Norsad Finance Limited is sensitive to social and environmental impact. As such, the institution places importance on environmental issues affecting its investee companies. In order to keep up with international trends and developments, we have adopted IFC’s environmental and social performance standards. Projects financed by Norsad are required to comply with these standards as well as local legislation.
Our investment professionals assist investee companies to formulate and implement adequate internal social and environmental policies. Norsad Finance’s main aim is to promote sustainable and environmentally friendly businesses which create decent jobs in Southern Africa.
With this social and environmental sustainability policy, Norsad Finance Limited (Norsad,the company) expresses its commitment to incorporating sustainability criteria in its financing activities and communicates the expected standards of performance to its investee companies and other stakeholders.
Main Objective of Norsad Finance Limited
The principal objectives of the Norsad Finance Limited is to contribute to the private sector development of Southern African Countries by providing financing to companies with growth potential that are financially, socially and environmentally sustainable, create jobs with decent working conditions, adopt good governance practices and contribute to economic growth and development in Southern African Countries.
Norsad Approach and View of Responsibilities
In striving to achieve positive development outcomes through our financing, we recognise that such development can also have negative impacts on local communities and the physical environment within which they are located or upon which they depend for their livelihoods. Norsad is committed to ensuring that the costs of economic development do not fall disproportionately on those who are poor or vulnerable, that the environment is not degraded in the process, and that natural resources are managed efficiently and sustainably.
Consequently Norsad's financing approach focuses on ensuring that we achieve sustainable
development outcomes, as experience shows that good economic, social and environmental(S&E) management, and indeed corporate governance, are interrelated- there can be no lasting development impact if 58LE issues are not part of the development equation. Our fundamental belief is that paying proper attention to these issues is also good for business
Norsad recognises that the primary responsibility for managing 58,LE issues, risks and impacts, as well as opportunities, rests with our investee companies. As such, we seek clients who share our vision and commitment to sustainable development and who wish to improve their ability to manage these issues within their business activities. We expect sustainability objectives and activities to become fully anchored in our investee company's business strategies and to be adapted to and integrated into their procedures and operations. On the other hand, sustainability objectives and activities must be based on a thorough assessment and broad understanding of the interrelationship between the enterprise and the local community, taking into account the diverse economic, political, cultural and social contexts in which they operate.
Norsad will require each investee company to develop and implement applicable sustainability policies, which clearly define and describe their vision, strategy and operational guidelines. The investee company must strive to constantly improve these policies, standards and performance and promote these towards their suppliers where relevant.
Norsad will support its investee companies in seeking collaboration with private sector development related Technical Assistance and Capacity Building providers, in identifying areas of improvement, determining action plans and strengthening their social and environmental capacity. For this purpose, Norsad will make its experience available to help to mobilize support for the development of competence within its investee companies operations.