The widely accepted benchmark for Corporate Social Investment (CSI) spend is 1% of NPAT. The Aveng Group has consistently invested over and above this over the past four years – evidence of its commitment - going beyond compliance - to making positive change in its communities of operation.
|Year|| Total CSI disbursed by the Aveng Group
| Percentage of Headline Earnings
|June 2010||R20 801||1.1|
|June 2011||R22 658||1.9|
|June 2012||R12 039||2.0|
Of the 1% of headline earnings committed to CSI by the Aveng Group, 75% is allocated to the Aveng Community Investment Trust and the remaining 25% apportioned to the operating groups. The operating groups for the most part, however, tend to spend over and above the 25% retained (35% of total investment for this year) – further evidence of the Group’s overall spirit of giving back.
For the period 2012 to 2013, total social investment for the Group was as follows:
|Aveng Community Investor Trust||R 12 454 363|
|Aveng Engineering & Projects Company||R 157 654|
|Aveng Grinaker-LTA||R 138 591|
|Aveng Manufacturing||R 495 698|
|Aveng Mining||R 259 262|
|Aveng Moolmans||R 1 110 163|
|Aveng Trident Steel||R 594 825|
|McConnell Dowell*||R 4 096 316|
|TOTAL||R 19 306 872|
*1 AUD = 9.4508 ZAR; 1 SGD = 7.9084 ZAR (As of Wednesday, Jun 19, 2013, 08:45 AM GMT)
Principles of Investment
The Aveng Group continues to follow principles of focus, nurturing relationships and enhancing sustainability.
The Aveng Community Investment Trust (the Trust) was established in 2005 following the group’s black economic empowerment transaction. With the vision of building a stronger South Africa, the strategy for social investment was developed to be focused – to make as deep and sustainable impact as possible with the funding available. To this end, the Trust identified two focus areas for investment, being Skills Development for the Industry and Maths and Science Education at Secondary School Level. Four flagship projects are supported under these focus areas.
This year, the Trust remained committed to these projects and its focus areas with 29% invested in Skills Development and 68% in Maths and Science Education.
With the Group’s Broad-Based Black Economic Empowerment transaction of 2004 having reached maturity the Aveng Community Investment Trust has the benefit of realising gains of roughly R300 million in 2014. This has positioned the Trust so that it can sustain its investment in these areas and ensure lasting impact is achieved.
Measuring the Difference
In 2009, four flagship projects that fell squarely into the focus areas were identified for investment by the Aveng Community Investment Trust. Some years on, and the Aveng Group is now in a position to better measure the returns on these investments and the ultimate change for beneficiaries of the projects. As a result, the Trust has mandated independent monitoring and evaluation experts to conduct thorough project reviews and establish a framework for monitoring and evaluating results in the future. The results of this exercise will be available in the new year.