OUR BUSINESS

Materiality Determination Process and Material Matters

OUR BUSINESS

Materiality Determination Process and Material Matters

Material matters are those issues that could substantially affect our ability to create value in the short-, medium- and long-term. These matters influence our strategy and how we manage our associated risks, as well as opportunities we explore as a result of these factors.

The process we follow to determine our material matters is as follows:

Identification through ongoing cross collaboration
Material matters are identified by:
  • Analysing our operating context: Scanning our internal and external environment
  • Ongoing engagement: Collaboration with key internal and external stakeholders to establish material interests, emerging risks and opportunities
  • Resources that inform our business model: Financial, Intellectual, Manufactured, Human, Social and relationship and Natural capitals
Prioritisation through frequent engagement
Material matters are prioritised by:
  • Analysing impact: Identifying materiality themes and those that have the biggest impact on creating value and sustainability
  • Exco engagement: Facilitating discussions with Exco and Senior management to take an enterprise view and applying integrated thinking
  • Board insights: Holding discussions with the Board and obtaining insights into key issues tabled at Board committee meetings
Monitoring through governance structures
Material matters are monitored by:
  • Exco: The Executive Committee who assumes responsibility for the material matters before submission to the Board for approval
  • Board: The Board has ultimate oversight of monitoring material matters and tracking progress of response strategies
  • Sub-committees of the Board: The Board assigns accountability for oversight of material matters to the respective Board sub-committees
  • Balanced Scorecard measures: Key Performance Indicators are defined for each of the iHEALTh strategic priorities to measure results

Material matters are those issues that could substantially affect our ability to create value in the short-, medium- and long-term. These matters influence our strategy and how we manage our associated risks, as well as opportunities we explore as a result of these factors.

The process we follow to determine our material matters is as follows:

Identification through ongoing cross collaboration
Material matters are identified by:
  • Analysing our operating context: Scanning our internal and external environment
  • Ongoing engagement: Collaboration with key internal and external stakeholders to establish material interests, emerging risks and opportunities
  • Resources that inform our business model: Financial, Intellectual, Manufactured, Human, Social and relationship and Natural capitals
Prioritisation through frequent engagement
Material matters are prioritised by:
  • Analysing impact: Identifying materiality themes and those that have the biggest impact on creating value and sustainability
  • Exco engagement: Facilitating discussions with Exco and Senior management to take an enterprise view and applying integrated thinking
  • Board insights: Holding discussions with the Board and obtaining insights into key issues tabled at Board committee meetings
Monitoring through governance structures
Material matters are monitored by:
  • Exco: The Executive Committee who assumes responsibility for the material matters before submission to the Board for approval
  • Board: The Board has ultimate oversight of monitoring material matters and tracking progress of response strategies
  • Sub-committees of the Board: The Board assigns accountability for oversight of material matters to the respective Board sub-committees
  • Balanced Scorecard measures: Key Performance Indicators are defined for each of the iHEALTh strategic priorities to measure results

Human Capital: Culture and Capacity

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

To deliver on our purpose, SANBS is reliant on a truly committed, highly motivated workforce with the required leadership and future fit skills to deliver on our current objectives and constantly innovate and adapt to the changing external environment. This is underpinned by a sound organisational culture, promoting the highest levels of ethics and integrity to ensure we are acting in the best interests of all our stakeholders as we continue to be trusted to save lives.

Risks to value creation

  • Inadequate succession planning in certain parts of the business
  • Lack of leadership support for key Human Capital Management (HCM) initiatives
  • Inadequate HR resources and onboarding processes
  • Insufficient skills and required competencies to execute the iHEALTh strategy
  • Skills shortages in the broader healthcare sector
  • Loss of institutional knowledge

Opportunities and strategic response to create value

  • As part of the iHEALTh strategy we optimised the SANBS operating model. This resulted in changes in our management structures which were realigned, ensuring integration across our core value chain
  • FY22 emphasised the need for robust succession planning and transfer of skills as 3 new appointments were made to the Executive Committee and 7 appointments in senior leadership positions. Our succession planning stood the organisation in good stead as 90% of appointments were filled from within. We also recruited externally to attract scarce skills
  • Continued focus on skills development and knowledge management through the RAD Academy to ensure future fit skills
  • Our comprehensive culture project, which involves: the DNA formula programme; refresh of values; embedding ethics; leadership development; refreshed HR policies & procedures; increased accountability is gaining good traction

Outlook for the year ahead

  • Formalise a structured approach to succession planning beyond Executive and Senior Management levels
  • Refine our reward approach to ensure an appropriate rewards mix in our multigenerational workforce
  • Collaboration across divisions in cross functional teams building closer alignment in the value chain
  • Focus on employee health and wellness

Human Capital: Culture and Capacity

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

To deliver on our purpose, SANBS is reliant on a truly committed, highly motivated workforce with the required leadership and future fit skills to deliver on our current objectives and constantly innovate and adapt to the changing external environment. This is underpinned by a sound organisational culture, promoting the highest levels of ethics and integrity to ensure we are acting in the best interests of all our stakeholders as we continue to be trusted to save lives.

