This report shows public data only. Is this your organisation? If so, login here to view your full report.

Cordaid Investment Management B.V.

PRI reporting framework 2017

You are in Direct - Inclusive Finance » PIIF Principle 6: Balanced returns

PIIF Principle 6: Balanced returns

IFD 28. How social performance of investees affects decision making and portfolio management

Possible action:

Strive for a balanced long-term social and financial risk-adjusted return that recognises the interests of clients, retail providers and investors.

28.1. Indicate if the social performance of investees affects your:

Investment decision making

28.2. Explain how social performance of investees affects investment decision making.

As our primary aim is to invest in financial institutions that strive to achieve social impact, it is important for us that all investees have a clear social mission, that this mission is put into practice, and that the investee pays attention to social performance management. Several SPM areas are reviewed by us, and the information is recorded in our ESG Scorecard. An organisation has to score a minimum of 50 points (out of 100) to be eligible for an investment. If certain standards are not sufficiently in place, we can agree with the investee a trajectory for improvement. We may provide additional support and/or decide to formulate the desired outcome in a social covenant that will be part of the investment agreement.

Portfolio management

28.3. Explain how social performance of investees affects portfolio management.

We monitor social performance of our portfolio in several ways, for example by checking ALINUS score, outreach in rural areas (average should be over 50%), the offering of agricultural products (target is 30%), gender composition and poverty level of the clients.

We are currently working on a new MIS that will strictly follow the social performance of all investees on an annual basis.

28.4. Additional information. [Optional]


IFD 29. Staff incentives linked to social performance measures

Possible action:

Strive for a balanced long-term social and financial risk-adjusted return that recognises the interests of clients, retail providers and investors.

29.1. Indicate if your staff have monetary incentives or performance objectives related to responsible investment in inclusive finance.

29.2. Additional information.

Staff has no monetary incentives based on financial and/or social targets.


IFD 30. Collecting data regarding social outcomes of investees work

Possible action:

Strive for a balanced long-term social and financial risk-adjusted return that recognises the interests of clients, retail providers and investors.

30.1. Indicate if you collect data regarding the social outcomes of your investees’ work.

30.2. Additional information.

Social outcome is part of the current MIS, but it will be extended with the introduction of a new MIS. Some of the indicators for social outcome that we use are: poverty targeting and measurement, products/services offered and effective interest rate, rural and agricultural outreach, female outreach, HR policies and staff benefits.


IFD 31. Incentivise investees to track social performance

Possible action:

Strive for a balanced long-term social and financial risk-adjusted return that recognises the interests of clients, retail providers and investors.

31.1. Indicate if you incentivise investees to track social performance.

31.3. Additional information.

Currently we do not give financial incentives to investees to improve and track their social performance. However, in several cases we have supported investees to improve their SPM and track social impact (e.g. developing PPI tools).

Social Performance is definitely one of the items that is always discussed with the investee and it is assessed in our ALINUS-scorecard. If the score is too low, Cordaid will not invest.


Top