ESG and Climate
Environmental, Social, Governance
LeapFrog’s approach to managing and measuring impact is founded on a clear theory of change aimed at driving integrated profit-with-purpose returns.
The ultimate impact LeapFrog seeks is to empower low-income consumers to be their own agents of change, exercising their power to make different life choices, and ultimately take entrepreneurial leaps out of poverty.
To achieve this goal, LeapFrog invests a range of inputs such as capital, resources, and expertise in high growth innovative businesses. These inputs are utilised for driving the most impactful value creation initiatives, enabling the business to achieve greater financial returns by reaching emerging consumers, at scale, with tools and services that that are relevant, affordable, and essential for achieving the outcome of enhanced health and wealth of low income households.
LeapFrog recognises the role of transparency and rigour in setting and delivering these impact goals. Therefore, each LeapFrog fund and the underlying portfolio companies have clear and defined social impact objectives and quantifiable impact targets that are critical for financial and healthcare inclusion, at scale. The impact objectives are aligned with 6 UN Sustainable Development Goals at a sub target-level, which are measured and managed with the help of two pillars, FIIRM (LeapFrog’s proprietary measurement and management framework), and Consumer Insights.
Our Climate Policy
The Just Transition presents a tremendous opportunity for private investors to mobilise trillions of dollars and secure strong returns along with our collective future.
As climate change threatens communities globally, we also have a duty and opportunity to support pathways out of poverty that deliver rapid decarbonisation of all sectors of industry. This challenge, the Just Transition, is central to LeapFrog’s portfolio management and future fund strategies.
LeapFrog was identified as the exemplar of a Just Transition private equity fund by the G7 Taskforce for Impact Investing, for its work to ensure “improved financial inclusion facilitates a transition to clean technologies likes electric vehicles, smart homes, and improved business processes”.
Work with our portfolio companies includes enhancing existing ESG reporting with Climate and Environmental Action targets, a significant step as many developing countries fall into the higher climate change risk categories when looking at the vulnerability index, while the least developed countries of the world account for less than 1% of worldwide GHG emissions.