Inspired Evolution head of ESG Marike Fourie
Inspired Evolution recently announced that it has secured US$238 million for clean energy infrastructure investments in Africa, at the final close of its Evolution III Fund in March 2025.
ESG Global asked Inspired Evolution head of ESG, Marike Fourie, three clever questions about social equity, circular economy principles and innovative, ‘“green” financial instruments.
Given the increasing emphasis on distributed energy solutions and community-owned renewable energy models, how is the Evolution III Fund exploring opportunities to empower local communities and promote energy democracy alongside its utility-scale investments, and what metrics are used to measure the social equity of these investments?
Inspired Evolution supports community-led decentralised energy solutions and local ownership in utility-scale investments across Evolution II and Evolution III Funds. Our core investment strategy includes large-scale IPPs like Red Rocket and Alten Africa, as well as off-grid and mini-grid initiatives through investments in companies like d.light, Rensource, and ESCOTEL, which directly empower underserved communities. These investments promote energy access by expanding investments to off-grid solar and hybrid mini-grids for rural and peri-urban populations. The fund also invests in companies who use PAYGO models to increase affordability and consumer ownership. And it entails C&I renewable energy companies like CESA (SolarAfrica) and Equator Energy.
Supporting local job creation, capacity building and gender equity initiatives are also important aspects of sustainable energy development in Africa. Impact metrics used to measure performance include, among others, financial performance metrics (USD), renewable energy installed (MW), jobs supported (in total, and females), training and skills development (number of people trained), CSI investments, local procurement (USD), local taxes (USD) and GHG avoided (metric tons of CO2e).
We also see portfolio companies like Equator Energy who have implemented practical measures around community empowerment and participation through a community labour committee, which enables community members to benefit through potential employment opportunities that each of the projects may generate. Community members have an opportunity to express their interest through the committee and register their skills to be a part of the projects and their development when opportunities arise, giving preference to locals.
While the fund’s investments in Red Rocket Group and Equator Energy demonstrate a commitment to scaling renewable energy capacity, how does Inspired Evolution integrate circular economy principles into its investment strategy, particularly regarding the lifecycle management of renewable energy infrastructure and the responsible sourcing of critical materials, to minimise the environmental footprint of its portfolio companies?
Inspired Evolution actively integrates circular economy and resource efficiency into our investment strategies. We implement E&S policies and procedures that align with IFC performance standards, EIB guidelines, AfDB’s Integrated Safeguard Standards, ILO conventions and protocols for the responsible procurement of critical materials used in renewable infrastructure. Furthermore, Inspired Evolution developed a bespoke responsible procurement policy that is used to guide all investment decisions in avoiding/minimising, mitigating, managing, and monitoring direct and indirect environmental, social, health, safety and reputational risks, as well as unintended consequences associated with an investment’s value chains.
Practically, this involves the integration of ESG screening and assessment criteria and mitigation measures into procurement processes to enable portfolio companies to procure products and services in an ethically, economically, environmentally, and socially responsible manner. The responsible procurement policy outlines Inspired Evolution’s commitment to responsible procurement across the value chain and supply chains. It lists the main objectives of the policy and provides an overview of applicable requirements for portfolio companies to identify, address, manage and monitor ESG risks across the Fund’s value/supply chains. This includes an assessment of upstream primary suppliers of renewable energy equipment, and downstream waste processing and recycling service providers.
In addition to the policies and procedures above, Inspired Evolution’s impact investment performance activities, which include monitoring, measurement, reporting and disclosure of performance at portfolio company level factors in circular economy performance. The key indicators that are prescribed to our portfolio companies are aligned with mandatory and optional indicators that are associated with the ISO 59000 family of standards on the circular economy, which include renewable energy usage, water use efficiency and resource efficiency.
The focus on such KPIs also helps to better position our portfolio companies in adopting and aligning with the procedures and measures of best practice through recognised circular economy standards such as ISO 59000.
What innovative financial instruments or mechanisms is the fund exploring relating to biodiversity conservation and restoration alongside clean energy development?
As ESG frameworks and impact investing continue to mature, Inspired Evolution may explore green bonds or blended finance structures that incentivise biodiversity restoration alongside clean energy infrastructure
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