Sustainability and Environmental, Social and Governance Report (“ESG”) 2024

 

Sustainability

Senwes’ vision is to be a responsible corporate citizen that contributes to the sustainable development of communities and society as a whole. We are passionate about contributing to the sustainable development of rural areas, especially in the areas where the Senwes Group conducts business.

Senwes is committed to the creation of shareholder value, the sustainability of which is based on how we conduct our business, how we support our customers with integrated solutions, and how we treat our employees, the environment and the communities in which we operate.

The sustainability of the Senwes Group depends on the economy, the workplace, and the natural and social environments being the main elements in terms of environment, social and governance matters.

Introduction

Sustainability and Risk

“Sustainability management” is a key focus area in the Senwes Group’s risk management process which contributes significantly to guide the Senwes Group’s strategy. This report covers the Senwes Group and all its subsidiaries and related parties. “Senwes” in this report means the company and/or the Group.

Sustainability includes an expansive array of elements and feeds into the board and governance structures such the Senwes Social and Ethics and Risk Committees.

Sustainability includes the Economic, Social, Natural and Workplace environments. This means that Senwes needs to actively demonstrate that it contributes to its stakeholders’ survival, that we are aware of our impact on the environment and that we mitigate it accordingly and that we engage with our employees and communities to improve the society and the workplace.

Senwes acknowledges that sustainability is strategic for its long-term survival and has officially established a Sustainability Department during 2024, which must ensure that all the aspects comprising sustainability (including ESG) are considered in formulating an appropriate strategy therefor. Such a strategy and approach must also ensure that value for the Group is derived therefrom at a commercial level and that ESG is not done as a tick-box approach.

Social and Ethics Committee

Responsibilities assigned to the Social and Ethics Committee

According to its Terms of Reference, the oversight of sustainability matters by the Senwes Board has been assigned to the Social and Ethics Committee (“SEC”) comprising of:

This Committee meets twice per annum. One meeting is formally held whilst the other takes the format of a site visit. The internal Compliance and Ethics Committee reports to EXCO and both the Audit and Risk Committees (Compliance) and the SEC. (ESG and Ethics).

SEC is obliged to annually report to shareholders regarding the fulfilment of its mandate and this Report ensures that the SEC complies with its statutory obligation.

All the sustainability areas of responsibility have statutory, ethical, compliance and practical elements (prescribed by United Nations Global Compact 10 Principles).

In terms of the aforesaid, these areas are dealt with throughout the governance structures of the Group and emanate from the legal, legislative and best practice requirements as follows:

Social Environment

For purposes of the social environment, the Senwes Group focuses on:

  • Corporate Social Investments (CSI), development through various projects with Thobo Trust;
  • Sponsorships and donations with specific focus on the customer base and the support of the community through AgriRewards Plus;
  • Health and safety (SHEQ);
  • Sound consumer and marketing practices and relationships;

as well as the overall wellness of all the stakeholders of the Senwes Group and individuals as contemplated in the Bill of Rights in terms of the right to life, equality and human dignity.

The Senwes Group is specifically embedded in the rural areas and its commitment is shown through various projects that it supported during the year under review..

During the year under review Senwes supported various projects that contributes to our communities and rural areas:.

Strategic Corporate Social Investment

Senwes’ strategy emphasises forward-looking, integrated and strategic interventions, based on a well-researched understanding of current and anticipated future problems, designing long-term solutions thereto. The Group focuses on:

  • Corporate Social Investments Thobo Trust;
  • Endeavouring to leverage the resources, potential and opportunities of communities, to ensure that they can take ownership and responsibility for their own wellbeing and development;
  • Working in partnership with the community, government, non-governmental organisations and other businesses in a consultative manner;
  • Support emerging farmer development; and
  • Providing support to communities via farmers' unions by initiatives such as Agrirewards+.

Thobo Trust ("the Trust")

Thobo Trust is an independent Trust founded by the Senwes Group in 2014, to facilitate the corporate social investments of the Senwes Group to ensure effective and sustainable development of rural communities, throughout the Senwes Group’s area of operation. The client base of the Senwes Group operates in these areas hence to ensure the sustainability of these areas, the Trust was mandated to focus on the area of operation of the Senwes Group.

The purpose of the Trust is to contribute to the development and sustainability of rural communities through education, food security, access to training and sport and infrastructure. The Trust also serves the purpose of contributing to the Senwes Group’s B-BBEE status and credentials to ensure compliance with the B-BBEE provisions as contemplated in the B-BBEE Act and the AgriBEE Sector Code.

During the year under review, the Trust was involved with the following initiatives:

The annual Senwes Christmas party was a huge success and everyone agrees: Christmas is a time of hope, goodwill and togetherness. Thank you to every sponsor who contributed to the success of this project.

Sponsorships and Donations

Donations and AgriRewards Plus

Senwes only supports initiatives that align with its core values, policies and objectives with a specific focus on the agricultural sector and industries in which Senwes operates. Senwes does not support events or activities that are exclusionary on the basis of race, religion, gender or disability and strive to promote the principles of equity, access, participation, rights and accessibility for all groups in the community. Senwes only consider initiatives that are credible and relevant and demonstrate legislative compliance whilst encouraging partnership and cooperation.

The Agricultural Path to a Better Tomorrow

AgriRewards Plus

More Info

During 2016, the Senwes Group implemented the Senwes Group Loyalty Bonus Scheme known as AgriRewards with the aim to create and sustain long-term relationships with the Senwes Group customers by rewarding them regularly for their business with the Group, thereby enhancing the customer relationship.

Senwes as a role-player in the agricultural sector with a presence and nearly 300 business units throughout South Africa and Europe is inundated with request for donations.

Unfortunately, it is not financially possible to comply with these requests. Accordingly, Senwes launched AgriRewards Plus (+) to assist the communities by using the farmers associations as a conduit to support and assist with the upliftment of local communities (for purposes of education, sport, care for the elderly, security etc.), and/or the establishment and improvement of critical infrastructure. The farmers associations are best suited to understand and grasp the challenges that their local communities are facing.

