Africa-Press – Angola. The approach, initiative or process
Summit Africa’s vision is to drive significant social and economic transformation across African society through innovative solutions that generate sustainable value for all stakeholders. It does this through intentional, evidence-based and contextually grounded investment strategies. Summit’s responsible investment approach reflects a belief that sustainable value creation cannot be separated from social impact, environmental resilience or good governance.
Summit is a South African impact-focused private markets investment manager, committed to realising long-term financial value for investors through well-considered private market investments. Its investment approach is anchored in the Operating Principles for Impact Management Disclosure Statement, which provides the structure for embedding impact and environmenta, social and governance (ESG) considerations across the investment lifecycle.
As an active member of the Global Impact Investing Network (GIIN), Summit applies IRIS+ (Impact Reporting and Investment Standards) metrics to set and measure impact objectives. It adopts the Impact Frontiers’ five dimensions of impact (who, what, how much, contribution, risk) to guide measurement and decision-making. Summit is also a signatory to the 2X Challenge, reflecting a commitment to advancing gender equality, diversity and inclusion. Its publicly reported impact and ESG objectives are aligned with the United Nations Sustainable Development Goals (SDGs) as well as with the priorities of South Africa’s National Development Plan 2030.
In identifying ESG risks and opportunities, Summit draws on the combined guidance of the IFC Performance Standards (IFC PS), the IFRS Foundation SASB Standards (SASB Standards) and the Principles for Responsible Investment (PRI). This combination provides a coherent and globally aligned framework for sustainable investing.
Since its first private equity investment in 2019, Summit has institutionalised ESG across three decision layers;
strategic asset allocation
investment appraisal
post-investment value creation.
At the launch of Summit PE Fund I (the fund), the objective was to invest in sectors addressing the structural undersupply of non-discretionary services in healthcare, financial services, education and information and communications technology (ICT). As of 30 December 2024, the fund consisted of eleven portfolio company investments.
1. ESG to unlock value
Summit notes that its approach differs in that “ESG is not simply used to mitigate risks, but to actively identify and unlock value that traditional financial analysis might overlook.” For example, the fund’s maiden investment in Crestcare Zoutpansberg Hospital (CZH) was based on strong fundamentals supporting the expansion of the facility, now a 92-bed, four-theatre hospital in rural Limpopo, despite the business initially having limited ESG credentials. By applying its ESG and impact frameworks through structured action plans, Summit supported the integration of these considerations into CZH. All subsequent portfolio companies have since been aligned to this structured approach.
2. Impact-considered asset class and strategic allocation
A defining feature of Summit’s investment approach is the integration of ESG risk and opportunity assessment alongside impact potential at the earliest stage of portfolio construction. Asset allocation decisions are informed not only by projected financial performance but also by the capacity to generate measurable social outcomes and long-term value creation.
Examples of this includes:
Social and gender metrics aligned with IRIS+ and the 2X Challenge, are embedded at the portfolio level and monitored to ensure sustained, long-term impact.
Climate-related risks are identified and managed throughout the investment lifecycle, reducing exposure to financial losses while safeguarding operational resilience.
ESG and impact commitments are carried through to exit, ensuring that impact credentials form part of value creation and continuity beyond Summit’s ownership.
Regarding the fund’s diversity and inclusion objectives; by December 2024, as an aggregate, women represented 54% of senior management and 70% of the overall workforce across the fund’s portfolio companies. These outcomes were driven by targeted transformation plans co-developed with each portfolio company’s leadership, demonstrating that impact objectives can be achieved alongside commercial performance.
3. Dual-track ESG and impact lifecycle integration
Summit’s investment lifecycle integrates ESG and impact as distinct yet complementary tracks, combining the five dimensions of impact from Impact Frontiers with leading ESG frameworks, such as the IFC PS and SASB Standards. Each portfolio company’s ESG due diligence (DD) is conducted using a proprietary toolkit of over 600 questions that have been tailored to SASB’s sector-specific guidelines and IFC’s environmental and social safeguards.
