We design tailored ESG framework that adds value to our client’s operations and investment process by ensuring informed analysis of relevant risk and return characteristics across industries. Our ESG questionnaires and metrics are reviewed and updated regularly, as the understanding of material ESG issues constantly evolves.
SFA ESG Due Diligence process:
- Overall approach and commitment to ESG integration, governance, and organization to incorporate ESG factors into the operations or investment process.
- Review of the capabilities, processes, policies, reporting and disclosure, with regards to identifying, measuring and managing all relevant ESG risks and opportunities.
- Company’s approach to relevant ESG issues, including: climate-related risks (regulatory, transition, and physical), human capital management (diversity and inclusion, human rights in supply chains, the well-being of staff), exposure to high-risk sectors, etc.
- Specialist analysis of the clients’ operations or portfolios to climate-related risks such as: estimating the carbon footprint, assessment of climate-value-at-risk, and an evaluation of long-term economic scenarios under different climate transition pathways.
Sustainability targets & indicators
We act as Sustainability Structuring Agent as provided under the Sustainability Linked Loan Principles to assist with negotiating and validating the Sustainable Development Targets (SDT) with the Company and the Lender(s):
- Liaison between the Company and Lenders in regard to substantiating the SDTs and answering the related questions that Lenders might have.
- Sustainability linked finance framework, which includes: a baseline, KPIs, SDTs, a verification methodology and a roadmap for achieving such targets.
- Setting of the near and long-term science-based targets (SBTI) in accordance with the Net-Zero Standard Criteria.
- Debt financing from multilateral finance finance institutions (MFIs), commercial banks, debt funds, etc.
- Structured finance instruments (bonds, notes, public and private placements, etc.)
- Syndicated loans
- Blended finance solutions
- Equity financing from MFIs and investment funds
- Valuation services
Mergers & Acquisitions
- M&A strategy
- Acquisition process from target identification to closing
Targeted trainings and workshops from building awareness through workshops and interactive games to technical training related to our advisory activities.
- Introduction to climate change ecosystem: basic science, systems thinking, regulatory overview, mapping of standards, recommendations, metrics. Who is who within the climate change landscape;
- Climate awareness and climate policy game;
- ESG matters;
- Training for risk, loan, and credit officers in climate scenario analysis and climate risks and opportunities within the investment process;
- Science-based target setting and KPIs;
- Materiality assessment methodologies;
- Industry specific issues; etc.
Investment due diligence
Investment due diligence service for FIs and for companies themselves.
- Our appraisal reports are structured in a way that is easily understood by multilateral organizations as well as private sector investors and lenders.
- We align the eligibility criteria and KPIs with global standards following the Paris Agreement and the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD) that are relevant to our clients’ operations.