AgriRewards+ is therefore the conduit for donations and with the assistance of the farmers associations provides a structured manner for the distribution of these donations.

The Senwes Group automatically contributes a percentage of its profits to registered farmers’ associations, whose members are AgriRewards members, based on the business conducted by these members with participating companies in the Senwes Group.

During February 2024, Hennenman Farmers Union was the 1st farmers association to receive its AgriRewards+ payment. The donation has been earmarked to assist with the upgrade of the existing security cameras that the association installed previously.

For the year under review AgriRewards+ will pay out R1,7m to qualifying farmers associations.

Emerging Farmer Development

After successfully approving the merger between the Senwes and the Suidwes Group in 2020, Senwes was required to extend material financial assistance to emerging farmers. Agri Credit Solutions (Pty) Limited (“ACS”) is the credit arm of Senwes and provides these loans and other support. In terms of this condition, ACS extends production loans to emerging farmers to the value of at least R20 million per season and on a cumulative basis up to R60 million in aggregate.

ACS is accordingly committed to providing production loans for, but not limited to, grain and cattle farming to qualifying emerging farmers in terms of, and subject to, the group’s credit policy and accompanying qualifying criteria.

For the year under review, ACS has assisted eleven emerging farmers with production loans and term loans. These farmers planted maize, soybean and sunflower and credit lines of R31,5 million have been approved. For the 2024 financial year, the emerging farmers have taken up 31,4% of the credit to the value of R9,9 million.

ACS also provide continuous agricultural support and mentoring to these farmers during the entire season with mentorship programmes. Information sessions are also being conducted regularly to update farmers on trends and developments in the grain industry.

Agrinet Mandela Day 2023

During the year Agrinet made a positive impact in the community through the company’s Employee Forum. Several institutions were identified, including SPCA Centurion, New Beginningz, an African Haven dedicated to caring for abandoned and orphaned babies in Johannesburg, the Anti Animal Cruelty League in Bellville, and Ubuntu Baby Home in Goodwood.

The Samrand team spent quality time with the children of New Beginningz, while another team had the pleasure of interacting with the furry friends at the SPCA. Additionally, the Bellville team visited the Anti Animal Cruelty League and Ubuntu Baby Home. They generously donated 67 blankets and toilet paper to the Baby Homes and provided 67 cat and dog blankets to the animal shelters, making a meaningful difference in the lives of both animals and children in need.

K9 Social Responsibly Programme

Through its own trusted Kaufmann brand, Agrinet has been able to channel resources into initiatives that embody its commitment to social responsibility. One such initiative is the K9 Social Responsibility programme.

This programme holds a special significance, as it is not merely about safeguarding wildlife; it embodies the preservation of heritage, a sustainable way of life, and the promise of a harmonious future. By contributing to the Kaufmann K9 Programme, Agrinet affirmed its commitment to protecting South Africa’s natural treasures.

The Company partnered with the Southern African Wildlife College (SAWC), an accredited Higher Education and Training institution specialising in education, training, and skills development for students in the conservation sector. It was established in 1996 by the Worldwide Fund for Nature – South Africa (WWF-SA).

Agrinet Torrenti and SABI Training Session

SABI (South African Irrigation Institute) organised a school training workshop at Hoërskool Kempton Park, providing invaluable guidance to Grade 11 students specialising in agricultural technology. This session zeroed in on two pivotal subjects: irrigation and water conservation, crucial for sustainable farming practices. Generously sponsored by Torrenti, one of Agrinet’s exclusive brands, the workshop delved into practical strategies for optimising water usage.

Agrinet and Torreti became involved in the School Training Initiative due to the significance of the irrigation and agricultural sectors in the communities.

Ultimately, investing in youth irrigation training is a strategic step towards securing food security, promoting sustainable agriculture, and fostering socio-economic growth.

Sound Consumer and Marketing Practices and Relationships

Senwes deals with customers and consumers fairly, equitably and transparently as contemplated in the Senwes Code of Ethics.

The Senwes Group is a participant of the Consumer Goods and Services Ombudsman and subscribes to the prevailing consumer protection legislation.

Furthermore, in terms of consumer protection, Certisure (Insurance), Senwes (share trading), Senwes (JSE Safex) and Hedge Fund (grain trading) are registered and licenced at the appropriate regulatory authorities, being the JSE (SAFEX), National Credit Regulator and Financial Services Conduct Authority.

Senwes is also FAIS licenced (an authorised financial services provider) and operates in terms of codes of good practices and the Treating Customer Fairly principles.

FAIS Key Individuals and representatives must comply with FCSA board notices which oblige completing appropriate and prescribed maintenance of relevant qualifications (CPD Hours). An external compliance officer, Moonstone Compliance also assists Certisure with its compliance obligations.

The Senwes Group launched a customer loyalty scheme known as AgriRewards in 2016 throughout the Group. AgriRewards has been successful in attracting and retaining customers of the Group. The benefits allocated to members amounted to R233 million for 2024.

The protection of personal information as contemplated in the Protection of Personal Information Act no 4 of 2013 (POPIA) is critical for the Senwes Group and awareness and training to ensure that the information from clients, customers, as well as other stakeholders, are protected, is provided continuously.

Economic Environment

For purposes of the economic environment, the Senwes Group focuses on:

  • Economic development;
  • Prevention of fraud and corruption;
  • B-BBEE;
  • Ethics and Transparent Governance and Practices.

Economic development

The Senwes Group actively supports economic development through emerging farmers’ support and CSI.

The Senwes Group operates across seven of the nine provinces and pays an average of R259 million tax per annum (three year average) as well as paying salaries and providing skills training (direct employment costs).

Prevention of Fraud and Corruption

The Senwes Group has a zero-tolerance stance when it comes to fraud and corruption. The board and management of Senwes are aware of the threat of commercial crime for the organisation and wish to send an unequivocal message to all employees, shareholders, clients and suppliers regarding Senwes’ point of view in this regard.

An official Senwes Whistle Blowing Policy has been implemented to prevent and combat any form of crime or irregular activities. The policy is regularly reviewed.

