« 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 ADDITIONAL IMPACT FUND
As an impact fund, STOA invests with the intention to contribute to a positive and measurable social or environmental impact and to generate a satisfying financial return. Tacking both environmental and social stakes into account is essential to contribute to the stable and sustainable development of the countries we invest in.
Our impact framework is based on three criteria (accessibility, functionality, cleanliness) and covers the entire investment cycle. We comply with the requirements of the Operating Principles for Impact Management, which are elaborated by the IFC and are based on three pillars: intentionality, additionality and measurability.
STOA is an additional impact fund: it ensures a unique added value in terms of financial and extra-financial contribution to its infrastructure projects.
OUR IMPACT FRAMEWORK
The infrastructures we finance are accessible, functional, and/or clean. This means they provide a service that is available/affordable, reliable, and safe, and have a low carbon footprint or allow users to reduce their greenhouse gas emissions. When selecting projects, we therefore consider 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).
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 every other year:
- The 2021 disclosure statement is available here
- The 2020 third party verification report is available here
STOA provides a unique added value by the specificities of its intentionality and internal expertise. Additionality is threefold:
- Financial additionality: STOA can bring capital when other actors would not.
- Mobilization additionality: STOA plays a catalyzer role and contributes to the attractiveness of projects by mobilizing private capital.
- Non-financial additionality: STOA supports its projects by improving their socio-economic impact, their ESG risk management, compliance and ethics policy and/or their structuration during the development phase.
FOCUS ON OUR NON-FINANCIAL ADDITIONALITY: AN INTEGRATED ESG RISK MANAGEMENT SYSTEM
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 the one 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.