ESMS development for Accelerate Prosperity
We developed an Environmental and Social Management System (ESMS) for Accelerate Prosperity in Pakistan
Accelerate Prosperity (AP) is a global initiative of the Aga Khan Development Network in Central and South Asia. AP aims to foster entrepreneurship, sustainable employment, and strengthen local communities by supporting the development of start-ups and small and growing businesses (SGBs). To achieve this, it offers technical expertise, creative financing solutions, and market connections to aspiring and existing local entrepreneurs.
Together with the German investment and development bank KfW, AP Pakistan reached out to Steward Redqueen to develop an ESMS that addresses the specific requirements of start-ups and SGBs in Pakistan, while meeting international E&S standards. In this way, they not only improve business practises of local entrepreneurs, but also enable access to finance from other investors.
To develop the ESMS, we first analysed AP’s organization and investment portfolio to get a solid understanding of the business context of Pakistan. Next, we collaborated closely with AP’s technical assistance and investment teams, and local E&S expert Mehrunisa Malik to translate the international E&S standards into an E&S policy that fit AP’s mandate, resources, and investment universe. To achieve this, we developed a tiered E&S due diligence system which considers the investee’s size, maturity level, and potential E&S risks. To further assist AP in assessing E&S risk, we drafted detailed sector guidelines. Finally, we built organisation-wide capacity on E&S risk management by hosting interactive training sessions for AP’s country offices.
The ESMS provides AP Pakistan with a structural approach to assess, address, and monitor ESG risks of their investees. In addition, it ensures that E&S risk management is embedded throughout the organization. Although sustainability was always an important topic for AP, they can now formally assure investors that the investees they back comply with international sustainability standards, contributing to their goal of improving access to finance of local entrepreneurs. After a successful pilot, the ESMS is planned to be rolled out to all other country offices as well.
