Impact results

Below you may find a collection of the latest impact figures representing different aspects of Finnfund’s investment portfolio. These results are also an integral part of Finnfund’s Annual Report.

A collection of impact stories from out investee companies can be found here.

Studies and assessments can be found here.

Key impact figures 2023

Due to the timeframe for collecting the data from Finnfund’s investees, the figures representing the direct impact indicators on the following pages are from 2023. Data for 2024 will be presented in the 2025 Annual Report.

As Finnfund’s investment portfolio kept growing, so did the aggregate impact of our investments. The composition of our investment portfolio is constantly changing, which is good to keep in mind when comparing figures across years. We make 20–30 new investments each year, while we also exit old investments. Portfolio-level data gives a good overview of the types of investments in the portfolio, even if it does not show the impact of an individual investment over time.

Most of the figures in the annual report (with the exception of climate data and the portfolio impact index) are the direct impact indicators that have been provided by the investee companies, and they do not reflect the proportion of Finnfund’s investment. In most cases, the report presents the overall results to which Finnfund has contributed. Exceptions to this are the portfolio impact index and the measurement of climate effects. For the latter, Finnfund applies the PCAF standard, and it subsequently presents results directly attributed to our share of funding.

The data was collected using an online questionnaire sent to portfolio companies. The response rate was 96 per cent of those investees to whom the questionnaire was sent (90 investees in total)..

Portfolio Impact Index

Our strategy and its targets were updated in 2024, but we have continued to monitor the development of the index, and as you can see in the graph, the index has developed as planned. Each sector is assigned a key impact indicator that captures both portfolio growth and investee-level impact growth.

The index takes into account Finnfund’s financing share, hence is attributed, and the relative size of each sector in Finnfund’s portfolio. The baseline is set to 2020.

Sector specific impact key performance indicators (KPIs) are:

• Sustainable forestry: Sequestered CO₂. While forestry investments have multiple
  impact pathways, a key reason to invest in Forestry is the potential of forests to sequester
  carbon dioxide from the atmosphere, thereby contributing to mitigating climate change.
• Renewable energy: Avoided CO₂. Energy plays a key role in helping countries to
  develop. Investing in clean and more affordable energy production is at the heart
  of this development. It also leads to avoided greenhouse gas emissions when renewable
  energy replaces fossil fuel-based generation in national grids.
• Sustainable agriculture: Number of people fed or smallholder farmers reached. Local
  food production and enhanced local agriculture value chains help to increase food
  security and create inclusive livelihood opportunities.
• Financial institutions: Number of loans to micro, small and medium-sized (MSME)
  companies. Limited access to financial services remains a fundamental constraint
  to development in most of Finnfund’s target countries. At the same time, MSMEs form
  the backbone of many of these economies.
• Digital infrastructure and solutions: Number of users/beneficiaries. Access to
  digital services is vital for inclusive development, especially in rural regions, and forms
  another foundation for development in today’s societies.
• Other: Number of jobs in investee companies (full-time equivalent).

For other impact results, please see our Annual Report 2024.