Materiality

Materiality is a fundamental concept in our approach to ESG considerations. We recognize that not all ESG issues are equally important or impactful to our investments and stakeholders. Therefore, we have established a robust framework to assess the materiality of ESG factors, ensuring that our decision-making processes focus on issues that a.re the most relevant to our investments and have the potential to affect long-term value creation significantly

Reporting and Stakeholder Management

At MDCB, we are committed to transparently reporting our ESG performance to our stakeholders. We aim to provide our Board of Directors with regular quarterly ESG performance reports that effectively communicate our progress, challenges, and initiatives. Furthermore, we aim to provide our public stakeholders with annual ESG reports that also communicate our progress, challenges, and initiatives.

ESG Integration into the decision-making process

A key component of our ESG integration approach is our comprehensive framework, which spans the entire investment process, systematically incorporating ESG analysis and engagement. We aim to identify investments that align with our values, mitigate risks, and contribute to positive financial returns as well as social and environmental outcomes. MDCB not only embraces responsible investing but also considers stewardship critical. The MDCB continuously engages with its investee companies to influence their strategic direction. See detailed information below.

Sustainable Investment Framework

Deal Origination

Objective: Embed ESG from the outset of opportunity identification.

  • Evaluate potential investments for alignment with MDCB’s sustainability mandate.
  • Prioritize projects that demonstrate potential for positive environmental and social impact.
  • Flag sectors or geographies with elevated ESG risk profiles for early review.

Screening

Apply ESG filters to refine investment pipeline.

  • Positive Screening: Identify opportunities with best-in-class ESG performance or innovation (e.g., low-carbon technologies, inclusive employment models).
  • Negative Screening: Exclude or flag projects with high exposure to regulatory, reputational, or environmental risks (e.g., poor labor practices, high emissions, biodiversity threats).

Due Diligence

Conduct in-depth ESG analysis to inform investment decisions.

  • Assess material ESG risks and opportunities across environmental, social, and governance dimensions.
  • Review compliance with national regulations, international standards (e.g., IFC Performance Standards, UNPRI), and MDCB’s internal ESG criteria.
  • Integrate ESG metrics into financial modeling and risk-adjusted return projections.
 

Investment Committee

Objective: Ensure ESG findings shape investment strategy and approvals..

  • Present ESG due diligence outcomes, including risk mitigation strategies and impact forecasts.
  • Recommend investment structuring options that enhance ESG performance (e.g., sustainability-linked financing, performance covenants).
  • Align committee decisions with MDCB’s long-term sustainability goals.

Board Oversight

Secure governance-level accountability for ESG integration

  • Communicate ESG implications of proposed investments, including strategic fit and reputational considerations.
  • Ensure board-level review of ESG risks, stakeholder concerns, and alignment with national development priorities.
  • Document ESG commitments and board resolutions for transparency and auditability.

Stakeholder Engagement

Promote responsible ownership and inclusive dialogue.

  • Engage with investee companies to improve ESG practices and reporting.
  • Collaborate with communities, regulators, and civil society to ensure inclusive development outcomes.
  • Monitor ESG performance through regular dialogue, site visits, and third-party assessments.
 

Transparency & Disclosure

Demonstrate accountability and impact.

  • Publish ESG performance data, impact metrics, and progress against sustainability targets.
  • Encourage investees to adopt global reporting standards (e.g., GRI, SASB, TCFD).
  • Share lessons learned and best practices to strengthen Botswana’s ESG ecosystem and attract responsible capital.

Our Commitment

As a responsible investor, we are committed to promoting responsible practices, within our portfolio and our business, that mitigate risks and also contribute to positive social, environmental, and governance outcomes in the mining and minerals sector in Botswana (and globally where applicable). We integrate ESG into our operations and portfolio management, and we intend to make a leading commitment to ESG.

Our Investment Principles

MDCB Principles for Responsible Investment

High standards of sustainable investing underpin MDCB’s investment approach;

We endeavour to interact with our environment responsibly:

  • The company will continue to seek green solutions for our operations now and into the future.
  • Compliance with regulatory regulations is not an option but a way of doing business

Our interactions with our internal and external stakeholders will always be above board:

  • Our presence will have a positive impact on the communities in which we operate.
  • Our procurement policies prioritize support for women, youth, and individuals with disabilities.
  • Diversity remains a crucial consideration in hiring individuals and acquiring skills

High governance standards will sustain our financial viability:

  • Our business will be conducted using strong ethical standards.
  • Our stakeholder inclusivity will be founded on transparency and openness