Insight | Shafeeq Abrahams, EPPF

Speaker 0:
Hello and welcome to this Insight session. I'm joined today by Shafik Abrahams, the chief executive and principal officer at the Eskom Pension and Provident Fund. Welcome, Shafiq. Thank

Speaker 1:
you, Chloe. Good to be here.

Speaker 0:
So, Shafik, the E PB F recently hosted their beyond tomorrow business breakfast. What are the key takeaways from from the conference and some of the key announcements that were made.

Speaker 1:
So, yes, as you would know, uh, the EPPF is a sustainable investor and the core cornerstone of our investment philosophy that we approach, uh, investment. Uh, sustainability as a core is a key part of our investment approach.

Speaker 1:
So yesterday we launched, uh, our new sustainable investment policy, which is a consolidation of the previous policies relating to ESG impact investing, uh, as well as, uh, our transformation within the industry.

Speaker 1:
We added on to that policy to look at, uh, environmental regeneration, Uh, on a longer term with, uh, while we deal with climate change on a more immediate, uh, term basis.

Speaker 1:
But ultimately, the new policy recommits us and consolidates, uh, our commitment to driving the sustainability agenda.

Speaker 1:
Uh, with that said,

Speaker 1:
we also announced our membership of the net asset uh, Net zero asset owners alliance, uh, which is a hard wiring of that commitment to drive climate change, reduce carbon emissions within our portfolio over a period of time, and to to demonstrate our commitment publicly and through a process and system,

Speaker 1:
uh, being part of a global movement to do to do that.

Speaker 0:
So, Shafi, you've now, um, now mentioned that the EPPF is a signatory to the United Nations Net zero asset owners alliance. How does this alliance then align the EPPF to limiting global temperature increases as a result of climate change?

Speaker 1:
Yeah, So I think the next steps in the next year, our investment management team will do the baseline assessments to understand what is the car carbon, carbon emission, uh, levels. And what is what's required in terms of setting tangible targets towards 2030 moving to 2050. And what's required for us to start, uh, implementing the necessary interventions, uh, to achieve those targets. Uh, So once again, it's now a commitment to action,

Speaker 1:
uh, to reduce carbon emissions in the portfolio.

Speaker 0:
So, Shafi, how might this announcement then support other local asset owners to commit to, um, Decarbonising their portfolios.

Speaker 1:
Once again, I think each each asset owner has their own philosophy, uh, around investment and own belief system. Uh, but we do think, uh, by stepping up as one of the larger asset owners, uh, it would hopefully stimulate some form of thinking

Speaker 1:
and commitment to climate change from other asset owners. We do believe that climate change is an urgent, uh, an increase in risk, uh, that all asset owners need to take into account, at the very least, from a risk management perspective. Uh, but from a belief system, we believe it's not enough. There must needs to be more to sustainably regenerate the environment. And and that speaks to us and our philosophy.

Speaker 1:
Uh, but we hope that there will be more, uh, commitments coming through from asset owners, uh, to drive to drive address, uh, climate change. At the very least. So

Speaker 0:
at the event, Shafik the EPPF published their reports, um, of the study undertaken on diversity in the asset management industry in South Africa.

Speaker 0:
Perhaps you can take us through some of the findings from this report.

Speaker 1:
Yeah, so one of the sustainable development goals that the EPPF will be driving is gender equality.

Speaker 1:
Uh, and

Speaker 1:
over the many years that we've been in, uh, in, uh, investing we diversity has been a cornerstone of our work as well.

Speaker 1:
So to move to the next step, we wanted to understand what is the representation of women in the industry? Uh, and what are the barriers to entry? And that number is around. Our study tells us it's around 17% and also identifies the barriers to entry or not, And and why, Why? We do not have a higher representation of women within the industry. Uh, our next steps is to start looking at

Speaker 1:
what policy shifts we will make as the EPPF, uh, to start

Speaker 1:
incentivizing asset managers to address some of these be remove some of these barriers to entry so we can see a greater participation, uh, of women within the industry. And that would require work to be done from schooling levels, uh, promoting the industry from schooling level amongst, uh,

Speaker 1:
learners or at a school, uh, at school level, coming into university and then mentoring coaching into the into the, uh, asset management environment, supported with the right behaviours cultures. Uh, incentive schemes, work practises childcare facilities, et cetera.

Speaker 1:
Uh, that will hopefully create a more conducive environment for women to succeed and thrive within the asset management industry.

Speaker 0:
Absolutely. So perhaps you can take us through the renewed approach then that the E PE PPF has adopted then and an advancing, uh, women representation in the asset management industry, as well as addressing this inequality and advancing the diversity and inclusion.

Speaker 1:
So the starting point we needed to start with ourselves. Uh, and we're pleased that our investment team,

Speaker 1:
uh, this 50% represented, uh, by women or women make up 50% of the investment team. Our is, uh, largely, uh, women, uh, executives as well as our board. And we celebrate the chairmanship of of a female, uh, chairman as well. But going into the into the next steps, uh, we will start to look at

Speaker 1:
whether we want specific targets for the representation of women within the industry. Uh uh, in in allocated mandates to asset managers. Uh, two, in our due diligence, we will start to look at the remuneration practises to assess, uh, equity in in, uh, from a gender equity perspective, we'll start to look at the recruitment practises, uh, the facilities within the environment to start raising awareness amongst our asset managers.

Speaker 1:
But ultimately create some incentive and leanings for asset managers to move forward and driving in gender equality, uh, within their workplaces.

Speaker 0:
Shafiq, we wanna thank you for sharing your insights. We appreciate your time.

Speaker 1:
Thank you.