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Promoting sustainable development: DEG publishes annual Development Report

News from 2020-06-23 / DEG, Sustainability

DEG publishes its latest Development Report outlining the contributions made by its customers to the global Sustainable Development Goals (SDGs). The main focus of this year’s report is the empowerment of women in developing countries.

2.1 million people find employment in companies financed by DEG. These companies generate local income of EUR 92 billion annually, for example through the payment of salaries and taxes. Furthermore, the energy providers co-financed directly by DEG produce an annual total of 39 terawatt hours (TWh) of green electricity for over 32 million people.

DEG’s portfolio customers are thus a driving force in achieving the global Sustainable Development Goals (SDGs). They actively contribute 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).

More women in employment and the economy

Around the world, over 30% of private companies are owned or run by women, yet their access to financial services remains limited. At the same time, the empowerment of women – as entrepreneurs, managers and qualified employees – in the overall value chain has enormous potential as a driver for development. The latest report shows how investing in the empowerment of women and girls creates ripple effects: it unlocks potential and triggers further investments and positive effects for sustainable development.

The first gender bond in Asia is also sending a strong signal: in 2019, DEG and IFC subscribed the first private sector bond for women-led SMEs in the Asia-Pacific region, issued by Bank of Ayudhya (Krungsri) in Thailand. The funds from the bond will be used specifically to finance SMEs that are majority-owned or managed by women.

Measuring and managing development impact

DEG uses its Development Effectiveness Rating (DERa) to measure how the private sector contributes to development and to identify how these impacts can be increased. For the first time, the new Development Report now shows portfolio trends over several years. An analysis of all companies already in the portfolio in 2017 shows that around 60% of customers were able to improve their development impact between 2017 and 2019.

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