Sustainable finance and investment

Sustainability report 2024

Making an unselfish contribution to society, nurturing an entrepreneurial spirit, embracing diversity, and respecting others, underpin our aim to live in, not off society.

As a financial services organisation with a strong footing in both the developed and developing world, we believe we can make a meaningful contribution to society and the environment. We believe that the United Nations (UN) Sustainable Development Goals (SDGs) provide a solid framework for us to assess, align and prioritise our activities.

Our strategy is to harness the expertise in our various businesses and identify opportunities to maximise impact. We do this by partnering with our clients, investors and stakeholders to support ambitious delivery of the SDGs and build a more resilient and inclusive world.

Our sustainability framework is based on the SDGs

Addressing climate and inequality is fundamental to the success of our business. We have eight priority SDGs: two impact SDGs, climate action (SDG 13) and reduced inequalities (SDG 10), supported by six core SDGs. These priority SDGs are globally aligned yet locally relevant to our core geographies and also reflect our growth strategy to fund a stable and sustainable economy. Our approach coordinates, assesses and reports on the Group’s progress in terms of our contribution to our priority SDGs.

Our sustainable finance framework is underpinned by addressing our two impact SDGs (SDG 10 and SDG 13) that are addressed through our six core SDGs.

Our two impact SDGs

SDG 13: Climate action

SDG 10: Reduced inequalities

Our six core SDGs

See below for some examples of how we impact our six core SDGs through our sustainable finance and investment:

SDG 4: Quality education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Investec’s client philanthropy offering

Investec Wealth & Investment philanthropy offering is strategic in nature, largely focusing on supporting long-term sustainable initiatives across South Africa and managing foundation investments to the market value of R1.34bn. These funds have derived income for distribution to charities, on behalf of our clients, to the value of approximately R63.2mn in the past year. This income is distributed by Investec charitable trusts, in accordance with the decisions made by the respective foundation trustees. Of the funds allocated, the majority (46%) went to education.
SDG 6: Clean water and sanitation

Ensure availability and sustainable management of water and sanitation for all.

Water for All priority programme for Côte d'Ivoire

Investec acted as co-arranger for the commercial loan agreement that partly financed a €178mn water infrastructure project for rural villages in Côte d'Ivoire. The loan will be used to develop and rehabilitate water supply infrastructure in up to 111 locations in rural Côte d‘Ivoire, improving access to clean drinking water for two million people.
SDG 7: Affordable and clean energy

Ensure access to affordable, reliable, sustainable and modern energy for all.

R2bn SOLA Scorpius 150MW Solar PV project

Investec acted as joint mandated lead arranger in raising R2bn in debt funding for the landmark SOLA Scorpius Project. This 150MW one-to-many project is currently under construction by the SOLA Group, a 100% locally owned and vertically integrated independent power producer. SOLA Group is a leader in the commercial and industrial energy market and has provided financed solar solutions and Power Purchase Agreements for corporate offtakers for over 10 years.
SDG 8: Decent work and economic growth

Promote inclusive and sustainable economic growth, full and productive employment and decent work for all.

Investec Bank plc draws £1.2bn of funding through the BoE’s Term Funding Scheme for SMEs

The Term Funding Scheme for SMEs (TFSME) was introduced by the Bank of England (BoE) in March 2020 to provide indirect support to businesses and households through the provision of a cost-effective source of funding to support additional lending to the economy through the COVID-19 pandemic. The £1.2bn of TFSME drawings provides Investec Bank plc with four years of funding at Bank of England base rate, secured on collateral including loans and senior notes from retained securitisations.
SDG 9: Industry, innovation and infrastructure

Build resilient infrastructure, promote sustainable industrialisation and foster innovation.

Investec Energy & Infrastructure (E&I) Finance UK closed a €170mn data centre financing for EcoDC

Energy & Infrastructure (E&I) Finance UK signed a €170mn financing package to fund the next phase of growth of the Swedish data centre (DC) company, EcoDC, acting as mandated lead arranger as part of a group of four international banks. EcoDC is a fast-growing DC developer and operator focused on sustainability through the following:

• the use of sustainable and locally sourced materials for the construction of its DCs

• energy efficient operations

• the use of 100% renewable power

• surplus heat re-usage for local district heating and pellets production.

This is essential to customers alongside top-class uptime levels, and it has enabled the company to develop key partnerships with blue-chip counterparties, which underpins the next phase of growth of the company.
SDG 11: Sustainable cities and communities

Make cities inclusive, safe, resilient and sustainable.

Investec E&I Finance UK closes a €132mn German EV charging Green Loan

Energy & Infrastructure (E&I) Finance UK closed a c. €132mn financing package, structured as a Green Loan, in favour of the German EV charging infrastructure company Eliso.

Road transport contributed to 26% of the European Union’s (EU’s) CO₂ emissions in 2022 and the aim of the Deutschlandnetz projects, based on Germany’s Fast-Charging Act, is the efficient development of a fast-charging network for medium and long-distance mobility, which is required for the mass adoption of EV. This is promoted by the German Government in the context of its Climate Protection Plan 2050 that includes a commitment to reduce CO₂ emissions from transport by 40% by 2030.