The Principles Impact Management are designed for investment in companies, organisations and funds with the aim of creating social impact, as well as an environment that can be measured with a financial return.
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Photo for illustration: Vietnam+ |
The IFC was responsible for building the Principles based on cooperation with various asset management organizations, asset owners, asset allocation organizations, development banks and financial institutions through a consultation process with stakeholders.
The development of the Principles is relied on the IFC's experience in investing in emerging markets, in order to achieve impacts on development and financial returns.
It reflects the best practices of public and private institutions, taking into account impacts at all different stages of investment cycle, including building investment strategies and structures, managing portfolio, divestment, and independent evaluation of investment results.
It also requires signatories to publicly disclose annually how they have implemented these Principles.
According to IFC CEO Philippe Le Houerouis, the Principles mark an important milestone in bringing the impact-creating investment form to the market. The IFC expects more funds to be managed in line with the investment form, he said.
Up to now, organizations agreeing to implement the Principles hold at least USD 250 billion worth of assets invested to create impacts, and they have pledged to manage their operation under the new principles. Their future investment for creating impacts will also comply with these Principles.
The Principles provide a clear standard for the impact-creating investment market, addressing concerns about whether an organization can use its investment to conceal dubious activities.
Source: VNA