This report shows public data only. Is this your organisation? If so, login here to view your full report.

CDC Group plc

PRI reporting framework 2019

Export Public Responses
Pdf-img

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

          Directors ESR, BI, DI, VCS
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

The board - including its development impact committee (DevCo) - has oversight of responsible investment activities across CDC. For instance, DevCo holds quarterly reviews of CDC's portfolio and pipeline to monitor progress against CDC's responsible investment objectives, and approves CDC's ESG policies. The CEO has ultimate accountability for ensuring that CDC's responsible investment policies are implemented. The CIO and Investment Committee are responsible for making investment decisions. Assessing the ESG challenges and opportunities associated with each proposed deal is an important factor in the decision-making process (with ESG covered prominently in IC papers and discussions).

The Environmental and Social Responsibility (ESR), Business Integrity and Compliance (BI) and Development Impact (DI) teams have the primary responsibility for implementing CDC's Code of Responsible Investing. Meanwhile, the DI team quantify the effect of CDC's investments at the individual investment level and at a portfolio level. DI specialists are also embedded within each deal team, ensuring impact is incorporated into investment theses from an early stage. In 2018, the Value Creation Strategies (VCS) team was formed, which is responsible for oversight of four thematic areas (gender equality, human capital, job quality and climate) alongside a grant facility, CDC Plus. Together, these teams form the Responsible Investment branch of CDC.

In addition, CDC - particularly the Responsible Investment teams - frequently use consultants to carry out ESG research. For instance, the ESR and BI teams regularly use specialist consultants to complete ESG due diligence and monitoring on high risk and / or complex deals, while the DI team use expert advisors to undertake studies on the effect of specific types of investment.

 

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

60 Number

07.4. Additional information. [Optional]

CDC ensures that ESG responsibilities are specified in recruitment adverts for investment roles so that new employees are aware of their role in relation to the Code of Responsible Investing from the very beginning. Training is then provided by the Responsible Investment teams to all new hires on the investment teams.

CDC has a Responsible Investing team consisting of E&S, BI, DI, and VCS. In December 2018, CDC's E&S team consisted of 16 employees who are responsible for ensuring that E&S standards are integrated into all investments. The BI team consists of 9 employees who are responsible for business integrity considerations in CDC's investments. The DI team consists of 20 employees who are responsible for determining the potential development impact of an investment, setting indicators to track it, and implementing projects to maximise it. They then assess CDC's development impact against its organisational objectives. The VCS team had 10 employees spanning the four themes of gender, job quality, climate, and skills and development, plus our Technical Assistance Facility, which reviews grant funding applications and monitors disbursed funds. There are 5 RI team assistants.

I confirm I have read and understood the Accountability tab for SG 07 I confirm I have read and understood the Accountability tab for SG 07

SG 07 CC. Climate-issues roles and responsibilities (Private)


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other C-level staff or head of department

          Directors ESR, BI, DI, VCS
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Dedicated responsible investment staff

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investor relations

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

Responsibilities for assessing ESG performance in CDC's investments is shared between CDC's ESR / BI teams and the relevant investment team. Ensuring that investments achieve development impact is built into senior team performance objectives, and linked to performance payments. 

The investment team is responsible for all aspects of a transaction and so CDC's expectations with respect to responsible investment are an important part of each officer's performance management objectives. To enable investment officers to perform this role, the investment team attend training on E&S and BI matters, including a general introduction shortly after they join the organisation and being invited to other thematic workshops. For instance, the ESR team is developing training for CDC's debt and legal teams on the IFC Performance Standards, and delivered training on the implications of the UK Modern Slavery Act to CDCs legal team. The majority of training is received "on the job" by working with the ESR team on individual deals and undertaking site visits together, however formal training on environmental and social topics was offered to the team over 2018.

In 2018, new IC members began to receive training on responsible investment topics, beginning with gender equality and women's economic empowerment.

08.4. Describe the level of experience board members/trustees/chief-level staff have with incorporating ESG factors into investment decision-making processes.

          CDC’s board has a development impact committee (DevCo) with strong academic and commercial credentials on environmental and social issues, experience at development finance institutions and of impact investing, among other skill sets. The development committee has broad oversight of CDC’s E&S and development impact strategies (including the Code of Responsible Investing), and receives quarterly updates on portfolio performance and responsible investment metrics.
In addition, CDC's CEO, CIO and deputy CIO, COO and board members have previous experience incorporating ESG into the investment decision-making process through previous high-level experience at other responsible investment organisations.
        

Top