LET’S PICTURE A WORLD WHERE ESG ADDITIONALITY* BECOMES THE NORM

What would Africa look like if ESG strategies were implemented to create a positive impact instead of focusing solely on external rating positions?

Our resource-rich continent would be a world leader in championing green energy solutions and impact investing. We would be powering our economies through renewable energy sources like wind, water and solar. We would be improving the conditions of our communities, especially the youth. Our people would be safely housed, and our infrastructure built to be disaster-proof. Our population insured so their lives would be less vulnerable to setbacks. Our economies growing, and our education systems giving our children the confidence to live meaningful lives of purpose.

This is the Africa we dream of at Sanlam. This is the Africa that is possible if we prioritise ESG additionality. Suppose we go beyond tick-box compliance and focus on partnerships that create tangible and sustainable outcomes. Now is the time for collective will and action.

The Sanlam Group is a purpose-led organisation, and far advanced on our journey as a pre-eminent impact investor. We are driven by our promise: to help all Africans to live with financial confidence.

Our ESG journey is not a new one – perhaps the terminology has changed, but we’ve been committed to investing in communities and the environment for more than 100 years and have always employed the strictest governance procedures. While the term additionality – investing to achieve or build something that would not have happened without our funds – may be new, it is part of our group’s DNA.

We’ve entered into this partnership with Intellidex and Business Day so that we can play a meaningful role in measuring how companies are faring in their environmental, social and governance (ESG) imperatives. We believe the inaugural Sanlam ESG Barometer will be pivotal in pointing people and companies in the right direction. We want to encourage listed companies to make investment decisions based on the impact those choices will have on the environment and society and to motivate businesses to put ESG strategies in place that are designed for impact, not just compliance. We also want to create a dialogue so we can learn from each other and build better strategies in the process.

We are excited about the possibilities that the Sanlam ESG Barometer will create. Listed companies are in a uniquely powerful position to make an impact. We know that by conducting this research year-on-year, we’ll set a benchmark and be able to celebrate tangible progress.

We believe there remains an innate desire among many Africans to lift one another. There’s so much hope and optimism on the continent. Let us each do our part to put ESG first. To do everything in our power to earn the social and environmental returns that’ll create a continent we’re proud to hand to the next generation.