Impact & returns

Operating Principles for Impact Management Alongside founding signatory – the International Finance Corporation – Phatisa was one of the first 60 adopters to the Operating Principles for Impact Management (the Impact Principles). The Impact Principles provide a reference point against which the impact management systems of funds and institutions may be assessed. They draw on emerging best practices from a range of asset managers, asset owners, asset allocators and development finance institutions. The Phatisa Disclosure Statement affirms that our firm and investment portfolio, including (i) impact management systems; (ii) policies and practices; and (iii) investment services are managed in alignment with the Impact Principles.

The United Nations Sustainable Development Goals (SDG) form a collection of 17 global goals designed to be a blueprint to achieve a better and more sustainable future for all. To adequately respond to the challenges and opportunities of the ongoing food and housing revolution on the continent, we have internalised best international principles for impact measurement and reporting to tell our story through our affordable housing and food funds. The Phatisa impact themes embed our business model, investment strategy and brand; they are aligned with the 2030 Agenda for Sustainable Development, thus adopting a language that is universally understood.

In 2019, Phatisa became a signatory to the Women’s Empowerment Principles, established by UN Global Compact and UN Women in 2010. Through the seven principles, we are committed to promoting and fostering business practices that focus on gender equality and women’s empowerment in our place of work, the African private equity industry and the companies in which we invest. We aim to focus our efforts on equal pay for work of equal value, gender-responsive supply chain practices and zero-tolerance against sexual harassment, among others. Phatisa recognises gender equality as an important accelerator in implementing the 2030 Agenda for Sustainable Development and achieving the Sustainable Development Goals. Our work continues.

We are pleased to release our first climate report, aligned to the Task Force for Financial Related Climate Disclosures (TCFD) and IFRS2 recommendations. We believe that climate change is the most pressing issue of our time, creating unprecedented risks and opportunities for businesses across all industries and geographies, but particularly so for our focus area of the food value chain in sub-Saharan Africa. Our markets are the most vulnerable – and the least prepared – for climate change, but they also offer significant opportunities for economic transformation and new development pathways. Phatisa has been considering climate risks and opportunities as part of our investment strategy for many years, and we are pleased to publicly release the work we have done in the last year, as well as our climate change journey as a fund manager, which commenced in 2015. This report reflects our commitment to enhance our governance, strategy, risk mitigation, metrics and targets regarding climate change over time. We believe that companies that can navigate these emerging challenges—from physical risks to policy shifts and technological disruptions—and seize the mounting opportunities of the energy transition, will have the climate resilience to thrive in a changing world. We look forward to lead by example, and continuing our work to support our portfolio companies to decarbonise.