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ESG impact

Through the investments, the funds strive to promote a positive environmental, social and governance development and create shared value by promoting good corporate governance, sound environmental and social performance, job creation, income and by supporting the development in the local community. Financial inclusion is imperative for giving people access to basic needs such as education, skill training, healthcare, clean water, sanitation facilities and clean energy.

ESG impact reports

Maj Invest Financial Inclusion - All funds
ESG Impact Report 2020-2021
ESG Impact Report 2019-2020
ESG Impact Report 2018-2019


Danish Microfinance Partners K/S Maj Invest Financial Inclusion Fund II K/S
Social Impact Report 2017-2018 Social Impact Report 2017-2018
Social Impact Report 2016-2017 Social Impact Report 2016-2017
Social Impact Report 2015 Social Impact Report 2015  
Social Impact Report 2014  
Social Impact Report 2013  

We believe that supporting responsible business conduct is part of the funds’ value creation to investments and generates development impacts. This includes, among other things, access to affordable financial services, outreach, gender equality, client protection, job creation and community initiatives, ensuring good corporate governance and protection of clients against climate change. Investing in financial institutions with a strong social mission contributes to the improvement of clients’ economic development and livelihood by providing access to formal and fair financial services. Also, financial inclusion is imperative for giving people access to basic needs such as education, skill training, healthcare, clean water, sanitation facilities and clean energy. We call it ESG impact.

Environmental impact
The group of clients depending on an income from agricultural and similar activities are particularly vulnerable to the effects of climate change. Heavier floods, landslides and changing temperatures are among the challenges that the clients are facing. Having access to agricultural loans, savings accounts, insurance products and technical assistance put clients in a better position to mitigate and adapt to risks related to climate change.

Social impact
The social mission of the institutions significantly contributes to the clients’ livelihood. Access to financial services enables the clients to generate an income, make savings and provide for their families. To be able to generate an income and make savings are factors playing a significant part in alleviating poverty. The social impact is measured via four indicators based on industry standards: outreach, client protection, community development and employment.

Governance impact
Corporate governance promotes the rule of law, reduces risks, fosters a more robust private sector and contributes to a sustainable and profitable business environment. In the role as shareholders, board representatives and advisers, the funds play a key role in improving corporate governance practices, raising the level of professionalization and supporting anti-corruption measures. The portfolio companies’ corporate governance is evaluated on five parameters according to the IFC methodology.

Going forward
Financial inclusion can be a significant contribution to the prosperity of each individual and to the economic progress of the developing countries. However, financial inclusion must be accompanied by other initiatives to alleviate poverty, reduce inequalities and provide access to basic needs for the population at the bottom of the pyramid. A stable political and economic environment together with investments in infrastructure, education and health and other important sectors are also crucial factors.

As such, financial inclusion is not a guarantee for prosperity for everyone with access to formal and fair financial services, but it creates an important opportunity for poor people to improve their livelihoods from social and economic growth.