RisCura has launched an impact exposure tool to help institutional investors understand the level of impact their investments achieve in South Africa.
RisCura mapped the objectives of the National Development Plan (NDP) to the UN’s Sustainable Development Goals (SDGs) and arrived at 10 specific themes, and one cross-sector category for investments that impact multiple themes.
These themes are: affordable housing, inclusive finance, clean energy, natural resources and conservation, health and wellness, infrastructure development, quality education, sustainable agriculture, water and sanitation, and environmental preservation.
RisCura has devised a methodology where each instrument in a portfolio can be evaluated against the impact themes, generating an overall impact score for a fund. The final impact score is a function of the percentage of the total portfolio allocated to impact themes and the relative importance of those themes within the South African context. This delivers an impact exposure report that shows the impact of a portfolio and indicates how improvements might be made.