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Home / DFI Index / DFI Transparency Index 2023 / DEG (Germany)
DFI

DFI Transparency Index 2023

DEG (Germany)

Score:
27.7
Position:
11 / 21

Overview

German Investment and Development Company (DEG), is a subsidiary of the German Investment Corporation (KFW). It was established in 1962. DEG finances long-term investments of private companies in developing and emerging market countries. DEG is one of the world’s largest private-sector development financiers, investing in nearly 80 countries. It joined the Association of bilateral European Development Finance Institutions (EDFI) in 1992. 

Analysis

DEG came eleventh from 21 non-sovereign DFIs assessed with a score of 27.7 out of 100. DEG developed and disclosed a bulk download file of investment data during the DFI Transparency Index, improving the accessibility of its data. DEG does not currently publish to the IATI Standard and as such do not score for IATI format publication. DEG scored for many organisation-level indicators across the components but dropped points by not scoring for any project-level indicators in three of the components, including Impact Mangement, ESG and Accountability to Communities, and Financial Information. 

DEG came tenth in the Core Information component, with 8.42 out of 20. It scored for thirteen out of the seventeen indicators. It failed to score for status, domicile, investment instrument, and funding source. It gained points for format of publication for some indicators due to having a bulk download available. It did not, however, publish to the IATI Standard so did not score for that format where it was applicable. 

DEG came joint-twelfth in the Impact Management component with a score of 6.75 out of 25. It received all of these points from organisation-level indicators, including impact measurement approach and evaluations, but not sector/country strategies. It did not score for any project-level indicators. 

DEG came eleventh in the ESG and Accountability to Communities component, scoring 10.5 out of 30. It scored 100% for its E&S community disclosure policy and 50% for its E&S global disclosure policy. DEG scored points for its independent accountability mechanism (IAM) but it did not score for a community disclosure policy on this. DEG again did not score for any project-level indicators in this component. 

DEG came joint-last in the Financial Information component, with 0.75 out of 15. It only scored points for financial reports/statements. Once again it did not score for any project-level indicators. 

DEG scored 1.25 out of 10 in the Financial Intermediary (FI) Sub-investments component, which was joint second-last. It only scored for the FI (bank) use of funds indicator at the project level, it did not score for any organisation-level indicators.  

Core Information 8.42 / 20
Impact Management 6.75 / 25
ESG & Accountability to Communities 10.5 / 30
Financial Information 0.75 / 15
Financial Intermediary Sub-investments 1.25 / 10

Recommendations

  • DEG should become an IATI publisher and disclose all investments to the IATI Standard. 
  • It should include more data points to its bulk download file that it already publishes elsewhere, including project description and client description. 
  • DEG should disclose further Core Information data points including unique identifier, status, sub-sector, total investment cost, disbursement, funding source, date of activity disclosure, approval date, and last update date. It should also consistently publish the sub-national location, domicile, and investment instrument. 
  • DEG should review its disclosure policy according to current best practice. 
  • It should disclose project-level Impact Management indicators, including additionality statement, activity indicators/metrics and results. 
  • DEG should disclose project-level ESG and Accountability to Communities indicators, including summary of E&S risks and E&S documentation. 
  • It should develop an early disclosure policy covering, at a minimum, high risk projects and disclose investments in line with the policy. 
  • DEG should create a policy guiding disclosure of the presence of the IAM at community level. 
  • It should provide assurance of community disclosure for investments when disclosure is required. 
  • For Financial Information indicators it should disclose for concessionality, mobilisation, and instrument-specific details (interest rate and loan tenor) and consistently disclose for repeat investment, currency of investment, co-financing, and share of equity. 
  • DEG should create a policy for the disclosure of FI sub-investments in line with Publish What You Fund’s DFI Transparency Tool. 
Core Information 8.42 / 20
Impact Management 6.75 / 25
ESG & Accountability to Communities 10.5 / 30
Financial Information 0.75 / 15
Financial Intermediary Sub-investments 1.25 / 10

Deep Dive

Core Information

8.42 / 20
10 / 21
About component

The basic information that describes a DFI’s organisational policies and investments. This type of information is typically found in key organisation documents and represents the first tier of project information, typically disclosed on project web pages or in files available for bulk download. At the organisation level this includes access to information policies and annual reports. At the project level, this includes project titles, locations, and key dates.

