OUR COMMON OBJECTIVES
To sustain profitability by partnering with communities and government in a social contract to achieve economic growth and giving more South Africans access to this growing prosperity.
OUR COMMON GOAL
To ensure that the Group delivers long-term value to all its stakeholders; increases shareholder wealth, economic transformation and the development and upliftment of social communities; and builds long-term stakeholder relationships.
OUR INTEGRATED VALUE CHAIN
The Group continuously assesses innovative ways to sustain its existing businesses by adapting to changing environments and through our acquisition and new business development approaches. With our risk management approach and the impact of changing markets, competitors and the economic environment, management is constantly aware of how the Group can improve sustainability through constant change.
VALUE CREATION USING THE SIX CAPITALS
When making decisions on how to manage and grow our businesses, AEEI takes into account the six capitals, including the resources required. These are critical to AEEI’s ability to create value. AEEI uses the input of each capital for the effective production and delivery of products and services, thereby creating value for our stakeholders.
Outcomes for our stakeholders
The Board and executive management → evaluated risks → assessed the impact on our material matters → and evaluated the impact on our strategic priorities.
OUR INTEGRATED REPORTING MODEL
AEEI’s strategy is to create sustainable value for all shareholders and stakeholders and to ensure that the Company remains attractive to investors by optimising shareholder returns. AEEI’s sustainable value creation goes beyond short-term profitability and takes into account the broader economic, social and environmental factors.
Our approach to addressing these matters is to prioritise those most important to achieving sustainable businesses in the medium to long-term.
We have identified strategic enablers in order for us to execute our business model and achieve sustainable value creation. (King IV™ – Principle 4)
SOUND CORPORATE GOVERNANCE
Stakeholders can only derive full value from a business that is founded on integrity, honesty, accountability and respect. With the significant corporate governance developments during the year and taking into account emerging global trends, AEEI’s improved focus makes it easier to manage our business transparently and with good governance.
The Board strives to ensure that AEEI is governed effectively, with integrity and in accordance with sound corporate governance practices. Our diverse Board enables an environment in which varied views can be exchanged as a result of the mix of skills, experience and backgrounds of all of the directors interacting as a unitary working group.
AEEI can only be a sustainable business if we continue to deliver on our promise to promote good corporate governance, which is an integral part of our business model which is built on delivering good governance outcomes in terms of an ethical culture, effective control, good performance and legitimacy. Our sound governance platform is embedded in our DNA and corporate culture. (King IV™ – Principle 6)
The Group continued to instil a culture of excellence and opportunity for all employees and to make them proud ambassadors for AEEI. (King IV™ – Principle 14)
Our employees are critical to our success and sustainability. Growing talented employees into new roles remain a core objective. Learnership programmes give impetus to employee development within AEEI.
Together with financial capital, our employees are our single most important resource. It is important for AEEI to attract and retain the right calibre of people, to keep them motivated in a safe, supportive working environment and to remunerate them accordingly. In doing so, AEEI continued with training and development during the year and ensured that employee development plans are in place for the retention of employees.
In order to remain sustainable as a business, we continually contribute towards social and economic development and developing partnerships that enhance our long-term viability in a stable and growing economy.
In order to create an enabling environment and develop and enhance markets for our products, we were proactive and responsive to our stakeholders’ interests and ensured that we implemented best practices when it came to responsible investing. Our aim is to invest in businesses that have a sustainable approach to doing business. (King IV™ – Principle 3)
AEEI’s carbon emissions are low and we have a very low direct impact on the environment, but we are affected by the environment in which we operate and how climate change affects our business. We commit our businesses to a journey of responsible environmental stewardship. We acknowledge that a stable economy and a sustainable business require a sustainable environment.
AEEI and our various business units are not considered to make a particularly heavy demand on the natural environment. However, businesses in the Group are committed to being industry leaders and adding value to their services by implementing sustainable business practices that minimise the impact that their operations have on the environment. Environmental commitments are an integral part of their day-to-day activities. Our fishing and brands division works closely with the relevant authorities to safeguard various fish species and pays careful attention to the environmental impact of their operations. (King IV™ – Principle 3)
OUR KEY STAKEHOLDER ENGAGEMENT AND RELATIONS
Sustainable value creation depends on continuous and successful engagement with stakeholders.
AEEI appreciates the role of its stakeholders and remains committed to nurturing impactful relationships that deliver mutual benefits and encourage transparent, objective and relevant communication. The Group recognises that its businesses are one of the stakeholders in the socio-economic and environmental system. It is essential for the Group to compete successfully in an increasingly complex and ever-changing business environment and to systematically bring about the change needed for sustainable development. We have built and continue to maintain trust and respect with our various stakeholders, thus ensuring a positive impact on our reputation.
AEEI places great value on our high standards of ethics, communication and transparency of information in terms of the Promotion of Access to Information Act, 2000 (No. 2 of 2000) (Promotion of Access to Information Act), Protection of Personal Information Act, 2013 (No. 4 of 2013), and other regulations and directives relating to the dissemination of information.
We have identified stakeholder groups with whom we engage in a structured manner. Refer to key stakeholders in Building relationships with our stakeholders for full details.
We addressed essential risks and opportunities and responded timeously and appropriately to issues raised in our interactions with our various stakeholders. (King IV™ – Principle 16)
OUR VALUE ADD
A measure of the value created by the Group is the amount of value added by its diverse activities to the cost of raw materials, products and services purchased. Refer to our value-added statement for full details.
MATERIALITY ASPECTS AND OUR RESPONSE TO STAKEHOLDERS’ INTERESTS
OUR MATERIAL MATTERS
AEEI’s material matters are those challenges and opportunities that could substantively affect the Group’s ability to create sustainable value over the short, medium and long-term for our stakeholders.
We identified our material matters in terms of relevance from the risk assessment process. This process includes uncertain events with a potential negative effect on the Group, i.e. opportunities not materialising. It also takes into account the legitimate and reasonable needs, interests and expectations of all material stakeholders in the execution of the Board’s governance role and responsibilities and in the best interests of the Group.
AEEI focused its reporting on sustainable development and those directly affecting the Group’s ability to create value, as well as the Group’s impacts and responses to the expectations of its stakeholders.
DEFINING OUR MATERIAL THEMES
- Strategic focus areas and KPIs
- Group policies, values, Code of Conduct and Code of Ethics
- Board discussions and engagement with senior executives
- Issues raised through stakeholder engagements
- Risk management process
- Regulatory requirements
- Economic, environmental, global and socio-political developments
- Reporting frameworks
- GRI reporting
- Responsible investments
MANAGING OUR MATERIAL MATTERS
These material matters were approved by the AEEI Board and take into account the issues raised, their relevance, our strategic component, the stakeholders, our governance structure and where further information can be found in the integrated report.
The following material matters were identified: