Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic growth
• Resource efficiency
• Process optimization
• Improved corporate governance
• Environmental, Social, and Governance (ESG) issues
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Implemented water treatment systems in some portfolio companies (e.g., EXAT, NCA-Rouiba), achieving nearly 90% water recycling in EXAT.
• Installed biomass boilers and implemented other energy efficiency measures in Kiboko Group.
• One Tech Group implemented a green production program including water recycling and reduced energy consumption.

Social Achievements

• Created more than 13,000 direct jobs in Africa, including over 5,000 for women.
• Supported SMEs to build local brands, expand regionally, build new industries, and increase exports.
• Increased availability of affordable products and services in agribusiness, health, and education.
• Achieved financial inclusion and community development.
• Brought several companies into the formal sector, improving tax collection.
• Reversed human capital flight by hiring skilled professionals from abroad.
• Esprit created an incubator to support student startups and improve employability.
• Kiboko Group sponsored 20 pharmacy students annually.
• THCC created over 600 jobs (70% women).

Governance Achievements

• Implemented a proprietary Environmental and Social Management System (ESMS).
• Improved corporate governance in portfolio companies (e.g., Alpha West Africa, Icosnet, Kiboko Holdings, NCA-Rouiba, One Tech Group, SJL) through board restructuring, committee creation, and enhanced reporting.
• Implemented anti-money laundering policies and Know Your Customer processes (e.g., Alpha West Africa).
• Mansard Insurance became the first in its industry to implement an ESMS framework.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Resource scarcity
• Political instability
• Social crises
• Need for more transparency and improved future visibility

Mitigation Strategies

• Fully integrating international best practices and impact goals into the investment equation.
• Reshaping companies to unlock growth potential and build resilient business models.
• Supporting key sectors and funding SMEs with a positive impact mission.
• Implementing ESG and impact initiatives with portfolio company management teams.
• Strengthening corporate governance and implementing ESG policies and practices in portfolio companies.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 14001, ISO 22000, ISO/TS 16949, EUR ACE, AEO

Awards & Recognition

• Private Equity Investor of the Year (Africa CEO Forum, 2017)
• Private Equity House of the Year, SME Investor (Private Equity Africa, 2017)

Environmental Metrics

ESG Focus Areas

• Sustainable Economic Development
• Environmental Sustainability
• Equality and Inclusion
• Quality Institutions, Networks, and Services
• Climate Change

Environmental Achievements

• Companies have structured action plans to reduce carbon footprint with yearly progress updates
• 35% of energy consumption from renewable sources per million $ invested
• Financed emissions (scope 1 and 2): 318.67 tCO2e

Social Achievements

• 64,292 direct jobs created and supported
• 40 SMEs supported in the portfolio
• Invested in 114 SMEs
• 60% of companies with women’s career advancement initiatives (+20 ppt over 2021)
• 41% women in management (+2.5 ppt over 2021)
• 40% women employees (+0.4 ppt over 2021)
• 25M individuals with improved healthcare
• 442M people served by financial institutions
• 12,520 people with improved education
• 80% of companies with a supplier code and/or integrated ESG factors in supplier selection (+43% over 2021)

Governance Achievements

• Implementation of impact-linked compensation practices connected to quality job creation, gender balance, and environmental stewardship.
• Firmwide gender-lens investment training conducted
• Annual gender diversity analysis on promotions and pay introduced
• Companies increasingly include those that uphold and promote gender equality principles.
• Above benchmark score across the board on Impact Principles assessment, with seven of nine principles receiving the highest possible score.

Climate Goals & Targets

Environmental Challenges

• A myriad of challenges hinders economic stability and development in Africa, including pandemics and high unemployment rates that have led to a significant brain drain and illegal immigration, internal and external conflicts, high inflation, currency devaluation, economic and social inequalities, and the growing threat of climate change.
• African businesses struggle to adhere to increasingly stringent standards in Impact Measurement and Management (IMM).

Mitigation Strategies

• Continuously evolving approach and tools based on learnings, insights from the industry, experiences, and global developments.
• Piloting a “Multiple of Impact” (MOI) model to assign an economic value to impact.
• Developing and implementing a Just Net Zero strategy with science-based targets (SBT).
• Incorporating impact-linked compensation practices.
• Implementing measures to promote diversity at all levels.
• Conducting firmwide gender-lens investment training and introducing an annual gender diversity analysis on promotions and pay.

Supply Chain Management

Responsible Procurement

• Responsible Purchasing policy that spurs suppliers to embrace ethical standards, including ILO conventions and anti-corruption practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Impact Principles, TCFD

Certifications: ISO 14001, ISO 45001, FSSC 22000, HACCP, ISO 9001

Environmental Metrics

ESG Focus Areas

• Sustainable Economic Development
• Environmental Sustainability
• Equality and Inclusion
• Quality Institutions, Networks, and Services
• Climate Change

Environmental Achievements

• Companies have structured action plans to reduce carbon footprint with yearly progress updates
• 166 tCO2e financed emissions (scope 1 and 2)
• 37% reduction in Weighted Average Carbon Intensity (WACI) compared to 2022

Social Achievements

• 75,377 direct jobs created and supported
• PPP-Adjusted Training Investment per employee in 2023: $4,000
• 61% of companies have women’s career advancement initiatives
• 42% women employees
• 509M individuals with enhanced access to financial services
• 24,793 individuals with enhanced access to quality education

Governance Achievements

• Implemented targeted climate-focused training sessions (35 hours per team member)
• Established clear responsibilities for climate oversight at board, executive, and management levels
• Integrated gender criteria throughout the investment process
• Incorporated gender-related KPIs into the newest fund structure

Climate Goals & Targets

Environmental Challenges

• Developing the market for private equity in Africa and engaging family-owned businesses
• Building a skilled private equity team in the absence of experienced talent
• Navigating and advocating for effective legal and tax frameworks for private equity in Africa
• Adapting investment and exit strategies to the needs of African MSMEs within traditional private equity fund structures
• Leveraging investments in operations, systems, and compliance for continuous improvement
• Securing capital for high-impact investments in underserved markets and asset-intensive climate solutions
• Facilitating European companies' expansion into Africa and bridging the capital and knowledge gap
• Enhancing rigor and scalability in impact measurement and management to inform decision-making
• Navigating macro risks in an unintegrated Africa

Mitigation Strategies

• Building a thriving private equity ecosystem and engaging family-owned businesses through value- and values-based investing
• Strategic talent development and capacity building through comprehensive training and development programs
• Advocating for a supportive regulatory environment through collective efforts and collaboration with DFIs
• Innovative approaches to exits such as evergreen fund structures and variable hurdle rates linked to impact KPIs
• Investing in robust and regularly audited systems and processes, and cultivating a skilled and stable workforce
• Leveraging blended finance through concessional capital and technical assistance
• Strengthening economic ties and scaling cross-border expansion through cross-border funds
• Structuring impact from the outset and enhancing impact measurement with the Multiple of Impact (MOI) methodology
• Emphasizing regional diversification and export development, and resilience building

Supply Chain Management

Responsible Procurement

• 55% of companies have a supplier code and/or integrated ESG factors in supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather, natural disasters

Transition Risks

• regulatory changes, market shifts

Opportunities

• development of climate solutions

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Breaking Barriers Investor Award
• Impact Deal of the Year
• Outstanding East Africa Leader Award