As a development finance institution, Swedfund has a special role to play both within Swedish aid and as a catalyst for achieving Agenda 2030. We invest in shares, provide loans and utilise funds as instruments to reach out to more small and medium-sized enterprises. Our business model is based on three pillarspillars: Impact on society, Sustainability and financial viability. By establishing development targets and working closely with our portfolio companies, we can monitor developments and ensure that they evolve in the right direction.
Impact on society - Swedfund aims to help create jobs with a good working environment and good employment conditions.
- Job creation
- Share of women in senior management
- CO2e emissions
- Overall impact/benefit
Sustainability - Swedfund aims to help create sustainable enterprises in the world's poorest countries.
- Human rights and working conditions
- Business ethics and anti-corruption
Financial Viability - Swedfund aims to help create enterprises that are profitable in the long-term and therefore financially viable in the world's poorest countries.
- Return on equity
Regarding the selection, appointment and monitoring of investment managers Swedfund sets similar criteria as those for internally managed investments:
Investing in countries with less developed economies and enterprises brings with it major risks, particularly financial risks. We endeavour to manage these risks through a comprehensive investment process. The investment proposals that we receive are first reviewed, and those which match our investment strategy and criteria are then analysed in more detail.
Investment managers and analysts, working alongside experts in ESG, law and impact, conduct a thorough analysis. Business plans, investment partners, sustainable development (environment, employment conditions and anti-corruption) and impact on society are all analysed. The analysis is then reviewed by Swedfund’s Investment Committee and the process is concluded with a decision by the board of directors. Each investment must achieve the goals set in our three pillars: impact on society, sustainability and financial viability
Swedfund encourages the following:
- Adhere to internationally recognized standards for
- business integrity
- corporate governance; and
- human rights, for example: UN GC, IFC Performance Standards, OECD-guidelines for MNE
- Adopt and implement a whistleblowing service in order to make it easy to anonymously report serious irregularities.
Swedfund requires the following:
- Comply with legal and regulatory requirements.
- Comply with ILO's Core Conventions and ILO's Basic Terms and Conditions of Employment.
- Comply with the Harmonized EDFI Exclusion List.
- Adhere to applicable IFC Performance Standards.
- Adhere to Swedfund's requirements on anti-corruption.
- Provide ESG information (including human rights) and on development results, as requested by Swedfund.
- Comply with Swedfund's requirements with respect to Swedfund's monitoring of its investments.
For the detailed requirements, please find Swedfund's sustainability policy (SG 02.1). In addition to the above mentioned norms our RI policy also includes: EDFI Exclusion List, EDFI Guidelines for OFCs, EDFI Harmonized Environemental and Social Standards
For additional information on Swedfund's investment principles, overall investment strategy, and responsible investment approach please see SG 01.4 and SG 01.5.