A new two-year impact fund requirement pilot launched by Gold Standard has opened to fund managers interested in applying tools to de-risk their portfolio investments and credibly report on climate and sustainable development impacts from projects in their portfolios.

The programme has been developed to support serious sustainable funds in measuring, managing and maximising the sustainable development impact of its investments, Gold Standard announced.

Margaret Kim, Gold Standard chief executive officer, said: “The world urgently needs trillions of dollars to achieve the sustainable development goals, and the majority of the capital must come from the private sector, including impact funds. The new fund requirements from Gold Standard bring best practice in impact measurement, management and maximisation, to support fund managers in delivering credible contributions to the goals.”

Gold Standard requirements ensure best practice impact investing that builds on International Finance Corporation (IFC) safeguards, the UNDP Equity Standard, OECD Blended Finance approaches and best practice in the market – providing support from initial strategy design, through project screening, feasibility, to implementation and exit.

Impact Fund Certification, Gold Standard’s pilot programme, certifies that a fund will deliver on its sustainable strategy, going beyond the more traditional ESG model, which is focused on risk avoidance, and providing evidence of real contributions to climate and sustainable goals.

Application of the fund requirements minimises non-delivery risks through the measurement of the actual outcomes at the level of the investee.

The new requirements focus on process delivery and are part of Gold Standard’s growth in the sustainable finance arena. Gold Standard works with investors and national governments supporting sustainable project development, to create optimal enabling conditions to attract climate finance, and with impact investors to de-risk funds through robust measurement and reporting of impacts.

With up to five places for participating in the piloting of the fund requirements, interested parties can find more information and details on the application process online.

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