Sustainable Development Goals
The Sustainable Development Goals (SDGs) are a call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity. BIO contributes to inclusive and sustainable economic growth by integrating the Goals in its decision-making processes and strategy.
Due to its specific mandate, BIO contributes to private sector growth, inclusiveness, and attention to the environment as core values and desired outcomes resulting from its interventions. This translates directly to SDG5 and SDG10 (inclusiveness), SDG8 and SDG9 (private sector), and SDG7 and SDG12 (environment). These SDGs are integrated in the assessment, monitoring, and evaluation of BIO’s investment projects.
More transversally, BIO contributes to the other SDGs, for example by investing in the agri-value chain (SDG2) or by steering its projects towards reducing GHG emissions (SDG13). Overall, BIO collaborates and cooperates with its clients, and organisations like Enabel, DGD, or EDFI to strengthen the collective effort towards the achievement of the goals (SDG17). This report highlights the six SDGs to which BIO directly contributes.
-
SDG5
In 2023, BIO made significant progress in promoting gender equality. 13 out of the 22 projects approved for investment demonstrably empower women, making them eligible for the 2X Challenge: a global initiative focused on mobilising capital for businesses that advance women's economic empowerment.
Over EUR 332 million contributed:
Over the past four years, BIO has contributed a substantial EUR 332 million to the 2X Challenge, showcasing its dedication to supporting women-focused businesses. This figure reflects BIO's committed investments towards mobilising capital for the 2X Challenge. -
SDG7
BIO has directly supported energy projects generating a total of 4,705 GWh. Through investment companies and funds, our financing has indirectly contributed to an additional 1,196 GWh of energy production. This combined impact is equivalent to the annual energy consumption of roughly 21 million people.
In 2022 alone, renewable energy projects financed by BIO prevented an estimated 210,000 tonnes of CO2 emissions. Furthermore, indirect projects are estimated to have avoided an additional 340,000 tonnes.
-
SDG8
Decent work and economic growth
Employment Opportunities: In 2022, BIO's investments directly sustained an estimated 89,141 jobs and, indirectly through funds, investment companies and financial institutions, an additional estimated 236,026 jobs. Based on calculations of the Joint Impact Model, BIO's projects support more than 2.5 million jobs.
Focus on Small Businesses: BIO is committed to supporting micro, small and medium-sized enterprises (MSMEs). In addition to direct investments in these businesses, BIO also has a sizeable indirect impact through its investments in financial institutions. At the end of 2022, these institutions had EUR 46.8 billion in outstanding loans to MSMEs, reflecting a 5.5% growth compared to 2021.
-
SDG9
Industry, innovation and infrastructure
BIO directly invests in 8 manufacturing companies and indirectly in 73 more.
40 out of 56 investment funds in BIO's 2022 portfolio focus on supporting SMEs, 9 target small-scale infrastructure and climate change solutions, and 7 are dedicated to financial inclusion – primarily through microfinance institutions. Finally, BIO fosters technological advancements by financing 96 tech companies through six venture capital funds targeting healthtech, edutech, and fintech.
-
SDG10
With EUR 88.4 M in outstanding investments, a quarter of BIO's total outstanding portfolio is in LDCs.
At the end of 2022, the microfinance institutions in BIO’s portfolio had EUR 4 billion in outstanding microloans, which translates to over 4.7 million loans provided to micro-entrepreneurs.
Finally, companies supported by BIO contribute significantly to local economies and governments. In 2022, these companies paid EUR 228.1 million in taxes to their respective governments. Furthermore, BIO's indirect investments through investment companies and funds, and through financial institutions generate an estimated additional EUR 906.5 million in taxes.
-
SDG12
Responsible consumption and production
Three out of the four direct investments in enterprises of 2023 target businesses within the agricultural value chain. All three of them promote Environmental, Social, and Governance (ESG) best practices.
In 2022, two financial institutions BIO invested in provided over 2,700 green loans to facilitate and support environmentally sustainable economic activity. These loans correspond to a total outstanding amount of more than EUR 1.1 billion.
Data disclaimer
BIO continuously aims to improve its data collection and reporting on the development effectiveness of its investments.
At the moment, BIO relies on its clients to report on a selected number of indicators using a standardised template. There is a one-year lag due to the time required for clients to collect this information, and for BIO to verify, consolidate and analyse it.
Most figures are based on data reported by project companies and aggregated on a portfolio level. These figures capture the entire activity and development effect of the company and do not take BIO’s investment share into account.
This publication is based on the 106 reports submitted by clients (out of 123 expected). Another 24 projects are:
- in distress: These projects are facing significant challenges that may prevent them from completing comprehensive reports.
- exempt: Certain projects, like those in the very early stages of development, may be temporarily exempt from reporting requirements. Such exemptions are granted on a case-by-case basis, considering factors such as the project's stage of development and the burden of reporting. This ensures a balance between collecting valuable data and avoiding excessive administrative tasks for BIO’s clients.
In 2023, BIO approved 21 new investments, for a total of EUR 204 M. In all projects BIO will be financially additional, and for 19 of them BIO will be non-financially additional through the reinforcement of ESG risk management strategies and policies of the investee companies, most commonly with the support of the Business Development Support Fund.