The Directors recognise the importance of sound corporate governance and will apply the principles of Good Governance and Code of Best Practice published in July 2003 by the Financial Reporting Council (“Combined Code”).
Environmental, Social, and Governance (ESG) investing relates largely to the internal operations of a company and the nature of its products. The concept sets out to find companies that are acting in an ethical and responsible manner at board level, which is then transferred throughout the organisation and into the wider business ecosystem. ESG Investing aims to seek out companies that are acting in a way deemed to be responsible and avoiding companies that are not.
Impact Investing takes the concept of ESG Investing to the next stage by seeking out investments that are making a measurable positive impact and a financial return. The Global Impact Investing Network defines impact investments as ‘investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return’.
Impact Investing differs from ESG Investing in as far as the external positive impact of the business is the key element of Impact Investing, as opposed to just ensuring internal processes are conducted ethically and responsibly. What makes impact investing particularly interesting is the need for a measurable impact as an outcome of the investment.
Ensuring those who have the right to an education receive an education, is a pivotal objective. This may involve employing existing solutions in places that need it, or creating new methods of education.
One of the greatest challenges humans face in the future is the ability to produce enough food to feed everyone. Solving this problem could provide investors with significant long-term returns.
A huge number of people globally still do not have bank accounts, excluding them from mainstream financial services. Providing access to bank accounts and other services has been one of the most successful impact investing sectors for investors.
Sustainable development has been defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Sustainable development calls for concerted efforts towards building an inclusive, sustainable and resilient future for people and the planet.
For sustainable development to be achieved, it is crucial to harmonize three core elements: economic growth; social inclusion; and environmental protection.These elements are interconnected, and all are crucial for the well-being of individuals and societies.
Eradicating poverty in all its forms and dimensions is an indispensable requirement for sustainable development. To this end, there must be promotion of sustainable, inclusive and equitable economic growth, creating greater opportunities for all, reducing inequalities, raising basic standards of living, fostering equitable social development and inclusion, and promoting integrated and sustainable management of natural resources and ecosystems.
Although OFS is working in an industry that is perceived as being the largest contributor to carbon dioxide emissions, the mission of the firm is to reduce emissions in two key areas. Firstly, the conversion of existing polluters from high sulphur, high CO2 producing fuels such as oil and coal to gas. Secondly, OFS is working with local communities with regard to social, cultural and economic benefits to local communities.
OFS therefore is having a measurable impact on the communities and countries that it actively operates.
OFS is working in the area of power and shipping to help in the reduction of fossil fuels; this is key to meeting the Paris Agreement requirements to reduce greenhouse gas emissions.
One area in which OFS can have a huge impact is to stop the indiscriminate felling of trees for firewood and charcoal (for selling and domestic use) which is a major contributing factor for eating up the forests. Staggering figures made available from the UN Food and Agriculture Organisation [FAO] said about 69% of all urban households for instance in Ghana use charcoal for cooking and heating.
Cooking with firewood has health implications and is detrimental to the environment in terms of deforestation and land degradation. The smoke inhaled as a result of cooking with firewood creates a massive, yet ‘invisible’, public health crisis. Recent reviews by the World Health Organisation (WHO) showed that inhaling indoor smoke doubles the risk of pneumonia and other acute infections of the lower respiratory tract among children under five. Women and girls suffer most from the effects of dirty cooking, as primary caretakers in the household and also the typical gender-based division of labour found all over the world, lack of access to clean, modern energy services has a pervasive and severe impact on the lives of women and girls.
According to the World Bank, 1.8 billion women in the world lack access to clean energy. These women rely solely on traditional fuel sources such as firewood and charcoal for cooking.
OFS wants to have a network of gas that will reduce CO2 emissions, but help to stop the felling of the tress, and ensure there is a better chance for the forests to survive and also look to help local communities with the main beneficiaries to be the women and girls in these communities. OFS is looking to tackle challenges in the areas of availability, affordability, accessibility and awareness of alternative sources of energy available to communities.
Another initiative that OFS is working with is ‘Ecofriend World’ which is a global movement with a mission to plant one billion mangrove trees before 2050.
