Impact | ESG & Sustainability
Why ESG Matters
Environmental, Social, and Governance factors are at the heart of responsible investing. We believe that businesses that operate sustainably, inclusively, and ethically are more resilient, more innovative, and ultimately more successful.
Our ESG commitment goes beyond compliance, it's about partnering with enterprises that generate long-term value not only for shareholders but for society and the planet. We prioritize investments that deliver measurable outcomes, from improving livelihoods and advancing gender equity to driving climate resilience and transparent governance.
Where ESG gaps exist, we work closely with businesses to close them through structured action plans, technical assistance, and hands-on engagement.
Our ESG Framework
Our ESG framework is a practical, structured approach that guides how we assess, invest in, and support businesses. It is designed to:
- Identify ESG risks and red flags early during due diligence
- Highlight impact potential across environmental, social, and governance areas
- Uncover opportunities for operational improvement and value creation
- Ensure portfolio alignment with international best practices and local regulations
This framework is operationalized through our Environmental and Social Management System (ESMS), which defines the tools, procedures, and responsibilities for ESG integration across the investment lifecycle.
ESG in Due Diligence
We embed ESG considerations into the core of our due diligence process to ensure that investment decisions are responsible from the outset.
- All prospective investees undergo ESG screening to assess compliance, risks, and impact gaps using international and local benchmarks.
- We evaluate ESG performance as an integral part of our assessment, focusing on how businesses operate sustainably, treat employees and suppliers fairly, engage meaningfully with communities, and maintain strong governance, transparency, and ethical accountability.
- When significant ESG risks or gaps are identified, we require the development of a formal Environmental and Social Action Plan (ESAP); a targeted roadmap outlining specific actions, timelines, and responsibilities to address shortcomings and achieve compliance. In some cases, investment is deferred until the ESAP is adopted and early milestones are met.
Post-investment, portfolio companies are expected to report on ESG performance and demonstrate continuous improvement.
Climate-Aligned Investment Strategy
We are committed to supporting businesses that mitigate climate change and build environmental resilience. Our approach includes:
- Prioritizing investments in businesses that adopt renewable energy, green technologies, or low-carbon operations
- Supporting emission tracking, footprint reduction, and sustainable resource use
- Encouraging sustainable production methods, adoption of renewable energy sources, energy efficiency, and waste reduction
- Channeling capital into climate-aligned sectors such as clean energy, eco-friendly manufacturing, and regenerative agriculture
Our goal is to ensure that environmental sustainability becomes a growth lever, not a trade-off.
Gender-Lens Investment Principles
Advancing gender equity is central to our investment strategy. Through a gender-lens approach, we:
- Invest in women-led and women-owned MSMEs
- Promote equitable opportunities across leadership, ownership, and employment
- Track key gender metrics such as:
- Representation of women in leadership and on boards
- Female workforce participation
- Existence of inclusive, gender-sensitive workplace policies
We believe that gender inclusion strengthens innovation, culture, and business performance; and we expect our portfolio companies to reflect these values.
Governance & Ethical Standards
Strong governance is essential to building resilient and high-performing businesses. We assess and support companies on:
- Board composition and leadership diversity
- Internal controls and grievance mechanisms
- Financial transparency and regulatory compliance
- Responsible leadership, anti-corruption, and ethical conduct
- Clear decision-making structures and stakeholder accountability
We champion ethical governance and encourage balanced, representative leadership within our investee companies.
ESG Outcomes and Impact Tracking
We monitor and report ESG performance through tailored scorecards that track:
- Greenhouse gas (GHG) emissions and resource efficiency
- Job creation, especially for women and youth
- Inclusion and social impact outcomes
- Governance effectiveness and leadership diversity
- Community investment, and stakeholder engagement
These insights inform post-investment support, and portfolio management, and are reflected in our annual impact reports.
ESG Policy & Resources
Our ESG Policy sets the guiding principles and performance expectations for our investments, while our ESGMS provides the operational framework for how we identify, assess, and manage ESG risks and opportunities across the investment lifecycle. It guides decision-making from initial screening and due diligence through to post-investment monitoring and exit, ensuring that our portfolio companies align with international ESG best practices and deliver measurable impact.
Beyond our portfolio, we are equally committed to practicing what we preach. We embed ESG principles into our internal operations and institutional culture, including continuous training, clear ESG responsibilities across functions, and transparent self-reporting on our performance.