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Washington, D.C., April 12, 2019 – A front of European development banks, including FMO, are amongst the 60 investors to adopt the Operating Principles for Impact Management—a market standard for impact investing in which investors seek to generate positive impact for society alongside financial returns in a disciplined and transparent way. The Principles bring greater transparency, credibility, and discipline to the impact investing market. European development banks signing these principles are united in EDFI, the Association of bilateral European Development Finance Institutions.
The organizations adopting the Principles today collectively hold at least $250 billion in assets invested for impact, which they commit to manage in accordance with the Principles. EDFI’s share hereof is substantial. The Principles provide a common market standard for what constitutes an impact investment, addressing concerns about “impact-washing.” IFC, a member of the World Bank Group, led the development of the Principles, in collaboration with leading asset managers, asset owners, asset allocators, development banks, and financial institutions, following a three-month public stakeholder consultation.
Peter van Mierlo, FMO’s Chief Executive Officer: “We’re very pleased with this next step towards harmonizing our impact measurement standards. Without a taxonomy, without universally agreed upon definitions, we will not be able to measure the progress we’re making on fighting climate change and reducing inequalities. We are proud to be part of a big group of European DFI’s who support this strongly and unite with IFC and impact investors in order to make progress on this front”
Impact investing needs to offer investors a transparent basis on which they can invest their money to achieve positive measurable outcomes for society in addition to adequate financial returns. The Principles launched today facilitate this process by creating clarity and consistency regarding what constitutes managing investments for impact, thereby bolstering confidence in the market.
The Principles reflect best practices across a range of public and private institutions. They integrate impact considerations into all phases of the investment lifecycle: strategy, origination and structuring, portfolio management, exit, and independent verification. Critically, they call for annual disclosure as to how signatories implement the principles, including independent verification, which will provide credibility to the adoption of the Principles.
First Adopters of the Operating Principles for Impact Management