Promoting climate responsible investment practices among DGGF investees
Dutch Good Growth Fund – Financing local SMEs (DGGF), in partnership with SLR Consulting, has launched the Climate Capacity Development Program (CCDP). This initiative aims to provide comprehensive support to DGGF investees, including fund managers, financial institutions, and the SMEs in their portfolios. The program is designed to assist them in addressing climate challenges by reducing climate impacts, adapting to climate change, mitigating climate risks, and increasing funding allocation to climate-positive initiatives.
Image: © DGGF
Creating value through Capacity Building
The CCDP builds on the findings of DGGF’s 2024 Climate Portfolio Assessment, which identified a clear need for enhanced climate-related capacity among DGGF’s investees. The assessment highlighted that while climate awareness is increasing, both technical capacity and strategic integration of climate considerations remain nascent across the portfolio. This reflects broader trends in the SME finance sector, where there is strong demand for practical training and capacity building to support both compliance with emerging climate-related standards and alignment with the global transition towards a low-carbon economy.
The CCDP will address the climate needs identified in the portfolio assessment. This includes greenhouse gas measurement and reporting, climate impact measurement and reporting, GHG reduction, climate strategies, and integration of climate risk into the investment/credit process. The program will offer two complementary trajectories through which investees and underlying SMEs can access Technical Assistance (TA) and Business Development Support (BDS) opportunities. These trajectories will be facilitated through the DGGF Academy and will be tailored to address specific investee and SME needs.
The CCDP will be implemented over a five-year period, with the following core objectives:
- Increase Climate Awareness: Enhance buy-in across DGGF’s investment portfolio.
- Improve Measurement Capacity: Equip DGGF investees with the tools to accurately measure their climate impacts.
- Provide Reduction Tools: Offer resources to assist in reducing carbon footprints.
- Boost Risk Management: Strengthen the capacity of investees to manage climate risks.
- Encourage Climate Funding: Promote increased allocation to climate interventions through targeted investments or greening portfolios.
Additionally, the CCDP will function as a platform for generating insights into effective approaches to climate capacity building within the DGGF ecosystem and the broader SME finance sector. In doing so, it will contribute to DGGF’s long-term goal of integrating climate considerations into sustainable investment practices and enhancing portfolio resilience.
Investment
DGGF commits a funding of €824,500.
Sector
The CCDP connects the financial and environmental sectors, focusing on integrating climate considerations into investment practices.