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8 Miles

PRI reporting framework 2020

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Overview

PE 01. Description of approach to RI

01.1. Provide a brief overview of your organisation’s approach to responsible investment in private equity.

Our responsibility is to deliver improved environmental, social and governance (ESG) outcomes in the creation of market leading African companies. We do this by working closely with our portfolio companies and their stakeholders to create value through implementing sustainable business practices.

From the time of investing, we work with our portfolio companies to set expectations and agree ESG action plans. The journey from identifying and managing risks to value creation is a shared exercise we undertake with our portfolio companies.

8 Miles Code - The 8 Miles Code for Responsible Investment (“8 Miles Code”) explains how we embed ESG considerations at the heart of our investment decision, and our value creation approach post-investment. 8 Miles’ Social and Environmental Management System (SEMS) sets out measures for monitoring, responsibilities and governance to ensure effective implementation. The 8 Miles Code requires consideration and legally binding implementation measures to improve ESG outcomes throughout the lifetime of the investment, with mandatory Post Completion Action Plans (PCAPs).

All Portfolio Companies are bound by shareholder and subscription agreement (SSA) commitments. We recognize the value of the IFC’s Policy on Environmental and Social Sustainability, and specifically the IFC’s Performance Standards, to communicate our focus on outcomes and as a framework for assessing and managing risk management

 8 Miles aims to build strong, sustainable businesses that will deliver good returns to investors and contribute to the economic development of the countries in which the Fund invests.

8 Miles believes that its strong commitment to ESG issues is key to delivering this vision.

The Firm intends to take the lead in applying best ESG practice in Africa.

The 8 Miles Code outlines the Firm’s philosophy towards sustainable and responsible investing. 8 Miles will identify and manage ESG issues throughout the investment process. The mechanism by which it will achieve this is the Firm’s Social and Environmental Management System (“SEMS”).

The 8 Miles Code can be summarised as follows:

ESG pre-investment - the Firm’s investment analysis will anticipate the operational change programmes and the ESG impact that will result from an investment. Where necessary, impact mitigation plans will be prepared as part of the investment process.

ESG governance - representatives of 8 Miles will request portfolio companies to perform ESG reviews and improvement plans. These will be carried out at an appropriate level of detail to ensure that each portfolio company complies with international norms and meets local laws and standards as a minimum and has a plan to work towards achieving the IFC Performance Standards.

Environment - the investment team will seek to ensure that it has a full understanding of the environmental impact of a target or portfolio company’s operations. This will include a formal environmental impact assessment in cases involving significant loss of biodiversity or habitat, climate change, water or air quality, substantial waste and other cases where 8 Miles deems the negative impact could be significant. The Firm intends to ensure that companies operate in compliance with international norms and locally acceptable standards and have a plan to work towards achieving the IFC Performance Standards.

Social issues - the investment team will seek to ensure that it has a full understanding of the portfolio company’s business activities and how employees, contractors, the local community and others are affected by its operations. 8 Miles will not condone forced labour or harmful child labour within portfolio company operations and will seek to avoid such practices. It will also seek to ensure that portfolio company operations take into account the IFC Performance Standards. The Firm intends that the wages of employees of portfolio companies meet or exceed industry or national legal minima and that all employees are treated fairly in respect of recruitment, career progression and in their terms and conditions of employment.

Health and safety - the investment team will establish the risks from work activities and introduce measures to reduce those risks where possible, in order to comply with local health and safety law as a minimum, and has a plan to work towards achieving the IFC Performance Standards.

Business integrity - portfolio companies will be required to operate in accordance with local and applicable international laws and good practice, including those intended to prevent extortion, bribery and financial crime. ESG issues will be included in relevant corporate documents.

Training - management of portfolio companies will be trained in the implementation of good ESG practice within their businesses.

Reporting and progress - 8 Miles will be transparent with its investors regarding ESG issues, opportunities and action plans, and report on progress.

ESG Accountability - 8 Miles holds quarterly ESG committee meetings which are attended by Limited Partners (LP’s). These committees review and sign-off portfolio company ESG action plans, and 8 Miles ESG policy and procedures.

 


PE 02. Investment guidelines and RI

02.1. Indicate whether your organisation’s investment activities are guided by a responsible investment policy / follow responsible investment guidelines.

02.2. Describe how your organisation outlines expectations on staff and portfolio companies’ approach towards ESG issues in investment activities.

Our responsibility is to deliver improved environmental, social and governance (ESG) outcomes in the creation of market leading African companies. We do this by working closely with our portfolio companies and their stakeholders to create value through implementing sustainable business practices.From the time of investing, we work with our portfolio companies to set expectations and agree ESG action plans. The journey from identifying and managing risks to value creation is a shared exercise we undertake with our portfolio companies. These expectations are outlined in transaction documentation and through the rights we have as shareholders in the companies. Our ESG team work with portfolio companies throughout their journey, in advisory, onground and through sourcing external providers to enable expecations to be met. 


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