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 at 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 News 11 February 2025 Heikki Cantell appointed as the new chair of the Finnfund Board of Directors Heikki Cantell, the General Counsel and Secretary General at the Nordic Investment Bank (NIB),… News 30 January 2025 Finnish investors support the electric vehicle business in India OP Finnfund Global Impact Fund I, the first Finnish global emerging markets impact fund,… News 29 January 2025 Finnfund boosts green and women-owned enterprises in Mongolia with an Investment in XacBank Finnfund invests in XacBank, one of the leading banks in Mongolia, to boost green… Blog 28 January 2025 Peter Chappell The art of avocado farming in Kilimanjaro In the north of Tanzania, under the shadow of Mount Kilimanjaro, and abutting its… News 22 January 2025 Finnfund participates in a 200 million US dollar syndicated facility for Khan Bank to support green financing and MSME financial inclusion In a significant move towards sustainable development and economic empowerment, FMO, the Dutch entrepreneurial… News 20 December 2024 Finnfund’s website renewed Finnfund has renewed the company website. The aim has been to both renew the… News 19 December 2024 Finnfund’s AA+ rating affirmed by Fitch Ratings The credit rating agency Fitch Ratings has affirmed Finnfund’s credit rating at ‘AA+’ with… News 16 December 2024 Cassava Technologies receives USD 90 million equity investment for expanding digital infrastructure across Africa The U.S. International Development Finance Corporation (DFC), Finnish Fund for Industrial Cooperation Ltd (Finnfund),… News 16 December 2024 Survey: Finnfund valued as a partner – expertise and added value through cooperation Professional, responsible, innovative, reliable, and pragmatic. These are some of the characteristics attributed to… Blog 13 December 2024 Kaisa Alavuotunki, Juho Uusihakala The risk of not investing: Failing to provide digital access poses risks to achieving SDGs The risk of not investing. That is how one could summarise the linkage between… Scroll left Scroll right Reports and publications Hewatele, Kenya – Impact Performance Report Annual Report 2023 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. Businesses in… Annual Report 2019 Annual Report 2020 Finnfund driving the sustainability agenda: Case Study, Burapha Agroforestry, Laos About the project Burapha Agroforestry, established in 1989 through a Swedish and Lao joint… Impact of Finnfund-financed forestry companies for the development of forest industry in East Africa We need more forests! It is universally accepted that the world needs more forests… Scroll left Scroll right Read more Impact assessment Risk assessment Impact results Key themes Policies and statements Our work in practice Investment criteria and process News and publications