GroFin, a specialist, impact-driven SME financier, has become a signatory of the Operating Principles for Impact Management led by IFC.

The Impact Principles were launched in April 2019 to provide a global standard and reference point for assessing the impact management systems of investment funds and institutions.

The Principles provide a framework for investors to ensure that impact considerations are purposefully integrated throughout the investment life cycle and aim to bring greater rigour and transparency to the impact investing market. As a signatory, GroFin would be required to produce annual disclosure statements describing how each Principle is incorporated into its investment process and to carry out independent verification of its impact management and measurement system.

Brienne van der Walt, CEO of GroFin, said becoming a signatory is a milestone that publicly demonstrates and reinforces the company’s disciplined approach to achieving, measuring, and reporting on impact.

“GroFin was founded to be an agent of impact and recording how our investments improve lives and communities has always been an integral part of who we are and the commitment we make to our investors. We have continuously sought to improve our impact measurement and management framework and to ensure that we adhere to international best practice. We view this as another important step on that journey,” he said.

Roubesh Jhumun, GroFin’s Impact & ESG Manager, added that adhering to the Impact Principles further exemplifies GroFin’s engagement to establish a robust impact management system and provide greater transparency on our ability – and that of our investors and partners – to generate long-lasting positive impact in the communities where our investees operate.

“GroFin is excited to become part of a global community of impact investors joining hands to share insights and learn from one another as we continuously push the frontiers of impact measurement and management practice. As part of this community, GroFin can also contribute to the further development of the impact investment industry which continues to grow and mature.”

According to the Global Impact Investing Network (GIIN), the size of the global impact investment industry is estimated to be around $715bn.

The GIIN said the industry continues to show steady growth, while impact measurement and management practices have noticeably evolved over the past decade to become sophisticated and rigorous.