Risks to value creation

  • Inadequate succession planning in certain parts of the business
  • Lack of leadership support for key Human Capital Management (HCM) initiatives
  • Inadequate HR resources and onboarding processes
  • Insufficient skills and required competencies to execute the iHEALTh strategy
  • Skills shortages in the broader healthcare sector
  • Loss of institutional knowledge

Opportunities and strategic response to create value

  • As part of the iHEALTh strategy we optimised the SANBS operating model. This resulted in changes in our management structures which were realigned, ensuring integration across our core value chain
  • FY22 emphasised the need for robust succession planning and transfer of skills as 3 new appointments were made to the Executive Committee and 7 appointments in senior leadership positions. Our succession planning stood the organisation in good stead as 90% of appointments were filled from within. We also recruited externally to attract scarce skills
  • Continued focus on skills development and knowledge management through the RAD Academy to ensure future fit skills
  • Our comprehensive culture project, which involves: the DNA formula programme; refresh of values; embedding ethics; leadership development; refreshed HR policies & procedures; increased accountability is gaining good traction

Outlook for the year ahead

  • Formalise a structured approach to succession planning beyond Executive and Senior Management levels
  • Refine our reward approach to ensure an appropriate rewards mix in our multigenerational workforce
  • Collaboration across divisions in cross functional teams building closer alignment in the value chain
  • Focus on employee health and wellness

Meeting Blood Demand

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • In living up to our purpose, “Trusted to save lives”, the SANBS mandate is to ensure a safe, sufficient blood supply for the people in the provinces that we operate. A 5-day stock level for all blood groups is required for SANBS to provide trusted blood products and services to all patients in need. Shortage of blood products will have a severe impact on delivery of healthcare and will lead to negative outcomes for many patients
  • Less than 1% of South Africans are active blood donors which hampers SANBS’s FY22 target of collecting 3300 units of blood per day to ensure a safe and sufficient blood supply for the country

Risks to value creation

  • Shortage of blood to meet demand and introduction of restrictive issue of blood to patients (cutbacks) for longer periods
  • Decrease in donor base due to fears about safety regarding traditional methods in collecting blood
  • Staff shortage, particularly of professional nurses impacting on the ability to collect sufficient blood

Opportunities and strategic response to create value

  • Ability to maintain these stock levels was significantly constrained in FY22. Covid-19 and protocols to protect against contracting the virus, required new and innovative methods of attracting new donors to increase blood supply
  • We increased collection capacity and changed our traditional model for blood collections to adapt to the changing environment(i.e. people working from home) and expanded on the Patient Blood Management (PBM) programme to proactively manage conditions leading to the need for transfusion thereby reducing the need for blood
  • Donor loyalty programmes reviewed to ensure donor retention
  • Reviewing historical data will assist to predict future demand

Outlook for the year ahead

  • Expand the fleet of self-contained mobile vehicles to reach to a wider donor base
  • Collaboration with new and traditional stakeholders to develop innovative approaches to hosting blood drives and promoting blood donation, such as the ‘Good Hood’ campaign
  • Increase the manufacture of pooled platelets by using all available base products
  • Motivate group A and AB donors to become plasma donors as whole blood collections from these groups exceed targets
  • Rollout of additional smart fridges to hospitals, primarily in rural areas (10 targeted for the new financial year)
  • Deploy drones to collect and distribute blood in rural areas
  • Reposition the SANBS brand through social media platforms and re-emphasise the importance and necessity of regular blood donation

Meeting Blood Demand

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • In living up to our purpose, “Trusted to save lives”, the SANBS mandate is to ensure a safe, sufficient blood supply for the people in the provinces that we operate. A 5-day stock level for all blood groups is required for SANBS to provide trusted blood products and services to all patients in need. Shortage of blood products will have a severe impact on delivery of healthcare and will lead to negative outcomes for many patients
  • Less than 1% of South Africans are active blood donors which hampers SANBS’s FY22 target of collecting 3300 units of blood per day to ensure a safe and sufficient blood supply for the country

Risks to value creation

  • Shortage of blood to meet demand and introduction of restrictive issue of blood to patients (cutbacks) for longer periods
  • Decrease in donor base due to fears about safety regarding traditional methods in collecting blood
  • Staff shortage, particularly of professional nurses impacting on the ability to collect sufficient blood

