Our Vision for Impact
At Annycent, we believe that effective environmental, social and corporate governance (“ESG”) and impact risk and opportunity management are drivers of sustainable asset performance, resilience and long-term investor value creation. We also believe that transparent management, measurement and reporting of positive outcomes for the environment and host-communities articulate investment impact, which in turn can help broaden investor confidence in the emerging markets renewable energy asset class.
Our vision is underpinned by 5 core impact objectives:
Create lasting climate outcomes
The addition of renewable energy to the grid mitigates climate change by adding zero emissions capacity to displace inefficient and polluting thermal plants and point source emissions.
Attract commercial private sector investors
Private capital mobilization is a key lever to achieve the 2030 climate targets. Investments by early ESG investors can catalyze hundreds of millions of USD in private commercial capital into renewable energy assets in emerging markets.
Be a market builder for regional investment opportunities
By providing a source of liquidity, Annycent intends to have a market development impact and generate new equity capital into the renewable energy sector; thus, magnifying the development impact in target-regions’ at a scale well beyond Annycent’s footprint.
Deliver measurable positive social outcomes
Additional generation capacity from greenfield projects and secondary asset positions in underserved markets will enable economic growth, job creation, and provide a range of positive direct and indirect social development outcomes (especially for women and girls).
Minimize adverse impacts
In line with EU SFDR requirements, Annycent will apply best market sustainability practices to avoid or minimize identified potential adverse impacts (PAIs) of investment decisions on ESG factors.
Strategy Aligned
with the SDGs
Annycent deploys capital in emerging market renewable energy projects using an innovative strategy that aims to generate superior risk-adjusted returns, catalyze market sector growth, and achieve measured, positive, environmental and social impact that contributes to climate change mitigation in alignment with the UN 2030 Agenda for Sustainable Development and the Paris Agreement.
Our Commitment to Sustainability
Best-practice ESG and impact management standards are central to Annycent’s philosophy and investment processes. We aim to identify and manage material ESG risks and opportunities prior to investment and work collaboratively to support investees to meet our standards, build ESG capacity and enhance positive outcomes.
Annycent’s ESG framework is aligned with the requirements of the Principles for Responsible Investment (PRI). Annycent has also developed an impact management and measurement framework aligned with the Operating Principles for Impact Management (OPIM) and aims to set impact indicators for each financial product to measure and report on the progress, including contribution to the Sustainable Development Goals (SDGs). Annycent aims to become a signatory of both the PRI and OPIM in 2024.
Annycent's ESG Policy and environmental and social management systems (ESMS) apply the globally recognized IFC Performance Standards and associated World Bank Group Environmental Health and Safety Guidelines to identify, categorize, assess, monitor, report and disclose on ESG and Impact risks and opportunities transparently, in alignment with the EU SFDR and Taxonomy.
Integrating Sustainability Risks into the Investment Process
​
Annycent integrates ESG risks (including PAIs to apply the ‘double materiality’ principle) and opportunities into the investment process from the very beginning of sourcing, as early understanding and mitigation of ESG risks is essential for successful deal execution.
1. Screening:
Screen against Exclusions List. Identify and categorize ESG risks and opportunities and associated ESG and impact key risk indicators (KRIs).
​
2. Due diligence:
Conduct investment due diligence against Annycent’s key ESG requirements. Assess ESG leadership, capacity, ESMS, and confirm monitoring, disclosure and impact management systems and commitments. Sensitive or high risk (e.g., IFC Category A) projects or issues may require external consultant support.
​
3. Investment agreements:
Address key risks and opportunities with investee management team and capture mitigation in Environmental and Social Action Plan (ESAP). Include ESAP in shareholder agreement with covenants on key ESG requirements and (where required) conditions precedent for high-risk issues.
​
4. Ownership:
Post-investment, engage with investees to support ESG capacity, monitor ESAP actions and arising material issues, and enhance ESG data quality. Implement transparent ESG and impact reporting framework including quarterly investee reporting, investor ESG committee and annual reports for investors and public disclosure including EU SFDR Art. 9 requirements.
​
5. Exit:
Plan for responsible exit. Screen buyers for reputational risk and ESG / impact commitment; assess and report on value and impact achieved through investment.