ESG & IMPACT – Cepheus Growth Capital

ESG & IMPACT

Cepheus Capital is a private equity fund focused on investing in target sectors in Ethiopia with the aim of combining high-risk adjusted returns and impact driven investments. The fund is committed to responsible investing by integrating environmental, social and corporate governance (ESG) considerations into its investment management process and ownership practices, and in doing so, contributing to meaningful positive, measurable impact though its investment choices.
Our responsible investment principles are integrated throughout our investment cycle, from selecting companies, during ownership period and at exit – by adopting a responsible approach, promoting international standards in environmental and social management (IFC Performance Standards, World Bank EHS guidelines, ILO guidelines) but also governance, compliance and financial best practices. These reference standards constitute in an integral part of our Environmental and Social Management System, a cornerstone of our ESG policy.
Cepheus goes beyond usual E&S management systems, providing a unique approach to responsible investments through development impact measurement by adopting program-related investments.

ENVIRONMENT

We recognize that environmental measures such as pollution prevention, waste management and efficiency in resource utilization have a positive impact in business valuation and the ecosystem in which we operate. Our objectives are guided by best practices within the reference framework we use and aim to: • Avoid or minimize adverse impacts on human health and the environment by avoiding or minimizing pollution from project activities.• Promote more sustainable use of resources, including energy and water.• To reduce project related GHG emissions. Cepheus brings much needed value-add to portfolio companies by providing technical assistance directly and through additional expertise in assessing gaps and opportunities for value add when faced with environmental challenges commensurate with their activities. This is done through a thorough due diligence and subsequent corrective action plans and company-level ESMS design and implementation with the objective for investees achieving Good International Industry Practices.

SOCIAL

Through our investments, we contribute to social development in Ethiopia by providing support in the creation of decent working environment, better employment opportunities, safer working conditions, and general wellbeing.Cepheus recognizes that the pursuit of economic growth through employment creation and income generation should be accompanied by protection of the fundamental rights of workers. For any business, the workforce is a valuable asset, and a sound worker-management relationship is a key ingredient in the sustainability of a company.We aim to bring additional value-adds to our investments by enhancing community health, safety and security and stakeholder engagement as well as fostering a sense of ownership in the communities we operate. In those communities, our program-related investments seek to commit resources and capital for women empowerment; alleviate the poverty of low-income, distressed and underprivileged people; and local job creation.

GOVERNANCE

Our fund is committed to incorporate sound corporate governance structures in all portfolio companies during the lifecycle of the investment by building strong risk management capacity, providing audit systems and, instilling transparency culture.We follow strict policies of anti-corruption, anti-bribery, and anti-money laundering, consistent with Ethiopian Anti-Corruption Laws, UK Bribery Act 2010 (c. 23) U.S. Foreign Corrupt Practices Act of 1977.