The anti-fraud program consists of three (3) main elements, namely:

  • Fraud Detection
  • Fraud Investigation
  • Fraud Prevention

Detection methods includes a “Whistle Blow Hotline”, internal audits and the monitoring of exception reports developed specifically to detect certain types of fraud or corruption.

During 2023 and 2024, one-hundred and twelve (112) incidents of suspected unethical behaviour, fraud, corruption or theft were reported or identified for investigation. Twenty-seven (27) of these incidents were reported on the “Whistle Blow Hotline”.

All the necessary actions are taken to prevent further losses and to recover losses already incurred. An amount of R3,3 million was recovered from perpetrators in 2024 and an amount of R12 million in bank accounts was frozen as being proceeds from illegal activity.

Senwes did not suffer any material monetary losses as a result of legal proceedings (including fines) associated with fraud, insider trading, anti-trust, anti-competitive behaviour, market manipulation, malpractice, or other related non-compliance with industry laws or regulations.

The Senwes Group is vigilant in terms of corrupt practices. Accordingly, the provisions of Section 34 of the Prevention and Combatting of Corrupt Activities Act 12 of 2004 ("PRECCA") are strictly adhered to.

Section 34 requires all people in positions of authority in both the public and the private sector to report certain corrupt offences to the police if they have a reasonable suspicion that a corrupt act has taken place. A failure to act in circumstances where there is a legal duty on a person to act positively will constitute a crime. This includes the failure to report fraud where there is a reasonable suspicion that fraud has occurred. The elements of the offence under s 34(1) are:

  • A person who holds a position of authority;
  • Who knows or ought to reasonably have known that any person has committed an offence as stipulated in Chapter, Part 1 to 4 or Section 20 to 21 of PRECCA or the offence of theft, fraud, extortion, forgery or uttering a forged document concerning the amount of R100 000 or more.

Broad-Based Black Economic Empowerment (B-BBEE)

Thobo Trust serves the purpose of contributing to the Senwes Group’s B-BBEE status and credentials to ensure compliance with the B-BBEE provisions as contemplated in the Broad-Based Black Economic Empowerment Act, no. 53 of 2003 and the AgriBEE Sector Code (2017) issued in terms of the B-BBEE Act.

Senwes Limited is compliant with the B-BBEE Agri Sector Code in most respects but for the requirement of management and control.

Senwes adopted a long-term B-BBEE strategy and is currently a Level 6 Contributor at date of this report.

Ethics and Transparent Governance and Practices

The Senwes Group is committed to ethically conducting business and seeks to promote ethical behaviour in all our dealings.

In this regard, the Group has a policy of zero tolerance for unethical conduct irrespective of the size or impact of the consequences of the unethical behaviour on the business.

Zero tolerance means that unethical conduct will not be tolerated, and therefore all reported or identified alleged unethical conduct should be formally investigated, and appropriate corrective or disciplinary action taken. Failure to investigate and take action is in itself unethical conduct.

The Compliance and Ethics governance structures of the Senwes Group had been combined in 2022 to streamline them and avoid unnecessary duplication. The designated compliance officers have also been appointed as “Ethics Officers” in terms of a written appointment.

The following policies are in place to support the management of ethics and to ensure an honest culture:

  • Ethics Code of Conduct;
  • Declaration of Conflicts Policy (including the Gifts Policy); and
  • Whistleblowing Policy.

Focused communication and actions are taken regularly to increase awareness of the policies and their requirements.

Managers across the board are expected to make it easy for their employees to communicate openly and freely on matters regarding ethics.

All employees and directors are expected to pledge their commitment to the companies’ values and ethical behaviour and to report incidences of unethical conduct, to ensure that the two-pronged strategy of promoting ethical behaviour, whilst combating unethical behaviour, is successfully implemented.

All reported incidents will be investigated and should sufficient information be provided; appropriate corrective action will be taken.

Senwes values – The foundation of our Code of Ethics

Integrity

We always do the right things for the right reasons and act ethically.

Business Orientation

All our actions are oriented towards meeting the needs and solving the problems of our customers, and all our stakeholders professionally.

Self-motivation

We are self-motivated in the pursuit of the company’s vision, as well as the realisation of our career aspirations.

Innovation

We strive to be creative, imaginative, and resourceful in seeking solutions to business challenges and meeting customer needs.

Loyalty

We are always loyal to Senwes and act in the best interest of the company while taking into consideration the interest of all its stakeholders.

Accountability

We are responsible and accountable for our actions and committed to providing complete, truthful, accurate, and timely information to all our stakeholders.

Ethics initiatives:

The Ethics Playbook, explains the basic aspects and values regarding the values in the Ethics Code and declaration of conflicts of interest in a fun and easy manner:

The findings of the group-wide Culture Survey launched during the year under review, indicated that throughout the Senwes Group the values of “honesty” and “integrity” is consistently part of both the current and the desired culture.

Regular Ethics awareness campaigns are conducted through the Senwes Group.

July 2023 was Ethics month at Senwes, and an ethics campaign was launched to create awareness regarding the Senwes Ethics Code and ethical values. Key chains reflecting the company’s ethical values were distributed and staff were asked about their understanding of ethical values.

Senwes Group employees were asked during the year under review to participate in a competition to embody the ethical values of the group. Personnel were encouraged to portray one or more of Senwes’ ethical values in the form of a performance, song or poem. After independent judging by a group of executive managers the winners were:

1st place: Legal and Secretariat

2nd place: Certisure

3rd place: HR

Recently, staff members from the head office in Klerksdorp took part in a box cart rally, showcasing their creativity and teamwork. Read the full article.

Workplace

One of the key stakeholders of the Senwes Group is its employees. Equitable and fair labour practices as well as compliance with prevailing labour legislation and training prescriptions are key to the Senwes Group’s sustainability. Senwes has over time adopted a sound remuneration philosophy which is available as part of the Remuneration Report in the Senwes Integrated Report for the year under review.

