The Private Infrastructure Development Group (PIDG) was chosen by the independent panel of judges to win the IJGlobal ESG Awards 2024 trophy for the “social” element of ESG.

PIDG was praised by the judges for taking a “methodical approach” and for “targeting areas of major need that are often overlooked” while also creating “clear social benefits in areas of need”.

One of the judges said: “PIDG is clearly focusing on social impact in regions and for communities that need the most engagement and support. It has successfully developed specific tooling to help on these topics, with clear quantified outcomes.”

PIDG is an infrastructure developer and investor that holds health safety, environment and social governance (HSES) as a core value.

The PIDG impact management system covers the identification and management of HSES risks and negative impacts and its strategic capital allocation for positive sustainable development impact.

It takes a risk-based approach to HSES management aligned to the IFC performance standards on environmental and social sustainability (IFC PSS).

PIDG ensures incentives are aligned with impact through a set of KPIs at the group level for all companies. The majority are impact performance indicators that speak to an overall theory of change.

For example, these include (but are not limited to):

• impact rating – portfolio distribution, based on sustainable development impact scorecard process
• percentage of cumulative number of projects committed in LDC and OLIC (DAC I/II) and fragile and conflict affected states (FCAS)
• number of projects reaching financial close that empower women and girls
• portfolio carbon intensity by 2023 – against forecast trajectory

On the first of these, the score of each project is “live” and is updated every year based on its performance – with the portfolio average position also subsequently updated.

Targets for these strategic portfolio KPIs are informed by – and incentivised through – company-specific, 3-year business plans that are then cascaded into team objectives.

The submission states: “In terms of portfolio changes, for the past 3 years we have tracked the number of projects reaching financial close, scored as empowering women or transforming gender dynamics in that year.

“The number of projects that will lead to gender equality outcomes on this basis has progressively increased from 6 in 2021 to 11 in 2022 and 15 in 2023. In 2023 this amounted to 68% of all PIDG projects reaching financial close.”

PIDG cites 3 examples in its submission:

• SunCulture – InfraCo Africa (PIDG development arm) – financial close June 2023
• Cellcard – GuarantCo (PIDG guarantee arm) – FC in December 2023
• Runner Automobiles – GuarantCo – FC in July 2023

The subsidiaries of Savant Group across Sub-Saharan Africa – collectively known as SunCulture – developed an Internet-of-Things (IoT) enabled solar-powered irrigation system for use by smallhold farmers with 1-3 acres of land.

As per PIDG’s gender lens investing policy, the project was screened for opportunities for gender positive outcomes.

It was identified that while women make up most of the farming labour force in Kenya and Uganda, female farmers face more challenges in starting successful agribusinesses than their male counterparts.

A gender equality assessment (GEA) was conducted on SunCulture which showed that it has a higher impact on female farmers in terms of farming practices, production, money earned, quality of life and climate shock recovery.

Thanks to the GEA, SunCulture then committed to explore further the specific impacts of its products on female farmers, the reasons for the disproportionate benefit to female farmers and whether these could be expanded.

At the same time, the risk of gender based violence and harassment was considered during the project screening and due diligence phase.

Measures to strengthen the projects’ GVH safeguarding were identified, including strengthening safeguarding procedures, and training and capacity raising. These requirements were built into the environmental and social action plan (ESAP) for the project.

Meanwhile on CamGSM (Cellcard), GuarantCo provided a $70 million guarantee to support an internationally certified sustainability bond that was fully subscribed by institutional investors Manulife and Prudential Cambodia, listed on the Cambodian Stock Exchange on 24 November 2023, and loan financing from Deutsche Bank.

It is expected that more than 1 million consumers will benefit from increased internet speed and coverage. In total around 260 jobs will be created and the project will make an important contribution to empowering women as 20% of Cellcard’s management and 30% of the workforce are currently women. This meets PIDG’s criteria for a gender and inclusion bonus point for the project.

In addition, during the investment process, a gender equality assessment (GEA) was undertaken to look for ways the project could achieve greater gender positive outcomes.

The GEA findings recommended that the company conduct an anonymous, sex-disaggregated survey to identify the barriers faced by female staff both entering the profession and their ability to reach their potential in the company.

The exercise itself and timing of the survey proved valuable to Cellcard, as it was taking place during an ongoing merger process. The HR team used the results of the survey revise their policies to address these challenges. The project was therefore awarded a gender and inclusion strategic uplift.

In addition, during the project screening the risk of gender-based violence and harassment (GBVH) was identified and due diligence identified some areas of HSES improvements to strengthen the GBVH safeguarding.

Actions were included in the ESAP including strengthening the code of conduct in regard to GBVH, and strengthening the grievance mechanism to include consideration of GBVH.

GuarantCo provided Bangladesh’s Runner Automobiles with a 100% guarantee for the issuance of an internationally certified sustainability bond worth BDT2.67 billion ($27m).

By providing credit access, this initiative will grant an opportunity for drivers to become owners of 3-wheelers, leading to income-generating prospects for drivers and downstream vehicle maintenance companies.

It is anticipated that these 3-wheelers will offer taxi services to more than 50,000 people in rural and urban areas of Bangladesh.

As per the PIDG gender lens investing policy, the project was screened for the potential to have gender positive outcomes.

There was potential for women to be empowered within the workforce domain and this was then further assessed using the GEA. It identified that Runner Auto Limited (RAL) had both the willingness and the capacity to commit to improved HR policies that would support a more gender equitable workplace and would be designed to promote women to senior leadership positions.

RAL identified that they are particularly keen on identifying how to promote female staff into leadership roles and out of the unskilled, lower-paid roles. The project has therefore been awarded a gender and inclusion strategic uplift.

At the same time GBVH risks were considered during the project due diligence. Areas of HSES improvement were identified and included in the project ESAP. These considered the requirement to review and update the workplace harassment policy and the code of conduct and to strengthen the grievance mechanisms for consideration of GBVH.