Disclosure / access to information policy

Score: 0.75 out of 3

Accessibility

Score: 1.33 out of 2

Annual reports

Score: 0.75 out of 1

Project identification

Score: 0.38 out of 1

Status

Score: 0 out of 1

Project description

Score: 0.5 out of 1

Location

Score: 0.38 out of 1

Domicile (non-sovereign only)

Score: 0 out of 1

Sovereign / non-sovereign

Score: 1 out of 1

Sector

Score: 0.38 out of 1

Investment instrument

Score: 0 out of 1

Project costs

Score: 0.33 out of 1

Funding source

Score: 0 out of 1

Client

Score: 0.63 out of 1

Contacts

Score: 0.75 out of 1

E&S risk category

Score: 1 out of 1

Progress dates

Score: 0.25 out of 1

Impact Management

6.75 / 25
14 / 21
About component

The ways in which a DFI predicts, measures, and evaluates the impacts of their investments. At the organisation level, this includes an impact measurement approach. At the project level, this includes activity indicators/metrics and results.

Impact measurement approach

Score: 3.75 out of 5

Sector / country strategy

Score: 0 out of 3

Evaluations

Score: 3 out of 3

Additionality statement (non-sovereign only)

Score: 0 out of 2

Activity indicators / metrics

Score: 0 out of 6

Results

Score: 0 out of 6

ESG & Accountability to Communities

10.5 / 30
11 / 21
About component

The ways in which a DFI predicts, mitigates, and communicates the ESG aspects of their activities. At the organisation level this includes E&S global disclosure policy and E&S community disclosure policy. At the project level this includes E&S plans and assessments, and assurance of community disclosure.

E&S global disclosure policy

Score: 2.5 out of 5

E&S community disclosure policy

Score: 4 out of 4

IAM global disclosure documentation

Score: 2 out of 2

IAM community disclosure policy

Score: 0 out of 2

PGM community disclosure policy

Score: 2 out of 2

Summary of E&S risks

Score: 0 out of 2

E&S project plans / assessments

Score: 0 out of 4

Assurance of E&S community disclosure

Score: 0 out of 2

Beneficial ownership (non-sovereign only)

Score: 0 out of 2

IAM global disclosure

Score: 0 out of 1

Assurance of IAM community disclosure

Score: 0 out of 2

Assurance of PGM community disclosure

Score: 0 out of 2

Financial Information

0.75 / 15
18 / 21
About component

This information provides details on the financial performance of DFIs and the structuring of investments. At the organisation level, this includes audited financial reports. At the project level, this includes currency of investment, mobilisation, and concessionality

Financial reports / statements

Score: 0.75 out of 1

Repeat investment

Score: 0 out of 1

Currency of investment

Score: 0 out of 1

Co-financing

Score: 0 out of 3

Concessionality (non-sovereign only)

Score: 0 out of 3

Mobilisation (non-sovereign only)

Score: 0 out of 3

Instrument-specific disclosure

Score: 0 out of 3

Financial Intermediary Sub-investments

1.25 / 10
14 / 21
About component

This information relates to the ways in which investments in FIs are used. At the organisation level, this includes FI sub-investment policy. At the project level, this includes private equity fund sub-investments and FI (bank) sub-investments.

FI sub-investment policy

Score: 0 out of 3.75

Private equity fund sub-investments

Score: 0 out of 2.5

FI (bank) use of funds

Score: 1.25 out of 1.25

FI (bank) sub-investments

Score: 0 out of 2.5