Today, impact investing is the ideal combination of attractive returns and positive contributions to sustainable goals or issues. That is, if you have received competent advice beforehand.
Article 9 of the EU Disclosure Regulation (2019/2088) defined corresponding sustainability targets and thus created the basis for the class of impact investments. The SDGs of the United Nations served as the basis for this.
The prerequisite for an investment to be classified as an impact investment in accordance with Article 9 is, on the one hand, the definition of ESG objectives, and on the other hand, the ongoing monitoring of compliance with these objectives and measuring of the respective impact.
DEG’s Impact Measurement Tool (DERa®) is used for DEG Impact projects. Both “central development effects of the private sector” should be achieved and the “way of doing business” in developing and emerging countries should be improved through the investments.
Aspects such as “good, fair employment”, “development of markets and sectors” as well as “environmentally sustainable economic activity” must be achieved whilst at the same time a “benefit for the local communities” needs to be created.
Central development effects of the private sector
Way of doing business
We are a signatory to the Operating Principles for Impact Management and follow these in advisory mandates with positive social and environmental impact targets. These principles define an end-to-end
process including strategy, origination and structuring, portfolio management, exit, and independent verification.
Our mission is to unlock access to commercial capital and actively contribute to sustainable impact practice and performance. Thus, we intend to contribute to SDG 9, target 9.3: “Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets”.
The German Private Equity and Venture Capital Association (BVK) is the central representative body of the private equity industry in Germany. It advocates at both national and European levels for improved political and fiscal conditions to promote investment capital. As a transparent lobbying organization, the BVK represents its members’ interests to policymakers, the media, and the public.
The Bundesverband Alternative Investments (BAI) is the leading advocacy association for Alternative Investments in Germany. It actively promotes research, education, and knowledge transfer in the field of alternative investment strategies, and is a recognized dialogue partner for policymakers, regulators, and the public. In doing so, BAI plays a key role in shaping the development of the German and European alternative investment market.
Our work entails making a sustainable contribution to raising environmental and social awareness in our partner countries.
Here you can find more information on the DEG Environmental and Social Guidelines, the Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector and DEG Impact GmbH’s ESG Strategy.