Survey: Finnfund valued as a partner – expertise and added value through cooperation

Professional, responsible, innovative, reliable, and pragmatic. These are some of the characteristics attributed to Finnfund in a recent stakeholder survey, which surveyed, for example, Finnfund’s brand and the images associated with it.

Through the survey, Finnfund also wanted to ask feedback about the quality of cooperation, added value, and expectations related to sustainability and impact, and the changing operational environment. The results are used for developing Finnfund’s operations and for the preparation of the new strategy. The strategy will be published in January 2025.

“Stakeholders’ feedback and ideas are very important in developing Finnfund’s operations. I would like to thank all internal and external respondents,” says Jaakko Kangasniemi, CEO of Finnfund.

Responsible and impactful cooperation

Finnfund’s mission is to build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. The vision is that people and planet are at the core of every investment decision. How well is this reflected in in Finnfund’s operations? According to our stakeholders, quite well; the average response was 4.1 on a scale of 1–5.  The overall score for Finnfund’s work was 4.1 on a scale of 1-5.

The survey asked how well certain characteristics describe Finnfund. Excellent ratings were given for, for example, expertise and professionalism, responsibility, reliability, and the perception that Finnfund’s operations generate development impacts. These characteristics were also mentioned in the open feedback. Praise was also given for, for example, pragmatism and solution-orientedness.

Cooperation is appreciated

A large proportion of stakeholders recommend Finnfund as a partner: the net promoter score (NPS) given by companies financed by Finnfund is 78 and that of co-investors is 65. The figures are quite high. When Finnfund’s investees were asked about the added value of Finnfund’s financing and cooperation, the average response was 4.5 on a scale of 1–5.

“The fact that our investees and co-investors value our cooperation and feel that they get added value from our work is very important to us. We are very grateful and happy about this feedback. It creates a good basis to strengthen and develop our operations further,” says Kangasniemi.

A clear majority of the investees and co-investors also rate the cooperation with Finnfund better than with other similar investors.

Climate change and poverty reduction still at the forefront

The study also sought to determine which areas of impact and responsibility stakeholders consider important and where Finnfund should particularly focus on. Climate change mitigation and adaptation were still considered most important, but poverty reduction through employment promotion and mobilisation of private finance for sustainable development and climate change were also highlighted in the responses.

According to the respondents, Finnfund has succeeded in acting as an example of responsible investor (external respondents’ average score 4.2, on a scale of 1–5), its operations generate development impacts (4.1), and Finnfund operates transparently (4.1). Finnfund’s operations are also considered to enhance environmental and social sustainability and good corporate governance (4.1).

Increased awareness

The awareness of Finnfund’s operations had increased again compared to the previous survey conducted in 2022. External stakeholders are also quite satisfied with the quality and quantity of information produced by Finnfund; on a scale of 1–5, all responses were between 3–5, with an average of 4.1.

“We always seek to improve our cooperation and communication, so it is valuable to hear what our stakeholders think and expect from us. We also asked for the first time specifically about openness and transparency, and we are pleased to note that our stakeholders are quite satisfied also with that. The work will continue,” says Kirsi Pere, Communications Manager at Finnfund.

Changing field of impact investing

One of the objectives of the survey was also to find out what kind of trends and expectations can be expected in the field of development finance and impact investing.

The responses highlighted the rapid changes in the fields of impact investing and sustainable finance, as well as geopolitical uncertainties and the challenges they bring. Many respondents hope to see Finnfund an even stronger actor in the midst of these changes.

“The changing operating environment and global economic and political uncertainties are reflected in the responses. We invest in various emerging markets and various sectors, so this is understandable. Perspectives and expectations vary, but in principle, Finnfund is expected to strengthen and develop its operations and partnerships further,” says Pere.

The study was carried out via an electronic survey, complemented with some telephone interviews, in June-September 2024 in Finnish and English. A total of 163 responses were received. The respondents were both external and internal stakeholders, such as companies financed by Finnfund, co-investors, civil society, and media, as well as Finnfund’s owners, members of the supervisory board and board of directors, and personnel. The study was conducted by Innolink Ltd.

Read more:

Strategy and governance – Finnfund
Keep up the good work – stakeholder survey provides feedback and ideas on Finnfund’s operations – Finnfund  (News March 2022)
Stakeholders expect Finnfund to invest in climate action – Finnfund (News 16 April 2019)

More information:

Kirsi Pere, Communications Manager, kirsi.pere@finnfund.fi, tel. +358 40 620 9767