A Practical Perspective for ESD Managers in the South African Mining Sector 

The “S” in ESG is under pressure. 

In many boardrooms, the “S” in ESG in the context of MSME enablement has become the most abstract pillar on the ESG scorecard – often overshadowed by environmental metrics tracked to decimal points and governance standards guided by frameworks like King IV and JSE requirements. When quarterly reports are presented, the small business empowerment related social indicators often distil into a familiar line: “R1.3 billion spent with black-owned suppliers.” 

While this sounds impressive, it masks a deeper, uncomfortable truth. That line item rarely reveals the actual value delivered. How much of that spend created sustainable enterprises? How many jobs were supported beyond the life of a single contract? Did any of it translate into a long-term increase in household incomes in the mine’s host communities? 

More importantly—can anyone in the organisation answer those questions with certainty? 

 

From Compliance to Credibility 

Mining companies already navigate a dense web of compliance frameworks – B-BBEE scorecards, Social and Labour Plans, Mining Charter obligations, and global ESG disclosure demands. It’s no wonder that many are treat the social element of ESG as just another risk and compliance reporting requirement to appease the relevant stakeholder. 

But this compliance and reporting-driven approach is rapidly becoming a liability. Global investors now scrutinize the authenticity of social empowerment and impact claims. Lenders apply higher margins to perceived social risk. Communities, once quiet recipients of development spend, are increasingly vocal about the lack of lasting transformation. 

A transactional relationship with socio-economic development, one where impact isn’t tracked or verified, is no longer enough. ESD managers find themselves at the frontlines of this reckoning. And the most strategic ones are beginning to reframe the role of ESD from a legislative burden to a powerful lever for sustainable social and economic impact. 

 

A New Role for ESD in ESG Strategy 

ESD, long seen as a B-BBEE requirement, can and should serve as an integral part of the engine that powers the “S” in ESG. When thoughtfully designed and executed, ESD can and should do more than implement quick win initiatives to secure points. It should be optimally leveraged to build sustainable small businesses. It should enable the achievement of diversified value chains. It should strengthen social licence in ways that no cheque or clinic ever could.  To do this, however, requires a clear departure from business as usual. 

 

The first shift is a move from spend to outcomes. Measuring the rand value of contracts is no longer sufficient. What matters now is whether those contracts contribute to real MSME growth, improved business resilience, and local job creation. 

The second shift is from compliance to inclusion. Procurement should actively seek out suppliers that are not only black-owned but represent diversity across gender, geography, and industry sectors – particularly those from rural and peri-urban areas where economic activity is limited. 

 

The final shift is toward integration. Community development, ESD programmes, local and preferential procurement, and even SLP infrastructure projects must work together under a unified strategy. When these elements are aligned, mining houses can demonstrate—credibly and transparently—that their “S” pillar delivers measurable value to people and small businesses in the communities in which they operate. 

 

Demystifying ESG and SDG Alignment 

A common question among executives and ESD managers alike is whether they should align with ESG or the Sustainable Development Goals. The answer is: both. ESG is investor-driven and risk-focused. SDGs are aspirational and development driven. When paired, they offer a comprehensive framework for defining, executing, and measuring social impact. 

For example, onboarding 100 local MSMEs and growing their collective revenue supports both ESG metrics like percentage local procurement and SDG goals such as decent work and industry innovation. Similarly, increasing the share of women-owned businesses in the supply chain delivers against ESG diversity metrics and SDG 5 on gender equality. 

The value lies not in choosing one framework over another, but in ensuring that your ESD outputs are intentionally mapped to both. 

 

What This Means for ESD Managers 

As an ESD manager, your role is more critical than ever. You are the link between board-level ESG ambitions and real-world transformation. But activating that potential requires a strategic mindset and a deliberate approach. 

Start by assessing whether your current ESD programme is built to deliver outcomes or simply satisfy compliance. Are you tracking the survival rate of SMEs after contract award? Are you measuring income uplift in your host communities? Are your service providers equipped to support businesses beyond technical training, with mentorship, access to markets, and funding facilitation? 

 

If the answer is no, or you’re unsure, there’s an opportunity to reframe your ESD programme as a core contributor to ESG performance. 

 

This also means engaging differently with your implementation partners. The most impactful programmes are co-designed with Entrepreneur Support Organisations who understand the local context and can bring diagnostic insights, blended support models, and robust data collection systems to the table. When the right partners are selected, ESD evolves from an expenditure line to a strategic investment in enterprise resilience and community stability.