ESG INVESTING
Crowe Zambia is a full service professional firm that combines deep industry and specialized expertise with innovation and is led by well- known resourceful personalities in Zambia. Crowe Zambia’s Managing Partner is Yande Mwenye with over 21 years experience spanning three continents, Africa, Europe and Australia.
The effects of climate change can no longer be ignored and Environmental, Social and Governance (ESG) standards are becoming a notable consideration in today’s investment world. One compelling reason for ESG investing is that it brings environmental and economic benefits to local communities wherever projects are implemented. And so, the common elements of ESG include these key actions:
- The fight against deforestation
- Use of clean renewable energy
- Reducing GHG emissions
ESG refers to the three major criteria used to measure the sustainability of an investment in a business or project. This concept cares not only about profits, finances and governance but also considers the people and the environment to promote sustainability.
Responsible investors assess potential investments using the definition of ESG criteria which among other things takes into to consideration various risks and aids decision making.
THE GREEN INVESTOR – ‘A New Dawn for Zambia’s Mining Sector’
Confidence is high amongst investors that the New Dawn Administration is implementing the right policies to ensure macroeconomic stability and attract Foreign Direct Investment (FDI) inflows into mining and other industries.
President Hichilema has set out very clearly the government’s vision for a resilient and sustainable mining industry anchored on Environmental, Social, and Governance standards. Zambia aims to increase production to 3-million tonnes of copper a year and other minerals within 10 years. The country is well-positioned to capitalise on the global drive for the minerals critical to green transitions.
The mining indaba, which took place from 9th May to 12th May 2022, was held under the theme, ‘Evolution of African Mining: Investing in the Energy Transition, ESG, and the Economies’. Mining investors revealed appetite for climate related investments.
One of the country’s top copper producers, First Quantum Minerals (FQM) announced a new $1.35 billion-dollar investment over 20 years into its Kansanshi Mine. In addition, FQM is also pioneering an ambitious solar and wind $500 million energy project that it hopes will provide stable power for its Zambia operations on a long-term sustainable basis.
How can Crowe Zambia Help You?
The big picture is that the President’s vision for the mining industry, has set the stage to transform Zambia into a low carbon economy. In this regard, ESG investing aims to align climate goals with sustainable investments. Companies that don’t report their ESG metrics may find it hard to attract investor’s attention.
Crowe Zambia is committed to help companies, government, parastatals, municipals and many others to become more responsible and sustainable.
Our Advisory work includes advising on the following ESG metrics for integration in mining and other investment industries:
| Environmental | Social | Governance |
| (E) | (S) | (G) |
| Water and pollution management | Diversity and social inclusion | Tax strategy |
| Efficient use of energy | Heath and safe working conditions | Corporate risk management |
| Value chain practices | Labour standards | Executive compensation |
| Greenhouse gas emissions | Conflict resolution | Board structure |
| Climate change | Local communities | Donations/political lobbying |
| Corruption and bribery |
