Home ImpactSustainability SustainabilityEnvironmentally, socially, and economically sustainable business practices are a prerequisite for positive impact. Sustainable, responsible business practices add value to investments and contribute to generating a positive impact. They play a key role in the risk management of each project and in ensuring that the “do no harm” principle is respected in our investments, as it helps to anticipate unexpected risks and impacts, enhances cooperation with stakeholders, and strengthens the social licence to operate. Simultaneously, responsible and environmentally, socially, and economically sustainable business practices can improve the operational and financial performance of a company, enhance employee wellbeing and commitment, and bring a competitive advantage. Impact creation in Finnfund’s investment process. When financing private companies, financial profitability is key to creating an impact. If a company fails to keep its business running, it will not achieve the desired impact. Therefore, the viability of the business model is another prerequisite for Finnfund’s investment. Therefore, we have three criteria for every investment: positive impact, sustainability, and profitability. All these aspects also play an integral role in our investment process. Most of our investee companies also have community development projects alongside their core business activities. This is particularly typical of businesses operating in remote rural areas where public services are weak. What the company does – and how it works… Economic sustainability – profitability, responsible tax Environmental and social sustainability – responsible business practices and risk management Corporate governance – how the company is managed Know-your-customer – we want to know the people we work with … generates posive impacts Direct effects such as good jobs, training, better infrastructure, financial services, clean energy Indirect effects such as local purchases of products and services in supply and distribution chains Positive impact in wider society, such as taxes, poverty reduction, climate change mitigation and adaptation Leverage and impact through cooperation Together with like-minded investors, such as the other members of the Association of European Development Finance Institutions (EDFI), Finnfund builds leverage and maximises impact and sustainability in its investments. Finnfund has endorsed the EDFI Principles for Responsible Financing of Sustainable Development and the Operating Principles for Impact Management (OPIM). We have aligned our practices and investee requirements with the jointly agreed harmonised minimum environmental and social requirements applicable to EDFI co-investments, including the Exclusion list. News News 01 October 2026 Government proposes new Finnfund Act The Government will submit a proposal to Parliament for a new act on Finnfund,… News 01 October 2026 Finnfund economist Tangeni Shatiwa: “India’s growth, green transition and digitalisation offer significant opportunities for impact investors and Finnish companies” India’s economy is growing strongly. At the same time, private investment is picking up,… Blog 30 September 2026 Olli Sinnemaa CFO Insights into Q2 2026 The first half of 2026 was characterised by strong portfolio growth. The portfolio reached… News 30 September 2026 Aravest raises additional capital from Finnfund to support August Energy’s growth across Southeast Asia and India Finnfund commits USD 15 million to Aravest-managed investment vehicle, providing follow-on growth capital for… News 29 September 2026 Finnfund signs senior loan agreement with EVF to support women-led businesses and green transition in Vietnam Finnfund has signed a senior loan agreement of USD 15 million with EVF General… News 24 September 2026 Finnfund and Proparco invest USD 33 million in ERCO to accelerate Colombia’s clean energy transition with support from the European Union Finnfund, a Finnish impact investor, and Proparco, France’s development finance institution, complemented with a… Blog 22 September 2026 Aleksi Koskikallio Risk management does not reduce impact – it makes impact possible When people hear the term risk management, they often imagine someone whose job is… News 07 September 2026 Independent evaluation: “Finnfund and Finnpartnership are key instruments for advancing Finland’s international objectives” Impact investor Finnfund and the Finnpartnership programme are key instruments for implementing Finland’s development… Blog 01 September 2026 Marko Berglund What drives successful impact management? Insights from Finnfund’s OPIM verification A key question in impact investing is how to manage impact effectively in practice.… News 31 August 2026 Finnfund joins USD 600 million sustainability-linked financing for ETG Finnfund is participating in a USD 600 million sustainability-linked loan facility for ETG, alongside… Scroll left Scroll right Reports and publications Finnfund Insights: Focus on India Annual Report for 2025 Finnfund Insights: Focus on Nigeria Nigeria is Africa’s second-largest economy (in purchasing power parity terms) and is the 15th-largest… Finnfund Insights: Focus on Kenya About the report Kenya is the largest economy in East Africa and the fourth… Annual Report 2024 Hewatele, Kenya – Impact Performance Report Annual Report 2023 Finnfund Insights: Focus on Vietnam About the report Vietnam is one of the fastest-growing economies in Southeast Asia and… Annual Report 2022 Annual Report 2021 Scroll left Scroll right Read more Impact assessment Risk assessment Impact results Key themes Policies and statements Our work in practice Investment criteria and process News and publications