ESG

OUR PHILOSOPHY

As a long-term investor, South Suez recognises the importance of sustainable investing and is committed to promoting sound ESG management practices within its portfolio. Poor ESG management can have substantial negative effects on the financial performance and viability of a business, both in terms of actual operations or through damage to its brand or reputation. Conversely, thoughtful and well-implemented ESG management can enhance profitability and create significant value for investors and stakeholders. South Suez has therefore developed a comprehensive policy on responsible investing that addresses identification, analysis and management of potential ESG risks and opportunities, both before investment and post-investment.

  • South Suez
  • South Suez incorporates ESG issues into its due diligence and decision-making processes.

  • South Suez
  • South Suez will only invest with fund managers that have ESG policies that are in line with the key standards set by the UNPRI.

  • South Suez
  • South Suez will require fund managers to comply at minimum with the legal regulatory requirements in the jurisdictions in which they operate and to work towards relevant international best practice standards.

  • South Suez
  • South Suez will require appropriate disclosure of all ESG considerations by the underlying funds in which it invests.

South Suez Capital

UNPRI

The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices.

In signing the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.

South Suez Capital

IFC Sustainability Framework

Over the years, the IFC’s Sustainability Framework has become globally recognized as a benchmark for environmental and social risk management amongst our fund managers.

We have used this framework to classify our portfolio companies into different ESG risk categories as follows:

  • Category A: Business activities with potential significant adverse environmental or social risks and/or impacts that are diverse, irreversible, or unprecedented.
  • Category B: Business activities with potential limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures.
  • Category C: Business activities with minimal or no adverse environmental or social risks and/or impacts.
  • Category FI: Business activities involving investments in financial institutions.

We closely monitor the category A businesses through their ESG reports which highlight any material ESG issues which the company has encountered. We insist that the fund managers set out appropriate action plans to remedy any situation which is not in line with our ESG objectives.

ESG Management System

We have integrated an ESG Management System into our bespoke Risk Operating System. This allows us to adopt a methodological approach to manage environmental & social risks and impacts in a structured way on an ongoing basis. It also allows us to track specific ESG metrics and performs investment analysis from an ESG perspective.

Looking for an investment partner?