Sustainable Capital was founded in 2008 by investment professionals who are passionate about the impact Sustainable Investment has on shareholder returns, and the operating environment and behaviour of companies. This impact has a significant role to play on the African Continent in the context of sustainable economic growth.
We believe that by combining rigorous fundamental investment research with detailed in-situ diligence on material sustainability factors, we can determine a more accurate estimate of asset and earnings quality and deliver superior long-term investment returns. In our view, the investment case for generating alpha through proprietary research by taking advantage of mispriced, material sustainability factors is stronger in Africa than more developed markets.
We integrate economic, social and environmental sustainability (ESG) information into the investment decision making process through adjustments to the company fair value calculations. In addition to the integration approach, we apply a norms-based screening methodology to exclude companies that fail to meet the minimum requirements for inclusion in the investable universe. This norms based screening methodology is based on four main categories of international standards and principles: Human Rights, Labour Rights, Environmental protection principles, Anti-corruption practices.
Sustainable Capital was the first Africa asset manager outside of South Africa to sign the United Nations Principles of Responsible Investment, and has been a signatory since 2009.