We hold a strong conviction that the relationship between business and society should be mutually beneficial and value accretive. To achieve positive impact and build value, one has to go beyond being a thought leader to being a practice leader, backed by values which can be measured. Ultimately, it is a performance story and this is the new norm.
The Abraaj Sustainability Index (ASI), is a bespoke reporting and accountability index designed to capture the broad development impact of our partner companies. The ASI was developed in 2008 as the first sustainability index suitable for private equity investing in global growth markets. In developing this index, Abraaj incorporated global best practice standards following rigorous research and analysis.
The ASI enables the Group’s investment teams to identify specific areas for improvement, gain valuable insight into the relationship between financial performance and “intangibles”, and to engage our partner companies on key non-financial issues. It allows the Group’s partner companies to chart and monitor their own performance over four pillars with the goal of improving their index score (which is calculated as a percentage annually) year-on-year.
Over six cycles of reporting, analysis of the impact has shown that through share-ownership programs, higher wages, equal opportunities for advancement and medical plans, partner companies are able to inspire loyalty and reduce their employee attrition rates. Likewise, implementing environmental policies can increase the efficiency of resource use and reduce costs while generating social goodwill among the communities and markets in which the companies operate.
Featured ESG Case Study