Case Study

    Sustainability reporting solutions that give you the edge

    Facing increasing pressure from its stakeholders, including from its own funders, a major African based investment group appointed IBIS Consulting to assist with its sustainability performance reporting. The fund manager was also concerned about its carbon impact, both for current and future investments.

    IBIS’s team of specialists reviewed the scope of the client’s investments and developed an easy-to-use and practical solution to capture material sustainability information.  Because the work was driven by a team of Environmental Social Governance (ESG) and reporting specialists, focus was placed on the detailed nature of this reporting in a way that makes sustainability indicators accessible and understandable at both a fund and portfolio investment level. The tools developed will ensure that meaningful sustainability information is reported both internally and externally consistently and with full transparency.

    The IBIS team also developed a simple carbon calculator tool that measures the carbon impact of its investments on a quarterly basis.  Additionally, the tool assists the business in forecasting emissions of future investments, giving our client a competitive edge and more holistic viewpoint to support decision making.  This has enabled carbon impacts and the climate change much easier for the company to understand, thereby laying a foundation for a culture of sustainability in the organisation, moving forward.

    Talk to us to find out how IBIS can provide solutions to your sustainability and carbon emission reporting requirements today.

    Case Study

    Gender-linked Bond Second Party Opinion Verification

    A South African industrial group commissioned IBIS to provide a Second Party Opinion to verify the alignment of their first Gender-Linked bond framework with the International Capital Market Association Sustainability-Linked Bond Principles, a first for Africa. The purpose of the verification was to ensure that the bond framework complied with ICMA’s sustainability-linked bond requirements and to provide specialized guidance on incorporating gender considerations. IBIS’s scope of work included selecting gender key performance indicators, calibrating sustainability performance targets, defining gender bond characteristics, establishing bond reporting, and conducting gender bond verification.

    Case Study

    E&S Due Diligence of an Africa-wide Renewable Energy Platform for a leading UK based Private Equity Company

    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.

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    Developing Impact Reports for an Infrastructure Fund

    IBIS was appointed to support the development of the first, second and third annual Impact Report for an Infrastructure Fund. The project first included support to articulate the Fund’s impact statement, objectives and commitments through an impact visioning workshop. The Fund’s impact objectives were then used to frame the development of a reporting framework and to collect relevant data from the funds portfolio companies. Case studies were also developed and reported to illustrate cases where significant impact against their objectives is already being achieved. The first Impact Report was released in October 2020.

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    Impact Management and Measurement System for an Institutional Investor in South Africa

    IBIS undertook a review of an institutional investors’ ESG and Impact management systems against international good practice. The purpose for the review was to ensure that its practices are aligned to emerging trends and developments within these spaces, and the way in which these should be integrated into its investment approach, particularly in relation to monitoring and evaluation of performance against set ESG and Impact objectives.

    Case Study

    E&S Due Diligence of a major Moroccan Bank with operations in 18 African countries

    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).

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    The impact of an Agricultural Investment in West Africa through the assessment of a multinational bank’s performance, practices, and contributions

    IBIS was appointed by an agricultural fund to undertake an ex-post rapid appraisal of one of its investee companies; a multinational West Africa-focused bank seeking to expand agri-export trade finance facilities. The appraisal will determine the extent to which the Company’s agri-clients are experiencing increases in agricultural production and productivity levels, are creating employment opportunities, are experiencing and contributing to increases in farm and overall household income, and improving the living and working conditions of farmers and their employees. The appraisal also will determine the contributions of the fund and company to the above outcomes. The appraisal will retrospectively construct a baseline considering that no ex-ante appraisal has been undertaken.

    Case Study

    Development of bespoke ESMS for Africa’s largest Alternative Investment Manager

    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.

    Case Study

    E&S Training to 15 Banks as part of the SUNREF (Green Finance Label) Program

    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.

    Case Study

    Impact Due Diligence in Multiple Sectors and Geographies

    IBIS has carried out approximately 20 Impact Due Diligence processes, predominantly alongside ES Due Diligences. Due Diligences have covered multiple sectors over a range of geographies, taking into account reviews of both funds and individual target investments. Due diligences have sought to assess alignment with investors Impact priorities, to identify Impact opportunities which may yield commercial value for the target and the investor, and to serve as baseline assessments against which progress can be measured going forward.

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    Development of customised ESG Management Systems for a large Fixed Income Investment Manager

    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.

    Case Study

    E&S DUE DILIGENCE OF A PROPOSED INVESTMENT INTO AN ASIA AND AFRICA FOCUSED PE FUND BY A LEADING EUROPEAN DFI

    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 emerging market (Asia and 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 to various company locations. 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.

    Case Study

    Assuring Alignment with Impact Principles for a Private Equity Firm

    As a signatory of the Operating Principles for Impact Management, a Private Equity firm engaged IBIS in order to verify the alignment of its Impact practices with the Principles. The assurance process entailed a detailed review of the disclosure statement, interviews with key personnel and a detailed walk-through and review of all documentation relating to the IMM system, including the way it interacts with the investment selection and management process more broadly. A limited assurance engagement was conducted in accordance with the International Standard on Assurance Engagements 3000 (Revised).

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    Resource Efficiency Assessments for a North African Private Equity Company and leading European DFI

    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.

    Case Study

    Development of an E&S Management System for one of Madagascar’s largest Commercial Banks

    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.