Employee value proposition

Senwes strives to be an employer of choice. In this regard, Senwes has developed an employee value proposition, which steers the group’s employee engagement and talent strategy towards the realisation of that vision. The purpose of our employee value proposition is to enable the organisation to attract prospective talent, improve employee engagement and performance, instil behaviour consistent with our values, develop an enabling and supportive work environment and retain talent. Senwes’ Employee Value Proposition rests on the following pillars:

  • Creating a great group of companies to work for;
  • Providing meaningful jobs and growth opportunities;
  • Providing an enabling safe, healthy and supportive work environment (refer to SHEQ); and

  • Rewarding employees with incentives for performance.

Talent development

Senwes Graduate Programme: fostering excellence and growth

At Senwes, our dedication to investing in the future is exemplified through its nurturing and development of young talent. The cornerstone of this commitment is the Graduate Programme, which provides a transformative platform for 17 outstanding graduates across various departments, enabling them to embark on a journey towards professional excellence.

The primary goal of the Graduate Programme is to empower these individuals to drive positive change within their respective departments. Each graduate is tasked with implementing an efficiency project tailored to address specific departmental needs. Through taking ownership of these projects, the Senwes graduates gain hands-on experience in fostering innovation, streamlining processes, and enhancing overall efficiency. Senwes believes that these initiatives not only contribute to the Group’s organisational growth but also provide invaluable insights for the graduates in their fields of study.

During the year under review the successful completion of the first phase of the graduate program, the Work-Readiness Phase has been announced. This phase was instrumental in welcoming the graduates to Senwes and laying a strong foundation for their integration into the Senwes family. The Work-Readiness Phase involved a series of carefully designed sessions aimed at providing the graduates with a comprehensive understanding of Senwes and the agriculture industry, equipping them with the necessary knowledge and insights to excel in their roles.

Furthermore, specific sessions were focused on cultivating effective employees, emphasizing accountability, resilience, critical thinking, and other essential skills. As the Graduates transitioned into April 2024, the next phase of the programme commenced, which includes a Short Learning Programme presented in collaboration with Stellenbosch University. This phase underscores Senwes’ ongoing commitment to nurturing talent and fostering growth to ready the Group for the future.

For more information about the proud graduates, see the video below:

Graduation Ceremony – Senwes Academy

The Senwes Academy celebrated its 13th Graduation ceremony on September 1, 2023, marking a significant milestone in Senwes’ commitment to employee development and sustainability. During this ceremony, the Group recognised and rewarded 82 employees who successfully completed formal learning programmes or achieved qualifications of national status.

Among these achievements, 56 learners completed a non-credit-bearing certificate and academic program aimed at enhancing their management skills and knowledge. These specialised programmes provided invaluable training tailored to their roles, equipping them with essential expertise.

Specifically highlighted were:

  • 10 Senwes Group employees who completed an Advanced Management Development Programme,
  • 8 Hinterland employees who completed the Retail Management Development Programme,
  • 11 Senwes Equipment employees who completed the Equipment Marketers Development Programme,
  • 10 employees and graduates who completed the Grow Leaders Development Programme,
  • 17 employees and graduates who completed the Young Leaders Development Programme.

Furthermore, the ceremony recognized individuals receiving National Certificates, symbolizing significant milestones in our employees' professional growth. Notable achievements included:

  • 17 learners from various silos who completed their NQF3 Grain Handling Process qualification.
  • 9 apprentices who achieved their qualification as Tractor Mechanics.

The Senwes Graduation Ceremony serves as a testament of Senwes’ commitment to acknowledge and honour the dedication, hard work, and exceptional performance of the Senwes employees. By investing in their skills development, the Group empower them to realise their full potential, contributing significantly to the sustainable growth and success of the company. This ongoing dedication to education and training underscores Senwes’ commitment to nurturing talent and fostering a culture of continuous improvement.

Empowering education: Senwes bursary scheme

The Senwes Group recognises the profound impact of education in fostering personal and professional development. As part of its ongoing commitment to invest in our employees, Senwes has awarded bursaries to 75 individuals during the 2023/2024 financial year, amounting to a total of R 1 876 000.

The internal bursary scheme is tailored to empower employees to pursue their educational ambitions and broaden their expertise. Whether individuals choose to undertake specialised short courses or pursue full-fledged degree programmes, Senwes provided financial support and encouragement to help them achieve their academic aspirations.

By nurturing a culture of continuous learning and development through the bursary program, the Group is not only investing in the growth of the employees but also fostering a workforce equipped with diverse skills and knowledge essential for the Group’s sustainable future success.

Grain Depot Manager QCTO Programme

The inaugural launch of the Certificate in Grain Depot Management took place on 8 March 2024, signifying a pivotal moment for Senwes Grainlink in collaboration with Agbiz Grain and Peritum Agri Institute. This occupational qualification, accredited by the Quality Council for Trades and Occupations, represents a groundbreaking achievement within the grain industry.

This formal qualification is the first of its kind in the agricultural sector and is designed to equip learners with the skills and expertise necessary to excel as effective Grain Depot Managers. 12 dedicated Senwes Grainlink employees have enrolled in this prestigious program. The first classes have commenced in April 2024.

This initiative underscores Senwes’ commitment to fostering professional development and enhancing industry standards. By offering this nationally recognized qualification, Senwes aims to cultivate talent and empower individuals to drive sustainable practices within its operations. This programme will have a very positive impact on both the Senwes employees and the grain industry as a whole.

Upon completion of this programme, the learners will be equipped to:

  • Manage and control the achievement of operational targets;
  • Lead and manage staff to ensure smooth business operations;
  • Manage and control the use of operational resources;
  • Achieve grain handling and storage efficiency and quality standards by controlling unit operations;
  • Perform grain and seed grading processes; and
  • Conduct precise grain and seed grading processes.

The table below illustrates all the development programmes currently active in the Senwes Group, as well as the number of employees currently on these programmes.

