Corporate Social Responsibility
The Principles for Responsible Investment
Private Wealth Capital is commited to following the principles of responsible investment as set out by the United Nation Priciples of Responsible Investment.
As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time). We also recognise that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:
- Address ESG issues in investment policy statements
- Support development of ESG-related tools, metrics, and analyses
- Assess the capabilities of internal investment managers to incorporate ESG issues
- Assess the capabilities of external investment managers to incorporate ESG issues
- Ask investment service providers (such as financial analysts, consultants, brokers, research firms, or rating companies) to integrate ESG factors into evolving research and analysis
- Encourage academic and other research on this theme
- Advocate ESG training for investment professionals
- Develop and disclose an active ownership policy consistent with the Principles
- Exercise voting rights or monitor compliance with voting policy (if outsourced)
- Develop an engagement capability (either directly or through outsourcing)
- Participate in the development of policy, regulation, and standard setting (such as promoting and protecting shareholder rights)
- File shareholder resolutions consistent with long-term ESG considerations
- Engage with companies on ESG issues
- Participate in collaborative engagement initiatives
- Ask investment managers to undertake and report on ESG-related engagement
- Ask for standardised reporting on ESG issues (using tools such as the Global Reporting Initiative)
- Ask for ESG issues to be integrated within annual financial reports
- Ask for information from companies regarding adoption of/adherence to relevant norms, standards, codes of conduct or international initiatives (such as the UN Global Compact)
- Support shareholder initiatives and resolutions promoting ESG disclosure
- Include Principles-related requirements in requests for proposals (RFPs)
- Align investment mandates, monitoring procedures, performance indicators and incentive structures accordingly (for example, ensure investment management processes reflect long-term time horizons when appropriate)
- Communicate ESG expectations to investment service providers
- Revisit relationships with service providers that fail to meet ESG expectations
- Support the development of tools for benchmarking ESG integration
- Support regulatory or policy developments that enable implementation of the Principles
- Support/participate in networks and information platforms to share tools, pool resources, and make use of investor reporting as a source of learning
- Collectively address relevant emerging issues
- Develop or support appropriate collaborative initiatives
- Disclose how ESG issues are integrated within investment practices
- Disclose active ownership activities (voting, engagement, and/or policy dialogue)
- Disclose what is required from service providers in relation to the Principles
- Communicate with beneficiaries about ESG issues and the Principles
- Report on progress and/or achievements relating to the Principles using a 'Comply or Explain'1 approach
- Seek to determine the impact of the Principles
- Make use of reporting to raise awareness among a broader group of stakeholders
The Comply or Explain approach requires signatories to report on how they implement the Principles, or provide an explanation where they do not comply with them.
The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.
In supporting the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.
We encourage other investors to adopt the Principles.
The Private Wealth Foundation was set up by the firm to primarily open minds, challenge barriers and change life chances through entrepreneurship and education with a specific commitment to tackling educational under-achievement and social immobility among disadvantaged and excluded young people.
At its heart is a belief that by instilling an entrepreneurial attitude you can empower young people to improve their lives, inspire them to create innovative social and business enterprises, which in turn can stimulate community regeneration.
The Foundation sponsors community training in disadvantaged areas. It also funds innovative projects that encourage entrepreneurship among excluded groups of people.
The PRIVATE WEALTH CAPITAL Foundation is committed to making our community BETTER, CLEANER , STRONGER, SAFER and a HEALTHIER place to live, learn and work by investing in organizations that empower people to reach our long-term goal of living sustainable,rewarding and responsible lives.
Each year The PRIVATE WEALTH Foundation will direct a considerable portion of its charitable budget toward grants to non-profit agencies, charities, educational institutions, projects and groups. Donations will generally target organizations that give emphasis to certain areas of focus, and The PRIVATE WEALTH Foundation will strive to direct its support to organizations that demonstrate the ability to promote our mission.
Grants from The PRIVATE WEALTH Foundation will be made once per calendar year. Recipients will be eligible to receive funding for three consecutive years after which support can again be requested following a one-year interim period. Particular consideration will be given to organizations or programs that demonstrate cost-effectiveness.
Emphasis is given to:
- Programs that educate and enlighten the youth especially in slums and rural areas, on how to become successful citizens, engaged in wealth creation ventures;
- Programs that assist qualified schools to deliver entrepreneurial training and personal development programs to create future entrepreneurs and business leaders;
- Programs that promote women's health issues;
- Programs that promote drug and alcohol prevention among the youth especially in the rural areas with the aim of reducing alcohol abuse and crime in those areas;
- Programs that assist in citizens initiatives to ensure a cleaner environment and development of cleanliness habits;
- Programs that support mass clean up and beatification campaigns in towns and cities in Kenya, and assist in creating positive living habits;
- Programs that assist senior citizens;
- Programs involved in micro-lending to youthful start-up entrepreneurs;
The PRIVATE WEALTH Foundation will not provide funding for:
- Political parties, candidates or partisan political organizations;
- Fundraising events (e.g., harambees, pre-weddings,hospital bills, membership drives, dinners, tournaments and benefits); and
- Advertising sponsorship.
The PRIVATE WEALTH Foundation will distribute grants once each year.
The process of attaining a grant will involve:
- Submitting a grant request application, by June 1st every year.
- Foundation research and review.
- Foundation selection of grant recipients in September of that year.
- Payment will be made before the end of the year.
- The Foundation will monitor and review the organization or group to ensure the grant is being used effectively.
Organizations may reapply for funding assistance annually, but grants are made to one organization for no more than three consecutive years. Support may again be requested after a one-year interim period. With the Foundation’s approval, exceptions to this policy may be granted to organizations that cannot obtain sufficient support elsewhere to achieve program goals.
Each year, The PRIVATE WEALTH Foundation expects more requests than it can fund. Therefore, the Foundation has established procedures that allow it to allocate its resources as wisely as possible.Receiving and reviewing grant requests at a predetermined time each year allows for a thorough and thoughtful grant-making process.
The PRIVATE WEALTH Foundation’s annual funding cycle is the process through which grant proposals are received from agencies and organizations seeking funds for programs and projects that promote our mission.
Annual funding contributions are made primarily to Kenyan based organizations. However funding will also be considered for organizations within other countries or regions where PRIVATE WEALTH does business.
Most grants for annual operating expenses or program support range from Ksh. 25,000.00 to Ksh. 250,000.00 per project.
Requests for funding assistance will be accepted starting every March 1st and must be received by June 1st, to receive consideration for that year’s cycle. Awards will be announced by September,with payment to be made before the end of the year. Generally, only one request for funding per organization will be considered during the calendar year. The award of a grant does not necessarily indicate future support will automatically be available.