At CZH, Summit proactively addressed energy and resource efficiency at the design stage of the hospital. Its DD questionnaire and analysis tool flagged significant environmental risks: restricted water supply in an area prone to droughts. Summit with CZH proactively addressed water scarcity through boreholes, municipal upgrades and on-site storage, while implementing an IFC-aligned health and safety and environmental framework during construction. These practices have served to address both risks and create opportunities.
For all investments, DD outcomes inform the ESG Value Add-Action Plan (ESG VAAP), which is co-developed with company executives and included in shareholder agreements, thereby upfront institutionalising ESG at both strategic and operational levels.
4. Operational ESG toolkits and board-level integration
Recognising the capacity constraints often faced by small to mid-cap African companies, Summit has developed a suite of practical tools to support ESG integration and governance:
Environmental and Social Management System (ESMS) toolkit – co-designed with IBIS Consulting and aligned with the IFC Performance Standards, with a focus on the healthcare and education sectors.
Online ESG project management system – deployed within each portfolio company, featuring a reporting dashboard used to track and drive ESG Value Add Action items identified during due diligence and subsequently monitored in quarterly ESG review meetings.
Governance toolbox – aligned with King IV, the South African Code of Corporate Governance, comprising more than 25 governance and compliance policy templates.
5. Applying the tools
Portfolio companies are trained to apply these tools, building board-level ESG literacy, internal ownership, performance-linked reporting and stronger governance practices. To date, all portfolio companies have adopted the toolkits to varying degrees and have received training as part of the rollout. Through the online ESG dashboard, each company now has full visibility of its ESG performance.
Climate action plan
Recognising that climate strategies must be contextually adapted to the realities of small, medium and micro enterprises (SMMEs), local markets and operational capacity, Summit developed a 2024–2026 Climate Action Plan aligned with the Task Force on Climate-related Financial Disclosures (TCFD). The plan includes:
high-level Scope 1–3 emissions trackingacross all portfolio companies;
portfolio-wide analysis of material, physical and transition risksacross sectors;
ESG-linked maintenance plansfor diesel generators to reduce particulate emissions.
This African-relevant and capacity-sensitive approach demonstrates how ESG risks can be managed in constrained environments, while also addressing stakeholder expectations.
An illustration of this is provided by Custom Capital Finance (CCF), one of the fund’s portfolio companies. CCF, which offers alternative financing solutions such as rental finance and invoice discounting, expanded in 2024 to include renewable energy asset financing for underserved SMMEs. This development enables greater resource efficiency and supports reduced carbon emissions across its client base.
6. Performance and data-driven reporting
Summit reports ESG and impact data on a quarterly basis, mapped to IRIS+, SASB Standards and the SDGs. Findings are consolidated in both investor reports and public ESG disclosures. Performance is assessed against fund-wide impact targets, including job creation, gender equity, healthcare access, education and financial inclusion.
Summit’s ESG stewardship is backed by practice. It has been able to demonstrate that ESG innovation in African private equity is not only possible but essential.
Measures to ensure transparency and generate outcomes
Summit views transparency not only as a reporting obligation but as a core principle for building trust, driving performance, and enabling stakeholders to make informed decisions. Data integrity and contextual relevance are recognised as essential to achieving credible sustainability outcomes.
A robust and repeatable process underpins this approach. ESG and impact data are collected across agreed indicators and reported quarterly to internal decision-makers and limited partners. These indicators track progress against ESG Value Add Action Plans (VAAPs), IRIS+ impact metrics, 2X Challenge gender metrics and TCFD-aligned climate data, ensuring evidence-based capital allocation and stewardship.
Transparency is embedded from the outset of each investment. ESG and impact considerations are disclosed at deal screening through investment committee memoranda and incorporated into shareholder agreements. Co-developed ESG VAAPs are then monitored bi-monthly with portfolio executives via Summit’s ESG collaboration platform. Material variances are flagged and addressed within the same reporting cycle, applying a “Plan–Do–Check–Act” approach consistent with the IFC Performance Standards.
This disciplined transparency ensures that investors, portfolio companies, regulators and community stakeholders gain clarity not only on what Summit invests in, but also on how and why. In doing so, Summit strengthens alignment between capital and measurable, context-driven sustainability outcomes.
PRI
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