IFU’s ambition is to become a leading impact investor, and the fund’s Sustainability and Impact Report 2020 2020 focuses on IFU’s policies, work and results, which contribute to sustainable development in the developing countries.
“With this report we want to inform our stakeholders about the specific work we make and the results we achieve. In that way we can create more openness, better understanding and a more solid foundation for dialogue about our effort and the challenges we face when we invest in developing countries.”
Torben Huss, CEO of IFU.
Bringing net GHG emissions down to zero
In the Sustainability and Impact Report, IFU has calculated the total climate footprint of its investments for the first time. This was done to be able to monitor the development and make an ongoing contribution to reducing total GHG emissions in the portfolio. See report prepared by UNEP DTU on the methodology for the climate footprint calculation.
“By calculating the climate footprint of our investments, we are taking another step towards reducing GHG emissions from our portfolio. The calculations will be used to continue to reduce the emissions from the companies we invest in and ensure that our portfolio demonstrates net zero emissions by 2050 at the latest,” said Mikkel Kallesøe, VP, Sustainability and Impact.
The calculation of IFU’s climate footprint shows that total GHG emissions – measured as IFU’s share of the investment – was at 450,000 tons in 2020.
Guided by impact
In its new investment strategy, IFU is guided by impact when selecting investment projects. Therefore, all potential investments are assessed on their contribution to economic development in the developing countries that support either the green transition or more just and inclusive societies. Furthermore, impact plans are prepared for all new investments to ensure that the agreed initiatives are implemented.
“Our job is to choose the right projects and optimise their contribution to sustainable development. With our new investment strategy, we turn up the initial screening and the ongoing effort significantly in order to create the most impact with the money we invest.”
Mikkel Kallesøe, VP, Sustainability and Impact
280,000 jobs and DKK 3.5bn in local corporate taxes
IFU’s Sustainability and Impact Report 2020 shows that IFU has invested in nearly 2,000 megawatt renewable energy, contributed to providing more than 13 million people with microloans and other financial services, and that more than 70 per cent of the investments have made initiatives to promote equality and prevent discrimination. The portfolio companies employed close to 280,000 people and reported DKK 3.5 million in corporate taxes in 2020.
“Overall, we are satisfied with the results created by our investments because they have a specific impact on many people’s lives and well-being. But we want even better results, and therefore we are in an ongoing dialogue with our investment companies. This includes new initiatives such as training as well as existing focus areas such as anti-corruption, where we would like to see more companies prepare a written anti-corruption policy,” said Mikkel Kallesøe.
Sustainable Development Goals are important
The fulfilment of the 17 UN Sustainable Development Goals is an important focus area, and therefore IFU works continuously to prepare targets and indicators for the relevant goals, and reports on how the investments contribute to fulfilling the Sustainable Development Goals.
“We have currently prepared indicators for 14 out of the 17 goals to measure the results achieved. This includes SDG 13 on climate action, which shows that the production from the renewable energy facilities that IFU has invested in has avoided a little more than two million tons of CO2 emissions,” said Mikkel Kallesøe.