Home ImpactSustainability SustainabilityEnvironmentally, socially, and economically sustainable business practices are a prerequisite for positive impact. Sustainable, responsible business practices add value to investments and contribute to generating a positive impact. They play a key role in the risk management of each project and in ensuring that the “do no harm” principle is respected in our investments, as it helps to anticipate unexpected risks and impacts, enhances cooperation with stakeholders, and strengthens the social licence to operate. Simultaneously, responsible and environmentally, socially, and economically sustainable business practices can improve the operational and financial performance of a company, enhance employee wellbeing and commitment, and bring a competitive advantage. Impact creation in Finnfund’s investment process. When financing private companies, financial profitability is key to creating an impact. If a company fails to keep its business running, it will not achieve the desired impact. Therefore, the viability of the business model is another prerequisite for Finnfund’s investment. Therefore, we have three criteria for every investment: positive impact, sustainability, and profitability. All these aspects also play an integral role in our investment process. Most of our investee companies also have community development projects alongside their core business activities. This is particularly typical of businesses operating in remote rural areas where public services are weak. What the company does – and how it works… Economic sustainability – profitability, responsible tax Environmental and social sustainability – responsible business practices and risk management Corporate governance – how the company is managed Know-your-customer – we want to know the people we work with … generates posive impacts Direct effects such as good jobs, training, better infrastructure, financial services, clean energy Indirect effects such as local purchases of products and services in supply and distribution chains Positive impact in wider society, such as taxes, poverty reduction, climate change mitigation and adaptation Leverage and impact through cooperation Together with like-minded investors, such as the other members of the Association of European Development Finance Institutions (EDFI), Finnfund builds leverage and maximises impact and sustainability in its investments. Finnfund has endorsed the EDFI Principles for Responsible Financing of Sustainable Development and the Operating Principles for Impact Management (OPIM). We have aligned our practices and investee requirements with the jointly agreed harmonised minimum environmental and social requirements applicable to EDFI co-investments, including the Exclusion list. News Blog 22 May 2025 Aleksi Heiskanen, Harold Gordillo, Anne Valto Biodiversity is a strategic cornerstone of Finnfund’s sustainability agenda Biodiversity is one of the cornerstones of Finnfund’s sustainability agenda. In short, biodiversity refers… News 15 May 2025 Finnfund’s investment portfolio reaches EUR 887 million – more focus on advancing digitalisation, mobilisation of private capital, and Finnish added value “For Finnfund, 2024 was a year of rethinking. We revisited our strategy while reaffirming… News 09 May 2025 Finnfund invests in Amartha, improving access to finance for women in rural Indonesia Development Finance Institutions Swedfund, Finnfund, and the Belgian Investment Company for Developing Countries (BIO),… News 07 May 2025 Investment Manager Kuutti Kilpeläinen, Finnfund: “Digital gap is a significant opportunity to create impact” Impact investor and development financier Finnfund has put digital infrastructure and solutions at the… News 06 May 2025 Finnfund announces successful completion of multi-tranche green and sustainable bond offering Finnfund, a Finnish development financier and impact investor, issues nearly EUR 200 million of… News 04 April 2025 Finnfund and IDB Invest partner with Netwey to expand internet access in Mexico Finnfund closed a 5 million US dollar equity investment with Netwey, a Mexican Internet… News 27 March 2025 Mountain Hazelnuts secures landmark international investment, strengthening Bhutan’s sustainable agriculture sector Mountain Hazelnuts , Bhutan’s first fully foreign direct investment (FDI) and a leading force… Blog 13 March 2025 Harold Gordillo From buffer zones to digitalisation – advancing biodiversity in practice Nature and biodiversity have gained increased attention across different sectors in recent years, as… Blog 07 March 2025 Juho Uusihakala Driving women’s digital inclusion is essential to gender equality Advancing gender equality is a cross-cutting strategic priority at Finnfund. Our aim is to… News 04 March 2025 Opportunities for impact investing in emerging markets 20 March in Helsinki Impact investment seminar for institutional investors Time: Thursday 20 March 9-12 (breakfast available from… Scroll left Scroll right Reports and publications Annual Report 2024 Hewatele, Kenya – Impact Performance Report Annual Report 2023 Finnfund Insights: Focus on Vietnam About the report Vietnam is one of the fastest-growing economies in Southeast Asia and… Annual Report 2022 Annual Report 2021 Review paper: Smallholder integration into commercial value chains through agricultural traders and local food security Background This study, contracted by Finnfund and conducted by E2 Research, aims at describing… A way to recovery: Trends and analysis on the impacts of the COVID-19 on markets and businesses in developing countries The COVID-19 pandemic has been an unprecedented shock to the world economy. 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