VEF, sustainable finance and ESG

VEF’s purpose is to create long term value for our shareholders by investing in the future of finance across the emerging world. In tandem, we integrate environmental, social and governance (ESG) considerations into our investment process and are strong believers in the positive impact fintech companies can have on the societies they operate in and the UN Sustainable Development Goals.

With the release of our Annual Report 2020, we are very pleased to direct you to the “Fintech driving Financial Inclusion” and “Sustainability” sections. At a macro level it highlights our core values as a firm, which form the basis for how we conduct business in a sustainable way. At a micro level, it provides a window into how we think about what type of companies make it into our portfolio and how sustainability and great returns can and do go hand in hand in the modern world. We are specifically proud of our portfolio companies, our flag bearers in this regard and the work they carry out in the EM fintech world. Examples from our portfolio include:

• Jumo - provides financial services for consumers and MSMEs in Africa (majority previously un/underserved)
• Konfio – provides credit to MSMEs in Mexico (majority previously un/underserved)
• Creditas – improving access and lowering down cost of finance for consumers in Brazil
• Finja - providing financial services for consumers and MSMEs in Pakistan (majority previously un/underserved)

The Sustainability Report is attached below. Please klick here for access to the full VEF 2020 AR.

In the past year, we have started to track and report ESG and impact KPIs. We have also increased our industry involvement by becoming signatories to the Responsible Finance Forum and members of local Swedish sustainability networks Swesif, Impact Invest and the National Advisory Board for Impact Investing and released our first sustainability report. While these are some recent initiatives, there are many more to come.

We have recently also announced VEF’s domicile change from Bermuda to Sweden. This is indeed an important step in our ESG journey and in ensuring that VEF is a long-term sustainable company and an attractive investment for all types of investors.

In line with the above and with growing commitment of resources to this important theme, we are very happy to announce the new position of Head of Sustainability at VEF. Effectively formalising a role and position that she has driven and embodied for the last few years, we are delighted that Helena Caan Mattsson has accepted to take on this mandate and responsibility at VEF.

Dave Nangle, CEO comments

“From the outset we have always been clear that if it’s not ethical, then it’s not scalable and hence it’s a bad investment - great returns and sustainable finance have always gone hand in hand. We welcome the growing importance of the ESG theme in the investment world, and like to be pushed harder to do more and better in everything we do at VEF to play our part.”