2022 Communication on Progress

The Investment Fund for Developing Countries - IFU

Published date

May 27, 2022

No. of questions

56

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    These statements are in the annual report: https://www.ifu.dk/wp-content/uploads/2022/05/IFU_AR_2021_280421.pdf

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The publicly stated commitments are in the policies: https://www.ifu.dk/en/impact/#ribbon4

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    IFU has policies (Code of Conduct) that our investees have to comply with. IFU conducts Environmental Social (incl. Human rights) and Anti-corruption Due Diligence of all its potential investments.

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    IFU conducts Environmental Social (incl. Human rights) and Anti-corruption Due Diligence of all its potential investments.

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    IFU conducts Environmental Social (incl. Human rights) and Anti-corruption Due Diligence of all its potential investments.

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    IFU conducts Environmental Social (incl. Human rights) and Anti-corruption Due Diligence of all its potential investments.

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    IFU conducts Environmental Social (incl. Human rights) and Anti-corruption Due Diligence of all its potential investments.

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    Yes, this can found online: https://www.ifu.dk/wp-content/uploads/2021/12/Grievance-Mechanism-Guidelines_17122021-002.pdf

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    Optional comment
    Grievance Mechanism Guidelines: https://www.ifu.dk/wp-content/uploads/2021/12/Grievance-Mechanism-Guidelines_17122021-002.pdf

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    IFU conducts Environmental Social (incl. Human rights) and Anti-corruption Due Diligence of all its potential investments and if issues are raised regarding remedy such cases will be assessed thoroughly.

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    8

    Male (%)

    37.5

    Female (%)

    62.5

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    2

    Above 50 years old (%)

    6

    From minority or vulnerable groups (%)

    0

    Executive (%)

    50

    Independent (%)

    12.5

    13. Do you produce sustainability reporting according to:

    UNPRI

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    .

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Optional comment
    We don't understand the limitation of 5 HuRi material issues. We certainly would like to tick ALL suggested issues as material in the different context we operate

    Commitment

    2.1. For each human rights policy, is it:

    Aligned with international human rights standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving human rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of expression

    Digital security / privacy

    Rights of women and/or girls

    Access to culture

    Rights of indigenous peoples

    Free, prior and informed consent

    Rights of refugees and migrants

    Access to water and sanitation

    Optional comment
    IFU works together with the Danish Institute of Human Rights on developing and implementing its Human Rights policy and we work with all Human Rights from the outset. We prepare HuRi due diligence in accordance with the Guiding Principles on Business and Human Rights

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    IFU works together with the Danish Institute of Human Rights on developing and implementing its Human Rights policy.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2019

    Forced labour

    2019

    Child labour

    2019

    Non-discrimination in respect of employment and occupation

    2019

    Occupational safety and health

    2019

    Working conditions (wages, working hours)

    2019

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    International ILO standards: The eight fundamental Conventions and conventions related to Gender Equality and Sexual and Reproductive Health and Rights (SRHR).

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Yes, such issues are discuss with potential investees to agree on compliance with international ILO core labour standards.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    IFU conducts Environmental Social (incl. Human rights) Due Diligence of all its potential investments and set corrective action plans in case of non-compliance with IFU policy.

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Forced labour

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Child labour

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Non-discrimination in respect of employment and occupation

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Occupational safety and health

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Working conditions (wages, working hours)

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    33

    Non-executive board

    42

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    Choose not to disclose.

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    0
    Optional comment
    IFU employees did not have any accidents.

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0
    Optional comment
    IFU employees did not have any incidents.

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    We have not been involved in any remedy associated with the labour issues in the reporting period.

    Forced labour

    We have not been involved in any remedy associated with the labour issues in the reporting period.

    Child labour

    We have not been involved in any remedy associated with the labour issues in the reporting period.

    Non-discrimination in respect of employment and occupation

    We have not been involved in any remedy associated with the labour issues in the reporting period.

    Occupational safety and health

    We have not been involved in any remedy associated with the labour issues in the reporting period.

    Working conditions (wages, working hours)

    We have not been involved in any remedy associated with the labour issues in the reporting period.

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    As an investor in developing countries we prepare comprehensive social and labour related due diligences to identify any actual and/or potential labour issues. If any issues are identified a plan is prepared to mitigate the issue.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2019

    Water

    2019

    Oceans

    n.a

    Forests / Biodiversity / Land Use

    2019

    Air Pollution

    2019

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2019

    Energy & Resource Use

    2019
    Optional comment
    IFU's Sustainability and Climate policies can be found here: https://www.ifu.dk/en/impact/#ribbon4

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Yes, we discuss such issues the potential investees to agree on compliance with applicable international environmental standards.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    IFU conducts Environmental Social (incl. Human rights) Due Diligence of all its potential investments and set corrective action plans in case of non-compliance with IFU policy.

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Water

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Oceans

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Forests / Biodiversity / Land Use

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Air Pollution

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    Energy & Resource Use

    We track the progress through active ownership including board seats, annual sustainability reports from investee and monitoring site visits.

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    We have not been involved in any remedy associated with the environmental issues in the reporting period.

    Water

    We have not been involved in any remedy associated with the environmental issues in the reporting period.

    Oceans

    We have not been involved in any remedy associated with the environmental issues in the reporting period.

    Forests / Biodiversity / Land Use

    We have not been involved in any remedy associated with the environmental issues in the reporting period.

    Air Pollution

    We have not been involved in any remedy associated with the environmental issues in the reporting period.

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    We have not been involved in any remedy associated with the environmental issues in the reporting period.

    Energy & Resource Use

    We have not been involved in any remedy associated with the environmental issues in the reporting period.

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    IFU has no direct emissions from owned or controlled sources (scope 1).

    Emissions (tCO2e)

    Scope 2 Emissions

    Emissions (tCO2e)

    16.4

    Scope 3 Emissions

    Emissions (tCO2e)

    197.1
    Optional comment
    .

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    Not applicable

    8. Has the organization acted to support climate change adaptation and resilience?

    Optional comment
    We have invested in 21 climate (renewable) investments.

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    4
    Optional comment
    100% of electricity is renewable, but not the heating.

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    Revenue comes from investments - some of these are in renewable energy.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    As an investor in developing countries we prepare comprehensive environmental due diligences to identify any actual and/or potential environmental issues. If any issues are identified a plan is prepared to mitigate the issue.

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    2021

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    4. Does the company monitor its anti-corruption compliance programme?

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    0

    Confirmed during the current year, and related to this year

    0
    0

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    7. Does your company engage in Collective Action against corruption?

    Member of Transparency International Denmark.

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    As an investor in developing countries we prepare comprehensive ABC related due diligences to identify any actual and/or potential issues. If any issues are identified e.g. lack of policy, training of managers and other employees and compliance mechanisms a plan are prepared to mitigate the issue.