Sustainability linked financing
COSEF invests through gender and climate linked mezzanine and straight debt structures to incentivize investees to achieve pre-agreed gender and climate-related targets, such as, (i) number of women in direct and indirect employment; (ii) milestones in addressing gender issues and human rights impacts within the company and among end beneficiaries; (iii) number of women using sustainable energy and or mobility solutions; and (iv) number of women benefitting from climate smart and resilient products and technologies.
COSEF complies with international practices regarding Environmental, Social and Governance (ESG) standards. We consider critical ESG matters in the course of our due diligence and ongoing management of portfolio investments to the extent reasonably practical in a given circumstance. The matters are; Environmental-energy use and efficiency, carbon emissions, pollution, and waste and water management; Social-human rights, equality, health and safety, community impacts; and Governance-management and board structure, bribery, anti-money laundering and conflicts of interest. We seek to;
Our investment team always review ESG elements that might affect a potential investment, and compile formal reports which outline the merits of the transaction and disclose potential risks. The Investment Committee only recommends for investment companies that have committed to comply with our ESG policy, and are willing to work with our team and partners in managing ESG risks, monitoring risk management strategies and reporting quarterly, including regular KPI reporting. Our team and partners take board seats and work with management teams of investees to effectively manage ESG risks and hence promote adoption of sustainable practices across our businesses.
We integrate ESG factors into our internal reporting as well as reports to our investors.
We don’t invest in any company or activity involving;