DPI’s dedicated ESG and Impact team works with companies on the ground to engage and develop best in class ESG practices, in order to achieve greater financial success, incremental positive impact and sustainable economic development. ESG and impact are central to DPI’s integration in day-to-day activities, investments and decision-making processes.
Our firm’s ESG and Impact Management System (DPIMS) provides a framework to effectively integrate and manage ESG and impact considerations across the firm’s investment lifecycle and enables enhanced impact measurement throughout the investment period.
The primary driver of DPI’s social and environmental impact outcomes is our active engagement with portfolio companies. By partnering with portfolio companies, we seek to create impact around climate change, gender equality, and job growth and quality. For specific investments where additional impact themes are identified, our investor contribution is through enabling growth of the company’s business activities. In this case, our contribution is determined by the shares we hold in the company.
While impact permeates our firm-wide strategy and decision-making, our impact strategy was formalized for our African Development Partners III fund around three core themes.
As a 2X Challenge Flagship Fund, DPI made a commitment to achieving 2X eligibility for at least 30% of portfolio companies in the ADP III Fund. We therefore focus on creating impact around the empowerment of women, aiming to increase female representation across the portfolio; reduce gender inequality in our companies in terms of pay, governance and leadership; and improve women’s rights in the culture of the companies we invest in.
The Gender Impact Objectives of the ADP III Fund are to increase:
Across our ADP II and ADP III funds, we focus on creating and supporting quality jobs with our portfolio companies, their supply chains and business networks more broadly. Our portfolio provides opportunities for full-time employment, which allow for a stable source of income for the workforce and overall local economic growth.
We work with our portfolio companies to ensure employment opportunities go beyond national compliance and focus on providing equal opportunities and improving working conditions in terms of occupational health and safety, compensation and benefits. We also aim to train and upskill the workforce of our portfolio companies through professional development opportunities, mentoring, worker engagement and diversity promotion.
The Job Growth and Job Quality Impact Objectives of the ADP II and ADP III funds are to:
Africa’s climate crisis is intensifying and changes to weather, consumer demands, new regulation and technology have become an increasing focus for investors seeking to drive mitigation actions and adaptation. Achieving net zero emissions will require economic transitions and behavioural shifts and we are committed to understanding and mitigating climate related risks across our portfolio, in addition to driving opportunities to transition to a low carbon economy.
We work with our portfolio companies on their internal operations and business models to implement actions that will contribute to our Climate Change Impact Objectives:
Beyond our three core investment themes, DPI also seeks to identify additional impact themes specific to each investee company. Additional themes include financial inclusion, integration of SMEs in the supply chain, and improved access to healthcare via pharmaceutical products.
Companies in the ADP III portfolio have the potential to benefit underserved individuals who may lack access to basic goods and services; we help to scale and expand the reach of portfolio companies’ products and activities with the ultimate objective of driving development.