Development Programme/s Number of employees / learners on the programme
Apprenticeships (largely Equipment Group) 36
Accelerated Learners / Workplace Experience Learners 5
Graduate Programme 17
NQF 5 Generic Management Programme 10
NQF 5 QCTO Grain Depot Manager Programme 12
NQF 3 Grain Handling Learners 24
YES Learners 54
NWU Advanced Management Programme 4
NWU Middle Management Programme 5

Skills Development Dashboard

Training Dashboard IndicatorPrevious year 2022/2023Current year 2023/2024 % Change
Total training course attendance captured15 034 9 64636%
Total training man-days19 19312 83133%
Average no. of training days per employee5.53.536%
Total training costs captured (R)11 863 33812 900 424+ 9%
Training costs of BBBEE-candidates (% of total training) 45%35%10%
Training costs of EE-candidates (% of total training) 65%58%7%
Total training cost as % of payroll cost 1.2%1.2%-

Senwes observed a decline in overall training attendance and associated costs, largely due to a shift in priorities towards our culture campaign. As a result, several previous management and leadership programs were not offered during the financial year, reflecting the Group’s strategic focus on enhancing the organizational culture.

Looking ahead, Senwes is leveraging valuable insights gained from the Senwes culture campaign to refocus the Group’s new programmes and leadership development initiatives in the upcoming financial year. This strategic realignment underscores the Group’s commitment to cultivating leadership capabilities and fostering professional growth among the Group’s workforces.

Furthermore, in Senwes Equipment departments, many John Deere training sessions have transitioned to internal training following the establishment of the John Deere Training Centre in Bothaville by the Equipment personnel. This internal approach not only enhances accessibility but also generates cost savings by minimizing external training expenses.

Additionally, to optimize training efficiency and cost-effectiveness, SAP training modules have been integrated into the STRIDE platform for Hinterland employees. This shift has led to reduced reliance on in-person training events, resulting in notable cost savings while ensuring employees receive essential skills training.

These strategic adaptations highlight the Group’s ongoing efforts to streamline training processes, optimize resources, and align development initiatives with our organizational objectives, ultimately contributing to our long-term sustainability and success.

The following graph shows of training costs across the different training categories for the financial year:

The chart below indicates that 36% of skills expenditure captured for the year to date had been in the B-Band and 36% for the C-Band followed by 17% for the A-Band, and 7% for the D-Band.

I Am Senwes Culture Campaign

In the pursuit of fostering a dynamic and inclusive workplace culture, Senwes embarked on a transformative journey in December 2022. Over the past year, significant strides have been made, reflecting the Group’s commitment to continuous improvement and sustainable growth.

Recap of Accomplishments

  • Initiation of Culture Campaign:
    The journey commenced with the completion of the Individual Values Assessment (IVA) by our leadership team, laying the groundwork for a nuanced cultural transformation.
  • Culture Survey and Feedback Sessions:
    Employees across all levels were involved in culture survey workshops where the survey results were unpacked. The feedback gathered has been instrumental in shaping the Group’s cultural trajectory.
  • Nomination and Training of Culture Ambassadors:
    The appointment and training of culture ambassadors marked a pivotal moment in Senwes’ campaign. These individuals serve as catalysts for change, championing the cultural shift within their respective teams.
  • Development of Action Plans:
    Collaborating closely with management teams and culture ambassadors, Senwes developed tailored action plans to address key areas of improvement. These plans serve as roadmaps, guiding our efforts towards tangible and sustainable change.
  • Launch of "I am Senwes" Campaign:
    In January 2024, Senwes proudly unveiled the "I am Senwes" campaign, reaffirming our collective identity and commitment to excellence.
  • Strategic HR Planning:
    An overarching HR plan has been devised, outlining priorities and initiatives for the upcoming year.

Way Forward
Looking ahead the focus remains on actively and strategically identifying priorities. Key areas of emphasis include:

  • Policy Changes:
    Continuously refining and adapting organisational policies to reflect the Group’s evolving cultural aspirations and values. This involves regular review and update of policies to ensure alignment with our cultural priorities.
  • Awareness Initiatives:
    Implementing awareness campaigns to instil a deeper understanding of the cultural priorities and foster a sense of ownership among all stakeholders.
  • Leadership Development:
    Investing in the development of the leadership group through tailored training programs, ensuring alignment with our cultural vision.
  • Employee Engagement Initiatives:
    Implementing programs and activities aimed at enhancing employee engagement and morale, such as team-building events, recognition programs, and opportunities for employee input in decision-making processes.
  • Diversity and Inclusion Strategies:
    Developing and implementing strategies to promote diversity and inclusion across all aspects of the organisation. This may involve establishing diversity goals, providing diversity training, and fostering a culture of respect and belonging.
  • Continuous Feedback and Adaptation:
    Maintaining an open feedback loop to gauge the effectiveness of our initiatives and recalibrating strategies as needed.
  • Measurement and Evaluation:
    Establishing metrics and key performance indicators (KPIs) to track progress toward cultural goals and objectives. Regularly evaluating the effectiveness of cultural initiatives through surveys, focus groups, and other feedback mechanisms, and using data-driven insights to inform future strategies and decision-making.

Conclusion
The journey with the "I am Senwes" culture campaign has been marked by significant achievements and a steadfast commitment to fostering a positive workplace culture and climate.

Senwes Knockout Series

On 28 November 2023, the Senwes Netball and Soccer Knockout Series coincided with the Springboks’ historic victory in the 2023 Rugby World Cup. A total of ten netball and ten soccer teams entered this fierce competition, all fighting for the coveted title of “Knockout Series Champion”.

All the teams delivered exceptional performances during the seven intense netball and four electrifying soccer knockout rounds to earn their spots in the semi-finals.

The day was not just about competition, but also about unity. Each team showed creativity in their outfits, positive attitude, and unwavering spirit. The supporters, with their cheers and delicious braais, added even more excitement to the day. It was a true celebration of the Senwes spirit and a testament of how sport can unite departments, inspire teamwork, and create lasting friendships.

Senwes Annual Box Cart Race and Agrinet Soccer games

In March 2024, the Group celebrated the highly anticipated annual box cart race, a testament to our commitment to employee wellness and teamwork. The Engineering and Property Assets team emerged as champions, clinching both the prestigious Box Cart Race and Best Box Cart titles. Meanwhile, Agri Credit Solutions showcased their unwavering team spirit, securing the Best Team Spirit award for the second consecutive year. Beyond the thrill of competition, this event embodies the collaborative ethos and camaraderie that emphasise the Senwes group culture.

