We are committed to highest standards in impact management.
ALIGNMENT WITH UN SDGs
We are a private sector, mission-driven, global investment firm specializing in investment solutions aimed at creating a positive social and/or environmental impact as well as delivering attractive financial returns.
All of our investments are fully aligned with the United Nations’ Sustainable Development Goals (“UN SDGs”).
We integrate a robust impact and sustainability management system throughout the investment lifecycle; including a best-in-class impact and ESG assessment, management and reporting methodology.
For more information on how impact & sustainability are integrated into our investment decision-making and processes, please see BlueEarth Impact & Sustainability_Policy.
Launched in 2019, the Impact Principles were developed to establish a set of best practices for impact management.
Signatories to the Impact Principles are required to ensure a purposeful integration of these best practices throughout the manager’s full investment cycle.
For more information on how impact & sustainability are integrated into our investment decision-making and processes, please see BlueEarth Impact & Sustainability Policy.
As of 2021 BlueEarths’ newly launched funds are in full compliance with the new EU Sustainable Finance Disclosure Regulation (SFDR).
For more information on how the Impact & Sustainability Policy is integrated into their respective investment strategies and processes, please see the following disclosure documents:
PG Impact Investments II USD SCA, SICAV-RAIF
PG Impact Credit Strategies 2020 USD SCA, SICAV-RAIF.
IMPACT DRIVEN INVESTMENT DECISIONS
The assessment and management of social and environmental impact forms an integral part of the investment management process.
During the prospecting, sourcing and screening phases, we select investments that deliver both attractive financial returns and positive social and environmental impact.
During the due diligence and investment analysis phases, we assess the scale and depth of the impact generated by the investment. In addition, we identify the environmental, social and governance (ESG) risks and opportunities related to the investment, as well as the value-add opportunities of our global investment platform and network. Together with management, we define and agree on impact targets and measurements, which we closely monitor during the lifecycle of the investment.
At exit, we give thorough consideration to how the impact mission can be protected under a new ownership structure.
Our investment decisions are guided by the following criteria:
How aligned is the investment with the fund strategy to generate impact while delivering competitive financial returns?
What outcomes does the effect relate to, and how important are they to people or the planet experiencing it? How much of the effect occurs in the holding period? Who experiences the effect and how underserved are they in relation to the outcome? How does the effect contribute to what is likely to occur anyway? Which risk factors are material, and how likely is the effect different from the expectation?
Environmental, Social & Governance (ESG) Factors:
What are the ESG risks and how can they be mitigated? Do any ESG opportunities exist that would also improve business performance?
What value can we add to the investment’s development and growth?
We apply an integrated measurement framework that caters to the different levels of maturity, resources and impact measurement sophistication of our investees.
During the pre-investment process, we apply the following four steps to define impact metrics for a given investment:
Assess impact and potential contribution:
All investments are subject to a comprehensive impact assessment, as well as a contribution assessment to determine the potential additionality of BlueEarth’s capital. To align with emerging good practice, BlueEarth’s due diligence framework is built on the findings of the Impact Management Project (“IMP”). In particular, the framework adopts IMP’s five dimensions of impact: Who, What, How Much, Contribution, Risk.
Develop a logic model:
The second stage in the impact due diligence is developing the logic model. Sometimes referred to as ‘theories of change’ or ‘impact pathways’, logic models help set out how society experiences the impacts generated by the activities of a company or asset, both positive and negative. Logic models also help identify relevant metrics for measuring the scale and depth of an impact. The logic model links the investment to potential outputs, outcomes, and ultimately impacts. The impacts can then be linked to the relevant SDGs and SDTs.
The third step of the process is to identify relevant metrics that will be used to set and agree targets with management and to measure progress in achieving the agreed targets, and at what rate. The logic model(s) developed by the investment team will help identify relevant & measurable metrics. Where relevant and helpful, Blue Earth Capital aligns impact metrics with the Global Impact Investment Network’s IRIS framework.
Align with management:
In a last step, Blue Earth Capital aims to confirm the proposed impact goals to be achieved and impact metrics to be tracked and reported with the management team and provides clear guidance on the impact reporting cycle.
After due diligence, we work with the investee in:
Gathering and analyzing data on the KPIs post investment to monitor the social impact performance of the investee.
Where possible and meaningful, aggregating selected KPIs of the different investments into a sector and/or portfolio view for high-level analysis and reporting.
On an annual basis, we produce a comprehensive Impact Report to all clients.
The report provides detail on the performance of the portfolio against key impact-related metrics, highlighting noteworthy trends or improvements with case studies.