OVERVIEW
THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
KEY CONCEPTS
Defining integrated thinking Integrated thinking is the process where relationships between the various operating units and the capitals are actively considered in decision-making to add value over the short , medium and long term .
Defining value Value is the occurrence where the consequences of our successful resource application have a positive impact on a stakeholder .
Defining materiality Materiality refers to the actions or issues of substantial importance that affect the group ’ s strategy and therefore its ability to create value over the short , medium and long term and / or actions and decisions by the group that may affect its stakeholders , either positively or negatively .
The emergence of the Covid-19 pandemic in South Africa in March 2020 impacted on all our material matters . Our response to the evolving pandemic is addressed throughout the report .
Defining short , medium and long term Short term is less than 12 months , medium term is one to three years and long term is beyond three years .
Defining the capitals Capitals refer to the fundamental pillars of value which the organisation depends on for its success and which increase , decrease or are transformed through the activities and outputs of the group .
NAVIGATION
OUR CAPITALS Senwes relies on various forms of capital to achieve set targets and goals . These capitals form the basis of Senwes ’ value crea tion and are not independent of one another . The following icons are used to identify these capitals :
Financial capital
Human capital
Intellectual capital
Manufacturing capital
Natural capital
Social and relationship capital
STAKEHOLDERS Senwes focuses on serving the various needs of all stakeholder groups , while prioritising actions and leveraging resources in a manner that ensures a long-term positive impact on the organisation . The following icons are used to identify each stakeholder group :
Shareholders and investors
Clients and customers
Employees
Business partners
Suppliers
Government and regulators
Communities
STRATEGIC FOCUS AREAS Senwes ’ strategic focus areas are defined as the deliberate goals established to achieve our purpose , mission and fulfil the company ’ s responsibility and can be identified by the following icons :
RISKS
Diversification , horizontal integration and consolidation
Increased investment in efficiencies in the value chain
Internal integration of the customer
Reorganisation of business models
Unlocking value synergies
Externalisation
Senwes deems its risk management practices to be practical and fully acknowledges the volatile agricultural industry and our need to be agile , smarter , more effective , proactive , forward-looking and , at the same time , appropriately responsive . The following icon is used to identify our risks throughout the report :
Our risks are as follows :
1 Environmental and health and safety risk .
2 Political and economic climate risk .
3 Market size and market share risk .
4 Credit , liquidity and market risk .
5 Commodity price risk .
6 Weather and climate risk .
7 Information technology - systems and cyber risk .
8 Urbanisation , scarcity and retention of skills risk .
9 Transition and customer risk .
10 Diversification and agricultural industry
Nico Liebenberg Kobus Marais Jaco Minnaar Simon Mohapi risk .
11 Unique competitor risk .
12 Regulation and compliance requirements risk .
13 Theft and fraud risk .
Andrew Waller Frans Marx Gert Malherbe Hansie Viljoen IV King IV Covid-19 related
RESILIENCE SENWES INTEGRATED REPORT 2021
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