PSPC HELP members unlock the benefits of BBBEE

By in Business, Economy, Finance on September 27, 2016

The Polystyrene Packaging Council of South Africa (PSPC) is embarking on a ground-breaking journey that will not only allow its members to improve their Broad Based Black Economic Empowerment (BBBEE) scorecards, but also allow them to create a lasting, positive impact on the polystyrene manufacturing and recycling industries. 

The PSPC represents the major players in South Africa’s polystyrene manufacturing industry and plays an important role as a facilitator between the recyclers and suppliers of recycled polystyrene (post-consumer and post-industrial), and the buyers representing the various end-markets.

According to Adri Spangenberg, a Director of the PSPC, all of their polystyrene recycling projects are geared towards social upliftment, job creation and the empowerment of previously disadvantaged or physically disabled individuals.

“The PSPC supports various projects that are directly targeted at social economic empowerment as part of our Project Build, Project Décor, Project Beads and Project Care initiatives, and therefore qualify as Socio-Economic Development (SED). This places us in the ideal position to assist our members with unlocking the benefits of an improved BBBEE scorecard, whilst directly benefiting our industry for generations to come”, Adri says.

Through its various recycling projects, the PSPC has managed to grow polystyrene recycling year-on-year to more than 3 000 tonnes last year.  At the same time, they have also handed over hundreds of wheelchairs to physically disabled individuals who could not afford to buy their own wheelchairs, created numerous job opportunities around the country and developed a much-needed solution that addresses the country need for housing that is safe, affordable and quick to build.

“Monitoring and keeping track of these projects and ensuring that they meet BBBEE requirements would be a nightmare for an individual company. However, the PSPC shoulders this responsibility on behalf of our members. We identify and closely monitor these projects to ensure they meet the Ownership, Skills Development, Enterprise and Supplier Development criteria in order to issue our members with the necessary documentation and proof that they need when the time comes to make their submissions,” she adds.

By doing this, the PSPC enables their members to claim a portion of their membership fees that were used for projects, have a direct and positive influence on their industry and help meet industry targets of diverting polystyrene from landfill.

In order to explain these and other benefits to current and potential members, the PSPC recently hosted a workshops in Cape Town and Johannesburg, during which Kirk Walker, BBBEE analyst of the Mpact Group (and a member of the PSPC), was invited to explain the new BBBEE codes of Good Practice that came into effect last year, and the importance of compliance.

“It has become increasingly important for companies to have a good BBBEE rating, as it is essential for securing contracts with government and large corporates. It can affect a company’s chances of being awarded grants or tenders, have an impact on labour issues and also shows progress made with transformation in a business.  Apart from increased targets, companies are now also facing more complex calculations and first level penalties for not achieving 40 % of certain scorecard categories,” Walker said.

Ensuring your company is BBBEE compliant can be a complex, costly and time consuming exercise. However, if its properly managed, it can provide significant benefits to companies that off-set the cost.

The PSPC has an innovative solution in place that is not only being tailored to meet government’s criteria, but that will also offer great benefits to our members individually and the industry as whole,” Adri concludes.

For more information about the PSPC or how to become a member, visit www.polystyrenepackagingcouncil.co.za