Investors should integrate ESG aspects into their assets


The Principle for Responsible Investing (PRI) is an investor led initiative which advocates for responsible investment practices.  

The PRI’s Xolisa Dhlamini told CNBC Africa that by incorporating environmental aspects companies would be helping address sustainability issues.

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Dhlamini, PRI’s Southern Africa Network manager said some of the sectors PRI was working with include asset managers, consultants, investment advisors, pension funds and insurance companies

He further noted that the organisation’s agenda was to harness the collective power of capital.

“As one investor you do not have power over how markets behave, but collectively you have a bigger voice and a bigger influence,” Dhlamini said.

“We want to make sure that investors are working and collaborating among themselves, so we are basically creating a platform.”

Dhlamini also said his organisation had started raising awareness around the financial impacts around environment, social and governance issues.

“A lot of financial impacts came because organisations were focusing on traditional financial measures and not the environmental, social and governance measure with material and financial impact,” said Dhlamini.

“If you are an investor these are things you should be taking care as they carry financial effects,” he added.

PRI said by incorporating ESG aspects companies were able to grow without risking future generations.

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“We are trying to move the African continent to grow through a sustainable manner and not just make immediate benefits,” Dhlamini said.

“We are not saying grow for the next five years but that companies should grow factoring next generations.”

Dhlamini said African investors were cognisant that they need to have a social contract where they are investing.