 

Agrinet Soccer Teams

During the end of 2023, the enthusiasm for soccer at Agrinet reached new heights as two Agrinet staff soccer teams sponsored soccer kits. Adorned in shades of green, symbolizing the company's vibrant spirit, they embodied the essence of teamwork and camaraderie as they took to the field to represent the company in weekend soccer matches. These matches weren't just about sports; they were opportunities for the Agrinet employees to bond outside of the office, strengthen friendships and ensure overall improvement of culture and wellness.

 

Enhancing recruitment efficiency with JOBJACK

In our ongoing efforts to enhance recruitment efficiency and promote sustainability, Senwes implemented JOBJACK, a specialised platform tailored for the recruitment of A-band employees. By leveraging the JOBJACK platform, Senwes has significantly increased the volume of CVs received, thereby expanding its candidate pool and enhancing the Group’s ability to source top talent.

This streamlined recruitment process has proven instrumental in expediting hiring procedures for lower job grades, ensuring prompt placement of the most qualified candidates. Given the typically high turnover rates associated with these job grades, JOBJACK plays a crucial role in minimising recruitment lead times and maintaining operational continuity. The pilot programmes proved successful, and this recruitment methodology will be continued with.

Improving the recruitment process with Direct Hire
To improve the Group’s recruitment process and deliver a more efficient service the Direct Hire system has been implemented during April 2024. This strategic decision is aimed at streamlining and optimising the recruitment and appointment procedures, thereby aligning with the Employee Value Proposition.

The Direct Hire system offers several key benefits, including:

  • Building robust talent pools for future recruitment needs.
  • Implementing an effective and standardised candidate evaluation process.
  • Automating various aspects of the talent acquisition process to enhance efficiency.
  • Providing a personalised and engaging candidate experience throughout the recruitment journey.

Long Service Awards

The Senwes group takes great pride in celebrating significant milestones with its employees. On Friday 6 October 2023 hosted the annual Long Service Awards. 21 employees received awards – 15 employees for 20 years of service and 6 for 30 years of service.

Agrinet also hosted its annual Long Service Function, an occasion dedicated to celebrating the unwavering commitment and exceptional dedication of the Agrinet employees. These employees have a collective 455 years of service, with three members reaching the remarkable milestone of 25 years of service each and one 30 years.

Social Reponsibility at Falcon

Falcon Agricultural Equipment (Pty) Ltd is committed to supporting our local communities in many ways. Our main focus is the well-being of children, and we provide a safe and suitable school environment for them, as well as school-related necessities.

God’s Little Lambs is a preschool in a semi-rural township that we support as part of our social responsibilities. We assisted in building the new school, as well as the fencing around the school, school safety (burglar bars and any steel work), and numerous other projects. We are also involved in the feeding scheme and some of our staff sponsors a “lamb’s” school fees every month.

Another one of our local charities is Howick Hospice. It was established in August 1987 in response to meeting the needs of the terminally ill in the Lions River magisterial area. It is a non-profit organisation committed to caring for the terminally ill through home-based care, education and training, social welfare, and bereavement support.

Hospice relies on support and financial contributions from the public, corporate sector, and philanthropic donors and ensures access to palliative care services for patients with a confirmed diagnosis of a life-threatening illness and reduced life expectancy. Holistic care and support extends to patients and families through direct patient care, training, referral, and the development of strategic partnerships within Howick and its environs.

Employment Equity

Eleven companies within the Senwes Group submitted their EEA2 and EEA4 submissions to the Department of Labour as part of the Group’s commitment to Employment Equity. Throughout the past financial year, a total of 44 quarterly Employment Equity Forum meetings were held across the Senwes Group.

During these meetings, company policies and procedures were thoroughly reviewed to ensure alignment with the Group’s commitment to diversity, inclusion, and equitable practices. Where necessary, policies and procedures were updated or revised to reflect our ongoing dedication to fostering a fair and inclusive workplace environment.

Designated EmployerEE-ForumsEE-Reporting
Senwes4 forums quarterly meetingsEEA2 & EEA4-submission annually
Hinterland4 forums quarterly meetingsEEA2 & EEA4-submission annually
Hinterland Fuels4 forums quarterly meetingsEEA2 & EEA4-submission annually
Certisure4 forums quarterly meetingsEEA2 & EEA4-submission annually
Senwes Equipment Holdings4 forums quarterly meetings
Senwes Equipment
Falcon
EEA2 & EEA4 submission annually
Bastion/-OTKV4 forums quarterly meetingsEEA2 & EEA4-submission annually
NviroTek4 forums quarterly meetingsEEA2 & EEA4-submission annually
Agrinet4 forums quarterly meetingsEEA2 & EEA4-submission annually
JDI4 forums quarterly meetingsEEA2 & EEA4-submission annually
Agri Credit Solutions4 forums quarterly meetingsEEA2 & EEA4-submission annually

Recent Department of Labour activities

Subsequent to amendment of the Employment Equity Act and the sectoral targets announced in 2022, five-year plans were developed for all the affected companies within the Group.

These strategic actions demonstrate our commitment to staying ahead of regulatory changes and proactively aligning our practices with evolving regulatory standards. The targets are:

CompanyAFAMCFCMIFIMWFWMGrand Total
Agri Credit Solutions42711-281962
Certisure111---451260
Agrinet771691428226061413
Bastion Lime1-2---4512
OTKV438-1--1448
Senwes Equipment Holdings17193103121375243584
NviroTek21331061-2810109
Senwes897542036141953021 401
Hinterland Holdings6325050471-16694671
Hinterland Fuels34106910--105174
JDI17628--1148101
Grand Total3121 5531291887206238033 635

Employment Equity Performance

Natural Environment

The Senwes Group adopted a precautionary approach to environmental challenges and responsible environmental resource management.

