Senwes Integrated Reports Senwes 2013/2014 Integrated Report | Page 34

Sustainability Management Senwes is committed to ensuring the sustainability of its business, while simultaneously contributing towards the continued existence of a just, equitable and stable society, as well as the preservation of the ecosystem. We do this by being conscious of our actions and the impact thereof on both society and the natural environment, and developing strategies to ensure that we minimise negative impact and optimise positive impact. At Senwes we define sustainability as follows: Sustainability refers to the responsible, efficient and ethical manner in which current generations use all types of resources to meet their own needs and realise their goals and aspirations; thereby impacting the socio-economic and ecological environment in a way that does not compromise, but enhances the ability of future generations to meet their own needs and realise their own goals, aspirations and potential. (Adapted from The Brundtland Commission’s definition created in 1987). We understand that all Senwes team members, including the Board and Executive Committee, are merely custodians of the organisation and have been given the responsibility of operating sustainably, in order to hand over the business to future generations in a better state than it was when we received it from past generations. We believe that it is critical for our organisation to have a sustainability-oriented culture, structures and processes for the governance of sustainability. Key indicators and material sustainability issues and risks are monitored on an ongoing basis. It is important to stay abreast of local and international material regulatory and technical developments in the field of sustainability and that the management thereof meets the minimum requirements as provided by King III and is in line with the Global Reporting Initiatives (GRI) guidelines. 32 Strategic goal To be a fully integrated agri-business and a significant role player in the global food value chain. Strategic focus The Group’s strategy is focused on growth and diversification through consolidation and integration within the agricultural and food value chain. Strategic objectives Our strategic objective is to create sustainable value for all our stakeholders and to become a preferred investment partner, employer, supplier and corporate citizen. • Diversification of business to mitigate concentration risk. • Effect horizontal integration and consolidation of the agri-business sector to expand to a national footprint, through corporate actions. • Reorganising of business models. • Vertical integration by specialised focus in the value chain. • Unlocking of value synergies via the support functions. • Internationalisation through strategic partnerships. • Customer focus and relationship management. • Leadership, talent, culture and values. • IT, business intelligence and innovation. • Operational efficiency. • Risk management. • Average annual return > WACC. • NPAT annual growth of inflation + 2% • Own capital ratio between 35% and 45%. • Interest cover of at least 2.5 times • Gearing ratio < 180%