Johannesburg, South Africa, November 30, 2011—IFC, a member of the World Bank Group, today signed an agreement with the Principal Officers Association of South
Africa to work on the integration of environmental, social, and corporate governance issues in investment decisions. POA
is a trade association of pension fund managers representing more than ZAR 2 trillion (about $250 billion) in assets
under management.
The project will provide a consistent framework and set of tools for retirement funds to comply with the new Regulation
28 of South Africa’s Pension Funds Act. The regulation is pioneering on a global level in that it requires pension funds
to actively consider sustainability issues in their investment decisions. This is reinforced by a number of national and
international policy initiatives such as the Code for Responsible Investing in South Africa (CRISA) and the UN-backed
Principles for Responsible Investment.
“Improving the environmental, social, and governance performance of businesses contributes to their financial resilience
and profitability. Institutional investors have a key role to play in catalyzing innovation and investment, especially
when it comes to climate change,” said Wanjiru Kirima, Chairperson of the Principal Officers Association and also the
Chairperson of the project steering committee. “This project is an innovative and practical step for the industry to
help address the challenges that South Africa is facing while improving returns for pensions and society.”
The project will draw on local and international best practice, including IFC’s Sustainability Framework for private
sector investment in emerging markets. The Sustainability Framework reflects IFC's strategic approach to climate change
and the integration of environmental and social sustainability. The broad adoption of these practices can transform
markets and improve people’s lives.
“IFC invests in priority sectors such as renewable energy, infrastructure, agribusiness and small and medium enterprises
based on our sustainability framework. By working with other institutional investors we seek to leverage additional
long-term and sustainable investment into such sectors,” said Saleem Karimjee, IFC Southern Africa Country Manger.
“Incorporating environmental, social, and corporate governance practices can help to protect investment portfolios,
especially in the light of increasing risks from climate change.”
More than a dozen institutions, including the National Treasury of South Africa, the South African Government Employees
Pension Fund, Financial Services Board and the Association for Savings and Investment South Africa, will lead this
initiative. These institutions comprise the steering committee of the project and have responsibilities for retirement
fund investment practices in South Africa, Botswana and Namibia.
This project is supported by funding from the Norwegian Government.
About this Project
Sustainable Returns for Pensions and Society is an industry-led initiative to integrate environmental, social, and corporate governance considerations into the
mainstream of retirement industry investment practices in Southern Africa. Convened by the Principal Officers
Association of South Africa (POA), IFC, the Government Employees Pension Fund (GEPF), and the Association for Savings
and Investment South Africa (ASISA), the project Steering Committee includes high-level representatives of the Financial
Services Board (FSB), National Treasury of South Africa, Banking Association of South Africa (BASA), Botswana Public
Officers Pension Fund, Congress of South African Trade Unions (COSATU), Debswana Pension Fund, Federation of Unions of
South Africa (FEDUSA), Financial Planning Institute (FPI), Government Institutions Pension Fund Namibia (GIPF),
Institute of Directors (IoD), Institute of Retirement funds (IRF); National Council of Trade Unions (NACTU), Pension
Lawyers Association, South African Institute of Chartered Accountants (SAICA), Southern Africa Venture Capital
Association (SAVCA), Telkom Pension Fund, and the UN Principles for Responsible Investment (PRI). For more information,
please visit www.gepf.gov.za and www.asisa.co.za.
About the Principal Officers Association
The Principal Officers Association (POA) is a non-profit organization, and the only one of its kind in South Africa,
that aims to promote the common interests of Principal Officers of retirement funds. The POA’s membership of 425
Principal Officers and associate members represent more than 6.2 million retirement fund members in South Africa. The
POA also has members in Southern Africa Development Community (SADC). The principles espoused by CRISA are endorsed by
the POA. For more information, visit www.poa.org.za.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to
businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic
uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to
their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more
information, visit www.ifc.org.
Stay Connected
*********
ENDS