Sustainability manager at Old Mutual Alternative Investments, Fulufhelo Makhani.
Fulufhelo Makhani, sustainability manager at Old Mutual Alternative Investments (OMAI), says that in the near future, it will no longer be noteworthy that an investment integrates ESG – the real question will be how effectively it does so.
Fulufhelo, who holds an MSc in environmental studies, recently responded to ESG Global’s three clever questions on ESG buzzwords, traditional dealmakers and balancing job creation with environmental targets.
If you could ban one ESG buzzword from your meetings, what would it be – and why?
Best practice. It is often used without explaining what standard is being applied, investment context and how performance is measured.
What is the single biggest pushback you get from traditional dealmakers?
That ESG requirements may add time, cost and complexity to a transaction.
How do you balance urgent social needs like job creation against strict environmental targets in South Africa?
The social needs and environmental targets are not treated as competing priorities. Our ESG integration process includes a theory of change which helps us define the intended outcomes of each investment from the onset including decent work and climate action and tracking both throughout the investment lifecycle. This means assessing job creation alongside job quality, resource efficiency, emissions, climate resilience and community impacts. Where trade-offs arise, they are considered in the context of investment, with the aim of supporting economic growth and employment without creating environmental risks that could undermine the business and the livelihoods it supports.
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