Responsible companies play an important role in solving major global challenges such as poverty, inequality, and climate change and biodiversity loss.
Finnfund’s mission as a development financier and impact investor is to build a sustainable future and to generate a lasting impact by investing in businesses that solve global development challenges.
Responsible companies play an important role in solving major global challenges such as poverty, inequality, climate change, and biodiversity loss, and in meeting the Sustainable Development Goals (SDGs) by 2030.
Using our leverage as a financier, we encourage our investees to constantly improve their sustainability practices towards people, the environment, and society.
Finnfund's portfolio removed 98,000 tCO₂e-ekv more than emitted (2022)
Finnfund's investees granted 5,393,000 mobile loans of which 75% to women (2022)
Finnfund had 198 investment decision in 53 countries (2023)
We believe that sustainability is 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.
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.
“Our mandate and strategy put impact and sustainability at the very core of our investment operations." Kaisa Alavuotunki, Director, Impact and Sustainability
“Our mandate and strategy put impact and sustainability at the very core of our investment operations."
Many projects that have a significant development impact would never take off without long-term financing provided by Finnfund and other development financiers. Finnfund’s funding is often catalytic because it helps projects to raise additional commercial financing.
We also strive to mobilise funding to enhance sustainable development and climate actions in developing countries. Increasing the share of private funding in our funding base is also one of our strategic goals.
In 2015, the UN Member States agreed to achieve the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) by 2030. From the very beginning it has been clear that companies need to be involved; it is estimated that developing countries will require fresh investments worth up to USD 4,000 billion. Finnfund is one of the Finnish government’s instruments for mobilising such funding.
It is also clear that companies alone cannot resolve all development challenges; different types of actions and actors are needed.
This picture shows examples of how Finnfund’s investments promote the achievement of the 17 sustainable development goals.
Finnfund is a development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges.