Hello again. Welcome back for a short video which highlights an interview with Santam related to the Commonland project in South Africa. This interview will give you a better idea about the importance of this project for business in general and for an insurance company in particular. As a positive spin-off effect of the restoration activities in the Baviaanskloof, the water provision for Port Elizabeth is being secured by increasing the groundwater flow and reducing the build up of sediments in the Baviaanskloof catchment. This is in the interest of many downstream beneficiaries, such as the South African insurance company, Santam. Santam is working to actively reduce water-related risks, like drought and flooding. Rather than assessing risk and charging premiums to match it, Santam is trying to take preventive measures to reduce the chance of water related damage to occur in the first place. Santam knows that if they don't make sure that there's water downstream where business sits then business stops and business continuity claims arise. In the following video, you'll get more in-depth information about the relevance of landscape restoration for risk insurance. >> Okay, so I'm Ray-Ann Sedres. I work for Santam and I head up sustainability for the organization. Why I'm here today is, in essence, the organization is wanting to develop relationships with a whole host of partners, be it academia, be it government, be it other businesses. As well as agencies that are working within communities in trying to reduce risks on the ground. In Santam's case, the risk that we're interested in reducing and the impact that it has on the landscape and ultimately people and where our assets are insured is risks around fire and flooding. And that's why I'm here today. >> And what role does restoration of the water play for you guys? >> So if you look at Santam's business, as an insure we insure assets, so at the point of an asset. We stand at risk for that particular asset and we charge a client a premium. In the event of the asset being damage loss incurring we will then replace the client in the position that they are. What we've realized over a few years now is that from a climatical point of view, we've been seeing an increase in climate changes within particular areas across the country, not just within the Port Elizabeth environment. And we've realized as well that we need to be looking at these risks not just from how we want to assess the risk and how we want to rate accordingly. But how we actually reduce the impact of that risk on the landscape and on communities and on our clients at the end of the day. So, even though our interest is at the asset level, we've realized a lot of these risks are increased by human intervention. Be it the fact that municipalities don't, perhaps, have the right fire infrastructures in place in order to address fire issues or risks as they arise. Or be it the fact that we have flooding happening in areas where there hasn't been rehabilitation of land and the usage of that land. And ultimately the impact of having heavy rains on the land then results in flooding. So we've realised we couldn't just focus our efforts and energies at the point of were our asset was being insured. We needed to look upstream and further downstream, on the impact of those drivers on where we actually at the risk. And then say, well, what role do we then play in supporting and getting land restoration, in this case, addressed within a particular environment. And how do we even use our influence in getting others to come along with us to help towards a common goal of, in this case, land restoration? >> And is that something quite new or something? >> Very new. [LAUGH] So the organization is on a journey around risk management. When I say on a journey I mean I don't think we'll ever arrive at a point where we feel we know absolutely everything. But what we have realized is that some of the risks that we face are actually opportunities for us as a sector to really make a difference in helping communities to take more responsibility and ownership for the role that they play in managing the environment. And because of our influence that we have through our clients we have in our portfolio, to our intermediaries and brokers that we work with, through our suppliers that service us and our clients when there's a claim, through our staffing base, and our subsidiaries, we've got an ideal opportunity of rallying all of those stakeholders and making so much more impact. Especially when it comes to the P environment and now land restoration. And what role they can play in actually helping that come to fruition. >> Do you think this idea [INAUDIBLE] is applicable to large companies as well? >> Absolutely, I think some companies might argue that what you're trying to do around land restoration in the Baviaans and in Krom and the Kouga area, doesn't affect us, because they're based [INAUDIBLE] typically as a plant. But in essence, if you can actually unpack the value chain or the model and how it impacts on what we're trying to do within those three environments. But many organizations haven't matured to the point where they're able to do that for themselves. And so there's an opportunity, here as well, within this program to actually help business to define where they fit on this value chain, in this particular case, around the issue of water scarcity in the Eastern Cape. And what role they then can play in actually sustaining their business and also contributing to ensuring that there is water in the next 20, 30, 40 years within the Eastern Cape environment. But they haven't quite made that connection yet. So this program has the opportunity of helping them to do that, as well. Or taking them on a journey. >> I hope you enjoyed the short video on the involvement of a risk insurance company in a landscape restoration partnership. And on the business rationale for landscape restoration from their perspective. Stay tuned.