Our Impact

Finance in Motion develops and advises impact investment funds that tackle a whole range of development topics: from addressing climate change, strengthening biodiversity conversation, and fostering the sustainable use of natural resources, to improving livelihoods and promoting economic opportunities. We channel funding to undersupplied markets in low and middle-income countries – markets that our impact investment funds are specially equipped to serve. 

In addition, by contributing to the advancement of the impact investing market, we aim to inspire long-term change and scale up impact investing opportunities for public and private investors.  

Impact Investment Report

Impact investing is about tackling social and environmental challenges using the power of finance. In times of crisis, impact investors can play an especially significant role in directing resources to where they are needed to build solid footing over uncertain ground. 

But good intentions are just a start: Ensuring that impact finance accomplishes the aims it sets out to achieve requires a clear framework. To provide an in-depth look into how Finance in Motion pursues impact, we are pleased to share with you “Road to Impact,” our latest Impact Investment Report.

Here, we present the approach, activities, and accomplishments of Finance in Motion and the funds we advise. You can find stories, interviews, and multimedia that highlight how we make a positive contribution for people and planet.

Our Impact Pathway

Our impact pathway defines how we make a positive difference. Through our funds and our own innovations, we aim to achieve impact at two levels:

Impact on Markets and Systems 

We strive to create enabling ecosystems for our investees and final target groups, including small businesses, farmers, and households. We focus on alleviating specific challenges – such as a lack of access to finance for small businesses – by promoting the conditions in which businesses and individuals can thrive. This not only creates more long-term and sustainable results for our investees, it also spreads positive change to other market participants – thus scaling impact beyond the funds’ own activities. 

Impact on People and Planet 

Through our impact on markets and systems, we contribute to a positive impact on people and planet. Our core impact contributions center around goals such as addressing climate change, strengthening biodiversity conservation, and fostering the sustainable use of natural resources – for example, by investing in environmentally responsible agricultural practices or measures to increase energy efficiency. We also improve livelihoods and promote economic opportunities by, for example, expanding financial inclusion and ensuring entrepreneurs have the resources they need to generate income and employment.

Our Contribution to the SDGs

No Poverty

We contribute to meeting the basic financing needs of small businesses and low-income households. (EFSE, SANAD, Arbaro)

Zero Hunger

We promote sustainable food production through practices that conserve biodiversity and natural resources, and help raise the income of rural populations. (EFSE, SANAD, eco.business, Arbaro)

Clean water and sanitation

We promote sustainable agricultural practices that maintain ecosystems, we improve water quality, and we support water efficiency across all sectors. (eco.business, GGF)

affordable and clean energy

We support energy savings measures and advance renewable energy. (GGF)

decent work and economic growth

We support entrepreneurship and job creation, especially through access to financial services, while assuring decent working conditions. (eco.business, Arbaro, EFSE, SANAD)

Industry, Innovation and Infrastructure

We contribute to energy efficiency and access to financing for small-scale industrial and other enterprises, and develop sustainable forestry and the renewable energy sector. (GGF, Arbaro, EFSE, SANAD)

Reduced inequalities

We encourage business growth and financial inclusion for marginalized populations, including women, youth, and refugees. (EFSE, SANAD)

sustainable cities and communities

We contribute to improved access to sustainable transport and waste management systems. (GGF)

responsible consumption and production

We contribute to the sustainable management of natural resources and reduced waste generation. (GGF, eco.business, Arbaro)

climate action

We mobilize funding for green projects and build capacity around sustainable energy, agriculture, and forestry.
(GGF, eco.business, Arbaro)

Life below water

We contribute to promoting sustainable practices in fisheries and aquaculture that protect marine and coastal ecosystems. (eco.business)

Life and Land

We contribute to sustainable agriculture and forestry practices that restore land and conserve biodiversity and terrestrial ecosystems. (Arbaro, eco.business)

Partnerships for the goals

We build blended finance funds that pool capital for sustainable development and bring together regulators, industries, and policy makers for systemic change. (GGF, eco.business, EFSE, SANAD, Arbaro)


Our Impact Approach

We are active in two highly impactful and investable sectors: micro, small, and medium enterprise (MSME) finance and green finance.

MSMEs are vital for employment and socio-economic development, but often lack access to long-term funding, especially in emerging markets. 

Stabilizing the planet’s climate and protecting its natural resources are vital for ensuring a sustainable future, but the transformation to a green economy requires substantial investment. 

We direct funds to low and middle-income countries, connecting various sources of capital from mature financial markets to those who need it in undersupplied areas. 

Market Presence

Impact Stories

Impact Management

For us, managing our impact is just as important as managing the financial performance of the funds we advise. It not only allows us to track our progress towards our impact goals but also provides us with learnings and insights – and ultimately enables us to fine-tune our strategy for enhancing the reach and depth of our impact even further. That is why impact management is integrated into every step of our investment and technical assistance cycle.

Our impact practices are aligned with the Operating Principles for Impact Management, which we signed in 2019.

Strategic Intent

It starts with good groundwork. The “why, what, and how” of achieving impact are defined right in the funds’ strategy documents. We then operationalize these strategic goals through, for example, key performance indicators that consider the fund’s specific impact pathway and align with international development targets.

Origination & Structuring

Each investment decision considers the fund’s strategic impact orientation and how the investment would specifically contribute to that. Only if an investment meets the requirements for financial return and development impact potential, as well as key environmental and social requirements, will it proceed.  Pre-investment assessments also provide an opportunity to identify areas for improvement for which tailored technical assistance is then deployed to strengthen capacities and deepen impact.

Assessing impact

We continuously monitor the impact of our activities. Based on a framework of key performance indicators for each fund’s objectives, we use a tailored system to gauge impact metrics on a regular basis. Assessing our impact provides a constant feedback loop of how well we are progressing towards our goals. It also allows us to gain insights and learning to feed back into strategy and investments, ultimately enabling us to ensure that we deliver on our impact targets. 

Portfolio Management

We require all investees to report on a set of specific indicators that allow us to understand how our funds are being used and who they are reaching. We furthermore conduct periodic, in-depth studies in addition to collaborating on external evaluations and assessments. Our close partnership with and proximity to the investees enables us to maintain a continuous dialogue. Throughout the investment cycle, we use the data we gather through these methods to confirm if financing is being used for its intended and agreed-upon purpose and to monitor impact performance.

Impact at Exit

Our funds largely provide debt capital to support investees in expanding their impactful lending portfolio. As such, the exit is already built into the investment decision. In structuring the investment, the funds also consider, for example, the tenor of the loan that would best contribute to achieving the impact objective. In many cases, we renew and increase our financing to a particular investee. These top-ups provide an opportunity to review the development and continued impact alignment of our investees. When equity investments mature, we, take impact considerations into account to build on the investment’s impact goal and strategy, supporting sustainability of results achieved.

Independent Verification

We are committed to managing our impact in line with the standards set out by the Operating Principles for Impact Management and to striving for accountability and transparency in the industry and our own reporting. As a signatory of the Principles, we issued our first disclosure statement in 2020, and will complete the first independent verification in 2021