Impact Due Diligence Principles

This paper presents key principles for impact due diligence (IDD) processes in impact investing. It emphasizes the importance of IDD alongside financial analysis, acknowledging its growing significance in investor ratings and decision-making. Its principles are aimed at guiding a wide range of impact investors, helping them meet asset allocator expectations and informing stakeholders and potential investments about IDD processes. It seeks to encourage an impact-driven investment approach in the German investment market and aims to establish standardized IDD practices across Europe.