Engaging with our stakeholders is a fundamental part of how we do business
Our People
As of 31 December 2022, we employed 790 people across the Group.
Why we engage
Our employees bring a broad range of experience, expertise and perspective to Savannah that contributes to our collective values and culture and is essential to the delivery of our strategic objectives. We recognise that employees are the cornerstone of our business. We engage with our employees in a variety of ways to ensure that they are well informed, motivated and appropriately developed to execute our strategy such that we are able to deliver on the long-term goals of the business. The Board is updated regularly via the Health, Safety, Environment & Security (“HSE&S”) Committee on health and safety matters.
How we engage
We have an open, collaborative and inclusive management structure and engage regularly with our employees. We do this through a variety of methods including a continuous feedback performance management process, structured career conversations, CEO internal announcements, town hall sessions, employee surveys, a corporate intranet site, Company presentations, away days, an employee newsletter and our training and wellbeing programmes. During the year we also engaged through our Group-wide intranet site and continued our monthly “Lunch and Learn” sessions for all Group employees, which included external guest speakers.
We provide an independent “Speak Up” whistleblowing service to enable all employees to report any concerns they may have relating to ethics, compliance and significant workplace issues.
Our Host Countries and Communities
Our current host countries are Cameroon, Nigeria and Niger. We work closely with the local communities in our current areas of operation in all countries. In South East Nigeria our footprint communities cover 22 Local Government Areas (“LGAs”) and their paramount rulers in Akwa Ibom and Cross Rivers States. Within the LGAs there are 252 local communities, each with its village head, and 50 clan heads. Key stakeholders also include various local interest groups representing youths and women, opinion leaders, social cultural groups and government agencies. In Niger we work with 13 local communities in and around N’Gourti within the Diffa region, which is located in the south-east of the country. We also liaise with in-country non-governmental organisations.
Why we engage
Engagement is key to maintaining our social licence to operate. Our corporate philosophy is based on the conviction that our projects should benefit all of our stakeholders and particularly our host countries and the local communities in which we operate. Acting in a responsible manner towards our stakeholders is seen as critical to the ongoing effectiveness of our operations.
How we engage
We take a constructive and positive approach to working with local communities, seeking to maintain good relationships with them all.
We engage with the local communities in which we operate via our social impact programmes. We maintain our social licence to operate by ensuring that our policies on safety, the environment and human rights are followed to the highest standards in our operations, projects and activities. Our social impact investment focuses on improving local living standards via health, education and agricultural initiatives, as well as the provision of drinking water and local infrastructure projects.
Our projects also provide skills training to foster future economic self-sufficiency. In addition, we have implemented a local content policy designed to ensure that, wherever possible and appropriate, we prioritise qualified local people as employees and suppliers.
Regular engagement meetings are held with the local communities in which we operate to discuss and manage any concerns. These meetings also help us keep local stakeholders updated as we progress in our operations and projects. This process is also applicable to our local project contractors who engage with the communities as often as required. The regular interaction, through both formal and informal engagement meetings with local stakeholders, allows us to address any actual and/or perceived issues or concerns they may have, ensuring that our social licence to operate is maintained. The participatory principle is always applied, and where it operates Savannah deploys the stakeholder engagement and grievance management procedures in all engagement forums.
Governments, Local Authorities and Regulators
We engage with over 49 stakeholders within the federal, state and local government as well as other national entities in Nigeria. In Niger, we engage with over 50 stakeholders within the national government and local authorities, including the chiefs of the 13 tribes located within our asset areas. In the UK, we engage with various governmental departments, primarily, those providing assistance and support to UK companies operating abroad.
Why we engage
To maintain Savannah’s social and legal licences to operate and to build collaborative partnerships with government agencies that generates value for both parties.
How we engage
We take a constructive and positive approach to working with national and local authorities, as well as regulators in both countries, seeking to maintain good relationships with them all. We contribute to government and local authorities in the countries in which we operate in the form of royalties, taxes and fees every year. Our cumulative payments to local governments in Nigeria and Niger since 2014 total US$173.8 million.
Our Shareholders and Lenders
Our shareholders include both institutional and retail investors who are principally based in the UK and US. Our top ten institutional shareholders account for approximately 57% of our shareholder base. We have a group of 13 lenders consisting of West African, UK and US based banks and institutions, plus a listed bond.
Why we engage
We believe that maintaining a regular and transparent dialogue with our shareholders and lenders is essential in order to earn and retain their confidence. In line with the QCA Corporate Governance Code, the Board must manage shareholders’ expectations and should try to understand the purpose behind their voting decisions.
The lenders are an important source of funding for the Group’s operations. In addition, we benefit from their advice and experience in other cash management and risk mitigation tools in the markets in which we operate.
How we engage
Our investor relations programme is designed to answer investor queries and provide public disclosure on results and other material developments within the business as well as ensuring that shareholders’ views are communicated to our Board and considered in the Company’s decision making. Our investor relations programme includes regular updates, calls, meetings, investor roadshows and our Annual General Meeting as well as participation in investor and industry conferences. In adherence to Covid-19 protocols as appropriate, the Company held several virtual investor roadshows during the year with investors in the
UK, the US, Europe and South Africa. In particular, we conducted a successful deal roadshow in December 2021. We also engaged with several of our investors ESG and stewardship teams during the year. Regular contact is maintained with our lenders through a combination of physical and virtual meetings.
Our Customers, Suppliers and Partners
Our customers in Nigeria include Calabar Generation Company Limited, Lafarge Africa PLC, Ibom Power Company Limited, First Independent Power Limited and ExxonMobil. We also signed a new GSA in 2021 with Mulak Energy Limited and post-year end a new GSA with the Central Horizon Gas Company Limited in February 2022 and a new GSA with TransAfam Power Limited in June 2022.
Our partners include: African Infrastructure Investment Managers (“AIIM”), which holds a 20% interest in each of Accugas Limited and Savannah Energy Uquo Gas Limited; and Sinopec International Petroleum Exploration and Production Company Nigeria Limited, our 49% partner in the Stubb Creek field. We work with a wide range of suppliers in Nigeria, Niger and the UK.
Why we engage
We engage with our customers, suppliers and partners to meet our strategic objectives, grow our business and enable the smooth running of our operations.
How we engage
Our senior management engages in regular meetings with our customers, suppliers and partners and we also participate in local industry events. The purpose of this engagement is to establish and maintain relationships with these important stakeholder groups.
In Nigeria, our Commercial team is responsible for identifying and marketing our unique selling proposition (“USP”) of “reliable, cost-effective, clean energy to power growth” to potential new customers.
Supply chain procedures are in place which govern all procurements for goods and services and we have a comprehensive vendor contracting strategy in place. These ensure that ethical, regulatory and best practices are strictly adhered to.