Invest-NL aims to make an impact. Accelerating societal transitions. To make the Netherlands more sustainable and innovative, we mobilise capital and provide new sectors with prospects.
Impact & ESG support
Impact and the investment process
As an impact investor, we play a role in making the companies and projects we finance and support more sustainable. Before we actually invest in a company, we go through a joint process. And once we are officially impact partners, we remain continuously and actively involved.
Before we invest
In this phase, we analyze several aspects related to the company. This usually takes three to six months. We look at:
- Environmental, social, and governance themes (ESG: Environment, Social, Governance) that are material to the company and how these are translated into policies and business processes. We also examine collaboration with supply chain partners.
- Theory of change, which describes the problem the company provides a solution for. We also look at the associated business activities, the results and impact achieved, and the opportunities and risks involved.
- Lifecycle analysis, which provides an overview of the fuels and raw materials needed for the company’s product, process, or service, compared to a standard alternative in the market. The impact themes and depth of analysis depend on the type and maturity of the organization.
- Exclusions of certain applications, compliance with sustainability guidelines, and annual reporting on impact factors.
Once we are impact partners
In a successful investment, we remain actively involved in the company. Together, we go through several steps and share our expertise.
1.
Drafting a collaboration plan
In close consultation, we will draft a collaboration plan for the following 18 months. This will establish focus areas for improvement, such as a policy on responsible business conduct and increasing social impact.
2.
Ecovadis screening
For companies with more than 50 FTE, Ecovadis provides a detailed ESG analysis. This assessment based on criteria related to Environmental, Social, and Governance helps integrate sustainability and social responsibility into decision-making. The first Ecovadis screening is at our expense.
More about Ecovadis3.
Annual impact assessment
For all companies in our portfolio, we perform an annual quantitative impact assessment. This provides a company with insight into how it can create more impact.
4.
Help with sustainability legislation
We support our portfolio companies in preparing for existing legislation and guidelines, such as the EU Taxonomy and the Corporate Sustainability Reporting Directive (CSRD).
5.
Annual reporting
Each financial year, we assess the performance of our portfolio companies. For all businesses, we produce an annual report based on impact and core figures.
A committed stakeholder
After the transaction is completed, our first step will be to develop a cooperation plan and the possible ESG analysis by EcoVadis. We will discuss and work on shaping future-proof policies and measures to improve processes where necessary.
Throughout the collaboration, we expect to see a growing integration of ESG and impact considerations into the business operations. This also helps the company communicate externally about its impact potential and sustainability strategy. In this way, the company not only increases its impact but also becomes better able to meet the expectations of subsequent financiers, legislators, and other stakeholders.
Questions about this topic? Andrea is happy to help!
Andrea van Dijk
teamlead impact and ESG
