Improving business standards

Responsible investment has always been core to CDC’s mandate. No longer a direct investor, CDC now promotes sound business practices through its fund managers. Across our portfolio of companies, fund managers take a long-term stake in helping companies improve environmental, social and corporate governance standards (ESG). We insist on this because we know that it’s critical to ensure that development doesn’t come at the expense of a damaged environment and poor conditions for local workers. We also insist on improving standards because we know that they help to build higher value businesses that can grow into world-beaters.

CDC and its fund managers have helped companies across Africa introduce HIV/Aids programmes for employees, mining companies improve environmental safeguards, service providers enforce minimum wage payments, and food retailers and producers meet international food safety standards.

Our own evaluations tell us that 86% of CDC’s portfolio companies made improvements to their ESG standards during the fund manager’s investment period. We also know that 82% of these companies increased their turnover. This is the impact that CDC’s, long-term approach to investment can have.

To see how CDC aims to be at the forefront of international standards for responsible investment go to our new Investment Code. To learn more about how we help deliver improved business standards, go to our section on Businesses we back.