Impact management at every step of the investment process

Billions of disadvantaged people lack access to affordable, high-quality essential goods and services or decent livelihood opportunities. Far too many people suffer from the effects of environmental pollution, irresponsible use of natural resources and climate change.

LGT Venture Philanthropy strives to tackle these challenges by supporting organizations and companies providing access to essential goods and services that improve the quality of life of disadvantaged people, or protect and restore the environment.

Through LGT Venture Philanthropy’s engagements, we make an active contribution to the achievement of the Sustainable Development Goals (SDGs), in particular to goals 1 (no poverty), 3 (good health and wellbeing), 4 (quality education), 15 (life on land), 17 (partnerships for the goals).

Impact indicators inform our work at every step of the long-lasting partnership and value creation plan with our portfolio organizations and companies. Our decisions and actions are driven by the goal to scale reach and depth of positive impact. We use proprietary tools and frameworks based on industry best-practice standards to evaluate and measure the social and environmental impact of prospective and current engagements.

Impact management frameworks

Our teams use a standardized impact management framework to guide them through the full life-cycle of an engagement.

Framework objectives

• Support deal teams to consistently assess and manage the impact of pipeline and portfolio organizations and 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

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

We work and succeed as partners, striving for a shared vision and mutual goals. To enhance the impact management capabilities of our team and portfolio organizations, we collaborate with partners such as the Grameen Foundation and J-PAL 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. Current memberships include: EVPA, GIIN, ANDE, AVPN, WEF, etc.