This capital will be dedicated to equity investments into a suite of clean technology projects and enterprises including new energy and environment focussed technologies located in South Africa and across Southern African Development Community (“SADC”) countries.

Consensus Business Group (”Consensus”), the London-based advisor to a Family Trust, has played a leading role in establishing and advising the fund and, as founding cornerstone investor, has secured the involvement and participation of seven other leading international organisations.

Vincent Tchenguiz, Chairman of Consensus said: “We have extensive experience and a long track record in global clean technology investing and this has given our partners the confidence to join with us in setting up Evolution One in South Africa. We are delighted to have successfully achieved Final Closing of this ground breaking fund.”
Consensus is joined in the Evolution One partnership by IFC, a member of the World Bank Group; the Finnish Fund for Industrial Cooperation (“Finnfund”); the Swiss Investment Fund for Emerging Markets (“SIFEM”); Global Energy Efficiency and Renewable Energy Fund (“GEEREF”), a compartment of the European Investment Fund; the African Development Bank (“AfDB”); the Norwegian Investment Fund for Developing Countries (“Norfund”); and the Industrial Development Corporation of South Africa (“IDC”).

Evolution One’s investment strategy centres on long-term equity and equityrelated investment based on active management and post-investment value addition. The local South African fund advisor, Inspired Evolution Investment Management (“IEIM”), aims to support and guide target invested companies and provide long-term capital growth. Expansion capital investments are prioritised although the fund will consider earlier stage environmental infrastructure projects with clear evidence of early revenue streams and profitability.

The fund will also invest into proven technology or projects that are able to clearly demonstrate market adoption. The fund’s minimum investment size is ZAR10 million ($US1.4 million) and its maximum investment is ZAR100million ($US14 million) into any one project or technology.

 
The research was completed during June and December 2009 and included responses from 22 investment organisations. The study found that investors do not yet supply investment products that are primarily driven by an environmental focus to their clients.
 
Only 50% of the sample showed some internal awareness, understanding and action around climate change. 53% of the survey respondents see the inclusion of environmental concerns as a further step to be taken in the future beyond the current corporate governance focus.
 
The main current obstacles to a further integration of Environmentally Responsible Investment (ERI) were found to be: the lack of interest and scepticism of institutional clients and of the local investment consulting industry around responsible investment; and the belief that in SA more important social developmental goals conflict with environmental priorities.
 
“The lack of interest and scepticism of institutional clients and of the local investment consulting industry around responsible investment is revealed as a major market impediment,” said Giamporcaro.
 “Some respondents emphasised that there is still too strong a belief that investors will lose their beneficiaries’ money if they make social and environmental concerns a focus of their investment choices.”
Giamporcaro explained that this was a misperception – numerous academic studies have shown that responsible investments generate similar returns to others.
 
The main future enablers to a further integration of ERI approaches were found to be: A stronger environmental disclosure required from companies by regulators; a more binding environmental regulation framework that will lead investors to price environmental risk; and a stronger commitment from all institutional investors to follow the example of the Government Employees Pension Fund (GEPF) to implement responsible investment strategies and mandates.
 
“More than 80% of respondents did say they believe that the South African investment industry will see a further integration of ERI approaches in the future, so there is the expectation that ERI practices will become commonplace,” said Giamporcaro.
 
“But there is no time for short-sightedness – it is necessary for long-term investors to act proactively to adopt investment strategies to mitigate climate change.
 
To assist this shift, the GSB short course Sustainable Investment for Asset Managers will provide an in-depth knowledge of the Responsible Investment principles and a practical toolbox; offer an understanding of the current state of play and the latest trends in the responsible investment arena; and help public and private sector finance professionals develop a responsible investment strategy informed by best practices.

“The King III report incorporates important aspects of governance relating to the environment and South Africa will see legislation here in the next few years – all South African businesses will come under increasing pressure to treat sustainability as a business imperative. The investment sector needs the right skills to adequately deal with this emerging shift and to ensure that they can achieve financial performance in a sustainable way.”
 
For more information on the GSB course, running from 4 – 6 August, contact Mario Pearce on (021) 406 1268 or SMS “Investment” to 31497. You can download the full report at:

http://www.efdinitiative.org/research/publications/publications-repository/environmentally-responsible-investment-in-south-africa.

