Impact

We monitor measurable results in key areas of direct impact, such as:

• Number of jobs created
• Gender equality according to 2X Criteria
• Climate impact
• Tax revenues generated

Given that the indirect impacts of our investments can be difficult to measure, we regularly conduct impact studies to understand these different indirect effects.

Impact experts are included in all our investment teams to evaluate the development effects that individual investments aim to deliver. The Impact team leverages industry standards, tools, and frameworks, while striving to implement evidence-based methods.

Read more about how we work with impact from our annual Disclosure Statement for the Operating Principles for Impact Management here: Impact and Sustainability Reporting

Swedfund follows a structured impact measurement and management approach using Theories of Change and globally recognised frameworks such as HIPSO (Harmonised Indicators for Private Sector Operations), Joint Impact Model (JIM), the 2X Criteria and the GIIN’s IRIS+ catalogue to ensure accurate and comparable data on investment outcomes.

HIPSO provides a set of common indicators that enable development finance institutions (DFIs) to measure and compare the impact of their investments. These indicators cover areas such as employment, financial inclusion, renewable energy and climate mitigation, allowing Swedfund to benchmark its impact against other investors in the development sector.

The Joint Impact Model (JIM) is a collaborative effort among DFIs to standardise the measurement of economic impact. JIM helps quantify key outcomes such as job creation, GDP contributions, and emissions reductions across investment portfolios. This model ensures that Swedfund’s impact assessments are robust, harmonised with industry standards, and comparable with other DFIs.

The GIIN’s IRIS+ metrics are numerical measures used in calculations or qualitative values to account for the social, environmental and financial performance of an investment. Since 2018, Swedfund has been an Investors’ Council member at Global Impact Investing Network (GIIN).

The 2X Criteria is the global industry standard for assessing and structuring investments that provide women with leadership opportunities, quality employment, finance, enterprise support, and products and services that enhance economic participation and access.

Swedfund also participates in the EDFI Harmonization Initiative on Impact Measurement and Responsible Financing (the Harmonization Initiative), established in 2019 to facilitate consolidated EDFI reporting of key impacts, including open publication of many metrics.

Swedfund’s mission objective is to act additionally, meaning we enable investments that would otherwise not have been realised. Swedfund assess each investment’s additionality based on financial, value and development additionality in accordance with OECD-DAC’s definition.

• Financial additionality: Swedfund provides financing in markets where private sector capital is unavailable or insufficient, reducing investment risks and enabling sustainable business growth. This also includes our contribution to capital mobilisation.
• Value additionality: Beyond financial support, Swedfund offers expertise in governance, technical assistance, sustainability improvements, and ESG compliance, strengthening the long-term impact of its investments.
• Development additionality: All investments are made with the intention of creating development impact that would otherwise not  have occurred. Swedfund ensures this by assessing each investment’s alignment with our sector-specific Theory of Change.

Each investment undergoes an additionality assessment based on OECD’s definition of additionality, ensuring that Swedfund’s intervention is necessary and contributes to long-term development goals. This assessment is continuously reviewed throughout the investment lifecycle to maximise impact.

Swedfund publicly discloses its impact and sustainability data in the annual integrated report. The impact and sustainability data reported in the annual integrated report is audited by an external auditor, providing transparency on how its investments contribute to sustainable development. Read more about our impact reporting here: Impact and Sustainability Reporting

Swedfund is a signatory to the Operating Principles for Impact Management, a global framework that ensures impact investments are managed in a structured and transparent manner. These principles, developed by leading Development Finance Institutions (DFIs) and impact investors, provide guidance on how investments contribute to sustainable development. More information can be found at Impact Principles.

Operating Principles for Impact Management

Principle 1: Define strategic impact objectives.
Swedfund sets strategic impact objectives aligned with the Sustainable Development Goals (SDGs) and other widely accepted development goals. These objectives ensure that investments generate measurable social and environmental impact consistent with Swedfund’s mission.

Principle 2: Manage impact at a portfolio level.
Swedfund manages impact across its entire investment portfolio, establishing processes to monitor and optimise impact performance while recognising variations across individual investments. Portfolio-level targets drive investment selection and strategic decision-making.

Principle 3: Establish contribution to impact.
Swedfund ensures that its investments provide additionality, meaning they create meaningful change beyond what would have occurred without intervention. This can include financial contributions, governance support, sustainability improvements, and the mobilisation of private capital.

Principle 4: Assess expected impact.
Each investment is assessed in advance to determine concrete, positive impact potential by answering key questions:

• What is the intended impact?
• Who will experience the impact?
• How significant is the impact?
• What are the risks that could affect impact achievement?

Principle 5: Monitor and manage potential negative impacts.
Swedfund integrates Environmental, Social, and Governance (ESG) risk management into all investments, requiring compliance with international standards such as IFC Performance Standards, UN Guiding Principles on Business and Human Rights, and ILO Conventions.

Principle 6: Track impact performance against expectations.
Swedfund systematically tracks progress towards impact targets using predefined indicators. Performance monitoring includes annual data collection, independent audits, and stakeholder engagement to ensure alignment with impact goals.

Principle 7: Conduct Exits considering the effect on sustained impact.
Swedfund strives to ensure that the positive impact of its investments continues beyond its involvement.

Principle 8: Review, document, and improve impact decisions.
Swedfund continuously reviews and evaluates investment outcomes to refine its impact strategy.

Principle 9: Publicly disclose impact and verification.
Swedfund is committed to transparency and external verification of its impact management system.

Learn more in Swedfund’s Disclosure Statement, the Operating Principles for Impact Management 2024