Sustainable investments for sound social impact

THRERE is change all around us, globally, and here in Zimbabwe.

We are operating in an era grappling with many issues that behove us to uphold sustainability principles more robustly.
Closer home, we are seeing the impact of the climate crisis and how it affects every facet of life, from food security to energy supply.
It is therefore crucial that in celebrating businesses that are doing well, we promote sustainability as a strategic imperative.
Sustainability goes to the heart of something that every businessperson understands — creating value.

Sam Matsekete, Old Mutual Zimbabwe Group Chief Executive

All of us in this room wake up each morning thinking about ways of creating long-term value for our stakeholders.
One of the best ways of doing that is by creating a business that is connected to the communities that we serve. This requires making a deliberate choice to doing business the right way for wider, long term sustainability.
The Zimbabwe Stock Exchange has introduced a mandatory reporting framework for Environmental, Social, and Governance, or ESG, or EESG (adding Economic) if you like.
This is in keeping with global standards. Listed companies now have to report on materials used in their operations and how emissions, water, and energy are being handled.
Think of it as a company’s green report card.
In the eyes of the modern investor, a company that upholds and performs well on sustainability is a good investment.
That company is less risky, is more likely to continue having the social licence to operate, and it is better positioned for the long haul.
A company that has the support of its community has a better chance of staying in business longer than one that does not.
A company that does good is a better long-term investment, than one that is focused only on short-term profits.
If you were to choose between investing in or buying from a company that’s polluting rivers and one that’s saving them, which one would you pick? For responsible investors and communities, the choice is simple.
Institutional investors around the world, Zimbabwe included, are realigning their portfolios to focus on ESG performance. So, companies that think more about their impact on society are poised to win the long-term business marathon.
One truth that cannot be ignored is that a good reputation is your best currency.
In challenging economic times, it is tempting for some to abandon their sustainability values. The temptation is to focus more on profit goals, and strategies to keep afloat.
It is, however, during challenging times that it is most important to maintain your social license and reputation.
Your long-term success depends on how customers, the community and key stakeholders consider how you uphold responsible business practices.
When your staff buys into your values, they become your biggest advocates. When customers see you doing good, they become loyal to your products and services, and promote your brand.
At Old Mutual Zimbabwe, we seek to uphold Sustainability principles and practices in the way we do business or invest.
We encourage our investee entities to embed EESG practices in their business models and processes.
We also now include EESG as a parameter we evaluate in selecting investment projects. We are also allocating direct resources to certain assets compatible with the thrust for Sustainability.
For example our investments in alternative investments include significant allocation to Renewable Energy whilst financing to Agriculture sector incorporates any interventions to mitigate the effects of adverse climate.
Our community investment efforts seek to create positive social impacts, including for example our On The Money financial literacy programme as well as our wide range of products that promote financial inclusion.
I urge you all to consider Sustainability as a strategic priority. It is the right thing to do—for your employees, your customers, your shareholders, the communities that you serve and for economic development.

●This excerpt is from the remarks made by Old Mutual Zimbabwe Group Chief Executive Samuel Matseke at last week’s Top Companies Survey Awards in Harare. The financial services giant has been sponsoring the survey, organised by The Financial Gazette, for the past 11 years.