The Egyptian-American Enterprise Fund (EAEF) is committed to investing in private enterprises in Egypt that foster long-term, inclusive, and sustainable economic growth. EAEF has a diverse investment portfolio, including partnerships with Lorax Capital Partners (LCP) and Tanmiya Capital Ventures (TCV).
In recognition of the potential climate change impacts arising from their portfolio companies’ operations, EAEF engaged Environics to quantify the carbon footprint of specific affiliated companies:
- LCP Affiliated Companies: This group includes Fawry, Orchidia Pharmaceutical Industries, and Nermien Ismail Schools (NIS) Group.
- TCV Affiliated Companies: This group comprises Abu Auf, Hassan Allam Utilities (HAU), MIFAD, and Plantform.
The objectives of the carbon footprint quantification studies were threefold:
- To establish a baseline carbon footprint for each portfolio company, serving as a foundation for future assessments.
- To provide preliminary insights into potential areas for in-depth investigation with the goal of reducing carbon and greenhouse gas emissions.
- To facilitate the communication of carbon footprint results with relevant stakeholders when required or requested.
Environics conducted these studies in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. The carbon footprints of the portfolio companies were compared to the European Bank for Reconstruction and Development’s (EBRD) absolute significance threshold of 100,000 tonnes of CO2e per year, as no baseline carbon footprints were initially available for these companies.
The carbon footprint quantification process primarily relied on data provided by the companies, complemented by secondary data related to emission factors from national and international sources. Environics’ scope of work encompassed introductory meetings with the companies to clarify the assignment’s purpose and guide data collection, site visits to better understand each company’s activities and potential sources of greenhouse gas emissions, and the provision of tailored data collection tools.
Environics prepared two Carbon Footprint Quantification Summary Reports, summarizing the results of the studies. These reports provide a valuable foundation for tracking and managing carbon emissions within the portfolio companies and contribute to EAEF’s commitment to sustainable and responsible investing.
The reports included the quantification of Scope 1 and Scope 2 emissions of each portfolio company and recommended actions to each portfolio company to reduce carbon emissions.