Africa-focused law firm Olaniwun Ajayi was chosen by IJGlobal’s independent panel of judges to win the ESG legal advisory category for its activity across the continent over the judging period.

One of the IJGlobal ESG Awards 2024 judges said: “Olaniwun Ajayi is evidently making its mark on the African infrastructure and energy market with a keen eye for evolving the implementation of ESG principles in transactions.”

On the environmental front, Olaniwun Ajayi – beyond advising clients on renewable energy projects and sustainable finance, and strategies for contributing to global environmental objectives – has integrated sustainable operations into its culture by adopting the LEED rating system for offices, and using renewable energy sources.

As to social policies and practices, the law firm’s diversity and inclusion policy ensures a diverse workforce through focused recruitment and retention efforts, resulting in increased diversity and retention ratios.

The submission states: “We are proud of our community involvement in pro-bono legal services, with a 37% increase in cases handled, educational programmes, and affiliations with various not-for-profit organisations. Employee well-being is a priority, evidenced by our mental health support initiatives and flexible working arrangements.”

On the governance front, Olaniwun Ajayi maintains high standards of ethical conduct through a comprehensive code of conduct and stringent compliance programs. It ensures a robust corporate governance structure with transparent risk management mechanisms.

The law firm also publishes an annual sustainability and compliance report to management, demonstrating its commitment to transparency and accountability.

The submission states: “We are leaders in ESG, focusing on cutting-edge areas such as developing solar mini-grids and sustainable infrastructure… Our thought leadership is demonstrated through publications and participation in international ESG forums. We collaborate with industry bodies and governments to set and implement ESG standards.”

One of the most interesting transactions that Olaniwun Ajayi cites in its submission is having advised BUA Group as borrower on a $500 million financing from the International Finance Corporation (IFC) and other senior lenders to expand its Sokoto cement plant, integrating ESG elements.

The project includes adopting natural gas (CNG) for trucks to cut costs and emissions; using LNG for captive power to replace HFO and diesel; implementing best practices in design for new cement lines and reducing coal use in kilns; as well as introducing solar PV for electricity generation and exploring alternative fuels for kilns.

These efforts aim to achieve thermal and electric energy efficiencies 10-15% above the West African average, with GHG emissions 10% lower than current levels:

• fuel consumption – 3,160 MJ/ton of clinker
• electricity consumption – 98 kWh/ton of cement
• GHG emissions (scope 1) – 0.616 tonCO2/ton cement

The project is anticipated to avoid 268,181 tCO2eq/year in GHG emissions, with potential for an additional 147,095 tCO2eq/year reduction through climate-smart measures.

Olaniwun Ajayi also advised the IFC on a significant ESG-focused transaction involving Indorama Eleme Petrochemicals, the largest integrated olefins producer in West Africa.

This financing aimed to enhance sustainability and environmental performance in the energy sector. The transaction included 2x IFC A Loans and an International Development Association Private Sector Window Blended Finance Facility.

The funds were used to construct and equip an additional furnace and debottlenecking equipment in the olefins and polyolefins plants. It also included installing 2 heat recovery steam generators to capture and reuse heat from the power plant’s exhaust, optimising energy efficiency and significantly reducing GHG emissions.

The submission states: “Our responsibilities encompassed drafting, reviewing, and negotiating the finance documentation and advising on the integration of the new financing into the existing security package.

“This project was a hybrid of corporate and project finance, requiring meticulous review of various authorisations and project agreements.

“A key ESG element was our successful argument for nominal fees on the registration and stamping of loan and security documents, leveraging IFC’s tax-exempt status, thus supporting the financial viability of sustainable projects.”