naugural Sustain Our Africa Summit and The Festival for Change: Can Africa deliver enough for all, forever? Week-long Summit, Cape Town, South Africa, 24 - 26 October 2012 http://sustainourafrica.org/ Day One & Two Awareness and Inspiration for Change Day Three: The Tools for Change – INCUBATING SOLUTIONS FOR ADAPTABILITY & RESILIENCE - Investment Workshop with Graham Sinclair

1. SinCo – sustainable investment consultants © 2006-2012 FOR PROFESSIONAL INVESTORS USE ONLY – NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC
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REGULATORY INFORMATION
No part of this report or proposal suggests or should understood to suggest endorsement or advice on any investment approach, strategy or offering.The rights and obligations of the investor are set out in the relevant policy
contract. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get back
the full amount invested. Past performance is not necessarily a guide to future investment performance.
sustainable investment consulting
…designing and developing world-class ESG architecture for institutional investment in frontier and emerging markets since 2006
sincosinco.com | @SinCoESG | info@sinco.com

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REGULATORY INFORMATION
No part of this report or proposal suggests or should understood to suggest endorsement or advice on any investment approach, strategy or offering.The rights and obligations of the investor
are set out in the relevant policy contract. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the
performance of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance.
Sustainable Investment in Africa 2012
Call To Action. Inspiration.
Tools for Change
Designing and developing world-class ESG architecture for institutional investment in frontier and emerging markets since 2006
Graham Sinclair
@esgarchitect
Principal
SinCo
sincosinco.com | @SinCoESG | info@sincosinco.com
President
AfricaSIF.org
africasif.org | @africasif | africasif@gmail.com
@SOAAfrica | Change RoomWorkshop | 26 October 2012 8.30AM – 10.30AM

3. sustainable investment consulting | sincosinco.com | @SinCoESG
SinCo
sincosinco.com
sustainable investment consulting

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youtube.com/africasif
AfricaSIF.org is an independent, pan-
African, not-for-profit network,
knowledgebase and advocate
promoting investment in sustainable
development across the continent.
The AfricaSIF.org Project is an all-
volunteer team building a network
of institutions and individuals
promoting sustainable investment in
Africa by investors in public, private
and philanthropy sectors across
asset classes, countries and
stakeholders from our platform
www.africasif.org.
AfricaSIF.org
Trends 2012 Report
• Africa and Global versions
• Live project delivers Dec 2012
• Any asset class anywhere investing
in Africa
• Using ESG factors
|
twi3er.com/africasif
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African Stock Exchanges: three stages in development
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Top 5 African Africa stock exchanges by
market capitalization (above USD 10bn)
Other operating Africa stock exchanges
Source: SinCo analysis 2011; : SinCo+RisCura data; 2011 © International Finance Corporation (IFC)

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*excludes companies with trading status:
Inactive, Acquired, Suspended
Average ESG Disclosure Score by Country
44403632282420161284
ESG Disclosure ScoresESG Disclosure Scores
United States
19.8
Canada
19.1
Japan
27.5
UK
28.4
Australia
20.1
Brazil
22.1
China
14.4
Mexico
23.9
Russia
24.4
South Africa
23.9
Chile
16.3
Italy
29.2Spain
40.2
France
34.7
Germany
27.0
India
12.3
Sweden
26.8
Malaysia
17.2
New Zealand
23.0
Norway
23.7
S. Korea
30.1
...based on 4,078* companies
with an average score of 23.0
11/16/2010Data as of

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Sustainable Investment in 2030?
Photo courtesy of The Guardian. View from the Shanghai World Financia
We will vigorously develop renewable energy and nuclear energy. We will endeavor to increase
the share of non-fossil fuels in primary energy consumption to around 15% by 2020.
- Chinese President Hu Jintao, address at UN Climate Change Summit, September 22, 2009.

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GEPF / WWF carbon intensity and water scarcity case study
Research series testing 5 Hypotheses on if / how to de-carbonize and reduce climate risks in institutional investment in
South Africa:
 H1. GETTING THE PRICE RIGHT? “Investors are not pricing climate change and freshwater risks as a
result of policy, environmental, social and technology (PEST) impacts when making investment decisions, resulting in
mis-priced assets and potential systemic risk.”
 H3. OVERWEIGHT BETS ON CLIMATE RISKS? “The exposure of major investors to sectors that are
particularly vulnerable to climate change risks is large relative to overall assets, particularly when investments in the
state-owned entities of Eskom and Transnet are taken into account.”
 H4. TAIL RISKS OF CLIMATE COSTS SHOCK? “Given SA’s high-carbon infrastructure, its institutional
lock-in and the lack of significant low carbon market incentives, market correction for climate change risks would
take place over an insufficiently long period of time for an orderly adjustment of the portfolios of financial institution.
Viable, low carbon investment market opportunities are required for market correction for climate change risks to
take place in an orderly manner.”
 H5. CAN NEW INVESTMENT RULES OPEN DOORS? “Additional regulatory mechanisms need to be
put in place in order for lower carbon financial markets such as covered bonds to develop.”
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A Brief History: Africa’s extractive experience
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Drivers and barriers: …carrots, sticks and inertia
5 primary drivers
1. Good investment returns (a record of
premium from ESG integration)
2. Explicit and tangible ESG benefits/
impact
3. More information
4. Government/regulator incentives
5. Demands from clients/investor
mandate/shareholder pressure.
5 primary barriers
1. Lack of adequate information to evaluate
investment target ESG-related performance
2. Lack of evidence that ESG factors increase
financial returns
3. High costs of implementing ESG investment
4. Lack of appropriately skilled advisors and
necessary expertise
5. Short-term reporting against prospect of long-
term returns.
Barriers also include the “investment-as-usual”
approach, the perception that SI consists of “ethical”
investment and/or negative screening, and the
specialized “language of sustainability”.
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“More capital available to pursue ESG mandates…Increased returns, higher exit values, due to ESG…There has to be a business by
business basis to try and get help to improve attractiveness. Standards don't really help, but increased awareness on governance and
more board training would help.Also being realistic about what can be achieved.” – composite verbatim comments
www.sincosinco.com/siinssa

