The Investment Fund for Developing Countries (IFU) is Denmark’s development finance institution. IFU provides risk capital in the form of equity, loans and guarantees to companies operating in developing countries across Africa, Asia, Latin America and parts of Europe. Through their investments IFU aim to contribute to green, just and inclusive societies as well as supporting the achievement of the Sustainable Development Goals in developing countries.
Development issues such as gender, human rights, skills development and climate change are included as impact denominators across IFU’s investments. On climate change specifically, IFU is committed achieves net-zero emissions by 2040 at the latest.
To support IFU in this endeavor, Compassi is in charge of tracking the greenhouse gas emissions originating from IFU’s investments. In this context, Compassi provides support by assessing the absolute and avoided emissions of potential projects ex-ante, before the investment is made, and to track emissions overtime by assessing yearly the portfolio carbon footprint of IFU’s portfolio, as well as to provide ad-hoc support to IFU in this area.
The approaches used by IFU to assess the climate change impacts of their investments follow a methodology developed by Compassi, which is periodically updated in dialogue with IFU, to ensure that IFU is at the forefront of GHG accounting and has, in this regard, the right toolbox to deliver on their commitment of being Paris Aligned and reaching net-zero.
