AgriNova Sugar SA — Environmental, Social & Governance (ESG)
The ESG framework, environmental stewardship and decarbonisation, social and community impact and outgrower inclusion, B-BBEE and the governance approach.
Section 10 · Business Plan
Environmental, Social & Governance (ESG)
The ESG framework, environmental stewardship and decarbonisation, social and community impact and outgrower inclusion, B-BBEE and the governance approach.
AgriNova’s ESG architecture is built into the operating model from
financial close, not retrofitted. Three considerations shaped the
design: (a) DFI capital is materially conditional on credible ESG
governance and reporting; (b) green-bond issuance for the renewable
assets requires ICMA-aligned use-of-proceeds and impact reporting; and
(c) the BONSUCRO certification (sustainable sugar) is a competitive
advantage in export channels and high-margin industrial accounts.
10.1 ESG Governance
ESG accountability is held at three levels: (i) the Holding Board,
via the Social, Ethics & Transformation Committee; (ii) Group
Executive, via a dedicated Group Sustainability Director reporting to
the CEO; (iii) Divisional, via embedded ESG resources in each operating
subsidiary. ESG performance is measured on a balanced scorecard linked
to the executive STI.
10.2 Climate and Carbon
Climate exposure is dual-faceted for AgriNova: (a) physical climate
risk to the cane footprint (variable rainfall in KZN, water availability
in Mpumalanga, heat-stress impact on cane physiology); and (b)
transition risk associated with carbon pricing, fuel-blending mandates
and customer-driven decarbonisation requirements.
The Plan targets the following climate outcomes:
- Scope 1 + 2 emissions reduction of 38% by Year 8 (off the
acquired-state baseline) - Net-zero Scope 1 + 2 by 2045, on a glide-path consistent with the
Climate Change Act of 2024 - Bagasse cogeneration displaces approximately 280,000 tCO₂ p.a. of
grid coal by Year 5 - Solar farm displaces a further 168,000 tCO₂ p.a. by Year
7 - Ethanol displaces approximately 65,000 tCO₂ p.a. of imported
petrol by Year 6
10.3 Water Stewardship
Sugarcane is a water-intensive crop (approximately 120 m³ of water
required per ton of cane). With 80% of South African cane area rain-fed
and 20% irrigated, water management is both a production-risk and a
stewardship issue.
AgriNova’s water stewardship plan includes:
- Drip irrigation conversion on Mpumalanga estates by Year 4
(water-use intensity reduction of 25%) - Mill water recycling upgrades — closed-loop process water by Year
3 (mill water consumption reduction of 40%) - Catchment-level partnerships with Department of Water and
Sanitation, Inkomati-Usuthu and Pongola CMAs - Water Risk Stewardship Standard (AWS) certification at both mill
catchments by Year 5
10.4 Biodiversity and Land Use
AgriNova’s land bank includes high-biodiversity-value parcels (KZN
coastal forest, Mpumalanga grassland). The Plan commits to a no-net-loss
biodiversity outcome by Year 6, structured around (a) on-property
conservation set-asides totalling approximately 10% of the land bank;
(b) third-party verified biodiversity offsets for any conversion of
biodiversity-sensitive land; and (c) participation in the WWF Sugar
Stewardship Initiative.
10.5 Social Outcomes — Outgrowers and Communities
Approximately one million people in South Africa depend on the sugar
industry for a livelihood. AgriNova’s social outcomes focus on the rural
communities that host cane production and milling activities.
| Social KPI | Y1 baseline | Y4 target | Y8 target |
|---|---|---|---|
| Direct jobs | 2,400 | 4,500 | 5,400 |
| Outgrowers integrated | 5,000 | 16,000 | 20,000+ |
| Smallholders graduating to commercial scale | 0 | 1,200 | 3,000 |
| Bursary students supported | 20 | 320 | 640 |
| Spend on ESD initiatives (R m p.a.) | 12 | 120 | 260 |
| Spend on SED initiatives (R m p.a.) | 4 | 40 | 90 |
| LTIFR (Lost Time Injury Frequency Rate) | 0.55 | <0.30 | <0.20 |
10.6 Governance and Ethics
AgriNova will operate under King IV-aligned governance principles.
Specific commitments include:
- Independent majority on the Holding Board
- Whistleblower hotline operated by an external party (Tip-Offs
Anonymous) - Annual ESG report verified to a limited assurance standard by the
Group’s external auditors - Disclosure aligned with TCFD (climate), TNFD (nature) and the
IFRS Sustainability Standards (S1 / S2) - Anti-bribery policy aligned with PRECCA and OECD Convention;
mandatory annual training for all staff
10.7 Alignment with the United Nations Sustainable Development Goals
The Plan’s outcomes contribute materially to seven of the seventeen
UN SDGs, notably:
- SDG 1 — No Poverty: 20,000+ smallholder livelihoods
supported - SDG 2 — Zero Hunger: contribution to staple sweetener supply and
food-security infrastructure - SDG 7 — Affordable & Clean Energy: 180 MW of renewable
capacity - SDG 8 — Decent Work & Economic Growth: 5,400 direct jobs,
21,000 outgrower partnerships - SDG 9 — Industry, Innovation & Infrastructure: ZAR 14 billion
of fixed-asset investment - SDG 13 — Climate Action: net carbon displacement of approximately
510,000 tCO₂ p.a. by Year 7 - SDG 17 — Partnerships: DFI, government, communities and capital
markets
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of AgriNova Sugar SA (Pty) Ltd.