Sustainability & impact

How we create impact

By investing in the private sector in developing countries, Impact Fund Denmark is driving change towards more sustainable societies.

Impact Fund Denmark’s investments are made on commercial terms with the dual purpose of creating measurable, beneficial development impact alongside a financial return. Investing in poor countries has positive effects in the local economy, such as providing decent jobs, increasing the demand for inputs and the payment of local taxes.

Our ambition is to contribute to building:

Green economies

By expanding the capacity to generate renewable energy, we promote a more efficient use of resources and contribute to a circular economy.

Just & inclusive economies

Through our investments, we enable underserved groups in local societies to access basic products and services provided by the private sector, such as energy, healthcare, water and financial services.

Investments for a better world

All our investments contribute to the achievement of the UN Sustainable Development Goals, which are set to create a better and more just world towards 2030.

Impact Fund Denmark’s overall impact priorities of contributing to a green, just and inclusive economy support SDG 8, Decent work and economic growth, SDG 10, Reduced inequalities, and SDG 13, Climate action. Furthermore, SDG 5 on gender equality also plays an important role in many of Impact Fund Denmark’s investments. Impact Fund Denmark’s investments are focused in five focus areas that each contribute to sector-specific SDGs:

Sector specific SDGs

Healthy lives and foods

Our investment sectors, Sustainable Food Systems and Healthcare, contribute to SDG 3 and 2.

Financial inclusion

Our investment sector, Financial services, contribute to SDG 1, 8, and 9.

Energy, water and waste

Our investment sector, Green Energy & Infrastructure and Public Infrastructure Finance, contribute to SDG 6, 7, 11 and 12.

Sustainable businesses

All our investment sectors contribute to SDG 10, 13, and 8 as they create decent jobs and support the green transition.

Gender equality

A more gender-equal future

Gender inequalities are still deep-rooted in many societies. Promoting gender equality is a cross-cutting objective of Impact Fund Denmark’s investments.

Read our gender equality policy
Advancing opportunities for women

Impact Fund Denmark is committed to the 2X Challenge Criteria launched by the Development Finance Institutions of the G7 countries in 2018. The aim is to advance opportunities for women through enterprise support, leadership and career progression, quality employment and products, as well as services that enhance women’s economic participation.

In 2020, Impact Fund Denmark established two targets related to 2X investments: Not less than 30 per cent of the new investments each year must have a gender focus, and by the end of 2024, 40 per cent per cent of the portfolio should be 2X eligible or have plans to become 2X eligible.

Additionality

Impact Fund Denmark invests where other investors do not, takes risks other investors cannot take, and complements markets – not disrupting them.

Mobilising capital for greater impact

We mobilise capital for investments in developing countries through public-partnerships and blended finance, bridging funding gaps and creating more lasting change.

Development impacts

Development impact

Employment alleviates poverty

One of the most important development effects is employment, because jobs create income, greater purchasing power and the possibility to invest in the future, which enables poor people to improve their standard of living. The current portfolio employs 388,000 people.
Development impact

Investments create economic growth

Impact Fund Denmark projects impact economy in host countries by implementing new technology, training employees and paying taxes.
Development impact

Businesses pay taxes

Impact Fund Denmark only invest in project companies presumed to be economically viable. In most cases, the companies succeed in creating positive revenue, which is a condition for having a lasting development impact in relation to paying taxes in the host countries.

How we measure development impact

Impact Fund Denmark is committed to active ownership, ensuring sustainable and measurable impact through strategic engagement, sector-specific reporting, and transparent sustainability assessments across its global portfolio.

Read our sustainability statement

Impact Fund Denmark reports on impact management. This is implemented through a number of measures during the investment process. To strengthen this work, Impact Fund Denmark is a signatory to the Operating Principles for Impact Management, which provides a framework for investors’ work to ensure development impact.

Global expert

Top 20 best impact investors

Impact Fund Denmark has been appointed by BlueMark, a market leader in impact verification, as one of the top 20 best impact investors globally.

Read our verification statement here

Environmental and social risks

High environmental and social standards add value to projects as well as local communities and enhance business opportunities.

Read our standard indicators here

Managing environmental and social (E&S) risks are an integral part of Impact Fund Denmark’s investment process for both direct project investments and investments in funds, financial institutions and other financial intermediaries.

Effective E&S due diligence reduces risks to workers, the environment, local communities and other stakeholders, improves impact and provides business benefits like access to markets, reduced staff turnover, cost efficiency in production and improved stakeholder relations.

We are committed to the Paris Agreement

Impact Fund Denmark is committed to contribute to the transformational changes that the 1.5 °C target of the Paris Agreement entails over the coming years, and make its investment flows consistent with a net zero pathway, as stated in Impact Fund Denmark’s climate policy.

Read our climate policy here:

Targeting net-zero investment portfolio

Since 2020, Impact Fund Denmark has annually assessed its climate footprint and will continue tracking progress toward net-zero emissions.

Read our methodology paper here

Sustainability policy framework and tools

Get in touch

Managing Director and Head of Sustainability and Impact

Mikkel Kallesøe

+45 33 63 75 50