INTRODUCTION
Materiality and Material Matters
INTRODUCTION
Materiality and Material Matters
At the heart of our integrated report lies the principle of materiality, guiding us in determining which information is essential to include. We follow a structured process to identify matters that could significantly impact our ability to execute our strategy and create sustainable value for our stakeholders, whether in the short, medium, or long term.
Identification
through ongoing cross collaboration
Prioritisation
through frequent engagement
Monitoring
through governance structures
In writing this report, we consider material events right up to the date of approval, ensuring that our stakeholders have a clear understanding of our current landscape. To gain a complete picture of our financial performance, we encourage readers to review this information alongside our full set of annual financial statements (AFS). Through this approach, we aim to provide transparency and insights into how we navigate challenges and seize opportunities, reinforcing our commitment to delivering value and impact to those we serve.
Reporting Frameworks, Process and Combined Assurance
When compiling the report, we adhere to several foundational principles that ensure clarity, compliance, and accountability. Our report is guided by the Integrated Reporting Framework, which emphasises the need for a holistic view of our operations and long-term sustainability.
We also align our reporting with legal and regulatory requirements, including the Companies Act of 2008, which sets the framework for corporate governance in South Africa. Furthermore, the King IV™ Report on Corporate Governance™ (2016) plays a crucial role in shaping our governance practices, ensuring we uphold the highest standards of transparency and ethical conduct.
By integrating these frameworks into our reporting process, we provide our stakeholders with a comprehensive and reliable account of our performance and impact. This commitment to rigorous reporting not only enhances stakeholder trust but also strengthens our ability to create long-term value as we navigate an ever-changing landscape. In this way, we ensure that our story is not just shared but is also grounded in principles that promote accountability, integrity, and sustainability.
Internal Controls and Assurance
At SANBS, we ensure reliable reporting through a combined assurance model that focuses on key strategic risks and related material matters. Our accountability framework follows a line of defense model, where various assurance providers work together for coordinated oversight. This collaboration enhances the assurance we give in our integrated report.
To maintain transparency, our Internal Audit team independently evaluates non-financial metrics and the accuracy of our Annual Financial Statements is assessed by our external auditors. The external audit also enhances confidence in our financial reporting. Together, these efforts foster a culture of accountability and trust as we strive to serve our stakeholders effectively.
Process to Produce our Integrated Report
The journey of creating our integrated report is a collaborative effort governed by our Board and led by the Executive Committee, with active involvement from their direct reports. To ensure a comprehensive and insightful report, the Executive Committee meets regularly to discuss, review, and provide valuable input throughout the preparation process.
For our 2024 integrated report, we draw on a variety of internal management reports, including our dashboard balanced scorecard reporting, as well as the minutes from Board and Executive Committee meetings and workshops. This wealth of information helps us present a full picture of our performance and strategy.
Once the initial drafts of the report are prepared, they are carefully reviewed and approved by the Executive Committee. After this, the drafts are presented to the Audit Committee for further review and oversight before receiving final approval from the Board. This rigorous process ensures that our integrated report is accurate, transparent, and reflective of our commitment to accountability and excellence in serving our stakeholders.
Integrated Report Recognition
At the Integrated Reporting Awards, hosted on 13 November 2024 by the Johannesburg Stock Exchange (JSE) in collaboration with the Corporate Governance Institute of Southern Africa (CGISA), SANBS was recognised as the winner in the NGO/NPO/NPC category. This annual award celebrates excellence and innovation in integrated reporting across Southern Africa, fostering fair competition among peer organisations within distinct categories.
This recognition is a testament to the collective effort of everyone at SANBS—board members, management, and contributors to our corporate reports—who work together to produce transparent and meaningful reports each year. Through these reports, we communicate our mission, strategy, and SANBS' positive impact, while demonstrating our commitment to good governance and corporate citizenship.
Integrated Thinking
Integrated thinking is at the heart of our approach, expanding our mindset to see ourselves as part of a larger system. This perspective encourages us to consider the broader implications of our decisions, moving beyond merely chasing short-term financial rewards.
By fostering strong relationships with our stakeholders and implementing effective risk mitigation processes, we create a foundation of robust governance that guides our actions. Our commitment to caring for our employees, patients, donors, and all stakeholders is reflected in our ongoing, transparent communication and our willingness to embrace innovative opportunities.
Through integrated thinking, we ensure that our business remains resilient and capable of adapting to challenges while consistently delivering value to all. This holistic approach allows us to align our goals with the needs of the community, ultimately strengthening our impact and contributing to a sustainable future for everyone we serve.
Forward-looking Statements
As we share our journey and insights in this report, you will find certain forward-looking statements regarding SANBS’ financial position, results, operations, and business trajectory.
These statements reflect our aspirations and outlook based on current information, but they also come with inherent risks and uncertainties.These projections are influenced by various factors and depend on future events and circumstances that can be unpredictable. While we are dedicated to achieving our goals and navigating challenges, it’s important to remember that the future may unfold in ways we cannot fully anticipate.
We share these insights to keep you informed of where we aim to go and how we plan to get there, while also acknowledging the dynamic nature of our environment. Our commitment remains strong as we adapt and respond to whatever the future may hold on our path to delivering safe and reliable blood services for all.
Outlook
Outlook information comprises challenges, opportunities and disruptive factors we have identified that have the potential to affect the achievement of our strategic objectives and our mitigating response as well as opportunities identified. Outlook information can be found throughout this report and in our outlook section.
Board Responsibility and Approval
The Board of Directors, supported by the Audit Committee, is responsible for ensuring the integrity of the integrated report. In this regard, the Board places reliance on information provided and verified by the Chief Executive Officer and his Executive team. SNG Grant Thornton who undertakes SANBS’ internal audits has done assurance work on a sample of material Key Performance Indicators (KPIs).
No external assurance has been obtained on the content of this report other than the external audit procedures performed regarding the AFS and thus financial numbers, to the extent to which they are included in the integrated report, are validated.
We have taken reasonable steps to ensure processes are in place that ensure the integrity and credibility of the integrated report. In particular:
Systems, Procedures and Controls
The systems, procedures and controls include structures and processes that ensure diversity of input and checks and balances, including the system of internal controls, and the use of credible sources for information, and are considered adequate and effective to ensure the completeness and accuracy of information.
Allocation of Responsibility
There is an appropriate allocation of responsibility to ensure that the information reported on is based on the inputs, collation and review of subject matter experts, and the responsible Executives, with the Audit Committee having oversight over the process under the guidance and leadership of the CEO and CFO.
Oversight and Involvement
There has been adequate oversight and involvement of the governing body, and in particular, in respect of the approval of the preparation process, materiality determination process, setting the parameters for the boundary of the report, and final review and approval of the content by the governing body committee and governing body itself.
The Board, assisted by its committees, is ultimately responsible for overseeing the integrity of our integrated report and verifies that it has applied its collective mind in the preparation and presentation thereof. The Board confirms that after a comprehensive review, it is satisfied that the content is accurate, complete and a fair reflection of SANBS’ material matters, presented in accordance with the international Integrated Reporting Framework. The Board approved the 2024 integrated report on 27 November 2024. Any material events up to the Board approval of this report are also included.
Signed on behalf of the South African National Blood Service Board
Thabo Mokgatlha - Chairperson, Board of Directors