Africa's sustainable, responsible investment journey of last 10 years

Over the last decade, Africa has witnessed a significant shift towards sustainable and responsible investing. This year's edition of the Africa ESG Forum aims to delve into the continent's journey in this space and explore new ways to sustain these investments. Adrian Bertrand, Head of Africa at Global Networks and Recruitment, discussed the concept of responsible investment and its growing popularity among South African investors. Responsible investment involves considering environmental, social, and corporate governance issues in the decision-making process. Investors in South Africa, including pension funds, fund managers, and advisory firms, are increasingly integrating these factors into their investment strategies and ownership practices. Bertrand highlighted the importance of initiatives such as the United Nations Principles for Responsible Investing (PRI) and the Code for Responsible Investing in South Africa (CRISA). While these frameworks provide guidelines for responsible investment practices, Bertrand acknowledged that there is still room for improvement, particularly in addressing social issues within the country. One of the key concerns raised by Bertrand is the disparity between executive remuneration and the growing poverty levels in South Africa and other parts of the continent. He emphasized the need for companies to be more accountable for their actions and urged investors to actively engage with their fund managers to ensure that their portfolios include socially responsible companies. In terms of policy approaches, Bertrand emphasized the importance of having robust management systems in place to oversee responsible investment practices. However, he also stressed the need for active engagement from investors to hold company management and boards accountable for their decisions, particularly regarding executive pay and broader societal issues. For individual investors looking to promote responsible investment practices within their portfolios, Bertrand advised them to familiarize themselves with the disclosure requirements of initiatives like PRI and CRISA. By actively engaging with their fund managers and trustees, investors can inquire about their responsible investment policies and voting practices on issues such as executive remuneration. Overall, the discussions at the Africa ESG Forum are poised to shed light on the progress made in sustainable and responsible investing in Africa over the past decade. With a focus on enhancing accountability, transparency, and social impact, stakeholders in the region are poised to drive positive change and advocate for a more sustainable investment landscape in the years to come.