“We are very proud to be appointed to the SME COP list 2021 highlighting the best reports on sustainability. First of all, it is an appreciation of our sustainability reporting, but it also underlines our serious commitment to creating positive change through our investments in developing countries,” said Lars Krogsgaard, CIO of IFU.
IFU was selected for the SME COP list 2021 with the following motivation:
IFU’s Sustainability and Impact Report 2020 is highlighted as an adequate report on the company’s investments and efforts to create lasting change and sustainability in developing countries with a clear link to the Sustainable Development Goals. Page 14-27 ‘Impact creation within investments’ is highlighted for the clear structure and use of cases. Page 20-21 includes a detailed description of processes for human rights due diligence, and on page 24 IFU calculates its climate footprint across investment sectors as a new feature. The table on page 28-29 provides a good overview of each of the 17 Sustainable Development Goals, relevant indicators, IFU’s priorities and relevant key figures for 2020 supporting the goals.
Among the best impact investors
IFU’s objective is to be among the best impact investors, and in recent years the fund has therefore focused on integrating impact and sustainability in its investments from the first assessment of the new investments, through active ownership and until the project is exited. It is required by all investments that they support the green transition and contribute to improving living conditions in developing countries.
“We believe that sustainable businesses will provide a better financial return and have the greatest impact in our investment countries. But to create a positive development, we must continuously challenge the companies and remain in dialogue with our stakeholders, and IFU’s annual sustainability and impact report plays an important role in doing so.”
Lars Krogsgaard, CIO, IFU
280,000 jobs and DKK 3.5bn in local corporate taxes
IFU’s Sustainability and Impact Report shows that IFU has invested in almost 2,000 MW renewable energy, has contributed to servicing more than 13 million people with micro loans, and that more than 70 per cent of the investments have taken initiatives to promote equal rights and prevent discrimination. IFU’s portfolio companies employed nearly 280,000 people and reported DKK 3.5bn in local corporate taxes in 2020.
In the report, IFU has for the first time calculated the total climate footprint of its investments in order to monitor the development and contribute to reducing the total CO2 emissions in the portfolio. The calculation of IFU’s climate footprint shows that the total CO2 emissions – measured as IFU’s share of the investments – were a little over 450,000 tons in total in 2020.