ImpactConnect – We finance progress

Companies that already meet high standards in the Better Jobs area that go beyond minimum requirements or that would like to implement these may receive more favourable interest rates or a grant. This is possible through one of the following measures.

Living wages

• Paying living wage allow employees and their families to enjoy a decent standard of living.
• This can be officially verified by recognised certificates such as SAI or Fair Wage. Alternatively, the calculation can be determined using the "Roadmap on Living Wages" developed by IDH - The Sustainable Trade Initiative together with the ImpactConnect team. If required, an action plan is then drawn up to close the gap

Certified working conditions

• High standards with regard to worker rights, treatment of employees, etc., can be demonstrated, for example, with the SA8000 and For Life certificates. This must go beyond what is required by law and ImpactConnect’s minimum social standards.
• ImpactConnect also supports occupational health and safety management systems that are certified according to ISO 45001, thereby ensuring high health and safety standards in the company.

Women are still at a disadvantage when it comes to economic participation. Young women in particular often have lower career opportunities, receive a lower salary and work under less favourable working conditions than men. ImpactConnect is committed to equal opportunities and empowering women in business. In addressing these issues, ImpactConnect relies on the 2X Challenge, a G7 initiative that aims to encourage development banks and the private sector around the world to invest in women. It provides the framework for supporting female entrepreneurship and management and, most of all, equal conditions for employment. In order to fulfil the 2X Challenge, companies need to comply with the following requirements:

1. Basic prerequisites:

• Respecting human rights along the supply chain

• Implementing gender-based violence and harassment safeguarding

• Including gender aspects into strategies and management systems

2. Meeting one of the following 2X criteria:

• Female owners/founders: ≥ 51% share of female ownership OR ≥ 50% share of female founders

• Female management: ≥ 30-50%* share of women in senior management OR ≥ 30-50%* share of women on management board

• Female employees: ≥ 25-50%* share of women in the workforce AND implementation of one qualitative indicator (e.g., Women Career Advancement Initiative)

• Supply Chain: supporting women in the supply chain AND implementation of one qualitative indicator (e.g., diversification program regarding supplier)

• Products for women: Products/services that enhance the well-being of women/girls and/or drive gender equity

* depending on country & sector

3. Commitment to fulfilling another 2X criteria

In the area of supply chains, ImpactConnect offers borrowers two different ways to obtain an interest rate reduction. Social and environmental standards along the supply chain can be verified through quality seals or membership of a supply chain initiative.

Quality labels

• Quality labels can be found on products and provide consumers with guidance when choosing a product. In order to receive such a label, products must fulfil defined environmental or social standards - either along the entire supply chain or in the production/raw materials.
• Depending on the quality label, sector and product, 50-80% of sales must be generated by products with quality seals.
• ImpactConnect accepts Fairtrade, Rainforest Alliance, FSC, Fair For Life, Demeter and GOTS quality labels, for example.

Supply chain initiatives

• Companies can join supply chain initiatives that require member companies to comply with specific standards along the supply chain. At the same time, they help companies to assess risks and implement fair and environmentally compatible supply chains. To receive an interest reduction from ImpactConnect, two thirds of suppliers with a high risk profile must be audited by independent auditors within the space of three years.
• For example, Sedex, BSCI Amfori and SAI (Sustainable Agriculture Initiative Platform) meet the requirements defined by ImpactConnect.

Companies whose investments help to limit the impact of global warming and who are actively involved in combatting climate change can be offered especially attractive conditions.

Renewable energy as a business model

• Expanding renewable energy plays a central role when it comes to climate neutrality. Notably in developing and emerging-market countries – where, in many cases, most energy requirements are still met by fossil fuels – climate-neutral energy systems still have a particularly positive impact.
• To help boost this positive impact in the target countries, companies whose business models are based on expanding renewable energy are offered a reduced rate of interest. These include, for example, providers of renewable energy systems.

CO2 reduction targets

• To reduce the level of CO2 emissions in the long term, ImpactConnect wants to help companies to set ambitious long-term goals to lower their carbon footprint significantly by 2030 or to make their processes climate-neutral by 2050.
• Companies that sign up with the Science-Based Targets Initiative (SBTI) to achieve this goal and that follow the procedure defined there (including drawing up reduction targets and having them validated by the initiative afterwards) are given a reduced rate of interest after submitting their declaration of commitment.

Building measures

• Finally, changes to buildings or infrastructure can also help to reduce the carbon footprint, for example through photovoltaic installations.
• Companies can be eligible for a lower rate of interest if the measures that they introduce reduce energy consumption by 20% (e.g. through energy-efficient refurbishments) or substitute 20% of energy consumption with renewable energy systems.