Impact Rating tool for Swedfund

We designed and built a tool for Swedfund to systematically measure, manage and communicate the expected development impact contribution of its investments

Swedfund is a Swedish state-owned DFI with the goal and mission to support the elimination of poverty through sustainable investments in some of the world’s toughest growth markets. To optimise alignment of Swedfund’s portfolio with its mission, Swedfund asked Steward Redqueen to develop an impact rating tool.

The user-friendly impact rating tool we developed is an Excel-based tool that enables Swedfund to assess the potential development impact contribution of its investments throughout the investment process, from concept clearance to portfolio management and exit. It scores (potential) investments on key impact themes that are aligned with Swedfund’s Theory of Change, using both macro-economic statistics and investment-specific data. The tool combines general indicators that are relevant for all investments, with sector-specific indicators for Swedfund’s focus sectors Energy and Climate, Healthcare and Financial Inclusion. Results are presented and visualised in a user-friendly way.

Swedfund uses the impact rating tool to systematically assess the (potential) impact contributions of individual investments during different investment phases. Furthermore, the impact team also uses the tool to analyse alignment of investments with Swedfund’s mission on portfolio level.