The CDC ESG Toolkit for fund managers (the Toolkit) aims to provide advice to typical PE funds operating across a range of sectors rather than impact investment funds per se. The latter differ from general investment funds in that they make investments with the intention of generating demonstrable positive social and/or environmental impact alongside financial returns. Thus, impact investment funds place more focus on the measurement and reporting of the social and environmental performance of underlying investments. Detailed discussion of the design and use of such impact metrics is beyond the scope of this toolkit. The Global Impact Investing Network (GIIN) is the leading organisation providing advice and tools for such funds. It has developed an extensive impact measurement database of metrics (IRIS) that investors can use to measure the ESG performance of portfolio companies. It also offers fund manager training on environmental and social performance management (as well as impact measurement, fundraising and other areas).
Impact investment funds may find the Toolkit useful when developing their ESG management systems.