1. Birgitte Bang Nielsen, Sustainability Director March 2017
RESPONSIBLE INVESTMENT –
LOCAL INVESTMENT FOR GLOBAL NEEDS
Birgitte Bang Nielsen, Sustainability Director
March 2017
02/03/2017

2. WHAT IS IFU?
Independent government-owned fund, operating on commercial terms
Promotes economic and social progress in developing countries
146
Provides risk capital and advice
for projects having a Danish interest
investment countries
Established in
Total contracted investments of more than
1967 18
169
bn DKK
bn DKK
invested in share capital and loans
Leverage/mobilisation of capital: factor 8-9
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

3. IFU’s INVESTMENTS AND RETURNS
40 – 50 annual investments
New and additional financing
12.3 %
Investments in more than 100 countries
Active portfolio of 221 projects
Average commitment of years
1200
The average annual gross return on share capital ( )
DKK 5.8bn
Contracted investments in 2015
DKK 906m
Capital under management
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

4. IFU AS A FUND MANAGER
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

5. GLOBAL PRESENCE AND INVESTMENT TEAMS
COPENHAGEN
NEW DELHI
NAIROBI
ACCRA
JOHANNESBURG
CLIMATE INVESTMENTS
SINGAPORE
EUROPE AND MENA
BOGOTA
SOUTH ASIA
NORTH ASIA
LATIN AMERICA
SUB-SAHARAN AFRICA
AGRIBUSINESS
IFU, KIF, DAF
AIF
KIEV
SHANGHAI
LAGOS
KIF kan desuden investere i alle lande, der er røde og orange.
Offices
Investment teams
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

6. CLEAR COMMITMENT TO SUSTAINABLE DEVELOPMENT
(from the IFU Sustainability policy, 2014)
IFU strives to promote business opportunities whilst reducing risks and ensuring that investees contribute to sustainable development.
The investees must continuously work towards achieving satisfactory long term results within sustainability and such activities must be anchored in the business plan.
The investees should contribute to creating jobs and income, improving corporate governance, contributing to sound environmental and social performance and development in the local community.
This is the contract that we make with our investees
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

7. 02/03/2017
RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

8. WHY IS SUSTAINABILITY IMPORTANT TO IFU?
Because we firmly believe sustainability is maximizing the value of the company in the long run.
Because social and environmental issues influence financial issues.
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

9. IFU IS DRIVING CHANGE FOCUS ON IMPACTS Benefits for the local society:
Increased income for workers
Transfer of knowlegde
Employee education and training
Interaction with local business
Funding for the public sector, e.g. education, healthcare or infrastructure
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

10. IFU CONTRIBUTES TO THE 17 SUSTAINABLE DEVELOPMENT GOALS
General direct outcomes
Sector-specific direct outcomes
Jobs, taxes, female employment, youth employment, etc.
Limited CO2 emissions
Number of assisted small farmers
IFU CONTRIBUTES TO THE 17 SUSTAINABLE DEVELOPMENT GOALS
Input and output
Indirect contributions
Technology level, staff training, ESG assessment, etc.
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

11. IFU INVESTMENTS LINKED TO THE SDGs
General outcomes
Development outcomes
Sector- specific outcomes
Climate
Energy
Agribusiness
Microfinance
# DIM indicators 4 12
5 September 2016
IFU investment Seminar: Development Impact

12. IFU INVESTMENTS LINKED TO THE SDGs
# DIM indicators
Catalytic effect
Project sustainability 4 1 2
IFU strategic indicators
Additionality
5 September 2016
IFU investment Seminar: Development Impact

13. SUSTAINABILITY RISK ASSESSMENT AND MONITORING
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

14. SUSTAINABILITY REQUIREMENTS
Operate in compliance with host country regulations.
Comply with international standards for significant issues identified during appraisal.
Adopt a written sustainability policy approved by their board of directors.
Appoint a person with overall responsibility for sustainability.
Establish a system to ensure continuous improvement and implement sustainability decisions relevant to the company size and sector and context in which the activity operates.
Promote sustainability issues in interaction with suppliers and business partners.
Prepare an annual report for discussion and ap­proval by their board of directors or similar governance body.
What is new:
A written policy – 40 % of our investments all has already
System is new
Person is new – but similar to what our DFI colleagues requirement
Annual report new - it was not in our old policy 
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

15. SDG Report 2016: Leaving no-one behind Goal to reach first those who are furthest behind.
Young men face the highest risk of becoming murder victims and suspected perpetrators
In every developing region, the poorest women are least likely to have a skilled attendant during delivery
People in rural areas are short-changed when it comes to many health-related services
People in least developed countries are twice as likely to be undernourished as people in developing regions as a whole
Key words for responsible investments:
Do no harm is the lowest denominator
Do good (charity) is OK but will not create long lasting new business
Innovative and opportunity driven investments
Do no harm: Safe guard approach, precautionary principal, business as usual
Do good: Helps the local community is a short period
Future oriented innovative and opportunity driven investments with opportunities not only for the investor, but also those lacking behind – that is when we are changing the agenda
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

16. LOCAL INVESTMENTS WITH A GLOBAL IMPACT
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

17. KEY CHALLENGES – WHAT IF
Tomorrows investors and business leaders could distinguish themselves by defining clear aspirations and goals for social and environmental impact right at the start, using them to galvanise the entire organisation.
Focus go beyond incremental change - rather creating a vision capable of inspiring staff as well as external stakeholders.
look through the sustainability lens to identify business solutions with a positive social and environmental impact that lead to a competitive advantage
These solutions:
are often found in the tension between traditional markets
are about transforming risk to new business ideas
In the next 15 years will we see ”sustainable development” being a strong disruptive driving force as digitalisation has been the last 15 years?
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS

18. Time for questions
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RESPONSIBLE INVESTMENT – LOCAL INVESTMENT FOR GLOBAL NEEDS