Evolutionary Awards – EPPF: Sustainability policy

Category: Evolution in improving member outcomes

Describe your evolution:

EPPF’s Sustainability Policy underscores a commitment to meeting current needs without compromising the ability of future generations to thrive. Our approach to sustainability is comprehensive, incorporating social, economic, and environmental considerations to foster resilience, equity, and prosperity across multiple dimensions.

Our policy goes beyond traditional sustainability practices by taking a holistic view that integrates renewable resource utilization, waste and pollution reduction, and a focus on social and economic justice. We aim to harmonize human needs with the natural world, acknowledging that global resources are finite and that several critical planetary boundaries have already been crossed. These environmental challenges, including climate change, present both material risks and opportunities for our investments, as demonstrated by the increasing frequency of droughts, floods, and wildfires.

At EPPF, we recognize that sustaining the status quo is not enough. We are committed to actively preserving and regenerating the environment and life on Earth. Our vision for regeneration encompasses justice, climate action, biodiversity, and human dignity, addressing the urgent need for systemic change within a generation. This philosophy informs not just our investment strategies but permeates all of the Fund’s processes and practices.

EPPF’s pioneering approach is at the forefront of integrating social, economic, and environmental factors into fiduciary decision-making. Our leadership in this area has been recognized as cutting-edge, particularly in terms of incorporating climate change principles into asset allocation and engagement activities. As a proud member of the Net Zero Asset Owners Alliance, we are committed to achieving net-zero emissions by 2050 and continue to incorporate climate-conscious strategies throughout our portfolio.

Additionally, EPPF has played an active role in researching and promoting infrastructure solutions to mobilize asset owner investments. Collaborations with National Treasury and the World Bank reflect our dedication to creating impactful infrastructure projects that support sustainable development.

Our leadership extends beyond environmental sustainability. Through groundbreaking social policies and interventions, we are committed to enriching the industry by nurturing black and female talent for the future. EPPF’s activism leadership is driving change in the industry, ensuring that equity and diversity are at the heart of our efforts to build a more sustainable and inclusive future.

Describe the impact your evolution has had in response to its identified challenges and targeted outcomes.

The Eskom Pension and Provident Fund (EPPF) has set a bold example in the investment industry through its pioneering approach to sustainability, grounded in the belief that true progress must be both inclusive and regenerative. Our Sustainability Policy emphasizes meeting present needs without compromising the ability of future generations to thrive, integrating social, economic, and environmental factors into every facet of our decision-making process.

At the heart of our impact strategy is the commitment to aligning our investments with sustainable development goals. EPPF recognizes that the risks posed by climate change, biodiversity loss, and social inequality are not abstract—they present material challenges to our portfolio. We have, therefore, committed to cutting 40% of our financed emissions by 2030, an ambitious goal that aligns with global efforts to combat climate change.

Our investment philosophy goes beyond environmental sustainability. We take a justice-driven approach, addressing social and economic inequalities while promoting the regeneration of natural resources. We are proud to be a member of the Net Zero Asset Owners Alliance, a collective of forward-thinking investors dedicated to achieving net-zero emissions by 2050.

Our leadership in sustainability is evident not only in our environmental goals but in how we actively work to transform the asset management industry. Currently, 95% of our listed and 93% of our private market assets are managed by black-owned, black-managed, or internal black portfolio managers. This commitment to black economic empowerment underscores our dedication to building a more inclusive financial ecosystem.

EPPF is also leading the way in gender equity. We are actively working to increase the representation of women in asset management, with 15% of our external local assets currently managed by women-owned, women-managed, or internal women portfolio managers. Our target is to increase this figure to 30%, demonstrating our resolve to create space for women leaders in the financial sector.

Beyond investment management, EPPF has taken on a key role in infrastructure development. In collaboration with National Treasury and the World Bank, we are researching and promoting infrastructure solutions that mobilize asset owner capital to drive sustainable economic development. This work has the potential to unlock significant investment in critical infrastructure, supporting long-term resilience and prosperity for communities across South Africa.

Our approach to sustainability is holistic, incorporating environmental, social, and governance (ESG) factors not just as risk mitigators but as opportunities for value creation. By integrating climate change principles, social justice, and economic empowerment into our fiduciary responsibilities, we are reshaping the future of pension fund management.

EPPF’s impact is not just in the assets we manage but in the industry leadership we demonstrate. Through our sustainability efforts, we are actively working toward a future where investment practices contribute to a more equitable, inclusive, and regenerative world.

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