We invest to create social impact. At the end of 2022, our portfolio consisted of 10 companies and two fund investments. In order to optimize our social impact, we assess the social outcomes in all stages of our investment process, and link the financing to the social impact, also known as impact-linked financing.
– We have always been committed to measuring the actual social impact that companies create for their beneficiaries. It is challenging work, and we remain humble as we continue to be on a learning journey after all these years, says Katinka as she presents FSEs 10th Impact Report.
Maximizing the impact
She explains that the companies actively use frameworks and methods within the field of Impact Measurement and Management, methods that are gaining increasing attention and consensus, both internationally and in Norway.
– The companies in our portfolio measure social indicators that provide them with important information to enhance and maximize their social impact.
The companies in FSE’s portfolio are often at different levels of maturity depending on how long they have been measuring their impact, but according to Katinka, all of them have moved in the right direction. Several of the companies, such as Unicus and auticon, have implemented relatively advanced measurement systems.
– Both companies employ people with autism spectrum diagnoses as IT consultants. Through Impact Measurement and Management, they can document positive changes in the lives of each individual, corresponding to an increase in quality of life and improved mental health, she says, continuing: – We believe it is important to measure such concrete effects. If we only report and count the number of people employed, we miss out on important information such as how the employees performed, how they experienced the work, how long the employees stayed, and what it meant to them to get the job.
FSE focuses particularly on companies within four key areas:
- Preventing school dropout
- Enhancing the quality of life for individuals with autism spectrum diagnoses
- Increasing inclusion in the labor market for individuals who, for various reasons, are excluded from the labour market
- Improving the quality of life for the elderly, especially those with dementia.
In 2022, the companies in the portfolio collectively had a positive impact on 72,500 people, with approximately 50,000 experiencing life-changing impact and 20,000 experiencing life-improving impact.
– As an investor, it is very rewarding to be allowed to work with companies that make a real difference in people’s lives. Following them over time is both enjoyable and very exciting, says Katinka.