SOCIAL AND RELATIONSHIP CAPITAL
Socio-economic Development (“SED”) is a business and moral imperative for AECI. Although the level of investment is dependent on financial performance, AECI has established a trend of investing more than the mandated annual threshold of 1% of net profit after tax in its chosen SED partners and their programmes. Partners operate across a broad spectrum of communities. Some of these partnerships are longstanding while others have been forged more recently, including those initiated in 2018. The Group’s contribution in 2018 totalled R30 million. ENGAGEMENT An inclusive approach to engagement is vital in balancing the needs, interests and expectations of all SED stakeholders, including the best interests of the Company over time. The AECI SED Programmes drive this process, particularly as it affects communities close to Group operations. The primary goal is to invest in effective community-focused organisations and initiatives that will develop and uplift these often vulnerable communities. The key principles followed are: ›› developing a stakeholder map for the particular community in need; ›› understanding the community’s need through baseline studies; ›› aligning these needs with the Programme strategy, national development priorities and local municipal plans; ›› consultation and validation with the relevant community bodies, including other stakeholders such as local government; ›› being mindful of potential risks and proactively planning to mitigate these; ›› identifying platforms for all participants to engage positively and effectively;
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›› partnering with relevant, credible partners to address the agreed SED programme; ›› agreeing roles and responsibilities with stakeholders; ›› managing the expectations of all stakeholders; ›› agreeing the expected outcomes; ›› ensuring that efficiencies are designed and in place to hold stakeholders accountable for their delivery; and ›› reporting to and regular communication with the relevant AECI leadership structures on the progress and impact of Programmes.
SED FUNDS The R30 million invested in uplifting vulnerable communities was channelled through three well-established funds: the AECI Group CSI Fund, the AECI Community Education and Development Trust and the Tiso AEL Development Trust. Each of these funds is governed by a Board of Trustees, with some Trustees being independent and others appointed by the Company. The Trustees’ responsibilities include overseeing the application of the following governance and performance drivers:
AECI INTEGRATED REPORT AND SUMMARISED FINANCIAL STATEMENTS 2018
›› thorough planning and strategic alignment with development priorities; ›› creating shared value; ›› responsible management; ›› inclusive stakeholder management; ›› sound governance and effective financial management; ›› legal compliance; ›› outcomes and impact-based reporting; and ›› robust risk management.
SUMMARISED 2018 REVIEW The areas of focus remained aligned with national development imperatives, including quality basic education, the protection and conservation of natural resources, inclusivity, food security, skills development and caring for orphans and vulnerable children. A highlight was AECI being named the recipient of the 2018 Trialogue Strategic CSI award. This award recognised the work done through the Wize Wayz Water Care (“WWWC”) project. WWWC aims to create sustainable livelihoods through food security, water resource management and monitoring, and environmental
SOCIAL AND RELATIONSHIP CAPITAL
conservation. The project commenced in 2016 and has grown to include 122 volunteer participants from the Folweni and Ezimbokodweni communities close to the Umbogintwini Industrial Complex, in KwaZulu-Natal. These volunteers keep a 30km stretch of the eZimbokodweni River catchment area clear of litter and debris and they have also helped rehabilitate a local wetland that stretches over nearly a kilometre. In addition, AEC I was a finalist for two other awards: ›› Trialogue’s Gender Mainstreaming award, empowering women in communities category; and
SUMMARY OF INVESTMENT
TOWARDS
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BENEFICIARY PARTNERS
76
PROJECTS
›› Mail & Guardian Greening Awards, Community Conservation Award. Also pleasing was the increase in participation in employee volunteerism campaigns across the Group, reflecting improved awareness and a sense of appreciation for the role the Group plays in vulnerable communities. Four campaigns were implemented to address some key SED challenges in South Africa: ›› drought relief; ›› food security for orphans and vulnerable children;
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PROVINCES IN SA INCLUDED
›› teenage pregnancy; ›› school shoes and stationery packs for needy learners.
SUMMARY OF IMPACT
More than R500 000 was donated and distributed to needy communities, through charitable organisations.
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INTERNATIONAL The same social responsibility philosophy that applies in South Africa is equally valid for the Group’s operations internationally. Mining Solutions has the most extensive geographic footprint and these businesses invest resources in upskilling and developing their own communities. Contributions in this regard were made in Indonesia, Zambia and Ghana, among others. All initiatives are aligned with local legislative requirements and are undertaken in consultation with the relevant stakeholders. Specific examples in 2018 included the provision of emergency relief in Indonesia, subsequent to an earthquake and resultant tsunami, and learner support in that country. In Zambia and Ghana areas of activity included support for the establishment and maintenance of food gardens, medical assistance, upgrading of community facilities and infrastructure, education and sports development. Also supported are organisations such as Women in Mining to assist gender empowerment and inclusion.
TEACHERS AND LEARNERS WERE IMPACTED THROUGH THE EDUCATION PROGRAMME
1 062
STUDENTS WERE ENABLED TO ACCESS TERTIARY EDUCATION
JOBS WERE CREATED IN THE FOLLOWING DISCIPLINES: PLUMBING, ELECTRICAL ARTISANS, MECHANICAL ARTISANS, FITTING ARTISANS, PLANT PRODUCTION, IT, BAKING
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COMMUNITIES RECEIVED ACCESS TO PRIMARY HEALTHCARE SERVICES — IMPACTED 128 060 PATIENTS
24
EARLY CHILDHOOD DEVELOPMENT CENTRES WERE SUPPORTED — IMPACTED 15 808 VULNERABLE CHILDREN
556
ARTISANS WERE TRAINED
22
996
440
PEOPLE WITH DISABILITIES WERE AFFORDED SKILLS TRAINING TO ENHANCE THEIR EMPLOYABILITY
1 058
BENEFICIARIES WERE PROVIDED WITH FOOD
COMMUNITIES WERE PROVIDED WITH ACCESS TO POTABLE WATER — IMPACTED 4 135 BENEFICIARIES
5 952
LEARNERS WERE EDUCATED IN ENVIRONMENTAL AWARENESS AND CONSERVATION
AECI INTEGRATED REPORT AND SUMMARISED FINANCIAL STATEMENTS 2018
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