First Mutual Life Properties embraces ESG mainstreaming: Solar power and sustainable projects lead the way

FIRST Mutual Life Properties has fully embraced environmental, social, and governance (ESG) mainstreaming, with a strong belief that investments in solar power will lead new developments and upgrades by businesses. The company is already advancing a housing development project in Zvishavane under Phase A, expected to be completed by the end of this month.

The ESG approach aligns with the emerging global demand for sustainability, which has become a crucial focus for businesses.

Companies are expected to align their operations with sustainability principles, which will be a key factor in investors’ decisions. Sustainability encourages environmentally-friendly policies in businesses, including production, consumption, conservation, recycling, refurbishing, and pollution control.

Companies listed on the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) are required to report on sustainability issues as part of their financial disclosures. The updated listing rules of ZSE and VFEX now compel listed companies to implement measures to address ESG issues, with a transitional period allowed for such disclosures.

ESG principles provide a framework for assessing and guiding corporate behaviour to promote sustainable development. In its unaudited abridged financial results for the half year ended June 30, 2024, First Mutual Life Properties stated that it will continue to operate sustainably, aligning with ESG principles. The group’s strategy prioritises green operations.

“Therefore, solar power will be prioritised for all new developments and upgrades. The new office block development at Arundel Office Park will incorporate a solar plant to reduce the carbon footprint of the property portfolio,” reads part of the report. “Further, management is promoting energy efficiency, inclusive facilities, and implementing waste management initiatives. Governance structures around ESGs are also being enhanced to increase equality in the workplace through equal opportunities and representation as well as increased transparency,” it said.

Investors are increasingly incorporating ESG data into their investment processes to gain a comprehensive understanding of the companies in which they invest. These non-financial factors are being applied as part of the analytical process to identify material risks and growth opportunities.

The group has strategically positioned itself to generate shareholder value by pursuing various projects at different execution stages. In Zvishavane, the group is also a co-investor and project manager in the development of mixed-use duplex clusters, three to four-storey apartments, and student hostels, with the proposed designs approved by Zvishavane Town Council. The project is in three phases.

“Phase A, comprising six duplex flats and 20 blocks of double and triple-storey flats, is already underway and completion is targeted for the end of this month,” the firm said.

Meanwhile, the group noted that during the period under review, the supply of space in the Central Business District (CBD) office and urban retail sectors was relatively high, driven by increased voids and the migration towards office parks and suburban retail and residential sites. The market has seen an increase in the development of residential stands, cluster houses, and high-rise flats.

“Furthermore, investors were focused on owner-occupied office park-style buildings and the conversion of residential properties into offices in the suburbs surrounding CBDs and on major arterial routes,” said the company. “Despite the gap for supporting infrastructure, the growth in the development of industrial and warehousing properties in the country remained firm.”-chorinicle