Differentiating through Sustainability

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Differentiating through Sustainability
An investor perspective
Justin Pooley Environment Social Development
Specialist www.ifc.org/sustainability
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• CAN SUSTAINABILITY PAY ?
• Challenging environment
• Rising costs of compliance regulation
• Higher third party expectations
• Financial squeeze from global crisis

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• YES!
• Sustainability-related opportunities exist
• Many firms can do reap rewards
• Financiers / Partners can assist

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• WHY ?
• Firms - Boost bottom line, scorecard, brand
• Financiers Boost portfolio performance,
  differentiate (offer more)

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• HOW ?
• Identify opportunities e.g. clean production,
  energy efficiency, carbon finance, supplier
  development
• Identify experienced partners financiers,
  consultants, government agencies, NGOs and other
  partners

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• IFC ROLE AND STRATEGY
• Global financier with local presence
• Leader in sustainability amongst financiers
• Focus on additionality (more than money)
• Help firms maximise sustainability returns

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• Example 1 Lonmin Platinum (RSA)
• FTSE 100 company, social relations / SLP key
• US 6 m co-funded partnership over 3 yrs
• Focus areas supplier development, HIV-AIDS,
  women in mining, community development

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• Results Lonmin
• Local supplier dev 109 contracts, R225 m
• 40 increase in women employed
• 50,000 staff / community reached (HIV-AIDS)
• Community dev R40 m joint projects agreed

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• Example 2 Green Resources (Tanzania)
• Forestry firm with sawmill, wood waste
• Facing high energy costs supply issues
• IFC identified energy efficiency opportunity

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• Green Resources - Progress
• Waste wood combined heat power plant
• Firm will supply all own power sell to grid
• Carbon credits realised will boost bottom line
• Low cost, low risk, high impact intervention

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• Example 3 Omnia (RSA)
• Fertilizer company using industrial processes
• Waste gas (N2O) produced
• No RSA emissions limits, but high GHG factor
• Sought incentive to invest in GHG destruction

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• Results Omnia
• IFC and Omnia signed carbon finance deal
• Waste gas destroyed (catalytic reduction)
• GHG emissions reduced by gt 500,000 t CO2eq
• CERs to contribute R60 m pa to revenue

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• Questions?

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CONTACT US - IFC Offices in Africa
Ghana, AccraHouse No. 1 Central Link
Street South Lagon PO Box CT2638 Canonments Tel
(233-21) 513-152-7 Kenya, Nairobi Africa-Re
Centre, 1st Floor Hospital Road, Upper Hill PO
Box 30577 GPO 00100 Tel (254-20)
273-0589 Liberia, Monrovia Madagascar,
Antananarivo BP 4140 Antananarivo 101 Tel
(261-20) 22-560-34 Fax (261-20)
22-333-38 Mozambique, Maputo Avenida Kenneth
Kaunda 1222 PO Box 4053 Tel [phone]
Nigeria, Lagos Maersk House, 1st Floor Plot 121
Louis Solomon Close Off Ahmadu Bello Way,
Victoria Island Tel [phone] Rwanda,
Kigali Rue de lArmee, Plot 20 PO Box 209 Tel
(250) 591-307 Senegal, Dakar 6, Bd Franklin
Roosevelt, Rue Klebber BP 3296 Tel (221) 849
5036 Sierra Leone Tel [phone] Tanzania,
Dar Es Salaam 50 Mirambo Street, Garden
Avenue 4th Floor PO Box 2054 Tel [phone]
3200 x 3256

• Sub-Saharan Africa Hub
• 14 Fricker RoadIllovo 2196Johannesburg, South
  AfricaTel (27-11) 731-3000
• IFC Headquarters2121 Pennsylvania Avenue,
  N.W.Washington, D.C. 20433 USATel (202)
  473-3800
• Burkina Faso, Ouagadougou179 Ave du President
  Saye Zerbo
• Zone des Ambassades, Koulouba
• 01 BP 622 OugadougouTel (226-50) 49-6300
• Cameroon, Douala
• 96 Flatters Street, Citigroup Building, Suite
  305, Po Box 4616
• Tel [phone]
• Cote dIvoire, Abijan