WE DO NOT INHERIT THE EARTH FROM OUR ANCESTORS,
WE BORROW IT FROM OUR CHILDREN.

PAPEfunds acknowledges the importance of sound environmental, social and governance practises in order to achieve a balance between social impact and commercial returns.

We aim to minimise the adverse impacts on the environment from our operations and that of our portfolio companies, while maximising social benefit and enhancing our reputation as a responsible corporate citizen. As such, PAPE Fund Managers has developed an ESG manual that aligns with our investment philosophy.

Management of ESG related risks are the core of our investment process, with thorough ESG due diligence appraisals conducted by our internal ESG Advisor incorporated into our investment process. The incorporation of ESG due diligence appraisals enables us to effectively screen and identify all ESG related risks associated with the potential investments and portfolio companies.

The PAPEfunds Bryanston offices are off the municipal water grid. This has been achieved through water harvesting and storage of water using JoJo tanks, a PAPEfunds investee company. A catchment area has been established and infrastructure installed to connect to the water reticulation of the office. Water from this system is used for drinking (through a filter system);  watering our garden; cleaning; and ablution facilities. We will be installing a system to measure water usage and capacity as we continue on this exciting journey of sustainability and living the ethos of an off-grid Private Equity firm.

The PAPEfunds Bryanston offices has installed three 5kW solar hybrid inverters and battery storage to go off-grid. Apart from the desire for PAPEfunds to follow through on our sustainability quest, the ongoing uncertainty regarding the availability of affordable, reliable electricity from South Africa’s utility Eskom, the Grid-Tied Solar PV solution is our response to an uncertain environment.

Q: Does PAPEfunds have policies that encourage portfolio companies to adopt external standards and codes (such as the United Nations Global Compact)?

PAPEfunds has adopted an ESG Manual for all its Portfolio Companies. This document is one of the key drivers for investment interaction between PAPEfunds and Portfolio Companies. This ESG Manual is used as a criterion in the evaluation and investment strategies implemented by PAPEfunds, this policy is continually updated, as appropriate. Our initial review of a prospective investment determines how we apply the principles. Our approach is to determine the risk catergory based on the International Finance Corporation (IFC) performance standrds while incorporating the United Nations Principles for Responisible Investment (UN PRI).

As a PRI signatory, it is essential that we incorporate ESG issues from the investment analysis stages through to acquisition. Our decision-making process is driven by our resolve to uphold the ethos of creating and maintaining a sustainable environment within which we do business, both for financial and social returns. PAPEfunds adhere to environmental, social, health and safety and governance standards, all portfolio companies are required to comply with the proposed standards, and the local governing laws required to comply with our ESG Manual which has been adapted from the highest standards as contemplated in the follwing:

• The International Finance Corporation (IFC);

• The Equator Principles;

• United Nations Principles for Responsible Investment (UNPRI),

• The Global Reporting Initiative (GRI);

• Code for Responsible Investing in South Africa (CRISA);

• International Convention and Standard on the environment; and

• Regulation 28 of the Pension Funds Act

PAPEfunds is a UNPRI member and we have an internal dedicated ESG analyst within our team.