As stewards of clients’ capital, asset managers are uniquely positioned to influence and engage with investee companies to drive accountability and ensure alignment with the principles of responsible corporate citizenship. This extends beyond financial performance to encompass gender equality, social transformation and community upliftment.

In a rapidly transforming economic landscape, asset management’s role in effecting change through stewardship has become more critical than ever. Our engagements with companies like Northam Platinum and Shoprite Holdings Limited illustrate the potential for meaningful change when businesses prioritise equity, inclusion and long-term sustainability.

Northam Platinum: Advocating for fairness and employment

Mining remains one of the most challenging industries for gender inclusion, often characterised by limited pay equity, harsh working conditions and a historically male-dominated environment. However, Northam Platinum is actively working to change this narrative. Signalling its commitment to fairness, the company has implemented an “equal pay for equal work” policy that is regularly reviewed for compliance.

Through engagements with the company, we have advocated for setting targets to increase female representation across all levels, including management and the broader workforce, and ensuring accountability in achieving these goals.

This conscientious and measurable approach addresses the financial insecurities that many families face, particularly for women who often bear a disproportionate share of family financial burdens. Northam’s efforts set a new standard in transforming mining, proving that ethical practices in pay equity and fair working conditions can serve as cornerstones for broader social transformation.

Additionally, we engaged Northam on the need for socioeconomic considerations in bonus payouts. To further enhance stakeholder trust, we recommended stretching vesting periods and introducing holding periods for executive incentives, aligning remuneration practices with long-term value creation. The Remuneration Committee Chair agreed to take this forward in future discussions to refine the bonus structures.

Northam’s efforts extend beyond pay equity to initiatives like the Toro Employment Empowerment Trust, a profit-sharing scheme designed to benefit unskilled and semi-skilled workers, enabling them to share in the mine’s success. Further, the company invests in workforce development through learnerships, internships and bursaries to enhance its talent pool. These initiatives collectively highlight Northam’s commitment to empowering its workforce and driving sustainable transformation in one of South Africa’s most challenging sectors.

Shoprite Holdings: Leading by example in workforce equity

As South Africa’s largest private sector employer, Shoprite Holdings is a key driver of workplace transformation and community upliftment. To address income inequality and minimise employee turnover, the company has instituted a minimum wage, including a dedicated minimum cashier wage with forecasted increases.

Over the years, we have noted the company’s policy amendments reflect its commitment to addressing shareholder concerns. This is evident in the integration of sustainability, environmental and social issues into the company’s business strategy through the inclusion of key ESG metrics in its short-term incentive (STI) and long-term incentive (LTI) outcomes. Shoprite has continued to enhance its ESG focus through implementing succession planning performance measures, which account for 10% of the LTI weighting. This is aligned with the board’s focus on succession planning as an enabler of its transformation targets for top management, as well as ensuring the company’s long-term sustainability. By clearly linking compensation to performance aligned with both a transformation strategy and broader company strategy, Shoprite’s remuneration policy ensures that it can be held accountable by shareholders and employees alike.

To further promote equity in the workplace, the SHP Employee Trust disproportionately benefits frontline employees, the majority of whom are black women, reflecting the company’s efforts to empower marginalised groups. In addition, Shoprite is conducting a gender pay gap analysis to address disparities, a process we continue to monitor and encourage.

Shoprite also invests in programs to build its future talent pipeline, such as bursaries like the Youth Employment Service (YES) programme, which aims to address youth unemployment. YES, typically achieves an absorption rate of around 30%. Additionally, the company provides various training initiatives for their existing workforce, including the ”Signature” Leadership programmes and Retail Readiness programme.

Shoprite invests significantly in educating all of its staff on key issues related to inequality, diversity and inclusion, underscoring its commitment to creating positive change and fostering a diverse environment. This includes conducting workshops and maintaining ongoing communication to ensure employees are well-informed and empowered to contribute to the company’s efforts in these areas.

These initiatives play a crucial role in the company’s transformation and progress towards a more equitable and inclusive workplace.

The role of stewardship in driving transformation

Stewardship, as practiced by asset managers, is a powerful mechanism for driving meaningful transformation across industries. Through proactive engagement with companies like Northam and Shoprite, we aim to enhance their accountability and commitment to social equity. These efforts not only foster positive change within their workforces but also contribute to broader societal transformation. By addressing issues such as gender inclusion, we encourage companies to lead by example, creating lasting value for their employees, stakeholders and the communities they serve.

Explore the full Transformtion Report here.