Finnfund advances Child-Lens Investing in the digital infrastructure and solutions sector

Kaisa Alavuotunki Chief Sustainability Officer (CSO) kaisa.alavuotunki@finnfund.fi

Did you know Finnfund supported UNICEF in the development of the Child-Lens Investing Framework? With support from the Government of Finland, the Child-Lens Investing Framework (CLIF) was designed and developed in 2024 by UNICEF’s Innovative Finance Hub in Helsinki, in collaboration with UNICEF USA’s Impact Fund for Children.

Ahead of World Children’s Day celebrated on 20 November, we caught up with Finnfund’s Chief Sustainability Officer Kaisa Alavuotunki to learn more about Child-Lens Investing at Finnfund.

Q: To kick-off, what is Child-Lens Investing?

Kaisa: Child-Lens Investing is an impact-driven investment approach that encourages investors to systematically incorporate child-focused considerations into investments. The aim is to foster positive outcomes for children while mitigating potential risks. Child-Lens Investing Framework and its accompanying pieces – created by UNICEF – are the central guiding documents for it.

As is clear, children are our future, yet they are often overlooked in investment decisions. This means investments often fall short in considering the risks of funding business activities that either directly or indirectly harm children or do not maximize the full benefits they could deliver for children’s wellbeing.

At Finnfund, our guiding vision is that people and the planet are at the core of every investment decision. Therefore, I am proud we have supported UNICEF in the development of the Child-Lens Investing approach by offering our expertise and insights. This includes a Memorandum of Understanding Finnfund and UNICEF Innovative Finance Hub signed in 2024 to identify and develop pathways for implementing the CLIF in practice.

Q: What are Finnfund’s concrete goals regarding Child-Lens Investing?

Kaisa: When you mention children and investments in the same sentence, it’s natural for many to raise their eyebrows. The combination may seem surprising or even contradictory. Yet, when we talk about Child-Lens Investing, we’re not referring to something distant or abstract, but often to issues that every working parent can relate to. Take, for example, an employer’s policies and how they shape our children’s lives – much more than we often realize. Do I earn a living wage to provide for our families? Can I stay home when my child is sick? Can both parents take parental leave? How long hours do I have to work? By promoting child-friendly workplace practices, we help create an environment where parents can care for their children without constant stress – and I strongly believe this is a powerful investment in the future.

In our new Finnfund Digital Access Impact Fund I, our current focus is to positively impact children’s welfare through child-friendly workplace practices. We also aim to mitigate child-related risks through thorough due diligence and monitoring processes. By using the Child-Lens Investing Framework, our aim is to drive meaningful and lasting change by boosting positive outcomes for children and reducing harm.

In practice, our key goals include the following. First, no child labour in our portfolio companies’ operations, or in their supply chains. Second, we want all the school-aged children of the portfolio company employees to attend school. Third, portfolio companies’ employees are trained in children’s rights. Further, all portfolio companies support their workers in their roles as caregivers including, for example, parental leave. These are ambitious goals, not always self-evident.

Q: What has been done so far and what are the next steps to be achieved?

Kaisa: So far, we have conducted a detailed review of Finnfund’s investment process, and we have integrated child-focused assessments into our investment process in Digital Access Impact Fund I. We screen pipeline companies using the Child-Lens Investing Framework tools and monitor progress. We mitigate risks proactively through due diligence and monitoring processes.

Increasing awareness and understanding of Child-Lens Investing is vital. Therefore, we are working to provide online training on Child-Lens Investing for our portfolio companies’ employees. In addition, we continue to strengthen our collaboration with UNICEF to ensure successful implementation of the Framework.

Q: To sum-up, why is Child-Lens Investing important and anything you would like to highlight in particular?

Kaisa: As emphasized by UNICEF, investing in children means investing in the future, in tomorrow’s citizens, workforce, consumers, and leaders. It is important to recognise that all investor actions ultimately have an impact on children whether directly or indirectly, intentionally or unintentionally. Furthermore, Child-Lens Investing does not only benefit children, but it also has wider transformative effects for caregivers, communities, and society.

To conclude, I would like to stress that integrating child-lens requirements into investment processes, contracts, and action plans need not be complicated; in fact, it can be a straightforward and practical approach. I encourage investors to familiarise themselves with the Child-Lens Investing Framework and to consider practical steps to incorporate it into existing investment processes.

Happy World Children’s Day!