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South Africa is party to the United Nations Framework Convention on Climate Change (UNFCCC) and, as such, is required to report on its national greenhouse gas (GHG) emissions. In 2017, South Africa initiated the process of compiling its sixth GHG inventory covering the period 2000 – 2015. Requirements and protocol stipulate that national GHG inventories be subjected to an independent peer review in order to ensure the accuracy of the inventory and to build confidence in the results. IBIS was appointed by the Department of Environmental Affairs in South Africa in 2018 to conduct the independent review of the national GHG Inventory. The work was led by our multi-disciplinary team who ensured the highest possible level of detail and accuracy of the information. The work done by IBIS included a technical review of all calculations and assumptions made in the compilation of the national inventory, a thorough review of all aspects of the reporting, and recommendations for improvement. Not only is the country’s reporting now more accurate, but South Africa is also in a stronger position to make more informed decisions around carbon reduction in the future. Speak to us about how we can assist your organisation reduce carbon impact and report more accurately on your greenhouse gas emissions.
IBIS were appointed by a European DFI to undertake an E&S Due Diligence of a proposed investment into the 3rd fund of a leading Africa focused Private Equity firm based in the UK. The overall objectives of the E&S due diligence were to review the current management systems and capacity for managing E&S performance; assess E&S performance and improvements made across existing portfolio investments; and evaluate whether there are any major E&S risks as well as identification of any key opportunities in the existing investment portfolio. The work entailed management interviews in the UK and site visits in South, West and North Africa. A detailed E&S action plan was prepared outlining gaps and providing practicable recommendations for the Fund Manager and the DFI. In addition, the work included a review of resource efficiency opportunities in the existing portfolio. Where these opportunities were identified, IBIS provided recommendations around how these could be further developed and implemented.
IBIS were appointed by a major alternative investment manager with over US$4 billion in assets under management, to support with the development and implementation of world-class environmental and social management systems (ESMS) for each of their investment divisions, including private equity, infrastructure, development impact and fund of funds – comprising some 20 separate funds. This included developing policies, procedures, guidance documents and a series of management, monitoring and reporting tools that can be applied at a portfolio company, fund, investment division and overall business level. The ESMS’ were designed to align with requirements of leading international DFIs, the UNPRI and the Sustainable Development Goals.
IBIS were appointed to undertake an E&S due diligence of an Africa focussed renewable energy platform with several active wind, solar and biofuels projects, a further 450 MW of projects close to financial close, and an early project pipeline of 2.8 GW. The E&S due diligence comprised site visits of active and planned projects in Southern and West Africa, management interviews, E&S compliance assessments, and management system reviews (at a platform and project level). In addition, a detailed assessment of socio-economic development activities and stakeholder risks and opportunities was performed. A high level review of E&S risks was undertaken of early pipeline projects.
IBIS was appointed by a North African based Private Equity firm, supported by a European DFI, to undertake resource efficiency assessments of portfolio company operations across Sub-Saharan Africa in the manufacturing, agriculture, food & beverage and retail sectors. The assessments aimed to identify and quantify energy, water and waste reduction opportunities. For most assessments IBIS were able to identify opportunities with significantly positive NPV values and short (< 2-year) payback periods. On average a >15% reduction of savings, particularly on energy, were identified. As part of these projects, IBIS also undertook resource efficiency training for over 30 investment officers. The objectives of the training was to create basic awareness on resource related issues (energy, water and waste); understand the key fundamentals for effective management and performance of resource efficiency; and present and discuss practical exercises and case studies. In addition, IBIS designed a tool to screen portfolio companies for potential resource efficiency improvements.
IBIS was appointed to develop an E&S Management System (ESMS) and Corporate Social Responsibility (CSR) Strategy for a leading Malagasy bank. IBIS undertook a full Gap Analysis of the existing E&S management policies and procedures against the IFC Performance Standard and World Bank Group Note on FIs; developed a tailored E&S management system framework and prepared the E&S Management System Manual incorporating various policies and procedures. IBIS led training sessions for front office, credit and investment, risk, HR and ESG personnel to support implementation. The project was undertaken as part of a Technical Assistance from a major European DFI.
IBIS undertook an E&S Due Diligence of one of the largest banks in Morocco with assets >US$ 30bn and with operations in 18 African countries. The review focused on the bank’s E&S management system (i.e. E&S categorization criteria, E&S procedures in transaction processes, E&S Due Diligence process, E&S covenants used in legal agreements, grievance mechanisms, E&S Performance Reporting, Human Resources and Social Policies) and a critical assessment of the bank’s Impact finance products (i.e. Green Loans for resource efficiency, water or waste management projects; Green Bonds and Loans for women entrepreneurs).
