Strategy
Our strategy delivers sustainable growth and diversification
Reunert’s strategy is centred on driving sustainable growth, increasing our diversified revenue streams and scaling our growth businesses.
The strategy aims to address the Group’s material matters and provide direction for sustainable growth. While the base strategy was approved in 2014, with execution beginning in 2015, the strategic plans evolved in response to changes in the operating environment and emerging opportunities.
The strategy consists of six pillars: diversification, efficiency, innovation, our customers, our people and transformation. Reunert strives to optimise all six pillars.
The strategy’s success relies on the Group Values, Sustainability strategy and Group Code of Ethics.
Our selected areas for future growth are:
- Continued investment in renewable energy through the Lumika Renewables joint venture to build a portfolio of solar assets and product expansion in BlueNova’s energy storage solutions
- Last mile broadband connectivity and vertically integrated communications solutions
- Expansion of the Group’s geographic footprint through an in-country presence in selected markets and strong export capabilities in fuzes, secure communication systems, radars and circuit breakers
- Building a new-age ICT player in the market for our Solutions and Systems Integration cluster in the ICT Segment
- Acquisitions that meet the Group’s strategic rationale and improve shareholder returns
Local energy policy changes should spur the development of a thriving renewable energy sector while alleviating South Africa’s electricity crisis.
Embedded generation in South Africa’s commercial and industrial sectors is a rapidly growing market. Research by consultancy Technavio indicates that the market for solar energy in South Africa will accelerate at a compound annual growth rate of 30% from 2022 to 2026. This growth can be attributed to the completion of Windows 5 and 6 of the Government’s Renewable Independent Power Producer Programme and anticipated investment into large-scale private renewable energy projects. Reunert is well-positioned to benefit from this growth.
In 2021, Reunert’s circuit breakers business unit,
Reunert’s Renewable Energy ecosystem includes:
- A leading engineering, procurement and construction solar energy service provider in South Africa in Terra Firma Solutions
- A growing set of renewable energy solar assets with attractive internal rates of return
- A leading renewable storage solution provider in BlueNova
- A modern Internet of Things driven energy management capability in CBi: Energy
- The ability to wheel energy across the Eskom grid to commercial and industrial customers by Apollo Energy
Reunert’s Renewable Energy ecosystem enables us to participate in multiple areas across the renewable energy market and presents a compelling value offering to both customers and investors.
Reunert’s Sustainability strategy supports Reunert in addressing the environmental, social and governance (ESG) risks and opportunities across the Group.
Reunert’s Sustainability strategy, first developed in 2018 with performance indicators refined in 2019, is shaped by the ten principles of the United Nations Global Compact. This strategy adopts the strategic relevance of sustainability for the Group and its impact on the business strategy and model.
The Sustainability strategy provides a framework with two guiding principles: Operate responsible businesses and pursue shared value solutions. These guiding principles are further categorised into five sustainability pillars.
The strategy is grounded on an ethical culture, strong stakeholder relationships and Reunert’s commitment to being a responsible corporate citizen.
Reunert is rated AA in the Morgan Stanley Capital International (MSCI) ESG ratings report. This rating acknowledges Reunert as an industry leader in managing the most significant ESG risks and opportunities.
- Green revenues (supported by the diversification, innovation and efficiency strategic pillars) as the local electricity crisis is accelerating the adoption of renewable energy
- Having a strong sustainability rating will provide access to a growing pool of ESG capital
- Attracting high-performing employees who contribute to value creation (supported by the people strategic pillar)
- Rolling out broadband connectivity to key sites, including schools, libraries, clinics and social development facilities
- Environmental pressures include water scarcity, higher energy prices, higher temperatures, fire risk, increasingly extreme weather patterns and the impact of climate change
- Shifts in societal expectations due to poverty and unemployment, education and training quality, growing inequality and changes in the workplace
- Higher expectations regarding regulatory compliance and responsible business practices
- Non-compliance with carbon tax regulations leads to penalties and a negative impact on Reunert’s reputation
