Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs)
• Environmental Friendliness
• Ethical Standards

Environmental Achievements

• Zanrec's plastic press business was put into operation with the goal of recycling at least 50 tons of plastic per month
• MTI Investment and Hotel Online launched a sustainable tourism booking site in Zanzibar.

Social Achievements

• MTI launched an accelerator program in collaboration with the Ester Foundation for female immigrant entrepreneurs.
• Zanrec organizes cleaning days together with the local neighborhood and with different hotels in Zanzibar.

Governance Achievements

• Appointment of Group Audit and Finance Manager, Parmena Mkuu.

Climate Goals & Targets

Environmental Challenges

• Higher than anticipated costs at EcoHomes, partly driven by the war in Ukraine and inadequate cost control.
• Surprising changes made by the local government in Zanzibar resulted in lower revenue and higher costs for Zanrec.
• Political and social risks in East Africa (inflation, deflation, government interventions).

Mitigation Strategies

• EcoHomes recruited a new CEO, Harry Tuluhungwa, and implemented a more robust control system and cost-saving program.
• Zanrec developed an alternative strategy to increase profitability and engaged with the Swedish Embassy and the President of Zanzibar to address government issues.
• Diversification of portfolio holdings to reduce company-specific risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: K3 (Swedish Financial Reporting Board's General Council BFNAR 2012:1)

Third-party Assurance: Ernst & Young AB (Swedish audit, English translation not audited)

UN Sustainable Development Goals

• UN Sustainable Development Goals (SDGs)

MTI invests in SMEs that contribute to higher living standards in line with the 17 UN SDGs.

Sustainable Products & Innovation

• EcoHomes' thin steel roof trusses

Environmental Metrics

ESG Focus Areas

• Sustainable cities and communities
• Responsible consumption and production
• Good health and well-being
• Decent work and economic growth
• Zero hunger

Environmental Achievements

• Zanrec had a community and beach clean-up in Matemwe, collecting 1.5 tonnes of waste.

Social Achievements

• Ecohomes created +100 jobs at various construction projects.
• Atsoko created +50 jobs as sales agents or makeup artists.
• Zanrec created +50 jobs in waste management and waste management education.
• Shambani Milk created +300 jobs via livestock breeders, raw material suppliers, and sales agents.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Zanrec lost 13 hotel clients and USD 3500 in monthly turnover due to financial problems of the Pili Pili hotel chain.
• Zanrec faced a change in operating areas in North A district, switching to Nungwi area.
• Atsoko faced changes in allowed ingredients in cosmetics by Tanzania Bureau of Standards (TBS), requiring re-registration and new importation.
• Raw material price increases and petroleum price increases in Tanzania due to the war in Ukraine.
• Shambani Milk previously faced hurdles in raw milk availability and high operational expenses.

Mitigation Strategies

• Zanrec offset the loss of clients by taking in new clients.
• Atsoko informed all suppliers and they started working on improving product ingredients.
• Shambani Milk implemented cost measures to decrease operational costs and focused on securing raw milk availability.
• Ecohomes received a USD 389,000 investment for working capital to speed up project implementation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2, Goal 3, Goal 8, Goal 11, Goal 12

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable cities and communities (SDG 11)
• Responsible consumption and production (SDG 12)
• Good health and well-being (SDG 3)
• Decent work and economic growth (SDG 8)
• Zero hunger (SDG 2)

Environmental Achievements

• Zanrec collected 3,825 tonnes of total waste and 52 tonnes of plastic waste in H1 2022 (149% and 44% YoY increase respectively).

Social Achievements

• Ecohomes created over 100 jobs at various construction projects.
• Zanrec created 50 jobs in waste management and waste management education.
• Atsoko created 50 jobs as sales agents or makeup artists.
• Shambani Milk created 300 jobs via livestock breeders, raw material suppliers, and sales agents.
• Mtaji Wetu Finance Tanzania received a Microfinance Tier II non-deposit-taking license.

Governance Achievements

• Parmena Mkuu was hired as Group Audit and Finance Manager.
• Harry Tuluhungwa became the new CEO of Ecohomes.
• Martin Rex Empacher joined the board of Zanrec AB.
• Magdalena Johansson and Bengt Svelander joined the Board of MTI Investment SE.
• Torbjörn Jacobsson joined Ecohomes' board and became MTI Investment SE's part-time Chief Governance and Risk Officer (CGRO).

Climate Goals & Targets

Environmental Challenges

• Zanrec experienced a setback due to changes implemented by the North A district on Zanzibar, resulting in a drop in sales.
• Ecohomes' sales and costs performed below expectations in H1 2022.
• Atsoko faced challenges due to changes in allowed ingredients in cosmetics by the Tanzania Bureau of Standards (TBS).
• Shambani Milk historically faced challenges in sourcing milk, although improvements were made in H1 2022.
• High costs for auditing and bookkeeping in the parent company.

