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The impact scope of our investments

LGT Impact's impact scope is to provide underserved people with access to affordable, high-quality products and services addressing their basic needs.

2m
people reached
5
sectors
3
growth markets
SDG
contribution
  • Impact scope   
  • Impact management
  • Impact partnerships 

Impact scope

Billions of people lack access to essential goods, services and livelihood opportunities. LGT Impact aims to overcome this lack of access and opportunities by investing in companies that provide underserved people with high-quality, affordable goods and services as well as livelihood opportunities targeted at their needs and significantly improving their quality of life. 

Impact of our portfolio companies in 2015

Education

  • 904’000 children and students benefit from better access to education (primary, secondary, vocational, tertiary) and improved learning outcomes

Healthcare

  • 236'000 people have better access to quality healthcare services and health education
  • 15'000 people use digital platforms to improve their physical or mental well-being

Agriculture

  • 7200 farmers and family members improve their livelihoods. Farmers have access to high-quality planting material, farm inputs, financing for such up-front investments, skills training and ultimately, access to selling into commodities markets
  • 396'000 farmers have insurance to protect them from agriculture and climate risks

Energy

  • 850'000 household members have access to affordable, fume-free, reliable electricity. By replacing traditional energy sources such as kerosene, households are able to significantly reduce their energy expenditure.

For more details read our Impact Report 2015.

Impact management

We work closely with our investees and sector experts to continuously collect and analyze impact data informing the theory of change.

Impact management frameworks

Our local investment teams identify and manage our portfolio companies, and use a standardized impact management framework to guide them through the full life-cycle of an investment.

Framework objectives

  • Support deal teams to assess and manage the impact of pipeline and portfolio companies
  • Provide transparency and insights to learn and improve the effectiveness of solutions
  • Evaluate impact to increase our confidence that we are fulfilling our mission
  • Demonstrate accountability and report to our stakeholders

The core of the framework was built on the basis of two highly recognized concepts:

Impact at every step of the investment process

Impact analysis, measurement, and reporting is built into every step of our investment process with the following main stages:

  1. Due diligence: assess the companies’ potential for positive impact creation
  2. Deal execution: agree on positive impact objectives and means of verification
  3. Portfolio management: measure, validate and improve the impact of our portfolio companies
  4. Exit: preserve the positive impact creation of a company through exit options considering existing or new, but impact-minded investors

For more details related to our impact management, see here

Impact partnerships

We work and succeed as partners, striving for a shared vision and mutual goals. Apart from our portfolio companies and LGT, we encourage and engage strong partnerships for:

Enhancement of impact management capabilities

To enhance the impact management capabilities of our team and portfolio organizations, we collaborate with partners such as the Grameen Foundation and J-PAL in order to gain insights into the drivers for positive impact creation. In addition, we collaborate with leading organizations in the sector to build impact management capacity within LGT Venture Philanthropy as well as our portfolio organizations.

For example, in the Philippines we are working with our portfolio company Kennemer Foods International (KFI’s) and the Grameen Foundation to integrate the "Progress Out Of Poverty Index" into KFI’s management information system to track changes in poverty levels of smallholder farmers.

Another example is the funding of impact evaluations, such as our collaboration with J-PAL, Acumen and USAID. With this study, we explore the contribution of our investee Husk Power Systems to education, economic and health improvements by providing solar home systems to disconnected rural villagers in Bihar India.

Sector building initiatives

With our investment in M-KOPA Solar, LGT Impact is part of former US President Obama's Power Africa initiative "Beyond the Grid", joining 27 investors and practitioners committing to invest over USD 1 billion into off-grid and small scale solutions for this underserved market, creating access to 20 million new connections for households and commercial entities, and providing electricity to millions of households in sub-Saharan Africa.

Impact Stories

“M-KOPA Solar’s home system is like a miracle.”

Nathaniel lives with his family in a rural region in Kenya with no access to the national grid and only a few US-dollars to spend on basic needs every day.
Nathaniel’s family used to spend a big share of their available budget on kerosene. The light provided by kerosene lamps is of poor quality and health risks are associated with the fumes.

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“I now feel really comfortable to work in different environments.”

David had always shown an interest in construction and had some previous work experience assisting his uncle on building sites. He had achieved a Level 1 in wall and floor tiling. Following successful completion of the K10 recruitment process, David secured an apprenticeship with us to pursue his ambition of becoming a qualified carpenter.

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“When I don't feel like I have anywhere to turn, I still have BWW.”

I discovered Big White Wall at just the right time, I'm a depressive but have found so much help, the invaluable support of the wall guides, the chance to try and use my personal "bricks" to put my thoughts and feelings into substance. I would rate the site highly every time.

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“I always tell her she can be whatever she wants to be.”

Edith Douglas High School started in the early nineties, when Mrs. Victoria Robert could not find a school for the 60 orphans who were living with her. She wanted these children to have an equal opportunity to succeed in life and knew that a good education was an essential first step.

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“My dream is to start a computer software company when I graduate.”

Starting university implied leaving my home in Merida and stepping out of my comfort zone. It posed great academic, personal, and financial challenges. My parents struggled to pay for my fees, rent, food, transport, and various other expenses in Puebla. The situation worsened to the point I considered dropping out of a few classes to take a part-time job.

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“The apprenticeship has been a great experience.”

Taahira was referred by her advisor at Poplar JCP to attend an employability course at Tower Hamlets College. The college was impressed with Taahira’s commitment and willingness to learn and on successful completion of the course suggested we consider her for a Business Administration Apprenticeship.

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“Allan continues to pay his deposit on time. His mental and physical health is improving daily.”

Allan was referred to us through the North Ayrshire Rent Deposit Scheme. Allan was living in a bedsit in Irvine and was having a lot of trouble with his residents causing a disturbance. Allan is a recovering heroin addict and struggled with his previous living environment, as there was temptation all around him.

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“I’m beyond grateful for engaging classes and a kind, smart teacher.”

Rehema is a typical Bridge pupil, but quite an extraordinary little girl.  Seven years old, Rehema lives in a small hut a 10-minute walk from the Bridge International Academy (BIA) in Kiembeni, Bamburi, Mombasa.

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