Working through the lens of ESG

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Category: Sustainability

In recent years, being a responsible investor has gained momentum in South Africa, investors have realised the importance of considering sustainability facts and insights when investing. It has become more apparent that material Environmental, Social and Governance (ESG) factors can be indicators of long-term performance and thus have become a mainstay in most valuations and portfolio formations.

The core of ESG investing is the meek idea that companies are more likely to succeed and deliver stronger returns if they create value for all their stakeholders (employees, customers, suppliers and wider society including the environment). Financial factors are no longer viewed as the pre-eminent drivers of value, and sustainability has become more strategic.

Sustainability issues can contribute to a company’s long-term financial performance, and thus further incorporating these considerations into investment research, portfolio construction, portfolio review and stewardship processes can help enhance long-term risk-adjusted returns. ESG analysis is not just about what the company is doing today. But considers any future disruptive changes that may have implications for an organisation’s profitability and existence.

We, at BC Funding Solutions, are attentive to the unique needs of our clients as individuals and seek to professionally provide sustainable financial solutions, responsibly, in a way that encourages everyone to work together to maintain and contribute to a thriving community. We believe that it is our corporate social responsibility to uplift Community Schemes in South Africa sustainably and responsibly so that they can operate at their full potential into the future. In doing so, we hope to positively impact the broader South African community. BC Funding Solutions works through the lens of Environmental, Social and Governance (ESG) factors for investing, to identify and inform our lending solutions and the Community Schemes we assist.

Our lending solutions offer Community Schemes, meeting positive performance on ESG issues, a debt rehabilitation option for their non-paying owners. The provision of loans stabilises the Community Scheme’s cash flow and enables it to offer levy debtors time to repay its debt without legal action or costs. The debtor-rehabilitation opportunity is often the difference between unit owners keeping or losing their home. We also assist Community Schemes with maintenance funding. The general decay of the buildings (even a single building), if not maintained over time, not only erodes the asset value of those units within the Community Scheme but also the properties surrounding it. It ultimately provides communities with the means needed to thrive, rather than just survive. We provide private and institutional lenders with an outstanding opportunity to invest in this ESG-positive initiative.

In line with the vision of being a pillar of the community and making a positive impact, BC Funding Solutions views its role as going beyond that of a major player in the Community Scheme industry – to being a responsible corporate citizen. A big focus for the organisation is adopting and partaking in initiatives that will make South Africa a better place for all and supporting them through strategic social investments.

Corporate Social Responsibility initiatives we support

 

Care For Wild Rhino Sanctuary

The devastating impact of deforestation, climate change and the poaching scourge has left and continues to leave behind young, defenceless, orphaned Rhino calves. BC Funding Solutions, along with Sectional Title Solutions and Bright Light Solar have stepped up to donate a fully funded off-grid solar solution to one of the world’s largest specialised Rhino conservation facilities. BC Funding Solutions and STS have committed to pay the monthly electricity for the initiative. Through the renewable energy of solar, we aim to achieve a better and more sustainable future for all whilst protecting the environment.

Faith Foods Distribution

The Covid-19 pandemic and lockdown have taken a big toll on wage earners, the homeless, business owners and the underprivileged. This initiative by the NPO, Faith Foods Distribution, delivers assistance to those in need. BC Funding Solutions and Sectional Title Solutions have partnered with Faith Foods Distribution to alleviate the impact of the pandemic on the broader South African community through financial assistance, food and care packages. We are supporting the initiative with a collective R1.2 million annual donation.

We are devoted to improving the social, economic and environmental well-being of our community by being a responsible corporate citizen with a strong focus on sustainable development and impact investing. We are offering a responsible choice for investors.

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