OUR SUSTAINABILITY:
Roadmap and approach to IFRS S1 and S2 standards
Our approach
The Fund is incorporating reporting frameworks, standards, and protocols into its sustainability strategy and reporting structure through an iterative, interconnected process. To enhance understanding of their interplay, the Fund will follow this process in the following order over the coming years:
Process |
Approach |
Status |
|---|---|---|
Engagement and materiality process |
Conduct a materiality exercise to link sustainability initiatives with business benefits. This will involve engaging internal and external stakeholders to identify and prioritise issues relevant to the Fund's business. Additionally, collaboration across departments will be essential to achieve bold commitments aligned with the strategy. |
The Fund has reviewed the ESG consultant's recommendations for the next materiality assessment and is preparing for the upcoming reporting cycle while working collaboratively with its departments. |
Framework selection |
Select a sustainability reporting framework that aligns with our strategic goals, stakeholder expectations, and industry context. | To date, the following frameworks and standards have been adopted: |
Standard identification |
Identify the relevant standards, both universal and industry-specific, to capture and report material sustainability issues | After discussions with the Consultant, the Fund has identified and adopted the relevant reporting standards. Additionally, the Fund will engage with its Regulator and industry stakeholders to initiate discussions on developing industry-specific standards to support the creation of a reporting framework within Uganda. |
Protocol application |
Implement the appropriate protocols to measure, monitor, and report sustainability performance in alignment with the selected framework and standards. | This is ongoing following the adoption of the IFRS S1 and S2 standards. |
By cohesively integrating these elements, we will enhance the credibility, transparency, and impact of our sustainability reporting, driving positive change toward a more sustainable future.
With guidance from our ESG advisor, we will continue to evaluate our current structure and sustainability strategy during FY2024 to ensure they are fit for purpose going forward. This will involve conducting a gap analysis to identify areas needing improvement for compliance with the standards.
We will adopt the recommendations on reporting and progressively implement them over the next few years to ensure our sustainability reporting accurately reflects our strategy and the value we aim to provide to our customers. The next steps are:
We will adopt the Integrated Reporting Framework along with the ISSB standards of IFRS S1 and IFRS S2. These standards will guide us in preparing and reporting our sustainability-related financial and climate disclosures.
We will conduct a materiality assessment to determine what is material, reassessing materiality judgments at each reporting cycle. This process will help us identify sustainability-related risks and opportunities that could reasonably impact our business model and strategy.
We will disclose the process we follow to determine these risks and opportunities, as required by IFRS S1.
On the road to Net Zero: Scope 1, 2, and 3 GHG emissions
Scope 1:
Direct emissions from operations
Scope 2:
Emissions from utility supplier operations
Scope 3:
production, transportation, waste etc.
In 2023, climate change continued to impact people and ecosystems globally, with extreme weather events affecting Uganda as well. Every business has a role in mitigating risks to both people and the planet. Over the next 24 months, we aim to accelerate our performance, targeting a 13.58% reduction in GHG emissions compared to the 2024 baseline assessment. Climate change presents both material risks and opportunities for us. We utilise the Task Force on Climate-Related Financial Disclosures (TCFD) methodology to assess and disclose our climate risks and opportunities.
Approach
In 2024, we started on baseline external assessment to ascertain the Fund’s Net Zero Roadmap (see the next report issue) to set out how we plan to meet our net zero commitment by 2050. Guided by the Roadmap, we shall be transforming our business model to deliver reductions in GHG emissions across all three Scopes of our activities, according to the criteria approved by the Science Based Targets initiative (SBTi).
A detailed analysis of our GHG emissions will be published within the next 12 months as part of our baseline assessment. To address our Scope 3 emissions, we will develop a comprehensive strategy focused on reducing carbon emissions from logistics and enhancing collaboration with suppliers, stakeholders, and communities to promote regenerative agricultural practices.
For Scopes 1 and 2, which cover emissions from our own operations, our primary strategy will involve increasing energy efficiency and transitioning to renewable energy sources. We will also establish near- and long-term science-based emissions reduction targets with the SBTi, aligned with our Vision 2035 goals.
Sustainability drivers
Furthermore, we have identified five sustainability drivers which are based on assigning value to the capital assets we depend on for our economy and society to flourish, as they are all interdependent. Our sustainability drivers are embedded in our strategy and are focused on ensuring sustainability for our business, our customers, communities, society, the economy and the environment.
Our sustainability drivers are:
Customer satisfaction
Social responsibility
Financial resilience
Inclusivity
Environmental protection
Our strategy is underpinned by good corporate governance, which is implemented in an integrated manner, promoting an ethical culture, good performance, effective control and legitimacy . To view our strategy on a page, click here.
A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH