Impact investing is a useful term for investors who are committed to solving social and environmental problems. Impact investing is intended to generate a so-called double bottom line, which is to say social and/or environmental results in addition to a financial return.
One of Ferd’s strategic objectives is to be a value-adding contributor to society, and we have focused on sustainability across our activities for a long time.
Ferd has two investment mandates within the area of impact investing: Ferd Social Entrepreneurs, which addresses social impact, and Ferd Impact Investing, which addresses environmental impact. We also undertake humanitarian initiatives that currently do not have their own mandate, but these involve Ferd initiating and contributing to funds and organisations that seek to combat the exclusion of the poor and refugees in Asia and Africa.
Ferd Social Entrepreneurs (Ferd SE) seeks to generate measurable social results by investing in social entrepreneurs and strengthening their market. Social entrepreneurs are companies that help create new solutions to social problems and work to generate both social and sustainable financial results, meaning they have a ‘double’ bottom line. We contribute capital, networking and expertise to social entrepreneurs as part of active partnerships that involve clear milestones and social ambitions. We also help to strengthen the field by increasing expertise in social entrepreneurship, business development and how the public sector and others can use such innovative, small-scale organisations to deliver social results. Ferd SE currently has 10 companies in its active portfolio. Some of these are supported through grants, while others are equity investments. Read more about Ferd SE and our portfolio companies here.
Ferd Impact Investing seeks to invest in early-phase companies that have the potential to deliver a positive impact in terms of the UN Sustainable Development Goals as well as a robust risk-adjusted return. We primarily invest through funds and other types of complementary partnership, and we rarely invest directly in individual companies. We concentrate on three sectors in which Ferd has a strong position and significant expertise: Renewable energy, aquaculture and proptech. Read more about Ferd Impact Investing and our investments here.
The rapid developments in proptech are making the real estate industry greener and more efficient. Proptech is one of Ferd Impact Investing’s focus areas. Photo: The Ecosystem Integrity Fund