sustainability

Broad based Black Economic Empowerment

Growthpoint has been rated the leading empowerment company in the property sector for the fourth year running by the Financial Mail Empowerdex Survey, with a 77.47% BEE score that benchmarks best practice in the sector.
 
Our "Level 3 contributor" classification (September 2011) is based on our consistent commitment to the seven pillars of the Property Sector Transformation Charter scorecard: ownership, control, employment equity, preferential procurement, skills development, social-economic development and enterprise development. This commitment is embodied in initiatives such as:
Our shareholder structure
Our Staff Incentive Scheme
Promoting equal opportunity and diversity in the workplace
Skills development training in the workplace
Our procurement policy, focusing increasingly on broad based black economic empowerment (BBBEE) vendors
Our Social and Ethics Committee, represented at board level
Our Property Point enterprise development initiative (see below)

We earned a BEE procurement recognition level of 110%, with high scores in preferential procurement, ownership and enterprise development. We support a number of prominent projects that promote education and enterprise development in South Africa, including:
Growsmart, which promotes literacy in schools in the Western Cape
Property Point enterprise development programme that gives emerging entrepreneurs the skills and support they need to grow their businesses
Providing bursaries to disadvantaged students studying towards property sector related qualifications

Share ownership

Growthpoint's overall BEE linked unit holding, as at 30 June 2011, was 39.17%, as measured in terms of the Property Sector Charter Draft Codes.

Commitment to BBBEE Act

We want to go beyond mere compliance with the Employment Equity Act by actively integrating the principles into our business practices, to encourage a productive, sustainable work environment. Thus, in the best interests of BBBEE and our company, the following are core initiatives at Growthpoint:
Preferential procurement from BEE companies (as measured by the procurement scorecard)
Active sale of properties to BEE companies
Active monitoring of our employee scorecard, to ensure more equitable representation of race and gender across Growthpoint

Staff incentive scheme

In fostering a philosophy of ownership in Growthpoint, each employee is eligible to participate in the Staff Incentive Scheme. The scheme’s main objective is to ensure that, in addition to other components of remuneration, we are able to retain our staff. New employees are eligible for the scheme on completion of six months' service. Ownership of scheme options awarded to staff vests over five years, with none of the units vesting in the first anniversary of award but in equal tranches, starting from the second to the fifth anniversary of an allocation. The Staff Incentive Scheme is characterised by:
Perpetual participation: this is affected through the annual allocation of options to staff on a rolling five-year vesting basis. This provides participants with a degree of certainty in future value, which, in turn, increases the retention value of the scheme
Nil cost option: the scheme always has retention value (any volatility in share price may vary but will never eliminate the value of the options available to staff). With the options available to staff re-evaluated each year, new awards will compensate for any loss in value and maintain a consistent retention value into the future
Discretionary nature: the scheme is subject to company performance and predefined cost parameters. Individual participation in the scheme is also subject to satisfactory performance of that staff member over time

Procurement from BBBEE vendors

In procuring facilities management goods and services, our objective is to maximise BBBEE spend at all times. This affects our scorecard, notably for preferential procurement and enterprise development. Facilities management covers a range of operational responsibilities, including the maintenance and operation of buildings, plant and machinery; and building services such as security, cleaning, waste management and hygiene. Our operations and building management staff, including handymen, are based onsite and work within our business unit structures. Facilities management is supported by internal procurement and risk management services. We have made good progress in preferential procurement spend in recent years, with year-on-year increases. As part of our commitment to sustainability and transformation, we focus on small black-owned businesses, especially those that are woman owned. The Property Point enterprise development initiative, run by Growthpoint, plays an important role in this regard. Property Point assists entrepreneurs in growing their businesses effectively through skills training and mentoring. Our facilities and building managers help mentor these businesses.
% of targeted procurement achieved 2009 20102011
Procurement with qualified small enterprises and emerging micro enterprises 100% 100% 100%
Procurement with black-owned enterprises 66%92%100%
Procurement with black women-owned enterprises 3%9%32%
BBBEE scorecard 2009 20102011
Scorecard points (out of 20) 17.0417.9418.64
Progress achieved85%90%93%