Giving Back to Communities

Local communities are one of the key stakeholders playing an integral role for Kernel’s operations. Therefore, we aim at building and developing long-term partnership with local groups. With the majority of our operations and twothirds of our employees working in rural regions, we aspire to act with integrity and take a great responsibility in advancing those regions. Our social activities are structured through social partnership agreements, with more than 70% of villages our operations cover already having signed agreements with us. Moreover, to act effectively and with integrity, we have established more than two hundred dedicated employees as relationship managers who advocate for the communities, thus ensuring sustainable communication channels with local councils, key opinion leaders and residents. Our approach entails structuring our activities based on what is of foremost importance for the community and receiving direct face-to-face feedback on the impact of our operations. During the year ended 30 June 2016, our direct spending to support local communities amounted to USD 1.7 million (UAH 39.6 million, up 29% from the previous year). The most significant spending was attributed to local schools and kindergartens along with critical investments in local infrastructure and healthcare. We also conducted numerous activities to engage rural citizens through the facilitation of local sports tournaments, children’s art competitions and site visits to our production facilities and farm operations for older schoolchildren. Moreover, all of our charitable activities were limited to the regions of our operations.

For more details on our relationships with local communities, please refer to sustainability section of our FY2016 annual report and web-site of our charitable foundation 'Together with Kernel'.