Impact Investment

Socially Responsible Investment (SRI) and Impact Forestry Investment

Investors consciously combined the concept of social responsibility with investment behaviour and created the new trend of investment in socially responsible investment.

Social responsibility investment encompasses social, environmental, ethical and corporate governance effects and the economic benefits of forestry investment objectives. Veon is committed to ensuring that the forestry projects in which it directly engages or when consulting on a strategic basis on behalf of its’ clients is in fully aligned with SRI objectives

“Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets and target a range of returns from below market to market rate, depending on investors’ strategic goals”. 

(Source: Global Impact Investing Network)

“Impact is not a by-product or positive unintended consequence, but an intentional output targeted through thoughtful investment”.  (Source: Sarah Norris, Standard Life Investments)

UN agencies and international conventions have created basic definitions and conditions for sustainable forestry, but these are not acknowledged or adopted by all countries. In the Nordics, governments have been working with companies to develop national standards based on local characteristics and which align with the Programme for the Endorsement of Forest Certification’s (PEFC) globally recognised sustainability benchmarks.

The international community agrees that sustainable forestry models should focus on facilitating the adoption of “mechanisms that not only ensure sustainable forestry and conservation, but also provide satisfactory livelihood opportunities for forest-dependent communities, and promote sustainable economic development for all nations, including countries with low forest cover”.

Despite the value and relevance of certifications to businesses and the impact investing community, less than 10% of the world’s total forestry, particularly in tropical regions, is certified.

This is a major concern for the international community and large development institutions, “since the increasing demand for (uncertified) wood will lead to further degradation and fragmentation of forests and permanent deforestation”. A study by WWF highlights that demand for wood products could triple in the next 20 years.

However, demand for certifications and sustainable forest management businesses is also on the rise. An increasing number of countries are adopting and implementing policies and incentives to promote and secure sustainable forestry businesses.

 (Source: PRI Principles for Responsible Investment)

Environmental Social & Governance

The growth in popularity of Environment Social and Governance (ESG) among some leading global corporations will in the medium-term increase pressure on smaller corporates to adopt environmental reporting standards as a result of stakeholder, regulatory, ethical and market pressure.

ESG criteria are a set of standards by which environmentally and socially conscious investors use to evaluate potential investments. Environmental criteria cover the natural environment in which the company operates. Social criteria examine the context of managing its’ stakeholder relationships. Governance deals with how the company is run, administered and governed and includes the company’s leadership and commercial ethos.  ESG typically covers such key issues such as climate change, carbon emissions, human capital and labour management, energy policy, corporate governance, gender diversity etc.

Veon engages in SRI and Impact Forestry Investment on a national and international basis on behalf of its corporate clients and designs individual and unique forestry solutions to meet the requirements of each client’s CSR objectives.

If your company has an interest in engaging in Impact Forestry Investment Veon can help your company achieve its objectives.