Sustainable Investing in Emerging Markets 2016 EMPEA

Tuesday 25 October 2016

Bridging Smart Capital with ESG to Maximize Returns

Sustainable investment practices are transforming private capital investments, demonstrating that returns and a positive impact can - and should - go hand in hand. Benchmarking environmental, social and governance (ESG) best practices can influence investment performance and improve alignment of values. Exits through IPOs and secondary buyers also require demonstrating adherence to ESG standards.

Sustainable investing strategies that address both financial and systemic factors can mitigate the risks that impact an investment’s long-term potential, create resilient value and increase capital efficiencies. Particularly pertinent in emerging markets, which are ripe with opportunity but prone to unpredictability, ESG safeguards investors from uncertainties – i.e., rapidly changing demographics and evolving policy environments - protecting investments even when regulations or market stability are absent.

Sustainable investing has reached a level of maturity where it is clear that, especially in the emerging markets, the debate is no longer about why investing sustainably is critical for business. Instead, the focus is on how to successfully integrate these strategies into investments in order to maximise value and impact – not only for the holding period but for the lifespan of the business. In a 2015 United Nations Principles of Responsible Investment survey, nearly 75% of LP respondents said they were making ESG factors part of manager selection and nearly 85% of GP respondents said that taking ESG into account had helped pinpoint risks and opportunities for value creation.

Register today for FT and EMPEA’s Sustainable Investing in Emerging Markets, and join leading investors across these growth regions to discuss gaining the competitive edge through the implementation of sustainable investment practices at the fund level and within the portfolio company, and why LPs increasingly expect private equity firms to consider ESG factors into their investment strategies.

For more information visit: https://live.ft.com/Events/2016/Sustainable-Investing-in-Emerging-Markets

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Archive > 2016 > October

Blogs

The new IRR - 4 ways to define impact

Last year I posted a blog called “The new IRR - Impact, Risk and Return”. With almost 900 viewers, this blog is my best read post to date and triggered many enthusiastic reactions. In essence, I advocated a new IRR: looking at every investment taking into account its Impact, Risk and Return.

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Towards a more inclusive top 100

"Influential people from emerging market countries make up a far smaller share than emerging markets’ 85% share of the world’s population, their 75% of global land mass or their 55% share of global GDP."

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Impact investing as a stable alternative

“Well, emerging markets were down 3% again today.” This is how an institutional investor kicked off a meeting with one of my colleagues recently.

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4 IDEAS on HOW TO CHANGE FOR IMPACT

The UN Sustainable Development Goals (SDGs) have been widely adopted as a useful framework for impact investing. Really?

The UN Sustainable Development Goals (SDGs) have been widely adopted as a useful framework for talking about impact investing. Really!

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Daar waar het verschil echt gemaakt kan worden

Na het succes van de eerste close van het NN FMO Emerging Markets Loans Fund zijn afgelopen week de eerste investeringen gedaan. Maureen Schlejen, hoofd institutionele relaties NN Investment Partners en Yvonne Bakkum, Managing Director van FMO Investment Management gaan in op de achtergronden van deze succesvolle launch.

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Vlogs, Video's & more

Raising the bar @Harvard

On October 26th, 2017 Yvonne Bakkum lectured impact investing classes at Harvard Kennedy school.
Watch her vlog and share her experience.
Visting Harvard
BNR Newsradio Interview

On November 13, 2017 Yvonne Bakkum was a guest in the studio of BNR newsradio - a well known and renowned Dutch radio station for the business comunity.

The interviewed focussed on impact investing and how investors can create more impact by investing via FMO Investment Management.

Listen to the whole interview (in Dutch) here. BNR News Radio - Zakendoen
Research covering 2000 studies on ESG vs CFP

The search for a relation between environmental, social, and governance (ESG) criteria and corporate financial performance (CFP) can be traced back to the beginning of the 1970s. Scholars and investors have published more than 2000 empirical studies and several review studies on this relation since then. This study extracts all provided primary and secondary data of previous academic review studies.
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More interesting things
Of course there is much more interesting information to find on the web.

Here are some of our favorites:
- SDG - the UN website itself
- SDG Atlas by the World Bank

Some real examples

A catalyst to the underserved

Vistaar Financial Services was the idea of two first-generation entrepreneurs who had witnessed first-hand the lack of both financial and non-financial support for smaller enterprises and businesses across the country. It was clear that a “one-size-fits-all” approach when it came to financing wasn’t sustainable or practical in the long run; to truly help the local economy boom, customized products needed to be offered.

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A sustainable supply chain is a resilient one

The agronomic support provided by Agri Commodities and Finance (ACF) includes efficient fertilizer usage, soil assessment, and post-harvest services like storage and transportation, empowering the farmers with the tools and know-how to maximize their output. One key pillar of ACF is farmer livelihood, as they focus on improving the standard of living for farmers in their supply chain.

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Filling the gap

This project is situated in the south-eastern part of Pakistan in the province of Sindh. Its provincial capital, Karachi, is the largest city of Pakistan and among the world’s largest megacities. The solar project financed by FMO makes use of innovative bi-facial solar panels, which increase total energy generation. This is the first time that bi-facial solar panels are utilized in Pakistan.

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Making the most out of limited resources

The irrigation works of the Olmos Irrigation Project were completed in November 2014. Since then Pampa Baja was able to develop their land in Olmos into fertile soils generate additional substantial employment opportunities for the local community with 500 permanent and 1200 seasonal jobs.

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When being large means you can make a difference

Recently, Access Bank began to broaden its horizon to better service the MSME sector as part of its pan-African growth strategy. For example, the bank expanded its support in the retail segment to support job creation within the local economy, and became a frontrunner in women finance and services.

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Sustainable Investing in Emerging Markets 2016 EMPEA