We are convinced that in order to build sustainable businesses, managing social performance the same way we manage financial performance makes good business sense. This enables institutions to better understand the needs of their clients and to be more results and outcomes oriented, leading to increased business performance.
In the world of impact investments, fund managers play a crucial role of double bottom line value creation. At Incofin, we not only want to provide the best possible financial return to our investors, but also work with our investees to create impact via:
i) Implementation of strong social, environmental and governance practices (Social Performance Management), and
ii) Delivery of outcomes for the ultimate clients they aim to serve.
“Incofin’s input was invaluable in improving our Social Performance Management. We have benefited from international exposure and best practices.”
At Incofin we believe that if you value something, you need to measure it so that you can monitor it, analyse it and ultimately act on it. This is the reason why, in all investment decisions that we make, our 4 part impact methodology is embedded in the process.
Part A During Origination, we only select investees that aim for a healthy balance between social, environmental and commercial goals.
Part B We assess the operational performance of an investee through a comprehensive Social & Environmental Performance Audit tool.
Part C We want to help our investees develop a realistic impact strategy where they positively and sustainably impact the lives of their end customers.
Part D We want to ensure that each exit meets the financial objectives of our investees and sustained impact post exit.
Alignment to UN Sustainable Development Goals
Endorsing the UN SDGs is one thing, truly contributing to achieving them is something else. This is the reason why for each of our funds (and equity investees), we map relevant indicators against each of the UN SDGs.
Assessment against the SDGs are applied during the Social, Environmental Performance Audit (Phase C), as well as during our Output Measurement (Phase D) process. Mapping is not only conducted at the SDG level, but for each of the 169 targets. This mapping enables our team to track how our investees and funds are contributing towards the SDG goals in a tangible, measurable and actionable way.
The SDGs provide a context that helps frame our impact approach—our Technical Assistance programs are increasingly structured around specific goals, and our reporting speaks the same impact language. It is a step closer towards common standards and approaches to impact.