Impact investors seek to achieve development impact alongside positive environmental and social outcomes. But these outcomes may be undermined if corruption risks are not adequately understood and managed.
Corruption can contribute to or exacerbate environmental and social (E&S) risks and undermine development outcomes. It can also create financial and reputational risk for both investor and investee.
Our new guidance, produced in partnership with Transparency International UK and Swedfund, aims to address this issue.
Investing with Integrity II offers practical guidance for impact investors keen to help protect environmental and social outcomes from the impacts of corruption.
The report, a follow-up to 2022’s Investing with Integrity, aims to place business integrity at the heart of impact investing and provide a practical toolkit for impact investors.
The guidance focuses on key corruption risks likely to arise in the context of impact investing, setting out a clear approach for investors to identify, assess and manage these risks. In doing so, investors can help ensure their management of environmental and social risks, and associated ESG reporting, is safeguarded against corruption.
Based on more than 30 interviews with experienced practitioners including leading DFIs, private impact investors, and investee companies, the guidance offers investors key questions to help identify potential risks, and how they can be successfully managed. The research is supported by key case studies and quotes from experienced practitioners.
Read the full report.
