When we talk about good investments, we mean investments that strive to generate superior risk-adjusted returns. At the same time, we also mean investments that are able to make a measurable positive difference within the communities where we invest. This can include investments in sectors such as healthcare, education or agribusiness as well as investments in companies that wish to grow their existing business by attracting additional capital and applying progressive social and environmental values.
In 2015, we were thrilled to witness a historic shift in international development and business cooperation when the Sustainable Development Goals (SDGs), 17 development objectives and 169 targets, were agreed by all nations and ratified by the UN. This historic agreement identifies clear, concrete actions to eradicate poverty and social inequality by 2030. Sarona is a recognised leader in the emerging field of blended finance for development and while the SDGs are new, Sarona’s commitment to these goals is not. Through our private equity funds programme, supported by public government agencies, Sarona wishes to make a scalable and significant contribution towards the SDGs. We embed SDGs in our monitoring process and in the way we measure and evaluate the “impact” of our investments.
Sarona also recognises its responsibility to act as a catalyst for change within developing markets by acting as a bridge between private capital and entrepreneurs and by encouraging fund managers and investee companies to improve their ESG performance. To make our ESG commitment and achievements as transparent as possible, we publish an Annual Values Report. In 2016, we have reported on 22 IRIS metrics, measuring the impact of over 200 companies in our Frontier and Emerging Markets portfolios. For more information, please download our Values Report 2016.