This project involved the development of custom-built ESG management systems to support the integration of ESG into investment processes and decision-making for alternative credit and traditional credit funds of a major Africa-Asia focused financial services group. This included development of an ESG Policy and Management System Framework for the organisation, with tailored procedures, guidance documents and tools for each of the underlying funds based on their specific investment approach and mandate. The system also includes monitoring and reporting tools for efficient tracking of investment ESG performance over time including outcomes of any ESG initiatives being driven by the organisation. The ESG management systems were designed to minimise the exposure of investments to ESG factors that could result in increased credit risk or default and in so doing, enhance the long-term sustainability of the investments from both a financial and social return perspective.
IBIS was appointed to develop and integrate Impact considerations into the investment process of a specialised SRI fund managed by of one of South Africa’s largest diversified financial services groups. This entailed undertaking a review of fund documentation, facilitating workshops with key members of the management team, and establishment of a ‘Theory of Change’ for the fund and a selection of its existing investments. A tailored Impact Policy and Impact Approach underpinned by an Impact Management and Measurement Framework was prepared and tools to support Impact screening of new investments and monitoring of existing investments against established impact KPIs were developed. IBIS were appointed on a retainer basis to support the successful implementation of the impact elements and the ongoing performance of the fund in this regard.
IBIS provides ESG advisory support on an on-going retainer basis to an alternative investment firm specialising in retail and commercial property development in sub-Saharan Africa. IBIS’ role is to provide oversight of ESG management and performance of the various portfolio investments to ensure they are in line with the requirements of the IFC Performance Standards and World Bank Group EHS Guidelines, particularly with respect to construction safety, contractor and labour management, stakeholder engagement, environmental pollution and compliance with local regulations. IBIS’ role includes regular site visits to monitor project progress and performance, training and capacity building of construction contractors and local ESIA/OHS practitioners, incident investigation, updating and maintenance of the fund ESMS, and internal and external ESG reporting.
IBIS were appointed to review the annual ESG Report and ESG data gathering and review processes of a fund manager with one of the largest pools of third-party capital in Africa. The project included assessment of both the content and structure of the report as well as reviewing the approach for collecting and reporting of ESG data. The aim was to assess whether there were any gaps and areas for improvement with respect to the existing reporting system compared to other leading PE firms and international investor standards. This included, amongst other aspects, a review of what KPIs are reported, how performance is interpreted and communicated to both internal and external stakeholders. IBIS provided a prioritised list of recommended actions to improve the data gathering, review and reporting process and report structure going forward.
SUNREF is the AFD Green Finance Label (www.sunref.org/en/) and offers banks special partnership conditions to allow them to take advantage of the opportunities of green finance. About 70 partner banks are part of the program, located in Southern Africa, Eastern Africa, Western Africa, North Africa, Turkey, India, China and Brazil. Over EUR 2.5 billion in loans has been allocated by AFD and EUR 1,2 billion has been disbursed. As part of the second SUNREF workshop organized in Mauritius, IBIS ran a comprehensive training programme to 15 banks on E&S risk management including facilitation of experience sharing, case studies and role play.
IBIS has been retained by a leading agriculture investment fund manager for the last three years to provide specialist E&S support associated with their portfolio of agricultural investments across Africa. IBIS’ role ranges from rapid screening assessments of proposed investments early in the investment process, E&S due diligence, annual environmental and social monitoring, and responding to ad hoc queries raised by portfolio companies and/or investment analysts. IBIS has also developed an ESMS tool-box to enable quick system implementation and better and more consistent management of E&S risks across the investment portfolio.
2018 was a year of paradox. The scientific signals of global warming are significantly stronger. The frequency, intensity and cost of weather impacts escalates. But the backtracking and general malaise from global politicians on climate change increases. Despite this, we are seeing market responses, driven by civil society and the private sector.
Customers have tremendous power in the business-to-business (B2B) sustainability world. Just by asking questions of their suppliers, customers send powerful signals about what matters. This article published by IBIS Director Jeremy Soboil and Non-Executive Director Scott Nadler on sustainability and the supply chain.
Often sustainability professionals are caught in an unending reporting cycle and before they know it are preparing for next year's sustainability report before they have had a chance to do anything else. In this piece published on Bizcommunity.com IBIS Director, Simon Clarke discusses some of the main reporting trends and shares some ideas on what companies can do to stay ahead.
If you’re passionate about creating a corporate culture that promotes financial and human well-being while protecting the environment, let’s meet.
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