Private equity subsidiary RMB Ventures has partnered with climate investment company Africa Climate Ventures (ACV) to help its existing and future portfolio companies to achieve a greater level of sustainability while improving profitability.
The partnership will provide a toolkit to transform many of RMB Ventures’ portfolio companies by enhancing returns, particularly those with underutilised carbon potential, while speeding up growth against a shared value template, says RMB Ventures head Andrew Aiken.
“By working closely with ACV, we believe we can turn climate change from a potential risk to our portfolio into an opportunity for enhanced returns,” he says.
ACV focuses on combating the effects of climate change by building and investing in businesses which undertake to remove carbon from the atmosphere or significantly avoid future emissions. It has a track record of building new businesses focused on scaling climate-positive technologies and investing to add climate-positive business lines to existing businesses.
For example, ACV entered into a joint venture to scale up bioethanol company KOKO Networks outside of Kenya for the first time. KOKO Networks is an emerging markets climate technology company that provides sustainable bioethanol cooking fuel to over one-million Kenyan families every day.
Additionally, ACV also has a majority stake in Great Carbon Valley, which is a Kenyan venture built to explore and materialise the significant climate action potential that lies in the East African Rift Valley by developing large-scale green industry and technical removals projects.
“This partnership aligns with our purpose to empower our people, teams and businesses to unlock their full potential. RMB Ventures follows a shared value framework of which environmental, social and governance forms a significant part and that requires a holistic approach to growing our businesses in a way that benefits not only shareholders, but all stakeholders and society at large,” says Aiken.
“Africa needs to embrace these discussions and transform the way corporate management teams and shareholders manage their businesses.”
“The partnership offers a range of mutual opportunities. We will provide skills and capabilities to RMB Ventures to identify and execute on climate-positive opportunities in their present and future portfolio. Together with RMB Ventures’ record, we also expect to attract more deals,” comments ACV co-founder and chief investment officer Mohamed Cassim.
Additionally, in future, there is potential for RMB Ventures and ACV to jointly invest in companies via equity positions or to establish new businesses that influence climate positive behaviour, the companies note.