The move towards becoming “green” has continued to gain momentum in different sectors of the business world.  Signatory banks throughout the world have taken up the call to become environmental stewards and to promote socially responsible development by adopting voluntary principles known as the Equator Principles, and becoming Equator Principles Financial Institutions.

The Equator Principles are a voluntary set of standards for determining, assessing and managing social and environmental risk in project financing. Equator Principles expressly incorporate a number of the policies and guidelines of the International Finance Corporation (IFC) of the World Bank Group. Equator Principles have become the standard for most banks and investors on how to deal with potential social and environmental effects of projects requiring finance. By adopting the principles, EPFIs undertake to develop individual internal practices and policies consistent with the framework.

The Equator Principles apply where the total project capital costs are US$10m or more and provide conditions under which financial institutions agree to approve loans for these projects. The principles suggest that banks do not operate in isolation when assessing project finance, but incorporate environmental and social considerations into project finance.  Projects are classified according to the risks they pose on the environment and society. Depending on the level of risk, the borrower may be required to provide a satisfactory environmental assessment or, in cases of high risk, an environmental management plan as well, which may require public consultation and reporting back to the financier.

Presently, there are about 66 Equator Principles Financial Institutions which operate globally. Amongst these are South African banks such as FirstRand, Nedbank, Standard Bank and ABSA.

What we may expect to find is that Equator Principles Financial Institutions may not provide loans to projects where the borrower will not or is unable to comply with the respective social and environmental policies and procedures that are found in the Principles. Financing may become conditional upon borrowers making certain progress on environmental and social issues, undertaking to comply with relevant environmental and social laws and regulations, and reporting on their compliance throughout the project. Non-compliance could possibly be incorporated into the finance documents as an event of default, resulting in the Institution cancelling the loan and demanding immediate repayment.

Leading the way in May 2004, the JSE’s Socially Responsible Investment (SRI) Index was launched in response to the burgeoning debate around sustainable development globally and particularly in the South African context. The SRI Index contains principles that are in line with the King Code on Corporate Governance.

The Third King Report on Corporate Governance, which became effective on 1 March 2010, emphasises that companies should become responsible corporate citizens by undertaking triple bottom line reporting and by measuring the impact of their business on social, economic and environmental aspects. Companies should each develop their own policies to define and guide their activities in order to protect, enhance and invest in the long term wellbeing of society, the economy and the environment.

The JSE has developed criteria to measure the triple bottom line reporting of companies in the FTSE/JSE All Share Index, together with an index comprising those companies that pass the criteria requirements. The SRI Index serves as a tool for investors to identify companies incorporating sustainability practices into their business activities.

Business in South Africa is moving towards being better corporate citizens, being accountable to the communities in which they operate and ensuring sustainability of the economy, society and the environment. This is illustrated in section 7 (a) of the new Companies Act, which states that one purpose of the Act is to promote compliance with the Bill of Rights as provided for in the Constitution, in the application of company law.  This will include considering the need to protect the environment.

This is not only at the public sector level but can be seen in the private sector by the actions of banks and listed companies particularly. We may well see the recognition and protection of the economy, society and/or the environment become an important part of commercial transactions.

 In November 2009, Wildlife Works Inc. and Nedbank entered into a business arrangement whereby Nedbank acquired carbon credits from Wildlife Works Inc. for on-sale to the international and South African business community.  More than 2,5 million tonnes of carbon was made available through the avoided deforestation of the Kasigau Corridor guaranteed until 2026.   

Nedbank retained a portion of the credits for its own carbon offset requirements which has seen the bank secure carbon neutrality.  This makes Nedbank the first African bank to achieve this status and gives it the same status as global banks HSBC and Deutsche Bank.  Nedbank has sold a portion of the remaining credits and is currently negotiating the sale of additional credits.      

In   According to Kevin Whitfield, Head of Carbon at Nedbank Capital, the Wildlife Works’ Inc. project, called the Rukinga and Kasigau Wildlife Corridor project, has proved to Africa that it is possible for the continent to become connected with the global green economy, and by so doing to drive revenues, to conserve its own rich natural heritage and to safeguard the livelihoods of its people.   “This market has made it possible for the continent to effectively fight climate change, to uplift rural communities and to protect its wildlife through accessing carbon markets,” he says.    However he admits there has been a scarcity of projects of this type to date, and even fewer large scale carbon projects.  

