Impact figures

• In digital infrastructure and solutions, Finnfund aims to
  1) close the coverage gap;
  2) close the usage gap; and
  3) invest in digital technology solutions.
• In 2023, our investees served 203 million people through digital solutions and infrastructure.
• Many Finnfund investees in this sector provide vital mobile network services for people in rural areas. For example, you can read more about the work of Africa Mobile Networks in the Annual Report.

• Finnfund’s direct investees had approximately 240,000 hectares under sustainable management, of which 67,000 hectares were planted and growing, and approximately 78,000 hectares (32%) were protected areas. The area of forests under sustainable management decreased approximately 32% year-on-year, reflecting the sale of one of our largest forest assets to a forestry investing platform, which Finnfund also invests in.
• This sale partly contributed to the increase in the area of sustainably managed forests through funds to 326,000 hectares, the majority of which is FSC-certified forest.
• Our direct forestry investees had a relatively stable 5,300 employees, of whom 1,300 (25%) were women.

• In total, our investees generated 9,600 GWh of energy, which represents a 5% year-on-year increase and an all-time high in our portfolio. Over 95% of this electricity was from renewable sources, up from a 90% share a year earlier. The largest share (~76%) of renewable energy production originates from our fund investments in Africa (Evolution Two and Three), Latin America (CIFI), and Asia (Global Environmental Emerging Markets Fund III).
• In our direct investments, power generation halved year-on-year to 1,900 GWh, reflecting our exit from the Lake Turkana Wind Power project. Of our direct investments, solar power projects counted for 61% (1,048 GWh) of energy generation and wind power for 24%, with the rest coming from other sources.

• Agribusinesses in our portfolio (direct investments and businesses financed through funds) had a total of 27,000 employees in 2023, of whom 40% were women. This is 2,000 jobs more compared to the previous year; since 2021, the number of jobs supported through direct investees and funds has increased by approximately 6,000.
• The increase is due to the inclusion of new companies in our portfolio and growth in existing portfolio companies. The increase also shows in salaries paid, which increased to 55 million euros in 2023. This increase, which represents a tripling since remaining steady in 2020-2021, reflects additional investments in our portfolio, as well as growth in portfolio companies.
• Our investees were working with 4.49 million small-scale and livestock farmers, of whom 79% were women. The decrease compared to the previous year (6.5 million, 80% women in 2022) is mainly due to an updated methodology applied by one investee company.

• In 2023, Finnfund’s portfolio included 23 financial institutions, whose combined loan portfolio stood at 33 billion euros. Approximately 40% of this was lending to micro, small and medium-sized enterprises (MSMEs), with an average loan size of 2,800 euros.
• These financial institutions granted 9.1 million MSME loans, worth 13.3 billion euros, of which 30% were to female customers.

• Direct investments supported 125,000 jobs, of which 37% were for women.
• Fund portfolio companies supported 179,000 jobs, of which 42% were for women.
• In total, our investees supported 304,000 jobs.

In addition to direct employment opportunities, the economic activities of our investees contribute to economywide benefits in the form of indirect and induced jobs. The total employment effect of our portfolio therefore goes much further than jobs created.

Investments attributed to Finnfund removed more greenhouse gas emissions, measured as carbon dioxide equivalent, from the atmosphere than they emitted during 2023. The calculation covers 98 per cent of Finnfund’s total assets. The main asset classes are business loan and fund investments (75% of outstanding total assets) and unlisted equity (25% of total assets).

In 2023, Finnfund’s portfolio emissions were 175,000 tCO₂e, which is equivalent to 254 tCO₂e per outstanding million. Finnfund’s portfolio emissions grew significantly as our portfolio grew. The majority of the emissions growth is from scope 3 upstream,
which has a low data quality, and the numbers contain a lot of uncertainty. There was no significant growth in scope 1 emissions, and scope 2 emissions grew by 3,000 tCO₂.

Finnfund’s portfolio carbon removals were 303,000 tCO₂. Most of the forests in Finnfund’s portfolio are afforestation and reforestation projects and are still relatively young, which means that the average annual carbon sink of the forests is larger than the amount of carbon emitted through harvesting or natural hazards, such as forest fires. Once the forests in Finnfund’s portfolio mature, the carbon storage in forest biomass will reach a steady state.

In 2023, Finnfund’s renewable energy investments avoided 126,000 tCO₂ of emissions. This is accounted based only on grid-connected renewable energy investments.

• 25% of board members at our direct
  investees were women.
• 31% of senior management among our
  direct investees were women.

• Our investees paid a total of 1,044 million euros in taxes and tax-like fees in their respective countries.
  – 55% by financial institutions
  – 17% by other direct investments
  – 28% by fund portfolio companies
• 76% of the taxes were paid in African countries.