Sustainability: Our licence to operate

In 2022, SAPPO engaged broadly among various stakeholders on sustainability in the pork value chain. It became evident that our licence to operate will be a subscription to a dual strategy that compensates for the variance in the nature and magnitude of risk across the primary production landscape. This two-fold strategy will consist of a portfolio of interventions which is underpinned by the existing sustainability practices embedded in Pork 360 and the developmental impact of a range of business development interventions.

With the objective to understand how financiers will drive sustainability behaviour, SAPPO engaged with all the South African commercial banks. Throughout these discussions, it was apparent that farming sustainability will become an increasingly important factor when applying for financing, but the indicators that will be measured are still undefined. Consequently, SAPPO has partnered with the Sustainability Institute to conduct a literature review on sustainability in the pork value chain.

Moreover, SAPPO has partnered with PwC South Africa to craft a robust sustainability framework considering a diverse set of stakeholders and needs to achieve long-term positive systemic change. This was done with the strategic objective of identifying a set of viable sustainability criteria that could satisfy the needs of financiers based on local and international frameworks applicable to the livestock industry. This was done by facilitating alignment between existing frameworks and identifying existing sustainability practices within Pork 360. Existing practices were also reframed with a sustainability lens. SAPPO is now well-positioned to further the discussion with commercial banks and explore how a sustainability framework could be implemented in industry.

Concurrently, SAPPO is also expanded its developmental impact through the combination of a viable mentorship programmes, farmers’ days, developmental advice, and educating digital communications. SAPPO’s reach into deep rural areas continues to grow and its partnership with various input suppliers amplifies its impact.

As 2022 draws to a close, we are confident of further elevating the positioning of the industry in 2023.

Johann Kotzé