Summary
The International Finance Corporation (IFC) developed this guide to support fund managers investing in small to mid-market companies in emerging markets (EMs) in implementing impact management best practices.
This guide provides a structured approach to help fund managers align their impact management practices with investor expectations. It is divided into two sections. The first section explores the meaning of impact for funds and outlines the considerations fund managers must incorporate into their impact management approach. The second section provides practical guidance on developing and applying an impact management approach throughout a fund’s life cycle—collectively referred to in this guide as a fund’s Impact Action Plan.
An Impact Action Plan provides a practical, scalable framework for managing impact in a fund environment and is critical for a fund to engage with its investors on impact. It helps bridge the gap between investor expectations and fund capacity, ensuring that impact objectives are not only articulated but also embedded, measured, and continuously improved throughout the life of the fund.
Throughout the guide, fund managers will find insights reflecting the experiences of IFC and other institutional investors. The aim is to empower fund managers in EMs to confidently navigate the complexities of impact management, respond effectively to investor demands, and contribute to the growth of the sustainable finance industry.
