Through private debt and equity, the GGF directs financing to businesses and households, supporting measures that mitigate climate change and promote sustainable economic growth in Southeast Europe, including Turkey, the European Eastern Neighbourhood Region, and the Middle East and North Africa. GGF facilitates positive impact primarily by investing in measures that reduce energy consumption, resource use and CO2 emissions. Its activities contribute to a broad range of SDGs, which have been mapped at the target level, with 7 SDGs identified as core to the fund’s mission.

We build on the following international standards and applicable regulations, among others:

• Operating Principles for Impact Management
• IFC Performance Standards
• Fundamental conventions of the International Labour Organization
• International Bill of Human Rights
• Client Protection Principles
• Disclosure in line with requirements stipulated by Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).

Finance in Motion, the GGF’s Advisor, has been recognized as a 'Practice Leader' by BlueMark since 2022. In 2023, its impact management system was rated 'advanced'—the highest possible—across all eight dimensions of the Impact Principles. Read Finance in Motion’s Disclosure Statement on alignment with the Operating Principles for Impact management here.

Measuring positive impact helps us monitor progress towards our impact objective and informs the strategy. We monitor our impact based on key indicators, in line with the GGF’s Theory of Change which reflects:
 

• Direct impact on investees and their sectors, for example, by supporting financial institutions in building up and expanding a green portfolio or supporting lighthouse investments to enable viable markets for renewable energy.
• Impact at environmental and economic level through investees’ clients, for example, by supporting measures that improve energy efficiency, enhanced resource efficiency, CO2 savings and increased use and production of renewable energies in businesses and households.

Read more about our Theory of Change here.

Systematic impact measurement and management is integrated in GGF ’s investment lifecycle. GGF facilitates positive impact through specific eligibility criteria to ensure that financing is contributing to the fund’s environmental impact objectives. The criteria stipulate both eligible investment types and minimum performance standards in terms of CO2 emission reductions or primary energy savings with reference to stringent benchmarks. Assessing and monitoring the fund’s impact is important to keep track of how well GGF is progressing towards its goals and provides insights and learnings that inform its strategy. 

To monitor its environmental impact, the fund employs an online tool, eSave, specifically designed for financial institutions. Depending on the scale and nature of the project, specialized consultants are also engaged to assess environmental benefits and eligibility. The fund aligns with recognized methodologies in reporting its primary environmental indicators relating to annualized primary energy and CO2 emission savings for measures financed.

Furthermore, we assess potential impact of each investment in financial institutions using the Impact Scoring Tool at the due diligence stage, regularly monitor it during the investment period and assess the final impact at exit. This data informs the Fund’s impact measurement, portfolio management and strategy.

GGF places a priority on the effective management of potential environmental and social (E&S) risks and negative impacts associated with its investments. To this end, the GGF maintains and continuously improves a comprehensive Environmental and Social Management System, which includes an E&S Policy and Exclusion List, complemented by E&S procedures and tools to support implementation. 

E&S risks are considered throughout the investment process, applying the IFC Performance Standards and applicable principles of the OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights as reference frameworks. E&S screening and comprehensive E&S due diligence processes are applied for identifying potentially significant adverse sustainability impacts and assessing the GGF’s partner institutions’ capacity and commitment to address and mitigate against these impacts. The scope of the due diligence is customized depending on the initial E&S risk categorization of the investment and, if needed, will be supported by an expert E&S consultant. E&S undertakings, including E&S action plans where appliable, are legally stipulated in agreements between the GGF and the partner institution. Once capital is deployed, the GGF regularly monitors the E&S performance of its partner institutions. 

In addition, as part of GGF’s E&S risk management approach, the Fund engages with partner institutions, through tailored technical assistance, to strengthen the partner institutions’ E&S risk management.