THE BACKGROUND
The InvestEU Fund acts as a single EU investment support mechanism for internal action, replacing all existing financial instruments. Its overall objective is to support the policy objectives of the Union by mobilizing public and private investment within the EU that fulfills the criterion of additionality, thereby addressing market failures and sub-optimal investment situations that hamper the achievement of EU goals regarding sustainability, competitiveness, and inclusive growth. Triggering more than 372 billion euros in additional investment over the period 2021-27, the InvestEU Fund aims to give an additional boost to sustainable investment, innovation, and job creation in Europe.
THE PROJECT
FINANCE FOR IMPACT was commissioned to develop the overall sustainability strategy for the Fund as well as the tools and mechanisms for the integration of environmental, social, and governance (ESG) factors. We designed a global sustainability framework enabling investors and companies to better screen and weigh the risk of projects against specific ESG analytics into the new InvestEU Fund 2021-2027. Our solution, a user- and visually-friendly ESG scorecard, was designed to convert tangible and intangible aspects of an investment project’s sustainability performance into an ESG investment score.
THE RESULTS
FINANCE FOR IMPACT provided a set of tools for minimizing potential negative consequences of investment operations while maximizing positive impacts. Our proposed ESG criteria were retained for the InvestEU Fund. FINANCE FOR IMPACT provided a detailed guidance and a practical approach to address the ESG dimension of the InvestEU sustainability screening and proofing processes of investment operations.
Location: European countries
Solution: Fund Advisory
Tool(s) mobilized: Strategic development, financial modeling, benchmarking, legal and regulatory analysis
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