The Impact.Climate.Returns. strategy has given DEG’s financing and advisory services an even sharper focus on high-impact and climate-protecting investments of companies. DEG supports its customers in their transformation, helping to make them more resilient to challenges such as climate change, resource scarcity and skills shortages – and thus more economically successful in the long term.
Pillar 2 of the DERa captures DEG’s role in supporting its customers’ transformation processes, taking into account four elements:
Structuring
DEG conducts in-depth assessments of its customers and works with them to structure financing in such a way as to drive positive and often transformative changes. This is achieved, for example, through targeted use of funds, audited financial statements and improved corporate governance. The goal is to strengthen companies and put them in a significantly better position to achieve their desired impacts.
73% of financial institutions use DEG funds, in accordance with contractual agreements, for SDG-relevant loans, e.g. for micro and small enterprises, women-led businesses or transactions that contribute to environmental and climate protection.
17% of DEG’s direct customers and 7% of funds have significantly improved their corporate governance structures.
Implementing environmental and social standards
Good environmental and social practices are key to sustainable economic development. Many customers have their own environmental and social risk management systems in place for identifying, assessing and managing environmental and social risks. In cases of higher environmental and social risks, DEG agrees on binding environmental and social action plans with its customers to avoid, minimise or manage these risks. The status of implementation of the action plans and the underlying risks are reviewed annually and the risk categorisation (see KfW Financial Report, page 80) is adjusted as needed. Furthermore, DEG, through its subsidiary DEG Impulse, advises customers on the implementation and further development of their environmental and social management systems.
57% of DEG customers have a good to very good environmental and social risk management system.
DEG Impulse advised and supported 37 customers in the portfolio in developing or implementing their environmental and social risk management system.
DEG agreed on an action plan with 50% of its customers.
Advisory and promotional programmes
In addition, DEG offers targeted advisory and promotional programmes – primarily through its subsidiary DEG Impulse. The programmes at a glance:
Business Support Services (BSS): Advice and financial support, e.g. on climate transformation, corporate governance, risk management, environmental and social management, resource and energy efficiency, and employee training.
develoPPP: Funding for projects making contributions to development (grant of up to EUR 2 million, max. 50% of project costs).
Helpdesk on Business and Human Rights: Free advisory services for companies of all sizes and sectors on the implementation of human rights and environmental due diligence processes.
In 2025, 118 projects with DEG financing customers and a total of 33 projects with German companies were newly approved across all programmes. DEG Impulse launched 68 develoPPP projects with a total project volume of EUR 32.4 million (including company contributions), including 17 develoPPP projects with German companies, representing a significant increase compared with the previous year.
In 2025, the following development impacts were achieved in the DEG Impulse* portfolio:
Improved employment conditions including rise in income for approximately 428,000 people
3,400 new jobs (including 1,100 for women)
Over 84,000 tonnes of greenhouse gas emissions reduced or avoided (in tonnes of CO2- equivalent/year)
Introduction and/or development of environmental and social standards at 15 companies and over 15,000 suppliers (mostly small farmers)
Improved access to new markets for approximately 11,100 (micro) enterprises, in the form of increased business or sales opportunities
819 requests for advice on human rights and environmental due diligence handled by the Helpdesk on Business and Human Rights. Over 10,800 stakeholders reached through advisory services and numerous events
DEG Impulse: Financing, networks and knowledge transfer for female entrepreneurs
In Bangladesh, an increasing number of women-led businesses are making significant contributions to the country’s economic development. Despite this, female entrepreneurs continue to face major hurdles. These include sociocultural barriers and lack of infrastructure, as well as poorer access to financial services compared with male-led companies.
To address these challenges, DEG Impulse and DEG customer BRAC Bank Bangladesh have set up two projects.
The develoPPP project, launched in 2025, is taking targeted measures to strengthen 5,000 women-led companies, which receive access to financing, market connections and a practical exchange platform with the aim of increasing their sales figures and achieving sustainable growth in the long term. BRAC Bank is investing around EUR 900,000 from its own funds in the develoPPP project, a figure that is being matched by DEG Impulse with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ).
DEG’s Business Support Services (BSS) are supporting a BRAC Bank programme in cooperation with universities in Dhaka and Chittagong. The programme includes training for 1,000 women-led micro, small and medium-sized enterprises (MSMEs) on business management and finance, as well as for BRAC Bank employees on more inclusive financing and services.
The programmes contribute to SDGs 5 and 8.
