Measuring development effects
How we measure the impact of our work
We use our own Development Effectiveness Rating (DERa) to measure how the companies supported by DEG are instrumental in advancing the “2030 Agenda for Sustainable Development” adopted by the United Nations. Guided by the United Nations’ Sustainable Development Goals (SDGs), the DERa uses five outcome categories to assess the development contributions of each customer. The development effects of investments made by DEG customers and their contribution to the SDGs are presented along these five categories. The indicators used are internationally harmonised: .
Outcome categories that we measure
- Decent jobs
- Local income
- Market and sector development
- Environmental stewardship
- Community benefits
Improving the Sustainable Development Goals with the DERa
The DERa enables DEG to manage the overall quality of its portfolio in developmental terms and provide its customers with helpful impetus for improvement. We use the DERa to determine the current and expected impact of a potential customer as early as in the acquisition phase. The results are included into our investment decision.
Based on their DERa results, our customers receive recommendations for action and tailored to help them exploit their development potential. In the annual monitoring, we evaluate the development effects of each customer and show whether or how the customer has achieved its developmental goals and where further action is needed.
Reports about the role of development finance institutions for the development of the private sector in development countries: