ESG + Impact
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
Compliance with international standards
In accordance with the World Bank’s Environmental and Social Standards and the IFC Performance Standards for Working with the Private Sector, we ensure that national and international environmental and social standards are applied. Companies or projects are also assessed based on the DEG exclusion list when conducting a negative screening.
We take responsibility
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.