Responsible investment in the portfolio
In the high growth markets in which Actis operates, ESG factors can have a material impact on our companies. Systematic consideration of ESG matters is necessary for us to fulfil our fiduciary duty; our Responsible Investment team therefore plays a key role, actively helping to build successful, profitable and resilient businesses.
Whilst value drivers across our private equity portfolio are often sector specific, business integrity and corporate governance are common to all. We use a portfolio-wide business integrity toolkit and Corporate Governance Tracker to measure performance in these key areas, supplemented by sector and investment-specific plans to drive ESG performance improvements.
Many of Actis’ energy investments are wholly owned platforms. We are thus able to ensure there is a Head of ESG is appointed at the platform level and to establish an ESG sub-committee to the Board. We periodically host meetings for portfolio company ESG managers globally to share best practice and discuss commonalities.
Established in 2011, the Actis Energy Impact Model assesses the value drivers in all our energy investments across six categories: Finance, People, Social/Community, Infrastructure, Environment and Governance. It helps us track a company’s performance over time against these focus areas, and develop new targets as initial action points are progressed.
Responsible investing is fully integrated into Actis’ Real Estate investment strategy. It’s our policy to develop A-grade assets of institutional quality that benefit employees, communities and markets in which we operate. Our ‘green by design’ approach delivered the first LEED* certified retail mall in East Africa, the first commercial building in Nigeria to achieve LEED certification in both design and construction, and the first green-rated building in Ghana.
In 2015, Actis developed a Real Estate Impact Model that assesses a company's progress in six categories – returns; environment; socio-economic impact; health, safety and security; governance; and urban development. It enables us to track and measure changes in performance over time and identify the greatest opportunities for improvements.
*Leadership in Energy and Environmental Design