KEY PRINCIPLES FOR
RESPONSIBLE INVESTMENT
Being a company that manages private equity funds, «Zubr Capital» enjoys the unique opportunities to build an environmental, social and corporate governance system of portfolio investments at the time of their active growth and development. As an active investor, we value and esteem professionalism and commitment, we build our relationships with portfolio companies on the principles of respect and openness.
The main goal of Zubr Capital as a business, is to increase value of portfolio investments both for shareholders and for investors. We are convinced that this goal may be achieved only though a combination of successful financial indicators with responsible business practices, which considers interests of employees, partners, society and the environment.
We know that an efficient approach to ESG goes beyond the simple compliance with the requirements, and it is the key to long-stability and success of portfolio companies.
«Zubr Capital» raises investments into companies with an exceptional growth potential, and performs a thorough preliminary evaluation of a company, including ESG aspect. The key principles for investment are presented in the Environment and Social Policy of Zubr Capital.
Zubr Capital Environmental, Social and Governance PolicyZubr Capital Fund I was launched on June 30, 2016, and became the first Private Equity Fund (PEF) in Belarus, its investors include international investor institutions: the European Bank for Reconstruction and Development (EBRD) and the Dutch Development Bank (FMO). At the time of the second closing the Fund amounted to 91 million USD. Creation of the first Private Equity Fund in Belarus is one of the most important steps in creation of an attractive investment environment in the East Europe region.
It is important to note that creation of the Fund with the classic ratio 35-40% - international DFIs, and all other – local HNWI, give the capital earned in the country the opportunity to reinvest legally and efficiently into the rapidly growing hi-tech economy of the country, and not to flow abroad.
ZCFI creates around itself an efficient environment that builds the new market.
Uniflex is one of the largest companies producing flexible packaging and adhesive labels in the CIS and Eastern Europe. In 2017-2018 the company performed retrofitting and upgrading of the plant, and installed a Gas Cleaning Plant (GCP) and an Absorption Refrigerating System (ARS).
Installation of additional cleaning facilities became necessary due to commissioning of additional equipment (printing press and laminating machine) that emits polluting emissions.
In order to implement its project, Uniflex joined the environmental program FINTECC, where the European Bank of Reconstruction and Development is one of sponsors. On results of the environmental program EBRD issued the company a grant for compensation of part of value of the equipment and its installation.
Installation of the equipment brought the current production into compliance with environmental standards, and allowed to cut trended costs to minimum through production of cold from heat (in summer), and to additionally heat the heat carrying medium in the heating system (boiler station) in winter.GCP efficiency is very high: it allows to catch and clear 97% of volatile organic compounds.
| Parameter | Unit | Before installation of the line | After installation of the line |
|---|---|---|---|
| Gas consumption (average for 3 years) | kWh | 5 695 227 | 3 507 019 |
| Electric power consumption (average for 3 years) | kWh | 6 780 957 | 7 461 524 |
| Electric power consumption (average for 3 years) | Kg | 7 335 423 | 7 906 000 |
| Average power consumption per ton of finished products | kWh/t | 924 | 944 |
| Average gas consumption per ton of finished products | kWh/t | 776 | 444 |
| Average gas consumption per ton of finished products | kWh/t | 1 701 | 1 387 |
| Specific СО2 emission | Kg/t | 155.3 | 88.7 |
Expected increase in output of products after installation of the new processing line in 2017 is 570 tons. As can be seen from the table above, power consumption grows from 924 to 944 kW/h, but consumption of gas reduces from 776 to 444 kW/t. Figures of total power consumption reduces from 1701 to 1387 kW/h. Specific CO2 emissions reduce from 155.3 to 88.7 kg/t.
When the Fund invests to a company, one of the criteria used to evaluate its investment prospects is its team. Many companies expand and strengthen their teams after receiving an investment.
For the time existence of the ZCFI Fund, the total number of work places in companies grew from 5845 to 9210 as on beginning of 2020.Thus, portfolio companies create a large number of workplaces in the country with a competitive salary level.
- 21vek.by: 300 employees in 2017 and 1866 employees in 2020
- SoftClub: 375 employees in 2014 and 723 employees in 2020
- MediaCube: 72 employees in 2019 and 119 employees in 2020
21vek.by is an on-line hypermarket, the company’s catalog contains more than 450 thousands of goods. At this point 21vek.by actively develops of its network of giveaway outlets (GAO).One of the environmental initiatives of the company stipulates installation of special containers to collect packing plastic materials at GAOs.
Employees of GAOs noticed that after buying customers often leave packing materials in wastes.
After installation of containers employees of GAP will propose to consciously leave plastic packing in a container, which later will be sent for recycling. This initiative helps customers of the company to form the habit off exercise consciousness in separate collection of waste.