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Graphic of investment performance by SMEs with ESG leader/laggard status

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Get started now
 Save money every month. Set aside savings for retirement. Invest in your long term.
 Ask your financial advisor / portfolio manager how they can integrate ESG factors into your investments.
 Upskill yourself with the facts about ESG in investment.
 Ask your financial advisor / portfolio manager what opportunities for investing in sustainability is available.
 Buy a few shares and show up to company annual meetings. Ask awkward questions.
 Become a trustee. Be voted onto your retirement fund’s Board of Trustees.
 Read and ask questions about your retirement fund’s investment policy and impacts.
 Network with similar investment people. Join AfricaSIF.org.
 Volunteer for AfricaSIF.org Trends 2012 Report today.
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19. sustainable investment consulting | sincosinco.com | @SinCoESG
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REGULATORY INFORMATION
No part of this report or proposal suggests or should understood to suggest endorsement or advice on any investment approach, strategy or offering.The rights and obligations of the investor
are set out in the relevant policy contract. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the
performance of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance.
Sustainable Investment in Africa 2012
Call To Action. Inspiration.
Tools for Change
Designing and developing world-class ESG architecture for institutional investment in frontier and emerging markets since 2006
Graham Sinclair
@esgarchitect
Principal
SinCo
sincosinco.com | @SinCoESG | info@sincosinco.com
President
AfricaSIF.org
africasif.org | @africasif | africasif@gmail.com
@SOAAfrica | Change RoomWorkshop | 26 October 2012 8.30AM – 10.30AM

20. sustainable investment consulting | sincosinco.com | @SinCoESG
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About SinCo team: Graham Sinclair
Graham Sinclair is Principal at SinCo, where his roles cover sustainable investment strategy, ESG
architecture and global project management.
 Graham has eight years specialist experience in sustainable investment globally after eight years in pensions
consulting and investment banking in Africa. Recent consulting engagements in sustainable investment include leading
IFC-funded research into private equity and liquid equity ESG strategies in sub-Saharan Africa in South Africa, Kenya
and Nigeria to be published in 2011, developing innovative financing mechanisms strategy and ESG index architecture
for developed, emerging and frontier markets for a Swiss-based international organization, and for a global
institutional investment firm in NewYork with a US$ one trillion AUM portfolio, designing ESG architecture across
private equity, liquid and global real estate portfolios covering philosophy and process innovations and investment
strategies. Currently he provides index architecture and stakeholder engagement for the Istanbul Stock Exchange
Sustainability Index.
 As consultant to the UN, Graham developed strategy for 25 emerging markets and launched PRI in Emerging
Markets project in Q2 2007 for UNEP FI, creating a network infrastructure, building relationships with 108 investor
stakeholders including in Africa through 2008. Before launching the sustainable investment advisory boutique SinCo in
2006 in Boston, he was Product Manager at KLD Research & Analytics, Inc adding to his background in pension funds
and asset management.
 Graham is a former contributor to the CSR Initiative at Harvard Kennedy School, Distinguished Member of Net
Impact, alum of WWF One Planet Leaders programme and the Tallberg Forum New Leaders Program. He currently
leads the AfricaSIF Project building an independent, pan-African not-for-profit Africa Sustainable Investment Forum
network at africasif.org, member of ASISA’s Responsible Investment sub-committee, and a member of Investment
Analysts Association of South Africa, and the Network for Sustainable Financial Markets. He has lectured at more
than 25 graduate schools globally, and the most recently published work is chapters on Private Equity, Indexes and
Africa to Evolutions in Sustainable Investing [Wiley Business, 2011].
 Graham earned his MBA on scholarship atVillanova University in the USA where he co-managed the Arnone-Lerer
SRI Fund equity portfolio in 2004. He holds a B.Com from the University of Natal and LL.B from the Howard
College School of Law as well as numerous industry specialist certifications. He holds diplomas in retirement funds
and insurance law, and in 1998 he was one of the youngest ever dual-FILPAs. He resides in Cape, South Africa and
Vermont, USA.
Graham Sinclair
@esgarchitect
Principal
SinCo
@SinCoESG
sincosinco.com
info@sincosinco.com
South African
B.Com 1991, LL.B 1994, MBA 2004
Dip.RFM 1997, IISA 1998, ILPA
1999
IASSA, ELP, WWF OPL, USSIF.org
AfricaSIF.org
Experience in over 25 countries
English,Afrikaans