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Kudos Africa (delisted)

Service Provider Reporting Framework 2017

You are in Strategy and Governance » Responsible investment policy

Responsible investment policy

SG 01. Responsible investment policy

01.1. Describe how your organisation’s philosophy incorporates environmental, social and governance factors, and the link to your business offerings.

          Our stated business purpose is to increase investment into responsible and sustainable African enterprises by encouraging companies to improve and communicate about their sustainability performance. To this end, we have developed a rating methodology and service offering that assesses and verifies ESG performance in unlisted businesses in Africa and may be expanded to include other asset classes. We also provide capacity building to companies and investors on integration of ESG into business strategy and processes.
        

01.2. Indicate whether you have policies that formalise the incorporation of your beliefs in your business offerings.

01.3. Indicate the components/types  of your policy

Policy components/types

01.4. Indicate how these are put into practice internally across the organisation.

01.5. Additional information [OPTIONAL]


SG 02. Publically available policies

02.1. Indicate which of your policy documents or statements (if any) are publicly available. Provide the URL and an attachment of the document.

Policy or document name

02.2. Additional information. [OPTIONAL]


SG 03. Norms used to develop policies

03.1. Indicate what standards you have used to develop your organisation’s policies. Tick all that apply.

          Global Reporting Initiative
        
          Equator Principles
        

SG 04. Policy offerings to clients

04.1. Indicate whether you offer any of the following policies to clients.

Off the shelf
Tailored
Asset class-specific RI guidelines
Sector-specific RI guidelines
Screening/exclusions policy
Engagement policy
(Proxy) voting policy
RI guidelines set out within the Investment Policy Statement (IPS)
RI guidelines set out in a freestanding RI policy
Multi-year RI implementation project plan
Conflict of interest management policy
Stockbroker allocation policy
Securities lending policy
Other, please specify (1)
Other, please specify (2)
Other, please specify (3)
None of the above

04.2. Provide a brief description of the key elements, any variations, or exceptions applying to these policies.

We assist in developing RI policies based on an investor's investment beliefs and goals, as well as in line with PRI technical guidance. In the South African context we ensure alignment with Regulation 28 of the Pension Fund Act, the Code for Responsible Investment in South Africa (CRISA), and the Guide to Responsible Investment for Asset Owners.


SG 05. ESG/RI in business offerings

05.1. Describe how you include ESG/RI factors as an integral part of your business offerings.

Business area

Advisory and Consultancy

How you include ESG/RI factors

ESG/RI is core to KudosAfrica's business purpose. To this end, it is embedded in our ESG rating and verification services, and in the advice and capacity building provided to investors and companies. Our key focus is helping clients to embed ESG in business strategy and systems.

Research and Data Provision

How you include ESG/RI factors

Our core research and data offering is our unique rating and verification methodology for assessing ESG risk and performance in unlisted, privately owned African busniesses. We assess companies based on approximately 100 self-assessment questions related to ESG, and classified according to four themes: commitment, efficiency, resilience and innovation. We then score companies based on 4 progressive levels of overall performance: i) awareness, ii) performance, iii) results, and iv) leadership.

Other, specify (3)

          Our staff provide training on ESG/RI to pension fund trustees
        

How you include ESG/RI factors

The training for trustees focuses on the fundamentals of RI, including development of policies.


SG 06. Outsourcing of services (Private)


SG 06.2. Outsourcing of services (Not Applicable)


SG 07. Providing training/education

07.1. Indicate whether you provide training/educational services on ESG/RI. Tick all that apply.

07.2. Describe the main components of your training/educational services on ESG/RI and any variations depending on the group you provide training/education to.

Two KudosAfrica staff are trainers for the ASISA (Association for Savings and Investment South Africa) Academy. They have designed and deliver a 1-day training to pension fund trustees. This focuses on the foundations of RI, different RI strategies, the global context, and local drivers for RI adoption, as well as practical guidance in the development of RI policies and systems. 


SG 08. Level of involvement in collaborative organizations and/or initiatives

08.1. Select the collaborative organisation and/or initiatives of which your organisation is a member, or in which it participated during the reporting year and the role you played.

Collaborative Organisation/Initiative

Provide a brief commentary on the level of your organisation’s involvement in the initiative [OPTIONAL]

          We actively promote the PRI through our marketing, through our approach to ESG/RI integration in our own business, and through our engagement with clients.
        

08.2. Additional information. [OPTIONAL]


SG 09. Applying, advancing and promoting the PRI principles

09.1. Describe how your organisation applies, advances and promotes the PRI Principles.

We actively promote the PRI through our marketing (website and email marketing), through our approach to ESG/RI integration in our own business and services, and through our engagement with clients.

09.2. Highlight whether there are any ways that your organisation would like to engage further with the PRI. [OPTIONAL]


SG 10. Actions taken to promote responsible investment

10.1. Indicate which of the following actions your organisation has taken to promote responsible investments, independently of collaborative initiatives.

10.2. Additional information. [OPTIONAL]


SG 11. Long term trends

11.1. Indicate which of the following long-term trends are addressed in your product outputs.

11.2. Explain how this long term trend affects your product outputs.

Our rating methodology assesses the awareness and readiness of unlisted businesses to respond to climate change, as well as asking about companies' efforts to manage and reduce their carbon footprints. 

11.2. Explain how this long term trend affects your product outputs.

Our rating methodology assesses the awareness and readiness of companies to manage risks associated with resource scarcity, to increase resource efficiency, and to invest in renewable resources. 

11.2. Explain how this long term trend affects your product outputs.

Our rating methodology assesses ways in which companies are employing new technologies in innovative ways to increase their efficiency and improve their social and environmental impacts.


SG 12. Business certifications/accreditations (Private)


SG 13. Interaction with asset owners

13.1. Indicate whether you interact with asset owner clients.

13.2. Indicate the typical frequency and type of interactions with your asset owner clients.

Type of interaction

Frequency

13.3. Tick boxes across level of employment of investor contact (C-level, PM etc.) and subject areas typically addressed with the contact(s).

Level of employment

Subject area(s)

          ESG/RI issues, trends and policy development
        

Subject area(s)

          Policies and systems for assessing ESG in unlisted, privately owned business in Africa
        

SG 14. Aligning approach with investor goals

14.1. Describe how you align your organisation’s philosophy on and approach to ESG/RI with investor goals.

          Our stated business purpose is to increase investment into responsible and sustainable African enterprises by encouraging companies to improve and communicate about their sustainability performance as a way to attract RI-minded investors. We have developed a rating methodology that aligns with investor goals to reduce ESG/RI risks in an emerging market context, align with international good practice in RI, and to demonstrate return on investment (ROI) as a result of ESG improvements.
        

14.2. Additional information. [OPTIONAL]


SG 15. ESG recommendations not aligned with investor goals

15.1. Describe what steps you take, if any, when your ESG recommendations are not in line with investor goals.

          We encourage our clients to adopt good practice in ESG/RI. Wherever possible we aim to demonstrate the business case for ESG/RI to achieve greater buy-in and continuous improvement. Our greatest impact is through educating investors and companies on the global ESG trend.
        

15.2. Additional information. [OPTIONAL]


SG 16. Seeking feedback from clients

16.1. Indicate whether you seek feedback from clients on your RI/ESG services and product offerings

16.2. Describe how you use this feedback on your RI/ESG services and product offerings.

We ask our clients for practical feedback on the suitability of our products and services to help them achieve their ESG/RI goals. We incorporate this feedback into the ongoing design and development of our offerings.


SG 17. Managing conflicts of interest

17.1. Indicate whether your organisation has a policy for managing potential conflicts of interest.


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