Naidoo says, “Investing for impact and sustainability can be driven more rapidly through alternative investments than listed entities. We have seen quick and profound successes from our Private Equity, SME Debt and Infrastructure teams. Much of our early impetus has come from those areas.
“Driven to reduce inequality in South Africa, the Investor’s Legacy SME Debt Fund has provided finance to small and medium businesses and, in the process, protected or created thousands of jobs. Investing in the Devland social housing project in Soweto is a great example. The construction of 26 three-storey buildings of 870 one-, two- or three-bedroom rental apartments has helped to facilitate housing in a part of the rental market that is vulnerable and underserved. As a ‘green certified’ project, Devland will save 20% in building electricity and 20% in water,” he says.
Another project with a tangible impact is Sanlam Investments’ Private Equity team’s investment in Absolute Pets. The specialised pet food and supplies retailer expects to open at least 15 new stores next year, creating three to four new jobs per store. The investment also helped secure the jobs of the existing 370 full-time staff members.
The Sanlam Investments Sustainable Infrastructure Fund was launched in September 2021 with the goal of investing in local projects for market development and job growth. With an emphasis on economic development and environmental sustainability, the team has transactions worth approximately R750 million in the pipeline.
Notably, the Bokpoort Concentrated Solar Power plant is one of the first concentrated solar power projects under South Africa’s Renewable Energy Independent Power Producer Programme. The plant has 50 MWe net power output, but because the project is equipped with thermal storage, the plant can provide electricity to the national grid for up to nine hours after sunset.
Naidoo concludes: “The past two to three years have been seminal for us. Not only is our commitment to investing for good coming through externally, but also internally, with a series of staff-driven sustainability projects. These include a roof-top vegetable garden at our Tygervalley offices as well as vegetable gardens at Valley Pre-Primary and Klippies Kids Pre-School, feeding over 600 children daily, and making an impact on the communities in which we operate.
“In the National Development Plan, it states that we have inherited a mixed legacy of inequalities in South Africa. In navigating a new world to create positive outcomes and mitigate the negative ones, asset managers need to work together with the public sector and each other to change the narrative and alter the course of history. As 2050 and net zero rapidly approach we look forward to playing an increasingly meaningful role every year going forward.”
Download the full Sustainable Investments and Impact Report 2022.
*Please note this number is correct in the online version of the report. The print version refers to all proxy votes over the past few years.