Alliance Finance Company PLC (AFC), a leading financial institution in the Non-Banking Financial Institutions (NBFI) sector, has partnered with the National Advisory Board for Impact Investing in Sri Lanka (NABIISL). NABIISL operates under the umbrella of the Lanka Impact Investing Network (LIIN), an organization dedicated to fostering economic growth in the country.
This alliance aims to find and support small and medium-sized enterprises (SMEs) through equity investments via the Social Enterprise Fund (SEF). This represents a significant advancement in Sri Lanka’s impact investing ecosystem, offering SMEs access to private equity. The coalition solidified this commitment by signing an MOU on February 16, 2024, marking a notable milestone in the impact investment industry in Sri Lanka.
AFC stands at the forefront of Sri Lanka’s financial sector, pioneering a triple-bottom-line approach that integrates financial, social and environmental considerations. As a Non-Bank Financial Institution, AFC has aligned its financial goals with Environmental, Social, and Governance (ESG) criteria through our Sustainability Standards and Certification Initiative (SSCI).
Every business operation of AFC is strictly adhered to the standards set by the SSCI, which had been formulated by the European Organization for Sustainable Development (EOSD), a European Union (EU) Initiative. The EOSD and the International Council for Sustainability Standards ensure that its holistic sustainability-certified institutions adhere strictly to its certification criteria, setting a benchmark for responsible financial practices both locally and globally. AFC is the first financial institution in South Asia and one of four pioneering financial institutions in the world to receive SSCI Certification in 2019. SSCI is the world’s first measurable and certifiable holistic sustainability standard for value-driven financial institutions.
AFC’s purpose statement of “Make the world a better place through sustainable finance” along with its high impact goals, are directed at creating value for financial, social and environmental well-being. These goals are currently well aligned at AFC to contribute to 12 of the 17 United Nations Sustainable Development Goals (SDGs) as well as several National Development Agenda goals, emphasizing a holistic approach to sustainable development using finance as an important catalyst.
76% of AFC’s portfolio is dedicated to investments that elevate the 12 UN SDGs, reflecting AFC’s commitment to making a positive impact through its operations. By depositing with AFC, clients are actively participating in a unique impact creating initiative aiding the sustainable development of the country with a special emphasis on rural economy outside the Western Province.
The investments are channeled towards projects that generate significant social and environmental benefits in addition to financial returns making sure that nobody is left behind.
The integration of ESG principles into AFC’s operations and investments is paving the way to a sustainable future and serves as a model for the broader industry, while mitigating risks, fostering positive social and environmental outcomes and enhancing long-term investment returns.
