Xurya
Introduction
PT Xurya Daya Indonesia (Xurya) is a solar power company that has developed over 170 solar power projects in Indonesia. Xurya enables companies across the country to install solar panels without upfront costs, which will lead to reduced carbon emissions, job creation and contribute to sustainable economic development.
Through the investment, Swedfund intends to strengthen Xurya's capacity to address environmental, social and governance issues through active ownership, while contributing to Indonesia's transition towards greater fossil free electricity generation.
Co-investors include Norfund.
Read more in our press release: Swedfund makes first renewable energy investment in Indonesia
Related links:
Swedfund Policy For Sustainable Development
Swedfund E&S Categorisation
Facts
SDG in Focus
No Poverty
End poverty in all its forms everywhere.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Climate Action
Take urgent action to combat climate change and its impacts.
Sector
Energy & Climate
Access to renewable energy is a crucial factor for economic growth and poverty reduction. Today, around 750 million people lack access to electricity, three quarters of whom live in sub-Saharan Africa and the least developed regions of Asia.
Value creation
Impact
The investment will contribute to reducing carbon emissions in a country that relies on fossil fuels to produce electricity, and to the implementation of international sustainability standards in the sector. Furthermore, the investment is expected to contribute to knowledge transfer as well as jobs and other income-generating opportunities locally.
Additionality
Swedfund's investment is financially additional as it is made in a difficult context where access to capital is limited, the business climate is challenging, and as it has mobilised institutional capital. The investment is value additional by developing efforts regarding sustainability with a focus on environmental and social issues.
ESG Summary
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG risk
E&S risk categorisation is Medium-High (B+) based on the company’s operations and contextual risks. Risks include occupational health and safety, inherent risks are related to labour rights in the sector and supply chain.
ESG mitigation measures
Developing and implementing an environmental and social management system (ESMS) that has the capacity to manage and mitigate environmental and social risks associated with the sector, including issues related to occupational health and safety, climate risks and reporting, gender equality and women’s economic empowerment, and as well as human rights and business integrity.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1-4 are applicable at the company level and project level.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.