“Our experience is that there is extraordinary demand for good quality African offsets, and prices are good.  Carbon credits represent a new asset class and I encourage Africa to leverage this opportunity,” says Whitfield.

Mike Korchinsky, founder and president of Wildlife Works, says its new venture, Wildlife Works Carbon, was established to help local landowners in the developing world to monetize their forest and biodiversity assets whether they are governments, communities, ownership groups or private individuals.

 “The corridor project was designed to bring substantial benefits to local communities through education, job creation, environmental protection and direct financial rewards, while protecting precious biodiversity at the same time. It has met the most rigorous standard for ensuring communities and biodiversity benefit from climate change projects. To date it has delivered hundreds of jobs and four schools, setting a positive example for millions of Africans who have the potential to gain financial reward from REDD to boost the future of sustainable development in the face of climate change-related pressure to their livelihoods.

 “We are excited that the global voluntary carbon marketplace has shown such keen interest in reducing its carbon footprint by investing in our carbon credits.  The money that this project is yielding will help the Kenyan community to protect its natural forests, endangered species and the livelihoods of its people,” says Korchinsky.

 Saliem Fakir, head of the WWF in South Africa, says the indigenous forests of Africa are under constant threat as a result of human activities and climate change.

“Many of these types of forests cannot be found anywhere else in the world. Saving them should be an utmost priority. Rukinga and the associated Kasigau Wildlife Corridor project are world class examples of projects that are making a tangilble difference to both communities and the environment and it is innovative finance solutions, like carbon financing, that makes them possible. Both Nedbank and Wildlife Works are to be commended for their role in bringing this deal to fruition,” he says

      The deal between Nedbank and Wildlife Works Inc. was Africa’s first reduced emissions from deforestation and degradation (REDD) project developed at scale.    Registration from the benchmark voluntary carbon market registry, the VCS (Voluntary Carbon Standard) was achieved.  The project has also been awarded gold level approval under the Climate Community and Biodiversity Alliance’s (CCBA) forestry protection standard – a milestone in establishing REDD in the global carbon marketplace.

It rewards exceptional effort in the efficient use of energy, as implemented in our Think 15% More campaign of 2008. The award recognizes excellence in marketing and communication by companies who have made an extraordinary effort to promote energy efficiency to employees. In addition, Investec received a runner-up award for the commercial category which recognizes the application of sound energy efficiency principles in the commercial sector.

Investec is the only company to have been shortlisted in two separate categories.

Contact Information:
www.investec.co.za

It’s a given that we will continue to reproduce… its part of the survival function of our race. Our environment is being spent at an alarming rate. Global warming is rising exponentially partly due to a lack of education on our part. Nature always finds a balance but in the case of global warming that balance is going to be found somewhere where we are no longer part of the picture. What can we do?

For a start, lets all become responsible and accountable for the impact we have on the environment. You could live without electricity and home comforts and resort to using a bicycle instead of a car but that is not very practical to the man on the street. Or… we could adapt our lifestyles to be more eco-sensitive without cutting our earthly comforts.

Here are some adaptations we could make:

* Install solar water heating systems. Not only will you reduce your electricity bill but will also be part of the green movement.
* See what appliances you could run off solar power. Get a solar power station and run basic things around the house for free using the abundant sun energy available.
* Reduce your water and sewage usage. Fit basin aerators and shower adaptors which will reduce the amount of water used by up to 50% without any loss in comfort to you. Doing this will also directly reduce your water heating requirements. Also, install a water saving unit in your toilet cistern like Save-A-Flush to reduce the amount of water being flushed away by up to 5%.
* Use a fuel combustion enhancer in your vehicles which will drastically reduce emissions and reduce your fuel consumption by 10-20%. The long term benefit is a longer lasting engine too.
* Use energy efficient light bulbs. Why use a 100W bulb when a 15W CFL lamp will give you adequate lighting?

We at Green Online supply a range of products which could help you adapt your lifestyle to be more “green”. Our prices are cut to the bone as we believe “going green” should be as attractive as possible so we can all make a difference. Visit us at www.greenonline.co.za . We have many products which will make that special gift over the festive season. Why not give the environment a gift and buy a “green” product for that someone special!
Green Online is a secure online store available to South Africa and is operated by Velisa Agencies cc. Velisa Agencies cc have been supplying green products since 2006 and take pride in their customer service levels. Put us to the test!