Opportunities and strategic response to create value

  • Ability to maintain these stock levels was significantly constrained in FY22. Covid-19 and protocols to protect against contracting the virus, required new and innovative methods of attracting new donors to increase blood supply
  • We increased collection capacity and changed our traditional model for blood collections to adapt to the changing environment(i.e. people working from home) and expanded on the Patient Blood Management (PBM) programme to proactively manage conditions leading to the need for transfusion thereby reducing the need for blood
  • Donor loyalty programmes reviewed to ensure donor retention
  • Reviewing historical data will assist to predict future demand

Outlook for the year ahead

  • Expand the fleet of self-contained mobile vehicles to reach to a wider donor base
  • Collaboration with new and traditional stakeholders to develop innovative approaches to hosting blood drives and promoting blood donation, such as the ‘Good Hood’ campaign
  • Increase the manufacture of pooled platelets by using all available base products
  • Motivate group A and AB donors to become plasma donors as whole blood collections from these groups exceed targets
  • Rollout of additional smart fridges to hospitals, primarily in rural areas (10 targeted for the new financial year)
  • Deploy drones to collect and distribute blood in rural areas
  • Reposition the SANBS brand through social media platforms and re-emphasise the importance and necessity of regular blood donation

Future Changing World

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • We continue to be an organisation on the move within a fast-changing macro and microenvironment which was significantly affected by the outbreak the COVID-19 pandemic. This provided opportunities to reshape our business model and relook how we remain sustainable in the future, being mindful of protecting people, the planet and maintaining surplus, referred to as “the triple bottom line”
  • “Innovation and automation” is our path towards future success with a focus on continuously protecting donors and improving patient outcomes

Risks to value creation

  • Inability of SANBS to contribute and respond to changing healthcare needs
  • Failure to innovate and adopt advanced technology to ensure efficient, sustainable systems and processes

Opportunities and strategic response to create value

  • Systems innovation - transitioning to the Blood Establishment Computer System (MAK-SYSTEM) is a critical change in the vein-to-vein value chain to increase data analytics and intelligence to inform decision making and enhance operational efficiencies.
  • Initiatives to innovate through collaboration include:
  • RAD Academy – increase collaboration with external stakeholders: regional, Africa and other countries for knowledge sharing, business continuity support and general development
  • Expand translational research for novel products
  • Cellular therapies knowledge sharing and technical support to new units including in Botswana
  • Increase SANBS profile in various ISBT, AABB and related committees and sub-committees

Outlook for the year ahead

  • Refine the iHEALTh strategy to ensure a long-term focus beyond 2024
  • Maximise synergies, efficiencies and data analytics from the implementation of BECS
  • Blood bank automation to improve turn-around times and expand electronic cross matches
  • Expand our cellular therapies footprint - further develop the range of therapies offered and expand technical support services beyond Botswana

Future Changing World

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • We continue to be an organisation on the move within a fast-changing macro and microenvironment which was significantly affected by the outbreak the COVID-19 pandemic. This provided opportunities to reshape our business model and relook how we remain sustainable in the future, being mindful of protecting people, the planet and maintaining surplus, referred to as “the triple bottom line”
  • “Innovation and automation” is our path towards future success with a focus on continuously protecting donors and improving patient outcomes

Risks to value creation

  • Inability of SANBS to contribute and respond to changing healthcare needs
  • Failure to innovate and adopt advanced technology to ensure efficient, sustainable systems and processes

Opportunities and strategic response to create value

  • Systems innovation - transitioning to the Blood Establishment Computer System (MAK-SYSTEM) is a critical change in the vein-to-vein value chain to increase data analytics and intelligence to inform decision making and enhance operational efficiencies.
  • Initiatives to innovate through collaboration include:
  • RAD Academy – increase collaboration with external stakeholders: regional, Africa and other countries for knowledge sharing, business continuity support and general development
  • Expand translational research for novel products
  • Cellular therapies knowledge sharing and technical support to new units including in Botswana
  • Increase SANBS profile in various ISBT, AABB and related committees and sub-committees

Outlook for the year ahead

  • Refine the iHEALTh strategy to ensure a long-term focus beyond 2024
  • Maximise synergies, efficiencies and data analytics from the implementation of BECS
  • Blood bank automation to improve turn-around times and expand electronic cross matches
  • Expand our cellular therapies footprint - further develop the range of therapies offered and expand technical support services beyond Botswana
Financial, Regulatory & Environmental Materiality Matters

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Head Office

  • 1 Constantia Boulevard Constantia Kloof, Roodepoort, 1709
  • (011) 761-9000
  • customerservice@sanbs.org.za

Main Links

Ⓒ 2022 - All Rights Are Reserved. SANBS Integrated Report. Created by Joshero (Pty) Ltd.

Head Office

  • 1 Constantia Boulevard Constantia Kloof, Roodepoort, 1709
  • (011) 761-9000
  • customerservice@sanbs.org.za

Main Links

Ⓒ 2022 - All Rights Are Reserved. SANBS Integrated Report. Created by Joshero (Pty) Ltd.