When investing, Norfund spends considerable resources on understanding the business concept involved and gaining knowledge of how the investment may have a positive as well as a negative impact on its surroundings. Furthermore, we also assess the quality of the partners and their ability to succeed commercially.
Norfund does not expect ‘perfect enterprises’, but we will refrain from financing projects that will lead to irreparable environmental degradation, and from entering into cooperation with partners who demonstrate a lack of willingness to ensure safe and fair labour conditions. Establishing a mutual understanding of the standards that will serve as a basis for the operations and embedding these in a binding agreement between the parties are key steps in this process. Ensuring investment agreements that make room for effective exercise of ownership as a minority shareholder is a further important element.