At AFIG Funds, we believe that incorporating sound Environmental, Social and Governance (ESG) management practices into our core procedures will allow us to transform ESG risks into opportunities, for ourselves and our portfolio companies. With this commitment, we seek to demonstrate our belief that environmental, health and safety, and social compliance issues are not just a matter of fulfilling investors’ requirements but constitute an essential part of our investment philosophy which will enable us to achieve superior shareholder performance through environmentally and socially sustainable operations.
ESG is an integral part of our investment process
Identification of E&S issues in the opportunity memo
Preparation of E&S Due Diligence and the E&S Action Plan (ESAP)
Decision about an investment opportunity from the IC which will take into account the E&S
Signing of shareholder’s agreement considering E&S clauses
Ownership & Monitoring
Preparation of E&S quarterly and annual reporting to communicate to investors
Ensure that all investment documents have appropriate ESG clauses
Having partnerships with external institutions is a key practice to always stay aware of new trends, and thus upgrade our framework. Integrating responsible investment networks also allows us to share good practices with our peers and sharpen our ESG risk management strategy.
AFIG Funds is committed to the UN-PRI, Principles for Responsible Investments.
This decision is in line with our engagement to create value add for our sponsors and to the business environment in general.
We are proud members of the GIIN 1st network on Impact Investing in the industry.
We participate in the Blended Finance Working Group and are part of the Gender Lens Investing Initiative.
How AFIG Funds contributes to the UN Social Development Goals
We have mapped the Sustainable Development Goals according to their significance to AFIG Funds and our ability to influence or control them.
Our Contribution to the Selected Targets
- Our investments have been used to foster diversification and technological innovation in sectors such as agribusiness, FMCG. Our ESG Due diligence process looks deeply into the human rights criteria including child labor and any human trafficking issue.
- We invest in banks to strengthen the banking systems and access to final services to public.
- We track women in employment and women in management in all our companies and through our involvement at the board level, we ensure that our portfolio companies develop strategies to work towards more gender equality.
- We track women in the boards. Of note, one of our portfolio companies has a female CEO.
- One of the most common non- compliance during ESG due diligence is linked to wastewater management. One of our portfolio company has finalized in 2018 the construction of a wastewater treatment plant and has undergone the quantification of its solid waste.
- In 2018 for the 1st time we have introduced CO2 emissions reporting for all of our portfolio companies.
- In two of our prospective investments, we have included in the budget the implementation of a wastewater treatment plan.
- Our CIO participated in “Private Investment for Climate” conference organized by the Green Climate Fund (GCF). He participated in two panels.
- Two of our portfolio companies implemented the use of photovoltaic panels at the wastewater treatment plant.
Anti-Money Laundering & Counter Terrorist Funding
AFIG Funds is committed to complying with its legal and regulatory responsibilities in relation to Anti-Money Laundering & Counter Terrorist Funding (“AML/CTF”) laws wherever AFIG Funds operates. In the United Kingdom and United States, AML/CTF policies include but are not limited to the Proceeds of Crime Act; Anti-Money Laundering and Counter-Terrorism Financing Act; Anti-terrorism, Crime and Security Act; Money Laundering Regulations; Counter Terrorism Act; and System and Control (SYSC) Rules of the FCA Handbook.
AFIG Funds is committed to providing high quality services and protection to our staff, portfolio companies, LPs, and funds. The Company’s AML/CTF policy supports this vision with the aim of providing its investors, portfolio companies, and intermediaries with strong, stable and sustainable returns by helping to maintain the financial stability of the Company. We also aim to also give our staff, LPs, and portfolio companies confidence in the strength and integrity of our compliance with legal and regulatory requirements as they pertain to the nature of our business, activity and behaviour, transactions and delivery channels, and the political exposure of our work. AFIG Funds is committed to undertaking a holistic assessment and obtain a holistic understanding of the AML/CTF risks associated with the management of our funds.
Any person who believes that AFIG Funds or its staff are involved in money laundering and terrorist financing is encouraged to report their concerns to the MLRO, through the contact form.
Anti-Bribery and Corruption
AFIG Funds is committed to complying with all applicable anti-bribery and anti-corruption laws, including but not limited to the U.S. Foreign Corrupt Practices Act (“FCPA”), the U.K. Bribery Act (“UKBA”), and all applicable anti-bribery and anti-corruption laws where AFIG Funds operates. It is a core aspect of our mission to act with integrity in all of our operations. The Board of Directors of AFIG Funds expects all employees to comply with both the letter and spirit of the law.
We will not pay or procure the payment of a bribe or unlawful fee to encourage the proper performance of a task or one which is intended or likely to compromise the integrity of another. We will not accept any payment, gift or inducement from a third party which is intended to compromise our own integrity. AFIG Funds has issued a detailed Ethics Policy to all employees, to ensure that the company’s commitment to integrity and legal compliance is followed, including procedures dealing with anti-bribery, conflicts of interest, and other important matters. When contracting with a third party we will insist that they acknowledge our commitment to good governance and that they in turn require the same high standards of those they engage.
Any person who believes that AFIG Funds or its staff are involved in bribery and corruption is encouraged to report their concerns to the MLRO, through the contact form.
AFIG Funds regards the reporting of any instance of bribery, Suspected fraud, corruption, Environmental or Social violation as well as any misconduct of the employees or consultants a legitimate example of ‘whistleblowing’. Suspected fraud and corruption at AFIG Funds, a fund managed by AFIG Funds, or a Portfolio Company, as well as allegations regarding misconduct including Critical Environmental and Social violations of employees or consultants can be reported by submitting a written report. Anybody, within or outside the Organization, may report fraud, corruption and misconduct.
All matters reported will be handled by the Money Laundering Reporting Officer for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of AFIG Funds or Portfolio Company countries off operation.
The information that you provide must be truthful, accurate and given in good faith.
Reports of fraud, corruption and misconduct may be provided directly to the Money Laundering Reporting Officer, through the Contact Form
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