Goodwell V product disclosure for financial products referred to in Article 9(1), (2) and (3) of Regulation (EU) 2019/2088
Summary
Goodwell V has sustainable investment as its objective within the meaning of Article 9 of Regulation (EU) 2019/2088 (SFDR). Sustainable investments are defined as investments in economic activities that contribute to a social or environmental objective, provided that they do not significantly harm any other environmental or social objective and that investee companies follow good governance practices.
The Fund contributes primarily to social sustainable investment objectives, with a focus on inclusive growth and access to essential goods and services for underserved populations in Sub-Saharan Africa.
Goodwell V actively contributes to the following UN Sustainable Development Goals (SDGs): 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14 and 17.
No reference benchmark has been designated for the purpose of attaining the sustainable investment objective.
Proportion of investments
As of June 2025, 100% of Goodwell V’s investments are classified as sustainable investments in line with Article 9 of the SFDR. The Fund does not hold investments classified as “other” or “not sustainable”.
Do no significant harm (DNSH) to the sustainable investment objective
Goodwell V applies a robust do no significant harm (DNSH) framework throughout the investment lifecycle. Prior to investment, all potential portfolio companies undergo ESG due diligence using IFC-based and CDC-informed, sector-specific ESG and impact checklists. These tools assess environmental, social and governance risks and identify activities that may cause significant harm to sustainability objectives.
In addition, the Fund applies an IFC-based exclusion list, ensuring that investments in harmful or prohibited activities are excluded. Ongoing monitoring during the holding period further supports the mitigation of material ESG and sustainability risks.
Sustainable investment objective of the financial product
The objective of Goodwell V is to achieve long-term capital growth by making sustainable impact investments that generate measurable positive social outcomes alongside financial returns. In line with the IFC definition, impact investing refers to investments made with the intention to contribute to positive, measurable social and environmental impact.
Investment strategy
Goodwell V invests in inclusive businesses operating across key sectors where low-income households and micro, small and medium-sized enterprises (MSMEs) spend a significant share of income or face persistent access gaps. These sectors include:
- Agriculture
- Education
- eCommerce and logistics
- Financial services
- Energy
- Other high impact sectors
The Fund focuses on equity and mezzanine investments, typically taking minority stakes, with a long-term holding horizon of approximately 5–7 years.
Policy to assess good governance practices
Before an investment is submitted to the Investment Committee, potential portfolio companies are assessed using IFC- and CDC-based, sector-specific ESG and impact due diligence tools. These assessments evaluate governance structures, management quality, workforce practices, environmental and social risk management, and broader operational integrity.
Legal due diligence is conducted prior to investment, and governance expectations are formalised through investment documentation. During the holding period, governance practices are monitored through board engagement, reporting requirements, and ESG action plans.
Monitoring of the sustainable investment objective
Goodwell monitors progress against its sustainable investment objective through structured impact and ESG reporting, supported by quantitative and qualitative indicators. Portfolio companies report ESG and impact data on a quarterly and annual basis, which is reviewed by the investment teams and the ESG & Impact team.
Investors receive:
- Quarterly ESG and impact updates
- An annual Impact Report detailing portfolio-level and company-level performance
This reporting approach has been consistently applied throughout 2023 and 2024. Public Impact Reports are also available for these years, with the 2025 Impact Report expected to be published in June 2026 following the completion of the reporting cycle.
Data and methodologies
ESG and impact KPIs are defined during due diligence and embedded in ESG Action Plans for each portfolio company. Data is collected directly from portfolio companies and reviewed by investment teams and the ESG & Impact team. While data is not externally benchmarked across all indicators, KPIs are informed by recognised frameworks including GIIN IRIS+ and GRI.
An independent impact evaluation is undertaken periodically at fund level to assess data quality, methodologies and impact outcomes.
Consideration of principal adverse impacts
Goodwell V considers potential principal adverse impacts (PAIs) on sustainability factors as part of its ESG risk management framework.
At present, the Fund actively tracks board gender diversity across portfolio companies. Other PAI indicators are addressed through ESG due diligence, IFC-based exclusion lists, contractual safeguards and ongoing engagement, but are not yet comprehensively reported across the full portfolio.
Goodwell has adopted a phased, risk-based approach to expanding PAI monitoring, prioritising indicators based on materiality, feasibility and data availability. Pilot tracking of Scope 1 and Scope 2 greenhouse gas emissions has commenced in selected portfolio companies, with the intention to expand coverage over time.
Engagement policies
Engagement with portfolio companies is embedded throughout the investment lifecycle. ESG Action Plans are developed at investment and reviewed during the holding period, with active support provided by investment teams.
Goodwell Investments is not a listed entity and falls under the exemption in Article 3(2)(b) of the AIFM Directive 2011/61/EU. As such, no formal shareholder engagement policy applies. Investors are engaged through quarterly and annual reporting and regular investor meetings.
This is the founding principle that shapes Goodwell’s entire investment philosophy. Our funds support entrepreneurs delivering essential goods and services to un(der)served populations and building an inclusive economy in their communities, countries, and continent.
We maximise the social and financial impact of every investment we make by focussing on innovative, fast-growing, local companies.