Peregrine’s commitment to transformation is evident from our consolidated B-BBEE scorecard and recognition as a level 4 contributing enterprise. The improvement from level 5 in 2015 to a level 4 is evidence of the Group’s commitment and focus on Transformation. The verification audit reflects the Black Economic Empowerment (BEE) status of Peregrine SA Holdings, the entity which is the holding company of the Group’s South African operating entities. The verification audit assessed the achievement by Peregrine SA Holdings, Peregrine Securities Group and Citadel of BEE targets as set out in the Financial Services Charter.
B-BBEE Score achieved per element
|Management & Control
|Enterprise Development (ED)
|Socio-economic Development (SED)
|Access to Financial Services
|Final Score (converted)
Peregrine is committed to transformation as a critical business practice, not only for the Group’s sustainability, but also as a means to make a meaningful contribution in the larger South African society in which a large part of its businesses operate. Peregrine further acknowledges the reputational and operational risk inherent in failing to meet its B-BBEE objectives. To this end Peregrine has an established Group Transformation Forum (GTF), which meets at least three times a year.
The GTF comprises member representation of the major subsidiaries (by headcount) within Peregrine and functions as a discussion group and an advisory body to the board. Members include Chief Executive Officer Jonathan Hertz, Executive Director Mandy Yachad, Citadel Human Capital Director Marina Knox, a representative of Nala and representatives from other companies within the Group.
The key objective is to drive and address all elements of the B-BBEE scorecard in the spirit of authentic transformation. The board assumes responsibility for the dialogue on transformation and diversity between employees and management.
In the medium to long-term it is the intention that all local subsidiaries will have specific key focus areas to address transformation at a subsidiary as well as at a Group level.
The Group's transformation efforts further expand to our empowerment partner, Nala, which was established to be a sustainable Broad-Based Black Investment company. The beneficiaries include an educational trust, a social investment trust as well as Peregrine staff. These trusts have been established to benefit Peregrine’s black staff excluding directors, to aid in community development and to promote the advancement of disadvantaged individuals through education.
At year-end the Peregrine board included one black male independent non-executive director, Stefaan Sithole, equating to an 11% black representation. Stefaan is also a member of the Audit Committee and Chairman of the Social and Ethics Committee.
The Group is committed to developing committed and supportive relationships with B-BBEE service providers. As a result Peregrine received 100% recognition as a preferential provider. The Group further received the status of Value-adding supplier as well as Enterprise Development Beneficiary.
In addition Legae achieved a 135% BEE procurement recognition level.
The Peregrine Group will continue to focus on procurement as a strategic imperative to address a broader base of economic interest and growth for black owned companies.
Certain subsidiaries within the Peregrine Group have Enterprise Development agreements in place with black-owned companies as set out below. A total of R10.82 million was spent with ED partners during the year, more than double the amount that was spent in 2015 (R4.47 million). The aim of ED agreements is to align internal processes such as recruiting and event co-ordination through empowering companies with black ownership. Peregrine continues to focus on developing procurement partners through such agreements and enterprise development is a specific scorecard focus for the year ahead, with particular emphasis on building businesses through direct enterprise development, as well as supporting businesses through procurement initiatives.
Various partnerships benefited from enterprise development partnerships. Longstanding relationships such as Legae and Peregrine Securities reflect long-term commitment and beneficial cooperative engagement.
The Group is currently looking at various proposals regarding the implementation of an integrated Enterprise and Supplier Development strategy.