IFU AND IØ SIGN AGREEMENT WITH GLOBAL COMPACT
The Danish international investment funds, IFU and IØ, now officially participate in Global Compact’s international net work.
Global Compact is an international agreement under the UN, through which companies and business organisations are committing to respecting a number of universal principles for human rights, labour rights, environment and anti-corruption.
“IFU and IØ have for a number of years been assisting the Danish companies on the global markets by laying down guidelines for their corporate citizen responsibility. In this context the 10 principles are an indispensable means of navigation when the companies are to succeed on markets, which are still fighting challenges as corruption, the observance of human rights, labour rights and environmental problems,” says Birgitte Bang Nielsen, Head of CSR, IFU and IØ.
Global Compact is the world’s largest volunteer corporate citizen initiative. Companies and organisations which sign the agreement with Global Compact are under an obligation to adhere to Global Compact’s 10 principles, which in the long term are to create more stable and fair global markets promoting welfare and wealth, not least in the Third World.
Global Compact was launched in 2000 and more than 4,000 companies and 1,200 organisations from more than 120 countries have acceded to the principles.
For further information please contact Head of CSR Birgitte Bang Nielsen, telephone + 45 2268 7526
Links www.ifu.dk or www.unglobalcompact.org
Facts about IFU and IØ
IFU (the Industrialisation Fund for Developing Countries) and IØ (the Investment Fund for Central and Eastern Europe) have through 41 and 19 years, respectively, been a sparring partner for Danish businesses establishing project companies in the poor countries and a number of East European countries. The Funds provide advisory services and participate financially in the project companies on market terms through loans, guarantees and share capital.
The objective of the investments is to stimulate economic development. Thus IFU or IØ only participate in a project company if the investment is deemed to have a continuing positive effect on development.
Together with Danish partners the Funds work for the implementation of long term plans enabling the companies to live up to the legislation of the host country as well as international standards for e.g. environment and human rights. As long as the fundamental terms have been met, the Funds do not look at the size of the Danish companies.
Where and how do IFU and IØ operate?
With a few exceptions IFU operates in countries with a GNI per capita below USD 2,876, whereas at the present stage IØ can only make investments in Russia, Ukraine and Belarus. From 2013 IØ can no longer make new investments.
The limit for the investment in a single project company is DKK 50m. In total IFU and IØ invest app. DKK 600m â€“ 700m annually in 40 â€“ 50 new project companies on average.
By the end of 2007 the Funds had a total net capital of DKK 4,245bn.