Karoo Meridian — ESG, B-BBEE & Development Impact

The environmental stewardship, the social and B-BBEE impact, the governance and the development-impact contribution underpinning Karoo Meridian.

Karoo Meridian Business PlanSection 11 › ESG, B-BBEE & Development Impact

Section 11 · Business Plan

ESG, B-BBEE & Development Impact

The environmental stewardship, the social and B-BBEE impact, the governance and the development-impact contribution underpinning Karoo Meridian.

11.1 Alignment with DFI mandates

The project is purpose-built for IDC agricultural industrialisation
and DBSA rural development mandates: it industrialises primary
agriculture through feedlot, processing and export infrastructure in a
rural node; creates more than 450 direct jobs at maturity with an
estimated 1.6x indirect multiplier; and embeds emerging-farmer
participation through a structured outgrower and mentorship programme
covering genetics access, shearing services, wool marketing and feedlot
slots.

Figure 12
Figure 12 — Employment creation trajectory

11.2 Environmental programme

  • Regenerative, rotational veld management with measured recovery
    cycles — consistent with the certified-wool sustainability standards now
    covering ~64% of Merino auction offerings
  • Water stewardship: borehole telemetry, reticulation efficiency,
    riparian protection
  • Biodiversity management across 18,000 ha including predator
    coexistence protocols
  • Solar generation at homesteads and shearing infrastructure;
    carbon-footprint baselining aligned to Cape Wools research on on-farm
    carbon measurement

11.3 Social and governance programme

  • Employee share ownership plan of 5–10%; skills development spend
    to sectoral targets; accredited shearing and wool-classing training
    academy
  • Emerging-farmer integration: ram subsidy scheme, communal
    wool-clip improvement partnership modelled on NWGA programmes,
    guaranteed feedlot offtake slots
  • Social & ethics committee oversight; FAO-aligned animal
    welfare standards; trained, welfare-certified shearing teams as required
    under the Animals Protection Act
  • Target B-BBEE Level 4 or better by Year 3 through ownership,
    skills and enterprise development elements

11.4 B-BBEE scorecard pathway

Element Weight Y1 target Y3 target Levers
Ownership 25 Level entry Full points path ESOP 5–10%; emerging-farmer equity vehicle
Management control 19 Partial Substantial Board and executive appointments
Skills development 20 3% of leviable 6% of leviable Shearing/classing academy; bursaries
Enterprise & supplier dev. 40 Partial Substantial Outgrower programme; local procurement
Socio-economic development 5 Full Full Rural clinics, schools transport support

The Company targets Level 4 or better by Year 3 under the AgriBEE
sector code. Beyond compliance, the emerging-farmer programme is
commercially load-bearing: outgrower lamb supply smooths feedlot
throughput, and communal clip-improvement partnerships (modelled on the
National Wool Growers’ Association programmes that have materially
lifted communal wool quality and income) extend the certified-wool
supply base the Company can market.

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 Karoo Meridian Wool & Livestock (Pty) Ltd.