Approach and implementation

All fund managers and investee businesses receiving CDC capital must sign up to and comply with CDC’s Code of Responsible Investing.  The Code requires companies to assess, monitor and improve ES and BI standards.

We recognise that companies may require time to achieve this and we typically see a five step evolution as capacity and commitment to improve standards develops. 

These steps and some examples follow.

  • Complying with the law and international standards
    Complying with the law and international standards

    Complying with the law and international standards

    All CDC investments need to comply with national ES and BI laws and regulations and, as necessary, with international norms such as IFC Performance Standards and ILO core labour conventions.  Companies may require time to reach these standards, but we expect businesses and fund managers to develop practical action plans that define progress, timelines, responsibilities and requirements to ensure compliance is achieved. 

  • Understanding risks associated with an industry or sector
    Understanding risks associated with an industry or sector

    Understanding risks associated with an industry or sector

    Helping companies understand how ES and BI performance is material to their business growth by mapping industry and country specific issues to the company’s business plan. This will ensure effective management of ES and BI risks.

  • Implementing cost savings
    Implementing cost savings

    Implementing cost savings

    Working with direct investee companies to identify cost savings through energy and resource use efficiencies, and other business opportunities which have near term/ immediate bottom line benefits. We work with fund managers to identify similar opportunities that they can deliver via their investee companies.

  • Driving value creation
    Driving value creation

    Driving value creation

    Systematic assessment of ES and BI value drivers across a business and integrating good standards into the company’s business model. For example this might include the development of business opportunities around new sustainable products and services which open up new markets, sources of finance, brand differentiation or other benefits.

  • Shaping industry sectors
    Shaping industry sectors

    Shaping industry sectors

    Working with companies that want to improve the performance of their industry sectors through the development of new ES or BI standards or sharing good practices with competitors and peers. This can encourage better performance and change industry norms for the benefit of the sector, customers, suppliers and wider society.