BLUE LIKE AN ORANGE SUSTAINABLE ORANGE CAPITAL supports responsible investment

Founded in 2017, Blue Like an Orange concentrates on mezzanine financing deals supporting the United Nations’ Sustainable Development Goals mandate. By targeting the financing gap for small and mid-size business lending in Latin America, the company mobilized capital for SDG-aligned investments in sustainable infrastructure, agribusiness, education, healthcare and access to finance.

The SDG rating is used as a key part of the Investment Committee process. To do so, the company developed SDG Blue, an internal rating system, that evaluates the contributions of each investment to the achievement of the SDGs. Each investment will be given an initial rating before a first Investment Committee meeting. The rating will be refined as the investment progresses through our approval process, and then be updated on an annual basis, and be presented alongside the commercial shadow credit rating.

Conducting a systematic and three-layered ESG and sustainable impact assessment of each potential deal against objectives. For each potential investment, Blue like an Orange first carries a full environmental, social, and governance review according to the IFC Performance Standards for each potential deal using both internal and external assessment. The external assessment is provided by a team of IDB experts that is independent from the IDB investment team, when IDB is a co-investor. Otherwise, the company needs to hire external consultants.