Climate Change Data

African Infrastructure Investment Managers (Pty) Ltd

Climate Impact & Sustainability Data (2020, 2022)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:158,662 tCO2e (from 70% of investments)
Total Energy Consumption:3,521 GWh

ESG Focus Areas

  • Climate Change
  • Decent Work
  • Diversity
  • Governance

Environmental Achievements

  • 3.7 million tons CO2 equivalent offset
  • 3,521 gigawatt hours (GWh) of renewable energy produced

Social Achievements

  • 11,729 employees across AIIM’s portfolio (22% female)
  • Increased HDSA workforce representation by 9%

Governance Achievements

  • Increased Board representation to 31%
  • Increased female Board representation to 22%

Climate Goals & Targets

Environmental Challenges

  • Covid-19 pandemic impacting portfolio companies
  • Decreased female and HDSA representation in management in some funds
  • 15 fatalities across AIIM funds in 2020
  • Increased lost-time injury rate in some funds
Mitigation Strategies
  • Direct engagement with portfolio companies on material risks
  • Increased occupational health and safety training
  • Working with Boardroom Africa to develop internal talent and increase female board representation
  • Continued focus on improving health and safety practices

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities
  • Investments in renewable energy

Reporting Standards

Frameworks Used: UN Sustainable Development Goals, UN Principles for Responsible Investment, UN Global Compact, UN Guiding Principles on Business and Human Rights, Equator Principles, IFC Performance Standards, IFC/World Bank EHS Guidelines, ILO, TCFD, SASB, King IV Code for Corporate Governance, GIIN Framework, IFC Operating Principles for Impact Management

UN Sustainable Development Goals

  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 13
  • SDG 5
  • SDG 10
  • SDG 16

Investments aligned with SDGs through themes of energy, carbon, social aspects, infrastructure, and governance

Awards & Recognition

  • SuperReturn Africa ESG Manager of the Year award
  • Investment Week Best Ethical Alternative Asset Fund award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:5,485,101 tCO2e (2022)
Renewable Energy Share:29% of all renewables in South Africa (IDEAS Fund)
Total Energy Consumption:5,089 GWh (2022)

ESG Focus Areas

  • Climate Change
  • Decent Work
  • Diversity
  • Governance

Environmental Achievements

  • 5.5 million tons of CO2 equivalent offset delivered in 2022 due to renewable power investments.
  • 2.8 GW installed capacity providing electricity to over 2.7 million households and producing 5,089 GWh of renewable energy in 2022.
  • Investment in NOA Group Holdings (Pty) Ltd, aiming to develop over 1GW of renewable energy.

Social Achievements

  • 15,596 jobs supported in 2022.
  • 31% female representation in portfolio companies in 2022.
  • AIIF4 is a qualified 2x Challenge fund driving gender equality outcomes.
  • ZAR221.6 million spent on business support through enterprise development programs and ZAR622.4 million spent on socioeconomic projects.

Governance Achievements

  • 25% AIIM representation on Boards in 2022.
  • Active engagement and management in portfolio companies' boards and subcommittees.
  • 43% Historically Disadvantaged South African (HDSA) Board representation in 2022 for South African portfolio companies.

Climate Goals & Targets

Environmental Challenges

  • Increased overall carbon footprint from 2020 to 2022 due to improved reporting of Scope 1 and 2 emissions and non-renewable power generation.
  • Challenges implementing ESG agenda as a minority shareholder in some assets.
  • Decreased female representation on Boards from 21% in 2021 to 17% in 2022.
  • South Africa's high carbon intensity energy mix risks making its exported goods uncompetitive.
Mitigation Strategies
  • Shifted focus to being control or co-control investor to enhance influence on ESG implementation.
  • Continued investment in renewable energy and off-grid power solutions.
  • Refining intervention approach at portfolio company level, focusing on key strategic matters and value levers.
  • Fostering an inclusive environment valuing diversity of thought and opinion.
  • Enhancing decision-making quality through diverse boards.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks
  • Carbon Border Adjustment Mechanism
Opportunities
  • Investment in renewable energy

Reporting Standards

Frameworks Used: United Nations Sustainable Development Goals, Global Impact Investing Network (GIIN) Framework, IFC Operating Principles for Impact Management, United Nations Principles for Responsible Investment, United Nations Global Compact, United Nations Guiding Principles on Business and Human Rights, Equator Principles, International Finance Corporation Performance Standards, International Finance Corporation / World Bank EHS Guidelines, International Labour Organisation, Task Force on Climate-related Financial Disclosures (TCFD), 2x Challenge, King IV Code for Corporate Governance, International Bill of Rights, Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, European Investment Bank (EIB) Environmental and Social Standards

UN Sustainable Development Goals

  • Zero Hunger
  • Gender Equality
  • Decent Work and Economic Growth
  • Affordable and Clean Energy
  • Industry, Innovation, Infrastructure
  • Sustainable Cities and Communities
  • Responsible Consumption and Production
  • Climate Action
  • Partnerships for the Goals

AIIM's investments are aligned with these SDGs through sustainable energy delivery, carbon reduction, social aspects, infrastructure, and governance.