Mitigation Strategies

• Zanrec launched a complaint via the Swedish Embassy regarding the Zanzibar district changes.
• Ecohomes recruited a new CEO to improve profitability.
• Atsoko secured a new supplier from Kenya for the perfume brand "Adopt" from France.
• Shambani Milk improved milk sourcing and secured a loan with CRDB for further expansion.
• MTI Investment SE is taking measures to address high auditing and bookkeeping costs and improve cash flow.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: K3 (Swedish accounting standards)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 8
• SDG 11
• SDG 12

The report highlights how the company's investments and subsidiaries contribute to these SDGs through job creation, sustainable practices, and improved access to essential services.

Environmental Metrics

ESG Focus Areas

• Sustainability
• Responsible Investing
• Growth of small and medium-sized enterprises

Environmental Achievements

• Not disclosed

Social Achievements

• Organized cleaning days with local neighborhoods and hotels in Zanzibar (Zanrec)
• Training days with the local village on sustainable waste management (Zanrec)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Political risks and uncertainties in East Africa
• Investment-related risks
• Currency fluctuations

Mitigation Strategies

• Careful assessment of political and economic conditions
• Diversification of investments
• Hedging strategies for currency risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: K3 (Swedish accounting standards)

Certifications: Null

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Growth
• Social Impact
• Environmental Impact

Environmental Achievements

• Chanzi's operations led to a 260% increase in waste processing capacity over the past year, preventing over 2,300 metric tons of CO2 emissions and more than 100 metric tons of methane from entering the atmosphere.
• Zanrec is making a strategic pivot to Plastic Recycling in Zanzibar, launching a state-of-the-art recycling facility.

Social Achievements

• MTI Investment released its debut impact report, showing the social and environmental strides achieved by its portfolio companies across East Africa.
• Shambani Milk launched a new product in the market, adding 150 ml yogurt cups to its product portfolio.
• Techbridge Invest recorded the largest number of participants in one program to date (50 entrepreneurs).
• Shambani Milk actively participated in National Milk Week in Mwanza.

Governance Achievements

• MTI Investment transitioned from a European company (SE) to a Swedish limited company.
• MTI Investment AB announces a strategic move for its portfolio company, Zanrec Plastic Company Limited.

Climate Goals & Targets

Environmental Challenges

• Ecohomes decreased revenue due to increased focus on profitability over growth.
• Zanrec was instructed by the District to pause onboarding new waste collection clients while fee negotiations continue. They also lost a tender for waste collection.
• Shambani Milk experienced increased operating costs due to a new engine purchase, increased sales team, and rising fuel and shipment costs.

Mitigation Strategies

• Ecohomes reduced costs.
• Zanrec is shifting its focus to plastic recycling.
• Shambani Milk increased sales staff and sales facilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: K3

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Impact
• Sustainable Business Practices

Environmental Achievements

• Zanrec's transition to plastic recycling, launching a state-of-the-art facility in Zanzibar.
• Chanzi's 260% increase in daily waste collection over the past year, processing over 50 metric tons of organic food waste daily.
• Chanzi's estimated avoidance of approximately 3,000 metric tons of CO2 emissions and 150 metric tons of methane.

Social Achievements

• Launch of the Elevate Blue Innovation Challenge, supporting early-stage entrepreneurs in Kenya and Tanzania.
• Appointment of Håkan Söderholm, an industry expert with over 30 years of experience, as an advisor and board member to Shambani Milk.
• MTI Tanzania Hub hosted an info-session to introduce entrepreneurs and start-ups to the MTI Hub community, resulting in securing three new clients.

Governance Achievements

• Increased stake in TechBridge Invest AS to 56.1%
• Termination of market maker agreement with Mangold Fondkommission AB.

Climate Goals & Targets

Environmental Challenges

• Zanrec's short-term value impacted by its pivot to plastic recycling.
• Mtaji encountered its first defaulted customer.
• Shambani Milk experienced 14 days of production downtime due to a boiler breakdown.

Mitigation Strategies

• Zanrec invested in plastic crushing and extruding machines and shifted operations to produce eco-poles and plastic timber.
• Mtaji is working with a debt collection partner to recover defaulted loan.
• Shambani Milk is addressing increased operational expenses and repair costs.

Supply Chain Management

Responsible Procurement

• Chanzi's strengthened partnerships with Unilever and AB InBev

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 8 (Decent Work and Economic Growth)

MTI's investments contribute to these goals through sustainable waste management, renewable energy initiatives, and support for entrepreneurship and job creation.

Sustainable Products & Innovation

• Zanrec's eco-poles and plastic timber