Certification programme for impact fund managers launches

15 Sep 2022, 12:00 am
Financial Nigeria

Summary

Gold Standard said its requirements ensure best practice impact investing that builds on IFC safeguards, the UNDP Equity Standard, OECD Blended Finance approaches and best practice in the market.

Gold Standard CEO Margaret Kim

Gold Standard, a certification programme that seeks to accelerate progress toward the Net-Zero ambition of the Paris Climate Agreement while catalysing impact toward the broader Sustainable Development Goals, today, announced that it has opened applications for investment funds to join the two-year pilot phase of new impact fund certification requirements.

Gold Standard said in a statement it shared with Financial Nigeria that the requirements have been developed to support serious sustainable funds in measuring, managing, and maximising the sustainable development impact of their investments.
 
“The world urgently needs trillions of dollars to achieve the sustainable development goals, and the majority of the capital must come from the private sector, including impact funds,” said Gold Standard CEO Margaret Kim. “The new fund requirements from Gold Standard bring best practice in impact measurement, management and maximisation, to support fund managers in delivering credible contributions to the goals.”
        
Gold Standard said its requirements ensure best practice impact investing that builds on IFC safeguards, the UNDP Equity Standard, OECD Blended Finance approaches and best practice in the market – providing support from initial strategy design, through project screening, feasibility, to implementation and exit.

According to Gold Standard, its Impact Fund Certification certifies that a fund will deliver on its sustainable strategy, going beyond the more traditional environmental social, governance (ESG) model, which is focused on risk avoidance, and providing evidence of real contributions to climate and sustainable goals. Application of the fund requirements minimises non-delivery risks through the measurement of the actual outcomes at the level of the investee.

The new requirements focus on process delivery and are part of Gold Standard’s growth in the sustainable finance arena. Gold Standard works with investors and national governments supporting sustainable project development, to create optimal enabling conditions to attract climate finance, and with impact investors to de-risk funds through robust measurement and reporting of impacts.

With up to five places for participating in the piloting of the fund requirements, Gold Standard said this is an opportunity for fund managers to become recognised leaders. The fund and impact management team will gain insights into best practice impact management, measurement, and maximisation, using the full suite of Gold Standard tools at subsidised costs.

Gold Standard was established in 2003 by World Wildlife Fund (WWF) and other international NGOs as a best practice standard to help the world achieve net-zero carbon emission.



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