Senwes Integrated Reports Senwes 2017/2018 Integrated Report(a) | Page 32

30 THE BUSINESS NATURAL CAPITAL S enwes uses natural capital such as land, water and energy to generate income. Senwes invests significantly in decreasing the impact of its activities on the natural environment and to promote a culture of efficiency. However, Senwes’ manufacturing capital has a low impact on natural capital. KEY INPUTS New energy savings project planned at Hinterland branches to the value of R7,4 million: • Bloemfontein; • Bronkhorstspruit; • Delmas; • Potchefstroom; • Wesselsbron. First solar panel energy system installed at Hennenman silo to the value of R6,3 million; Water consumption efficiency program; Electricity consumption efficiency program; Waste reduction programme. ACTIONS TO IMPROVE OUTCOMES Solar power projects are planned for five Hinterland branches; Focus on finding solutions for producers relating to more efficient water usage; A waste reduction programme focused on lower paper utilisation by using technology; Installation of electronic electricity meters at silos to record municipal readings. REASSURANCE IN RESPECT OF NATURAL CAPITAL Independent consultation on the rehabilitation of the mining sites of Grasland Ondernemings. FUTURE CHALLENGES Increasing scarcity and quality of natural resources remain a challenge; Inability of municipalities to manage their water and electricity accounts has a negative effect on business activities; Climate change: Drought has a negative impact on food production; The effect that global warming may have on the agricultural industry; OUTCOMES Decrease of 460 242 kWh in energy consumption at head office; The demand for water exceeds the natural availability; The inability of Eskom to meet the demand for electricity due to poor infra- structure and the maintenance of networks. Increase of 177 kl in water consumption at head office; Cumulative saving of 9,7 t CO 2 as a result of lower paper consumption. TRADE-OFFS IN OUR USE OF NATURAL CAPITAL The investment in energy and water savings projects has a negative impact on financial capital over the short term. However, it will have a positive impact on natural and financial capital over the long term. OVERVIEW | THE BUSINESS | STRATEGIC AND OPERATING CONTEXT | CORPORATE GOVERNANCE | FINANCIAL REVIEW