STRATEGIC SOLUTIONS
Why investing in Food, Climate, Health and Education Matters
The Sectors
According to Project Drawdown, food, health and education sectors are part of top 10 strategic solutions for reducing climate change.
In November 13th 2018 EG was invited to join a panel of speakers supporting the launch of Drawdown Switzerland on the topic of “Science-based solutions to global warming” together with Nobel laureate Jacques Dubochet and Dr. Francois Vuille at the international School of Geneva.
Project Drawdown was initiated by a team of scientists to create a list of the 100 methods that have the greatest potential of removing or reducing greenhouse gases.
Within the top 10 solutions, No.3 and No.4 relate to the Food sector, and No.6 and No.7 relate to Heath and Education, particularly for girls.
VALUE ADDITION
Targeted value addition support
The Focus
Through targeted work and value addition support with our portfolio companies, we are seeking to improve the workforce participation and financial empowerment of women across the value chain of each company.
This comes as a natural fit with our sectors of focus – Food/Nutrition, Healthcare, and Education – whose main consumers, value-chain participants and stakeholders are women. By bolstering portfolio company performance and co-developing targeted strategies around female empowerment with these companies, we seek to increase commercial opportunity, employment and increases in disposable Income for women.
These KPIs have significant social impact ripple effects within our target markets. Women particularly in rural Africa, are the primary economic decision makers for the welfare of their children – they purchase the food products, they save up for education and healthcare expenses.
INVESTMENT PROCESS
Managing ESG risks and improvements is integral to the investment process
Approach
The Fund’s approach is to ensure that portfolio companies comply with the ESG Policy, applicable ESG laws and regulations, and the International Finance Corporation (IFC) Sustainability Framework’s Performance Standards. EG Capital has developed an ESG Management System (ESMS) to elaborate on how the team will identify, assess and manage ESG risks of proposed portfolio companies as it implements the ESG Policy, consistent with best global practices.
Administration
A senior management staff member will be responsible for administration and oversight of the ESMS. The Fund will conduct training sessions for staff to ensure that ESG principles are embedded in its operations. EG Capital is also a signatory to the United Nations Principles for Responsible Investing (UNPRI).
Before the Fund invests in any prospective company, it will review and investigate publicly available information regarding the environmental and social performance of potential investees.
Exclusions
The Fund will not invest in any company where an identified adverse impact has not been resolved in accordance with the ESG Policy or the company lacks an acceptable corrective action plan.
Access & improve
The Fund will regularly assess and report to investors on the ESG risks of its portfolio companies on an ongoing basis in line with our ESG Policy and reporting mandate according to the ESMS. All corrective actions as necessary to remedy any issues in a timely manner will be taken to account.
The Fund will publish information on whether it considers the “adverse impacts of investment decisions on sustainability factors” under the SFDR. EG will review its position following publication of the final regulatory technical standards and will model the information required under the SFDR.
INTEGRATED ESG IMPACT & SDG
EG offers institutional investors a dedicated private equity approach with impact and SDG fully integrated
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