Sustainable Finance Practices in South African Retirement Funds

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From January to August 2020, South Africa's Financial Sector Conduct Authority (FSCA) and IFC collaborated to survey how well the country’s retirement industry is positioned to unlock significant investment opportunities in the new global trend towards green and climate finance, which represents around $588 billion in investment needs in South Africa alone up to 2030, according to IFC research.

The survey, Sustainable Finance Practices in South African Retirement Funds, also reports on progress by the nation's retirement funds in adopting responsible investing practices in line with Regulation 28 of the Pension Funds Act, 1956 (PFA), and Guidance Notice 1 of 2019.

Despite the challenges of COVID-19, 140 funds responded to the survey, representing roughly 74 percent of the total assets under management, and 28 percent of the total retirement funds in the country's retirement industry. The results signal a pivotal moment for South Africa’s retirement funds to take a leading role on sustainable finance in the nation. The report is an initiative of IFC’s Green Bond Market Development Program, in partnership with the Swiss State Secretariat for Economic Affairs (SECO) and Swedish International Development Cooperation Agency (Sida).

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