Why Frontier ESG and Why InveSTABLE?
In a constantly changing world where the health of our planet and the potential for investment growth are intrinsically linked to the vulnerability and unpredictability of human nature, there is a need for a proactive, coordinated and holistic approach designed to address the challenges faced by an in investor preparing to enter into the environmental, social, political, business and security complexities of today’s frontier markets.
Real World Frontier ESG Investing is Putting the Investors on the Global Frontline. We know how to guide them…
Our goal is to advise our clients on how to turn an investor’s money into a symbiotic ‘dual purpose tool’, creating a more stable and sustainable planet with tangible interventions which at the same time creates a conducive marketplace for enhanced long-term financial growth and an incentive to re-invest.
In essence it is creating a real-world pipeline for investors and companies to engineer positive global change whilst at the same time enhancing their potential for growth.
The Challenges of Succeeding on the Ground in the Frontier Market
The Frontier Markets are very different to that of the established markets making ESG best practice vastly different in comparison.
The InveSTABLE Solution is an engagement and sustainable influence-based approach, working on the basis that you have to be well informed to make an informed decision and be well networked to positively engineer change.
For an ESG investment into the frontier market-place to deliver returns and sustainable growth it must address the following aspects:
An in-depth knowledge of the social and cultural make-up of the indigenous society with which the investment delivery team will have to engage and live with on a day to day basis on the ground is a vital requirement.
In today’s world the indigenous rural communities hold the success or failure of rural investments in the palm of their hands, without their support an investment can face costly challenges.
At Frontier ESG Advisory we have nearly 90 years of collective experience in liaising with such indigenous communities; understanding the fabrics of their societies, their expectations, needs and the pace of their lives. The ability to identify key influencers and leaders is vital alongside initiating and maintaining important strategic and social relationships that will ensure support for an investment.
The natural environment is now a global consideration for every investment, many of the frontier states are the custodians of some of the last great wildernesses and the habitats of endangered species all of which requires the important consideration of any future investment. InveSTABLE combines the importance of the local ecology with the global demand for a carbon neutral footprint with an approach that ensures that a “do no harm” policy is included at every level.
The partners at Frontier ESG Advisory have diverse multi-level experience in the frontier environmental sector, as ecologists, managers, educators and policy advisers all of which is drawn upon in the development of a client’s InveSTABLE ESG Roadmap.
One of the biggest hurdles to any Frontier ESG investment is the availability of usable data, such data is required to enable the delivery of the essential ESG components. In many cases accurate data may exist but be sitting on the hard drives of an NGOs computer or in hard copy format in the vaults of national government or regional administration offices. The data that does not exist has to be generated by an investment to embrace the ideals of ESG best practice, guide action and be documented to ensure transparency.
Our combined experience in the field provides us with the capacity to advise and guide our clients with regard to collating existing data and generating data where gaps exist. Whether relevant to environmental, social or governance-based issues data collation, usage and management will be addressed with plans and recommendations in the clients bespoke InveSTABLE Roadmap.
Politics is one of the most influential aspects of any ESG investment into a frontier state. The political situation with regards to the investment, the rural human population, clan and tribal affiliations, land/boundary disputes, employment issues and foreign competition can all present challenges to an investment and the way it delivers its ESG plans.
The development of the InveSTABLE Solution is based on human analysis, engagement and relationship management. Our experience has come from decades of navigating the international, national and regional political sectors of the frontier states. The client’s InveSTABLE Roadmap will contain political analysis and management recommendations designed to build on going political support for the investment and its ESG ideals.
What constitutes “business” and how it is conducted can differ vastly across the business communities of the frontier states it can even differ within the national borders. In many cases frontier business and commerce is strongly linked with culture and history and the idiosyncrasies regarding: governance, “facilitation”, gender, business law and work practices, these have to be identified, analysed and understood for an investment to be sure that they are working within the ideals of ESG best practice.
Both human and financial security can be enhanced as an outcome of a well planned and well implemented ESG investment, first however an accurate information picture on current and potential security risks must be developed in order for an investment to profit from the ESG effort and vice-versa as demonstrated in the InveSTABLE Virtuous Circle.
Security overlaps all aspects of the ESG investment function and within our team we have experience across all levels of the frontier state security spectrum. Having previously operated at the strategic, operational and the tactical levels both as part of a frontier states infrastructure and as international advisors we have the ability to view security issues from both the outside and from within.
The InveSTABLE ESG roadmap will guide the client towards delivering operational ESG best practice that link directly into the Sustainable Development Goals (SDGs) which will, when structured and delivered help shape a collective drive becoming the “glue” that brings all stakeholders together to develop the sort of stability and sustainability that many frontier states have agreed to achieve by 2030.