ER Group launches its Sustainable Finance Framework to support sustainable transition

30/06/26 #Corporate #Sustainability

On 30 June 2026, we launched our Sustainable Finance Framework (SFF), a structure that anchors our financing strategy around formalised, measurable and independently verified sustainability commitments. This new step in our sustainability journey builds on the successful green bond issued in 2023 by EnVolt, our subsidiary in the Technology & Energy segment.

Aligned with international standards set by the International Capital Market Association (ICMA) and the Loan Market Association (LMA) and independently validated by Moody's Ratings through a Second Party Opinion, the Framework positions ER Group among the most advanced corporate issuers in the region in sustainable finance.

A framework to integrate sustainability into our investment decisions

As one of Mauritius' leading listed groups and a member of the Stock Exchange of Mauritius Sustainability Index (SEMSI), the launch of our SFF marks a milestone in the implementation of our Sustainability Strategy 2025–2035.

The framework rests on two complementary financing mechanisms. The first, the Use-of-Proceeds instruments (such as Green Bonds), reserve the funds raised for the financing of clearly identified impact projects: renewable energy, green-certified buildings, clean mobility, sustainable water management, circular economy initiatives and biodiversity restoration. It also covers projects with a social dimension: job creation and support for SMEs, gender equality and women’s empowerment, and the preservation of cultural heritage.

The second, the Sustainability-Linked Bonds (SLB), link the financial terms of future issuances to the achievement of measurable sustainability targets that are independently audited. Under the SLB, we have set three measurable group-wide targets to be achieved by 2031: increasing female representation in management positions to 40%, reaching 10% electric vehicles in sales across Axess, Mauritius' leading car dealership and certifying 50% of its commercial rental portfolio under internationally recognised green building standards. These targets will apply to every future issuance carried out under this mechanism.

Gilbert Espitalier-Noël, Group CEO of ER Group, explains:

“Every investment decision at ER Group is guided by the same principle: deploying capital where it creates long-term value, with discipline and in support of projects that strengthen both the resilience of the Group and the development of Mauritius as well as the countries where we operate. The Sustainable Finance Framework gives us a common reference point to apply that discipline to projects with environmental and social impact, and to report on them transparently.”

Governance is overseen by the Sustainability and Inclusiveness Committee (SIC), a Board subcommittee responsible for validating eligible projects, tracking performance, and ensuring proper use of funds across the Group. The SFF also draws on our Climate & Biodiversity Strategy, developed with Carbone 4, a French consulting firm, and aligned with international best practices on climate and nature-related risk management.

From a first green bond to a Group-wide framework

The SFF builds on the first green bond issued by our renewable energy subsidiary EnVolt in 2023. What started as a pilot transaction has now evolved into a structured group-wide framework, applicable across our seven business segments, which together employ close to 13,000 people and operate across 17 territories. The Framework covers more than 90% of the Group’s revenues.

Amaury Koenig, Chief Strategy & Investment Executive of ER Group, says:

“The Sustainable Finance Framework provides our investors and financial partners with a common reference point, aligned with international standards, for identifying, structuring, and monitoring eligible projects across our seven business segments. With several issuances planned over the coming months, the Framework enables us to mobilise capital on conditions aligned with the nature of our environmental and social commitments.”

This Framework is intended to serve as the reference point for all future bond issuances and structured financing transactions at ER Group. It reflects our ambition to make sustainable finance a structural driver of our growth strategy.

Governance aligned with international standards and independent validation

Our Framework has obtained a Second Party Opinion from Moody’s Ratings, one of the world’s leading credit rating agencies and a recognised reference for institutional investors. This independent validation confirms both the rigour of the Framework and the ambition of its targets, placing ER Group among the few African corporate issuers to have received such international recognition for their sustainability commitments.

We were supported by MCB Capital Markets, which helped us structure and write the Framework in line with ICMA principles (Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines) and LMA standards.

Anish Goorah, Senior Vice President at MCB Capital Markets, comments:

“This collaboration reflects MCB Capital Markets' ability to support its clients across the full spectrum of sustainable finance, from the development of Sustainable Frameworks to the structuring and issuance of innovative instruments. By combining technical expertise with a thorough understanding of markets and investors, MCB Capital Markets continues to play a leading role in the development of African capital markets.”

FSD Africa, a financial markets development agency based in Nairobi and funded by the British government, also supported the development of the Framework by funding the Second Party Opinion issued by Moody’s.

Dr Evans Osano, Chief Financial Markets Officer at FSD Africa, adds:

“We commend ER Group’s leadership in aligning its capital-raising strategy with measurable sustainability outcomes. The dual-tranche structure, combining Use-of-Proceeds financing and a Sustainability-Linked Bond, demonstrates how complementary sustainable finance instruments can mobilise local-currency capital for climate resilience while setting an important precedent for corporate issuers across Africa. FSD Africa is honoured to have supported ER Group throughout the development of the Sustainable Finance Framework and the Second Party Opinion process, in line with our commitment to deepening sustainable finance markets across the region.”

A first look at projects identified across ER Group’s segments

The SFF already supports a pipeline of projects across ER Group’s diversified activities. Within our Technology & Energy segment, solar capacity is being expanded through Ecoasis and EnVolt. In Real Estate segment, new green-certified developments are underway. In Commerce & Manufacturing segment, Axess is accelerating the rollout of electric mobility solutions. Further initiatives focus on water efficiency, circular economy practices, and biodiversity restoration in partnership with local communities.

Sophie Desvaux de Marigny, Chief Sustainability Executive at ER Group, shares:

“This framework changes the way our teams approach every project. The question is no longer solely whether an investment is profitable, but also how it concretely contributes to the transition of Mauritius in terms of energy, biodiversity and inclusion. For an island as exposed to climate risks as Mauritius, this level of rigour is not a luxury.”

Access our Sustainable Finance Framework and the Second Party Opinion from Moody’s here.