The impact of Invest-NL explained

Nathan is Impact Engineer and Martha is Strategy & Impact Analyst. They are involved in financing activities as impact experts from the Impact & ESG Team. They support the investment team with their expertise and knowledge of Invest-NL's impact policy.

Elements of impact  

Impact is a broad and sometimes unclear concept. To define this, Nathan quotes the description provided by the Global Impact Investing Network (GIIN). He explains that impact encompasses three crucial elements: intentionality, additional effect, and measurability.  "Impact must be intentional, bring about a positive change relative to the current situation, and be measurable. If you cannot support it quantitatively, we cannot consider it as impact."  
 
At Invest-NL, three areas have been chosen where we want to make an impact: a livable planet, good healthcare, and an innovative economy through Deep tech.

Habitable planet  

A habitable planet is all about organizing our economy more intelligently on an ecological level. This is measured, for example, by looking at the reduction of greenhouse gas emissions. "We assess how much greenhouse gas emissions are produced by the product or process of a company in which we invest, and how this compares to the standard product or process it replaces," Martha explains.  

Circulartity is also an important component, focusing on material use. “A circular system is not only about using recycled or renewable raw materials, but also about extending the lifespan of a product and then reintegrating it into the circular system."

A habitable planet encompasses our themes Biobased and circular economy, Agrifood, and Energy.

Results | Livable Planet

One of the most notable achievements of Invest-NL in 2023 was its contribution to reducing greenhouse gas emissions. "Our forecasts show that the companies in our portfolio could contribute to a 10% reduction in current Dutch CO2 emissions by 2030. This is significant and demonstrates the effectiveness of our investments," says Martha proudly. She adds: "These are still forecasts; it depends on how companies can actually scale up, so there remains some uncertainty." 

Avantium is one such portfolio company making a major contribution to CO2 reduction. Where plastics are usually made from oil, Avantium does it from sugar. Martha explains: “At Avantium, we look at the CO2 emissions of their bio-based plastic compared to traditional plastic. This helps us determine how much net greenhouse gas emissions we avoid. Plus, they are performing well commercially, so the expected production levels are higher than initially thought.”

Nathan mentions Meatable as an example, which makes a substantial contribution to a livable planet. “Meatable is an incredibly innovative company that produces meat alternatives based on animal stem cells. They score very well on impact, because meat production is a highly intensive process. Cultivated meat not only helps to avoid CO₂ but also uses far fewer raw materials and land.” 

Later, Invest-NL also added cultivated meat producer MosaMeat to its portfolio. Both are important companies in the Netherlands for accelerating the protein transition. “The fact that we host two leading cultivated meat companies in the Netherlands is something we can be very proud of.” 

Healthcare 

Another less highlighted impact area is healthcare, also known as Life Sciences & Health. Healthcare in the Netherlands is very good, but the costs are steadily increasing. The goal is to keep care affordable and of high quality. "What we try to measure is how much an intervention helps to avoid healthcare costs. For example, using an insulin pump so that patients need fewer visits to the GP. Additionally, we look at the quality of life that an innovation brings. Cost reductions should not come at the expense of patients' health or comfort," Nathan explains. 

Deep tech 

The third impact area is Deep tech, for which the Deep Tech Fund has been established. Societal value is central to high-tech companies. Here, the focus is on R&D expenditure and employment. “We measure how many highly qualified jobs are created and how much is invested in R&D. This gives us an idea of how these companies contribute to an innovative economic climate in the Netherlands," says Martha. 

Results | Deep tech

As an example, the photonics company EFFECT Photonics is mentioned. Photonics is a chip technology where light signals are used instead of electrical signals. Martha explains how this makes an impact: “With this modern light technology, you can send information faster and more energy-efficiently, think of the internet or AI. Moreover, this company provides more than 100 highly qualified jobs and invests heavily in research and technological development. The Dutch economy benefits greatly from such companies.”

Collaborating on a sustainable future 

The Impact Team maintains regular contact with the companies and funds in which investments have been made. Nathan explains how the collaboration works: “We assist a company on its journey towards greater maturity. Entrepreneurs are often busy with growth and operations. To become a mature company, you need to consider impact and ESG expectations, such as having a code of conduct and complying with CSRD guidelines. We help companies step by step.” 

The annual calculation of impact figures is very important, not only for Invest-NL but also for the portfolio companies, Martha explains. “By creating such a calculation model, you can determine where as a company you should prioritise. Making the impact figures transparent helps to better position the business case. To attract follow-up financing, you first need to demonstrate what the added value is.” 

The approach to measuring impact ensures that every investment not only yields financial returns but also contributes to a better world. Invest-NL is there for entrepreneurs who strive for a more sustainable and innovative Netherlands.  
 
The impact figures can be found in the Annual Report 2023.