” STOA builds long-term partnerships in strategic sectors to meet people’s needs for essential infrastructure in emerging markets, thereby promoting sustainable and resilient economies. “
Charles-Henri Malécot, Chief Executive Officer
AN INTEGRATED IMPACT APPROACH
Communities have a wide range of critical infrastructure needs, and we strive to address them using our theory of change.
STOA leads the way with a new approach, by assessing not only the ESG risks for each of its investments, but also the positive impacts that these projects will have on the environment and populations. The infrastructure we finance is always accessible, functional and clean. This means it provides a service that is available/affordable, reliable and safe, and has a low carbon footprint or allows users to reduce their greenhouse gas emissions. When selecting projects, we therefore take into account a series of indicators on these three impact criteria.
Three key tools allow us to measure our impacts throughout the investment cycle :
- an impact assessment grid using accessibility, functionality and cleanliness criteria, to generate impact scoring;
- 65 measurement indicators, selected from standard catalogues (HIPSO, IRIS);
- an impact modelling tool on a macroeconomic scale.
Our impact framework is aligned with the Operating Principles for Impact Management (OPIM):
On April 12, 2019, Charles-Henri Malécot signed the Operating Principles for Impact Management (OPIM). These principles set a new market standard, bringing greater transparency, credibility and discipline to impact investing practices. They define what constitutes an impact investment and aim to integrate these considerations into all phases of the investment life cycle. STOA publishes annually the alignment of its impact management system with the 9 OPIM principles and conducts an independent verification of this:
E&S RISK MANAGEMENT
Assessing environmental, social and governance (ESG) risks is just as important to us as analyzing the financial performance of an investment opportunity. STOA bases its E&S risk management on the International Finance Corporation’s (IFC) Performance Standards.
Furthermore, STOA seeks to avoid investments in jurisdictions and sectors at risk from the standpoint of international treaties ratified by France, in accordance with the principles of the Caisse des Dépôts Group. Our exclusion policy is also aligned with that of the Agence Française de Développement (AFD) Group.
Finally, STOA has a duty to be exemplary on compliance issues. To this end, we have set up a strong and responsible internal governance system based on the highest guidelines and standards.
OUR CLIMATE STRATEGY
Taking an innovative approach, STOA goes further than a simple risk assessment and also identifies the positive impacts of the projects it supports, notably through a reinforced climate strategy. Mitigating the effects of climate change and adapting to its impacts is at the heart of everything we do. All our investment opportunities are therefore studied in the light of the commitments made by the countries where the projects are implemented, within the framework of the Paris Agreement. This strategy is based on three pillars:
- Promoting low carbon trajectories: we are committed to dedicating 30% of our investments to projects with inherent climate benefits and positive impacts on climate-change mitigation or adaptation;
- Financing climate-resilient projects;
- Redirecting financial flows to leverage investment in climate co-benefit projects in developing countries.
Since 2017, we have committed over 232 million euros to infrastructure projects, 60% of which are climate co-benefit related. The companies we support operate in a variety of sectors, ranging from energy to transportation and telecoms. They all work towards achieving our Sustainable Development Goals (SDGs) targets.
STOA endorses the Climate Action in Financial Institutions initiative and recognizes the guidance provided by the Voluntary Principles for Mainstreaming Climate Action in Financial Institutions. STOA welcomes the opportunity to participate in the development of ongoing work in support of these voluntary principles.