Sustainable development - How DEG customers contribute to SDGs
News from 2019-06-05 / DEG
DEG publishes its latest Development Report outlining the contributions made by its customers to global Sustainable Development Goals (SDGs).
1.7m people find employment in companies financed by DEG. These companies generate local income of EUR 80 billion annually - for example through salaries, taxes and procurement. As well as this, the energy providers co-financed directly by DEG produce an annual total of 41 terawatt hours (TWh) of green electricity for over 37 million people.
DEG's portfolio customers are thus a driving force in achieving the Sustainable Development Goals (SDGs). They actively contribute, in particular, to the following SDGs: SDG 1 (No poverty), SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation and infrastructure) and SDG 13 (Climate action).
Responsible business - adding value
In the latest Development Report, additional case studies illustrate how companies, financial institutions and funds make a very specific contribution to local development, and how DEG assists them in doing so.
Private equity fund "Takura Fund II", set up in 2011, offers capital and advice for local SMEs in Zimbabwe, thereby achieving substantial development impact in this fragile state. As an anchor investor, DEG was involved right from the start.
A current example that demonstrates how DEG increases the development effectiveness of its customers with its Business Support Services is the Costa Rican Cooperativa Nacional de Educadores RL. With the support provided by DEG, the credit union has been able to significantly expand its financial training programme. It now also reaches out to people in rural areas, achieving an improved financial inclusion.
Managing development impact
Investments that target measurable positive social or environmental impact alongside financial returns have become increasingly significant all over the world in recent years. So far, however, there was no common standard for how to manage "impact investments".
In mid-April, more than 60 organisations, including DFIs such as IFC, Proparco and DEG, as well as commercial investors and asset managers, have launched the "Operating Principles for Impact Management".
This report clearly shows that DEG is already working in accordance with the Principles. It pursues a corresponding portfolio management approach, bases its environmental and social management system on the IFC Performance Standards, records, evaluates and publishes the results of all projects in on an annual basis and arranges for DERa to be verified as a measuring instrument by external consultants on a regular basis.