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 on 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 CONTRACTORS Platform (Technical) ADVISORY GROUPS ADMINISTRATION Audit Oversight Ethical SIZA Financial Management Auditing Sedex Capacity Building Sustainability Graduate Intern / Admin
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 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 Total Membership of 1530 (Olives – 3 active members)
SIZA Membership MEMBER RISK PROFILE SELF ASSESSMENT QUESTIONAIRES Average Score 95.00% 90.00% 85.00% 80.00% 75.00% 70.00% 65.00% 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%
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 Non-Compliance Distribution per Category 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Discriminatio Wages, Employment Management Freedom of n, Health & Benefits & Working Freely Child Labour Systems Association Harassment Safety Terms of Hours Chosen & Abuse Employment 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%
Non-Compliances Rating Non-Compliances are raised in the following categories: • Critical • Major • Minor • Observations • Recommendations
Non-Compliances NON-COMPLIANCE RATING DISTRIBUTION Critical Major 0% 7% Recommendation 20% Observation 15% Minor 58%
Audit Frequency Matrix Risk Category Critical Major Minor Action Required Next Full audit Full audit 0 – 12 months from date D 1 or more And/or >5 And/or >30 Submission of corrective actions within timescales agreed during audit; and/or of original audit; next audit 12 follow up visit during months 0 - 6 months from date of previous audit C 0 3 - 5 And/or 21 - Submission of corrective actions within Site can achieve a B rating after closing out NC’s in time either 30 timescales agreed during audit; and / or follow up PARTIAL audit (using desk through re-audit or submission of top evidence submitted or visit to farm evidence. Next full audit 3 years to check corrective actions during from date of original audit. months 0 – 12) 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 0 1 - 2 11 - 20 Submission of corrective actions within If Non-compliances complete in giving timeframe – full audit 3 timescales agreed during audit; and / or follow up PARTIAL audit (using desk years from date of original audit. If NC’s not completed as per CAP top evidence submitted or visit to farm time frames – full audit at start of to check corrective actions) next season and no confirmation letter will be issued. If NC’s complete – full audit 5 A 0 0 0 - 10 Submission of corrective actions within timescales agreed during audit; and/or years from date of original audit. If NC’s not completed as per CAP follow up PARTIAL audit (using desk time frames – full audit at start of top evidence submitted or visit to farm to check corrective actions) 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 ? Francois Brink Retha Louw Cell: 0765650153 Cell: 0823027507 Email: info@skyvines.co.za Email: retha@siza.co.za www.skyvines.co.za www.siza.co.za
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