER RISK PROFILE SELF ASSESSMENT QUESTIONAIRES

Average Score

Auditors recognition

• SIZA endorsed the GSCP reference tools as the platform for its audit

scheme.

• Currently we have 5 recognised audit bodies
• Audit Recognition policy and training programme in conjunction with

WIETA to ensure credibility and high standards to all stakeholders involved 1 January 2016 – 31 December 2016 - 249 audits have been conducted.

Eight Principles

The SIZA programme monitors compliances in the following areas:

• Management systems
• Forced Labour (Employment Freely Chosen)
• Child Labour
• Freedom of Association
• Discrimination, Harassment & Abuse
• Health & Safety
• Wages, Benefits and Terms of Employment
• Working Hours

Non-Compliances

Management Systems Employment Freely Chosen Child Labour Freedom of Association Discriminatio n, Harassment & Abuse Health & Safety Wages, Benefits & Terms of Employment Working Hours 1 July 2015 - 30 June 2016 9.23% 2.95% 4.80% 3.69% 9.96% 39.48% 19.93% 9.96% 1 July 2014 - 30 June 2015 14.37% 3.31% 2.32% 4.37% 5.17% 36.95% 26.29% 7.22% Western Cape Average 13.56% 2.44% 2.89% 3.44% 6.15% 38.43% 25.41% 7.69% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

Non-Compliance Distribution per Category

Non-Compliances Rating

Non-Compliances are raised in the following categories:

• Critical
• Major
• Minor
• Observations
• Recommendations

Non-Compliances

Critical 0% Major 7% Minor 58% Observation 15% Recommendation 20%

NON-COMPLIANCE RATING DISTRIBUTION

Audit Frequency Matrix

Risk Category Critical Major Minor Action Required Next Full audit

D 1 or more And/or >5 And/or >30 Submission of corrective actions within timescales agreed during audit; and/or follow up visit during months 0 - 6 Full audit 0 – 12 months from date

• f original audit; next audit 12

months from date of previous audit C 3 - 5 And/or 21 - 30 Submission of corrective actions within timescales agreed during audit; and /

• r follow up PARTIAL audit (using desk

top evidence submitted or visit to farm to check corrective actions during months 0 – 12) Site can achieve a B rating after closing out NC’s in time either through re-audit or submission of

• evidence. Next full audit 3 years

from date of original audit. If NC’s not complete as per CAP time frames – full audit 12 months from date of original audit and no confirmation letter will be issued. B 1 - 2 11 - 20 Submission of corrective actions within timescales agreed during audit; and /

• r follow up PARTIAL audit (using desk

top evidence submitted or visit to farm to check corrective actions) If Non-compliances complete in giving timeframe – full audit 3 years from date of original audit. If NC’s not completed as per CAP time frames – full audit at start of next season and no confirmation letter will be issued. A 0 - 10 Submission of corrective actions within timescales agreed during audit; and/or follow up PARTIAL audit (using desk top evidence submitted or visit to farm to check corrective actions) If NC’s complete – full audit 5 years from date of original audit. If NC’s not completed as per CAP time frames – full audit at start of next season and no confirmation letter will be issued.

Capacity Building

Capacity-building to support implementation of ethical standard requirements on farms and ongoing improvement of working conditions on farms.

Capacity Building

Ethical Trade Training (Basic and Intermediate) Supply Chain Training Auditor Training and Calibration Smallholder Programme Audit Readiness Methodology Programme for labour contractors SIZA /VISA Farm worker Wellness programme

Visibility for Market Access

• Effective communication and meaningful stakeholder engagement is

becoming a critical component to promoting ethical trade and improved working conditions in the supply chain.

• Continuous, consistent and effective engagements on several levels with

local and international role players are essential. (German Marketing Campaign)

• Visibility on ethical practices throughout the value chain to local and

international markets are very important to obtain market access.

Questions ?

Retha Louw Cell: 0823027507 Email: retha@siza.co.za www.siza.co.za Francois Brink Cell: 0765650153 Email: info@skyvines.co.za www.skyvines.co.za