As an intermediary service provider for both the primary agricultural sectors (commercial farming sector) as well as the processors of primary foodstuffs, the continued sustainability and uninterrupted service delivery remain key for the Group’s survival.

The continued interruptions and load shedding have impacted the Group and alternative arrangements for especially the intake of grain have been made in 2022.

Protection of the natural environment in terms of the use of hazardous materials to ensure food safety is top of mind for Senwes Grainlink.

Energy and Development

Our energy and environmental strategy is based the following three pillars:

  • Affordability;
  • Reliability and;
  • Sustainability.

To achieve these focus areas, various technical initiatives are executed in line with our focus areas of metering, energy efficiency, process optimization and energy generation.

Understanding Our Footprint:

It is important to be aware of the Senwes footprint in order to understand how to manage and limit the impact on the environment. The footprint for energy consumption for the financial year is reflect below taken the results of the benefits of installed solar projects into account. With the exception of Grainlink, the of the remainder of the Group’s energy usage is significantly lower due to load-shedding.

CompanyTotal usage (KWh/annum)Solar Input (KWh/annum)External supply (KWh/annum)
Head Office2 094 261844 7901 249 471
Grainlink25 078 295220 46724 857 828
Hinterland3 592 59816 5793 576 019
KLK2 951 041-2 951 041
Bastion1 222 879-1 222 879
Falcon/Staalmeester1 093 065-1 093 065
Agrinet1 025 78467 163958 621
SS SiloCo802 460-802 460
NviroTek715 287-715 287
Uraniaville129 669-129 669
Total38 705 3391 148 99937 556 340

The Senwes Group water usage per KL is reflected below. The Group makes use of boreholes across the Grainlink silo premises; hence the KL measurement only reflects the usage of municipal water.

CompanyWater usage (KL)
Grainlink59 358
Hinterland45 822
Bastion-
Agrinet10 244
NviroTek5 666
Falcon/Staalmeester13 684
Houses-
Stands-
Total134 774

Managing our Footprint:

It is important to be aware of the Senwes footprint in order to understand how to manage and limit the impact on the environment. The footprint for energy consumption for the financial year is reflect below taken the results of the benefits of installed solar projects into account. With the exception of Grainlink the of the remainder of the Group’s energy usage is significantly lower due to load-shedding.

Ensuring Business Continuity:

Continuous supply of electricity is vital for the operations of Senwes’. The standby generator portfolio is being expanded and optimised at critical sites to ensure business continuity. An additional 11 generators were purchased during the financial year for certain silo’s to improve the stability of electricity supply.

Furthermore, the effectiveness of the generators is ensured though maintenance programmes.

Given the unavoidable load-shedding and business interuption, Senwes cannot currently escape the unfortunate higher carbon-foot print caused by standby genrators.

However, where possible, solar is used as alternative and investigations are in process for the development and implementation of microgrid solutions.

Reducing our footprint:

Senwes has taken strides in reducing its environmental impact and has managed to implement initiatives within the group. Plans are in place to ensure that high energy consumption systems are phased out through a combination of design, maintenance and replacement strategies being implemented.

To reduce the energy footprint with regards to energy the following initiatives have been put in place:

  • Monitoring and evaluating performance levels at Senwes business units, using check meters;
  • Energy audits that include data collection and cost/benefit analyses;
  • Power factor correction to reduce electricity demand (KVA) and improve capacity;
  • Establishment of a monitoring and target-setting system and the provision of regular reports on costs and consumption;
  • Implementation of Solar-PV infrastructure, deriving energy from natural and available resources which reduce the operating costs and produces little or no waste products such as carbon dioxide or other chemical pollutants;
  • Maintaining equipment correctly and safely disposing of fluorescent lights;
  • Increased awareness of energy issues among staff and using energy more efficiently;

Solar PV grid-tied 753kWp system was installed at the Senwes Head Office in Klerksdorp generating approximately 45% of the total energy requirement of the facility.

The performance of the system and corresponding environment impact to date are reflected below:

  • Total energy consumption avoided : 6 017 MWh
  • Total CO2 avoided : 5 823 ton
  • Total water consumption avoided : 8 032 kL

Solar PV grid-tied 358kWp system was installed at the Senwes Head Office in Klerksdorp generating approximately 50% of the total energy requirement of the facility.

The performance of the system and corresponding environment impact to date are reflected below:

  • Total energy consumption avoided : 2 234 MWh
  • Total CO2 avoided : 2 138 ton
  • Total water consumption avoided : 2 949 kL

NviroTek Laboratories ESG initiatives: 2023-2024 financial year

During the year under review, NviroTek Laboratories had some specific initiatives that demonstrate this company’s commitment to the natural environment. These include:

  • Responsible waste management:
    As a result of analytical procedures, laboratories produce waste and NviroTek produces both biological (from microbiology testing actions) as well as chemical (as result of chemistry testing) waste. Reputable organisations in Gauteng as well as the Western Cape, are contracted to collect and responsibly dispose of potentially harmful waste that has been generated at the two sites of the Laboratories.
  • Replacement of Asbestos roof in Wellington:
    The older section of the laboratory building in Wellington had an asbestos roof which was replaced at a cost of R300 000. The 7,4 tons of asbestos was safely disposed of in terms of prescribed regulations.

Agrinet Water, Waste Management and Recycling Programmes

Agrinet is committed to sustainable practices, and its green initiatives reflect this dedication. One of its primary efforts involves rain harvesting, where rainwater is collected to reduce the company’s reliance on municipal water sources. By harnessing rainwater, the company not only conserve precious resources but also minimise our environmental footprint.

In addition to rain harvesting, the company is proactive in recycling packaging and other materials. Comprehensive recycling programs throughout its facilities have been implemented, ensuring that materials such as paper, plastic, glass, and metal are diverted from landfills and instead repurposed or recycled. This initiative not only reduces waste but also promotes a circular economy, where materials are reused and recycled, contributing to a healthier environment.

