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ESG & Climate

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.

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Climate Action

As investors, we have a fiduciary duty and moral responsibility to support companies to move beyond carbon intensive business models and seek clean, renewable alternatives.

At LeapFrog, we are evolving our climate practices to meet this challenge (and opportunity) by embedding climate as a core tenet of our firmwide environmental, social, and governance (ESG) strategy.

Learn more about our latest work and our climate policy below.

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”. The firm is also a member of the Institutional Investors Group on Climate Change, the leading investor group focused on climate investing and net zero transitions.

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.

To achieve CarbonNeutral® company certification, LeapFrog Investments is working with Climate Impact Partners, specialist in carbon market solutions for climate action.

LeapFrog Investments had an independent assessment of the greenhouse gas emissions produced across its global network of offices, business travel, and employee commuting. LeapFrog is reducing its emissions internally by reducing business travel, the greatest source of emissions, opting for virtual meetings and fewer trips overall.

In line with our commitment to achieve Carbon Neutrality, we engaged Climate Impact Partners to source credible carbon offsets in our target markets derived from mitigation projects that are supporting the transition to a low-carbon global economy. All the projects are independently verified to assure emission reductions are occurring.