Senwes Integrated Report 2021 | Page 36

OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW

SOCIAL AND RELATIONSHIP CAPITAL

We are committed to the transformation and development goals of the country and align our initiatives with the development priorities of the government . We are a responsible and accountable corporate citizen , committed to the management of a sustainable business , considering our stakeholders , the environment and the community .

KEY INPUTS

� The 13 ^th annual Senwes Christmas Tree Project took on a new format during financial year 2021 , where Senwes staff visited various institutions in and around Klerksdorp and treated them to a day filled with fun activities , food and gifts . The project reached 600 under-privileged children from nine different institutions aimed at childcare for abused , special needs and abandoned children ;

� External bursary schemes ;

� Programme for emerging farmers ;

� Exclusive customer and supplier relationships ;

� Ensuring and monitoring legislative compliance on an ongoing basis ;

� Senwes launched the AVC ( Agricultural Value Chain ) Food Umbrella Project , to help ensure food security amidst the Covid-19 pandemic and in doing so , fed more than 440 000 people ;

� The AVC Virtual Discussion Series continued and nine sessions in total were broadcasted , which focused on various value chains within the agricultural sector ;

� During the lockdown , Raddix implemented premium relief measures to more than 1 000 policy holders via National Risk Specialist ( NRS );

� Senwes Grainlink supported producers who suffered losses during wildfires by donating maize for animal feed purposes ;

� Thobo Trust launched a new Early Childhood Development ( ECD ) centre at the Itokisetseng Combined School in Wesselsbron ;

� Senwes , together with various partners and sponsors , extended drought relief to the drought-stricken areas of Kenhardt , Brandvlei , Calvinia and Pofadder in the Northern Cape in the form of 160 tonnes of white maize ; and

� Senwes provided flood relief to producers affected by above-normal rainfall in the Free State districts of Hoopstad and Bultfontein by making earthmoving equipment available and sponsoring the diesel thereof .

OUTCOMES 2021 2020

TRADE-OFFS IN OUR USE OF SOCIAL AND RELATIONSHIP CAPITAL

Senwes invests in social and relationship capital in order to promote financial capital growth over the long term and improve community and government relations . Financial capital is , however , decreased over the short term . In our view , a more holistic and collaborative approach to community engagement will provide a platform for meaningful and sustainable future solutions and interventions .

ACTIONS TO IMPROVE OUTCOMES

� Digital consumer magazine ;

� Ethics helpline ;

� Fraud helpline ;

� Social investments and projects ;

� Improved and quality products and services ;

� Competitive pricing of products and services ;

� Involvement in initiatives to transform unproductive farms into productive farms ;

� Recruitment of candidates from under-represented groups ;

� The initiation and support of innovative programmes to find practical solutions for community problems and needs ;

� The support of sustainable community interventions , which will have a broader and more sustainable impact over the long term ; and

� Improved communication in terms of content and frequency with all stakeholders .

FUTURE CHALLENGES

� Rising cost of inputs and production ;

� Rating by credit rating agencies ;

� Fluctuating commodity prices ;

� Infrastructure decline ;

� Lack of funding for initiatives , as well as bureaucracy in terms of distribution of financial support ;

� Quality customer service and relationships ;

� Food security and water shortages ;

� Local and rural safety ;

� Wide scale expropriation of productive agricultural land without compensation ;

� Bandwidth issues in rural areas ; and

� Suppressed soft commodity prices .

REASSURANCE IN RESPECT OF SOCIAL AND RELATIONSHIP CAPITAL

� Social and Ethics Committee ;

� Continued focus on and growth of Thobo Trust ;

� All Senwes Grainlink silos are audited and certified by the Perishable Product Export Control Board according to a three-year cycle ; and

� Initiated projects with regards to reduction in conventional electricity and water consumption as well as waste management through recycling efforts .

RESILIENCE SENWES INTEGRATED REPORT 2021

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