Managing positive impact & ESG risk
Positive impact and ESG risk management
Our impact management system combines ensuring positive impact with managing and mitigating potential negative outcomes.
These impact investing industry best practices are integrated into our investment cycle: from setting the objectives in core strategies and policies and thorough potential investee selection to continuous monitoring and management once capital has been deployed. Principles of impact and sustainability are also embedded vertically at all levels within Finance in Motion. They are the cornerstone of corporate policies, in selecting partners and when working with investors. We manage positive impact through applying a comprehensive impact framework, and negative impact by systematically integrating environmental and social criteria.
Our holistic impact management system is aligned with international standards and good practices. These include among others the Operating Principles for Impact Management, the IFC Performance Standards, and key responsible finance initiatives.
Our approach to positive impact
Origination & Structuring
Monitoring & Assessment
Our impact management practices are closely aligned with industry standards, particularly the Operating Principles for Impact Management, which Finance in Motion signed in 2019. As a signatory of the Principles, we annually issue a disclosure statement. In 2021, we underwent an independent verification. BlueMark, a specialized impact verification service provider, assessed our impact management system as advanced against the Impact Principles and current industry best practices.Read our disclosure statements
Managing ESG risk
At Finance in Motion, we believe that positive impact can only be sustainable if we manage and mitigate possibly negative impacts. As part of its holistic approach to facilitating systemic impact, Finance in Motion is committed to integrating environmental, social and governance (ESG) criteria into each phase of investment cycle.
We prioritize supporting each of our impact funds in effectively avoiding, minimizing, and mitigating potential ESG risks and impacts associated with their investments. Due to the different investment focus of each fund, such impacts and risks can be substantially different. To that end, Finance in Motion maintains, implements, and continuously hones its ESG risk framework, and tailors it to the respective investment focus and approach of each fund. It is also aligned with international best practice and recognized frameworks, such as the IFC Performance Standards.
As part of the investment process, a thorough ESG risk assessment is undertaken for each investment to identify potentially significant adverse sustainability impacts and assess the investee’s capacity and commitment to addressing and mitigating these impacts. Once capital is deployed, investees’ ESG performance is regularly monitored.