Siemens is now one of just two companies in its peer group to achieve Level 2 B-BBEE in South Africa. This is also the highest rating for a German company operating in in the country.
The Level 2 ranking was calculated by Empowerdex in accordance with the Department of Trade and Industry’s 2007 B-BBEE Codes of Good Practice.
Siemens has steadily increased its B-BBEE points from 51 points in 2006, and the new ranking followed a 7.6 point (9%) increase from the 2014 score of 78.31, to nearly 86 points in 2015.
“Contributing to South Africa’s sustainable economic and social development is a key part of Siemens’ business strategy,” says Siemens executive director Clifford Klaas, who joined the company in 1986 as its first black business administration trainee.
“We are extremely proud of our Level 2 B-BBEE achievement, which is reward for Siemens’ commitment to South Africa’s development goals. We saw a particularly large improvement in skills development and employment equity, which are two of the most challenging categories in a B-BBEE rating.”
“Transformation and skills development are good for business,” Klaas says. “Doing the right thing for South Africa has made us more competitive.”
In its 2015 score Siemens increased its ranking for black ownership, employment equity and skills development. Skills development and employment equity increased by 84%.
The ownership score rose by 6% from 20.82 to 22 points against a target of 20 points, following an increase in the net value of black ownership of the company, and was boosted by the Employee Share Ownership Scheme launched in 2012. The scheme makes 15% of the Siemens shareholding available to previously disadvantaged staff. Additional units were allocated to women’s empowerment, with black women now owning 15.59% of Siemens in South Africa.
Siemens now has a total 30% black ownership in South Africa, substantially more than the B-BBEE target of 26%. Historically disadvantaged people make up 56% of the company, which employs 1 460 people in South Africa. More than 80% of trainees are black.
Siemens is indirectly the creator of 11 700 jobs in South Africa. Its total procurement spend is R2.7 billion a year, 30% of which is with Qualifying Small Enterprises and Exempted Micro-Enterprises.