The transformation in the South African oil and gas sector is a driver of job creation, according to Chevron South Africa executive chairman Shashi Rabbipal, adding that it creates value for the company and its various stakeholders.
According to Rabbipal, the company views transformation as a key value enabler for business, achieving a newly minted Level 2 against the revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice.
Rabbipal outlined that the company has harnessed its procurement capacity and its Branded Marketer network to create an environment where entrepreneurship can thrive in the energy sector.
The company said that creating new Black entrants for 50% of its retail network and channelling approximately 50% of its crude procurement through Black and Black Female-owned oil trading companies are two great examples of how an integrated oil company can support South Africa’s socio-economic transformation objectives.
Chevron South Africa’s Level 2 achievement is most impressive, given that it is based on the company’s full value chain, which includes its Cape Town refinery and its national network of Caltex retail service stations.
Transformation embedded in business strategy
“Our commitment to Transformation goes beyond compliance as we continue to seek opportunities which drive job creation and economic prosperity, cultivate mutually beneficial business relationships and demonstrate good business practice,” said Rabbipal.
The following examples illustrate actions Chevron South Africa has taken to deliver on the country’s Transformation objectives:
- 82% of the workforce is Black, with 27% Black Female.
- 90% of the Board of Directors are Black South Africans, with 30% Black Females.
- A flagship programme building capacity for Black unemployed youth living with disabilities has been implemented, with an intake of 66 learners to date.
- 90% of procurement is with Black suppliers.
- Approximately 50% of procured crude oil and petroleum products is through Black-empowered trading companies, of which roughly 35% are Black women-owned.
- An Enterprise and Supplier Development programme has provided over R100 million in interest-free loans, credit lines and deferred marketing loans to designated B-BBEE beneficiaries within the procurement pipeline.
- 50% of the retail network is owned by Black entrepreneurs through the Caltex Branded Marketer Programme, with average Black ownership of 73%.
- Social investment partnerships impacting 50,000 direct beneficiaries each year in the areas of health, STEM education and economic development.
Rabbipal added: “We conduct business in a socially responsible and ethical manner, leveraging our ability to benefit the communities where we work. As such, Transformation is more than a scorecard to us and is deeply embedded in our business strategy.”