During the year under review Agrinet achieved the following:

Recycling & Environmental ImpactCurrent MonthFY24
51 Trees saved611 Trees saved
60 L Water saved849 L Water saved
43 L Oil saved503 L Oil saved
115m Landfill saved1250m Landfill saved
60 KW Energy saved200 KW Energy saved

SHEQ

Senwes acknowledges and understands that an organisation cannot be sustainable without promoting the safety, health, and welfare of its employees.

The safety, health and wellbeing of employees are of the highest importance. Without this, Senwes would not be able to achieve such successes as it has thus far.

Creating a workplace that fosters care and well-being, is essential to the success of the company, the result being a positive and supporting safety culture that is nurtured within the Senwes Group.

A dedicated SHEQ unit ensures that the company complies with all statutory requirements that govern the business. The safety management system is standardised to the ISO standards. although not officially certified, it illustrates the international standard is incorporated at a fundamental level.

The SHEQ division has developed a new strategy with the pillars outlined as below:

  • Hazard identification & risk assessment improvement
  • Shared responsibility assurance improvement programmes
  • Mitigation of risk protocols
  • Reduction of incidents
  • Improved health of personnel
  • Empowering employees through upskilling and training programs
  • SHEQ-systems improvement
  • SHEQ-efficiency improvement through communication campaigns
  • Continuous risk reduction through change processes

Reporting non-compliance and other incidents are an important part of Senwes’ SHEQ programme. It helps identify work-related health and safety hazards, risks, and dangers. The purpose is to identify the causes of incidents but also to ensure that appropriate controls are adopted to prevent further occurrences of such events.

In terms of the provisions of the Occupational Health and Safety Act. According to the Act, Senwes formally investigates all section 24 incidents as well as any other incident where more medical treatment than the normal first aid is required. During the year under review, no loss of life occurred. The Group continues to strive towards achieving and maintaining a safety record that is above industry norms.

Incidents 2024Number
Section 24 investigations4
Disabling injuries57
Disabling Injury Frequency Rate (DIFR)1.85
Lost Man Days567
Rail related incidents1

(Disabling injury means any employment injury or an occupational disease that results in either time loss, or modified duties. Disabling injuries can be either temporary (sprained wrist), or permanent (severed limb), depending on whether or not the employee is expected to make a full recovery.)

Quality Management

Senwes’ Grainlink aims to manage the quality of grain in the silos as well as to identify any risks. Senwes undertakes weekly quality inspections collected via Quality APP.

CO2 levels are regularly monitored daily to ensure that all risks for example insect infestation, temperature in bins and any irregularities that might appear that may influence the quality of the grain. Quality management of the grain is crucial, and priority is afforded thereto continuously according to Agricultural Products Standards Act no.119 of 1990 and prevalent JSE requirements for registered silos.

During 2021/2022, 78 of Senwes silos have been audited and all of the silos complied with the requirements of the Agricultural Products Standards Act (ACT No. 119 of 1990) especially for Standards regarding Food Hygiene and Food Safety of Regulated Agricultural Food Products of Plant Origin intended for Export.

Focus areas remain:

  • Cleaning and drying of gain;
  • Aeration;
  • Dust containment;
  • Accurate measurement of grain held.

Senwes’ laboratory is part of the quality management department and ensures that samples are sent for regular testing. The laboratory also does inspections and assists Grainlink with service regarding the grading of grains.

Fumigation

Senwes Grainlink applies best practice industry standards for the fumigation of grain to control insects. There are two types of treatment.

  • Prevention treatment – the grain is sprayed with a chemical to prevent infestation and each product has its withholding period according to label specifications before out loading can commence which makes it safe for human and animal consumption.
  • Post-treatment- PH3 (Phosphine) gas fumigation on commodities by Pellet dispenser or Circulation (J System), where PH3 products are in the form of pellets or blankets inside a gastight bin.

The gas is a slow-release mode of action and has a half-life span of more or less 6 hours. Half-life means that after 6 hours, the amount of gas which was released is reduced (breaks down) by 50%.

This ensures that there is no residue left, after the 10-14 day withholding period after fumigation, on the grain during loading to customers and no toxic gas is blown into the atmosphere and does not pose a threat to the environment. This also reflects why fumigated grain can get reinvested if general hygiene is not maintained.

For the past 2 years, Senwes tested and began to apply innovative techniques for fumigation by using an alternative product, Profume. Lower dosages are required than Phosphine.

Profume an alternative product is more flexible, are dispersed easily and more effective and does not create high build-up of gasses which may lead to risks of fire during Loadshedding. Profume has no effect on the quality, taste or nutritional value of grain.

During the year under review, Senwes also initiated a programme with AGBIZ to ensure training in these hazardous materials and an official course is to be compiled by the industry under the “CropLife” brand.

  • Pest control – Pest control is a method to control nuisance pests like rats and mice in the grain storage environment.

Senwes Grainlink uses tamperproof bait stations to prevent spillage or unauthorised access to the poison which is set out for bait. The bait that we use, Racumin 3D from Bayer, is enviro-friendly and is a Multiple feed anti-coagulant rodenticide. The active Ingredient: Coumatetralyl + Co-Formulant: Cholecalciferol (Vit D3) decrease the levels of A.I. residues in dead rodents by 75%, therefore, reducing the risk of secondary poisoning of predatory birds and mammals.

This product is also endorsed by the Griffon Poison Information Centre as safe to use and environmentally friendly.

  • Weed control – Weed control at Senwes Grainlink premises is classified as industrial weed control. Senwes uses herbicides which give up to 6-8 months of control on pre-emerged weed and do not leach out to aquatic resources. For post-emerging weeds, Senwes uses Glyphosate as there are no alternatives yet to replace this mode of action herbicide.

All agriculture remedies and users of it are required to be registered by the Dept of Agriculture under Act 36 of 1947. Senwes Grainlink complies in this regard.

Waste management

  • The used fumigation sachets or blankets are deactivated and treated as normal waste. Procedures are being put in place to channel al deactivated chemical waste to a central point via Croplife and to limit the impact on the natural environment. This consists of removing formulations from bins after being used and rolled out in a safe area, punched and wetted to release any toxins if any. The powder residue is harmless for the environment and can be safely handled as normal waste.