Africa’s Energy Sector Has Most Opportunities For Investing In Climate Change

Almost all investors see potential in the energy sector vis-a-vis climate change, according to a recent survey. The survey — carried out by the sustainability committee of pan-African industry body, African Private Equity and Venture Capital Association (AVCA) — was part of an investigation into the approach that investors take to tackle climate change in Africa.

Agriculture and water management interested 62 per cent and 44 per cent respectively. Sectors apart, the survey pointed out, investors were waking up to the reality of climate change.

Three-fourth of them felt the need for a responsible investment policy, covering climate action, according to the survey of 45 business entities.

Forty-five per cent of the respondents said they made changes to their investment strategies, while 54 per cent did not implement measures to address climate risk that faced the companies they had invested in, according to the survey.

More than a third (75 per cent), however, felt a responsible investment policy covering climate action was needed.

Overall, the investors were more proactive in managing the carbon footprint of their investments, with 55 per cent of them having taken measures to deal with this.

Sixty per cent of the respondents signed up for or were rolling out the Taskforce on Climate-related Financial Disclosures (TCFD) into their portfolios.

The TCFD develops voluntary climate-related financial risk disclosures that companies can use to provide information to stakeholders, their investors, lenders or insurers. Read more…

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