Norsad Wins PRI’s Emerging Markets Initiative of the Year Award i-Centric Admin

Norsad Wins PRI's Emerging Markets Initiative of the Year Award

20/10/2021

Norsad Finance, a leading impact investor, has been awarded the Emerging Markets Initiative of the Year 2021 award by the Principles for Responsible Investment (PRI), a world leading proponent of responsible investment. PRI is a United Nations-supported international network of investors, and it works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.

This announcement comes after Norsad was shortlisted by the judging panel in two categories: ‘Real-world impact initiative of the year’ and ‘Emerging markets initiative of the year’. Norsad subsequently won the ‘Emerging Markets Initiative of the Year 2021’.

The prestigious award recognises a PRI signatory who seeks to achieve impact by setting intentional impact strategy and targets to shape sustainability outcomes, using a range of levers to achieve impact, and being able to demonstrate how it is monitoring progress towards achieving its impact goals.

SETTING REAL-WORLD OUTCOME TARGETS

“The principal objective of Norsad is to contribute to private sector development in our markets, by making funding available to enterprises that are financially, socially, and environmentally sustainable and which create jobs with decent working conditions, adopt good governance practices, and assist economic growth and poverty alleviation,” says Kenny Nwosu, CEO of Norsad.

Norsad’s core purpose is to “Build a Better Africa” which it believes willresultinamoreprosperouscontinentwithlargerandmore stable markets that encourage innovation and trade. It does so by investing in sustainable and profitable businesses in key markets. Norsad’s approach gives preference to companies that:

  • Support sustainable growth and job creation;
  • Diversify and strengthen local economies;
  • Contribute to sustainable infrastructure growth and industry 
development; and
  • Achieve impact in line with the Sustainable Development 
Goals (SDGs) and Norsad impact objectives.

USING A RANGE OF LEVERS TO ACHIEVE IMPACT

“To fulfil our commitment to sustainable growth, we integrate the assessment of social and environmental risks, impacts, and opportunities, into all our business processes,” says Nwosu.

Norsad requires all investee companies and financial services providers to comply, or commit to comply, within an agreed timeframe with the sustainability criteria outlined in Norsad’s Social and Environmental (S&E) Sustainability Policy.

A prerequisite for Norsad financing is that clients comply with local S&E laws, and partner investee companies are required to comply with international principles and standards when applicable, such as IFC Performance Standards and The World Bank Group Environmental, Health and Safety Guidelines.

TRACKING PERFORMANCE AGAINST SUSTAINABILITY OUTCOME TARGETS

Norsad continuously monitors investments through close engagement with partner investee companies. Annual surveys are conducted, and the results are shared in annual impact reports.

As part of its ‘open-door’ policy and close engagement, Norsad offers regular ESG support and training to its partner investee companies. During the COVID-19 pandemic, partner investee companies were provided with various best practice resources regarding ways to deal with and navigate the pandemic. This included webinars, training, regular check-ins, and assistance from shareholders. As a result, partner investee companies were better equipped to respond to the COVID-19 pandemic and have been more resilient to the impact.

As a signatory to the PRI, Norsad encourages its partner investee companies to adopt sustainability principles and to align themselves with the SDGs, “as we believe that incorporating ESG aspects into daily business operations assists in developing sustainable businesses, fostering partnerships between companies, their employees, and other stakeholders,” says Mr Nwosu.

‘’This win is a true testament to our purpose of ‘Building a better Africa.’”