AVBOB Integrated Annual Report 2018

safety performance and public disclosure to name a few. The Society has a separate Financial Sector Charter investment portfolio. The portfolio consists of investment in transformational infrastructure in underdeveloped areas, affordable housing, small and medium Black enterprises as well as B-BBEE financing. Our investment approach is that the target risk and return considerations and investment merits must supersede all other investment considerations when accessing investment viability. As part of this portfolio, financing was provided to The Urban Housing Foundation to provide development financing to multi-unit residential entrepreneurs in inner cities to provide affordable accommodation. The fund further supported the provision of home loans for affordable housing. Empowerment financing was also provided to enable previously disadvantaged group investment into petroleum shares. The Society invested during the year in a company that provides loan financing to taxi association entrepreneurs. The Society continues to invest in a private equity infrastructure fund that makes early stage infrastructure investments of an equity-related nature in greenfield and brownfield infrastructure projects. The fund focuses on renewable energy projects with a requirement that at least 50% of the fund commitments must be in renewable energy projects. The fund is currently invested in four solar photovoltaics projects and one wind farm. All these projects have reached their operational stage and are providing power to the South African national grid. Each project is part owned by the local community and has a CSI programme focusing on community initiatives. Responsible procurement The Group is committed to responsible procurement. This means working with our suppliers to supply goods and services and both parties having a common understanding that integrity and excellence will not be compromised. Careful selection of products, services and suppliers is made to ensure minimum adverse environmental and social impacts, without compromising on price, quality and our standards. The Group aims to contribute to socio-economic development through our procurement practices. We foster good business relationships with our suppliers and, in particular, with small Black-owned enterprises who share our values, and we include as many Black entrepreneurs and women entrepreneurs as possible in our database of suppliers. We recognise that supplier development is important to build long-term sustainable relationships with our suppliers, specifically in respect of funeral operations. This is critical to both parties for our mutual success. We encourage our suppliers to work with us and to continuously improve responsible procurement. The Group’s Tender Committees ensure that all significant procurement is ethical, efficient, fair and transparent. We take social and environmental factors into consideration alongside financial factors in awarding tenders. Transformation remains a social priority in South Africa. The Tender Committees endeavour to ensure that the majority of our suppliers to whom tenders are awarded are at least level 4 B-BBEE suppliers. The Group will aim to maintain a level 2 B-BBEE rating on the amended Financial Sector Charter Code. Our commitment to responsible procurement is encapsulated in our core values of Integrity and being People Focussed. Through this we ensure the Group’s sustainability as well as the economic advancement of the country. Products and services Innovation was once seen as an abstract concept by the Group, but as technology evolves and customer expectations and aspirations change, innovation has become a sound business strategy 52