The proposal will call for more action from European Parliament election candidates

Suma Capital has joined the #UnitedforImpact initiative, which was launched in December 2023 by 32 European impact investors. This initiative, which was first supported by Net Zero Ventures, the venture capital investment fund focused on energy transition technologies promoted by Suma Capital and Repsol, is now made up of 47 impact investors from 16 EU countries, and its main objective is to urge the European Union institutions to better define impact investment in the SFDR (Sustainable Finance Disclosure Regulation).

Specifically, the initiative that Suma has joined brings together impact investors across the funding spectrum in order to highlight the specificity and methodology of impact investing. Its ambition is to massively redirect capital towards companies that place the resolution of environmental and/or social challenges at the heart of their business models.

According to the initiative, between 2019 and 2022, 330 impact investment funds were launched, and assets under management in these funds increased from USD 90 billion to USD 371 billion. The European impact investing market represents 23% of the total and grew from $4.5bn in 2017 to $19bn in 2022.

In this regard, and on the occasion that Europeans will go to the polls on 6-9 June, the United for Impact initiative calls on candidates for the European Parliament elections to act on several levers to redirect capital towards the double environmental and social transition.

To avoid potential claims of impact washing and increase investments in positive solutions for a just transition, the EU must establish a clear definition of impact investment. In this respect, the initiative supports the European Commission’s proposal to create a 4-category system, with a new category specifically targeting especifically to ‘products investing in assets that specifically strive to provide specific and measurable solutions to sustainability-related problems affecting people and/or the planet’, and to establish clear and relevant disclosures for positive impact assets. The results of the consultation on the future of the SFDR show the need to create such a category, complementary to but distinct from the one dedicated to transition assets.

Furthermore, according to the initiative, simplifications of disclosure obligations under the SFDR should be envisaged for SMEs that are not subject to CSRD obligations but will eventually become so: these disclosures should be harmonised and focus on data related to actual impact creation rather than just ESG data.

Suma Capital’s adherence to the #UnitedforImpact initiative demonstrates the firm’s commitment to responsible and sustainable investing. We firmly believe in the power of impact investing to address the most pressing challenges facing our society and our planet. We are supporting the initiative to reach out to other impact investors to drive positive and lasting change towards a more sustainable and equitable future for all.