Duolingo & DPAM ›

Fact panel

The what: Duolingo, a C-type company

Problem addressed:

When Duolingo was founded in 2011 by Luis von Ahn and Severin Hacker, the global landscape for education, particularly language learning, was quite limited and inequitable. Traditional methods for learning new languages, such as classroom courses, private tutors, or software like Rosetta Stone, were often expensive, inaccessible, and targeted mainly at wealthier individuals. In many parts of the world, especially emerging economies, acquiring a second language (often English) was crucial for unlocking better job opportunities, higher education, and social mobility, but the barriers to entry were high.

At the same time, major technological shifts were underway: smartphones were becoming mainstream, mobile apps were rising rapidly, and gamification, the use of game-like elements in non-game settings, was emerging as a powerful engagement tool. Online learning platforms were still in their infancy, and while “edtech” was starting to grow, very few companies offered high-quality, free education accessible to anyone.

Solution provided by Duolingo

Duolingo was created with a singular mission: to make language learning free, effective, and universally accessible. With the rise of smartphones and mobile technology, Duolingo seized the opportunity to build a free, mobile-first platform that made learning languages accessible to anyone, anywhere. The company leveraged gamification and interactive lessons to keep users engaged and motivated, while also offering personalized learning paths and habit-forming features like daily streaks and rewards.

By investing heavily in creating a fun, effective and qualitative learning experience, Duolingo built immense trust and loyalty from users without charging upfront. This approach allowed the platform to generate daily engagement and create a strong user base, setting the foundation for future monetization through optional paid subscriptions and services.

In 2024 Duolingo offers over 40 language courses, as well as math and music, reaching approximately 90 million monthly active users. The Duolingo English Test (DET) is accepted by over 5,000 educational programs, providing an accessible and affordable language proficiency assessment. As such, their model proved that investing in customer experience early could lead to massive long-term growth and loyalty, turning Duolingo into a global leader in online education and a successful public company.

The how: DPAM, a Belgian asset manager

General presentation of DPAM

Degroof Petercam Asset Management (DPAM) is the asset management division of Bank Degroof Petercam, a Belgian financial institution with over 150 years of history. Specializing in Private Banking, Investment Banking, Asset Management, and Asset Services, the Group operates in 8 European countries and 15 global markets. DPAM is a leader in sustainable investing and holds a strong position in Belgium for offering ESG-focused investment solutions.

In response to global climate and social challenges, DPAM recently launched its first two impact investment strategies: DPAM L Equities World Impact, focusing on listed equities, and DPAM L Bonds EUR Impact Corporate 2028, targeting corporate bonds. These initiatives aim to address critical global issues while taking advantage of attractive yields in the fixed income market, blending financial performance with positive societal impact.

Intentionality Behind DPAM L Equities World Impact

DPAM L Equities World Impact is a strategy designed to create positive social and environmental impact through investments in listed equities. The strategy targets companies that actively address global challenges such as climate change, social inequality, and sustainable development, aligned with key impact themes inspired by the GIIN Iris+ thematic taxonomy. DPAM selects companies based on their commitment to sustainability and their potential to generate long-term value for society. Sectors like renewable energy, clean technology, and healthcare are key targets, ensuring that the equity investments align with both financial returns and positive societal outcomes.

The intentionality behind this strategy is to create a positive impact while providing investors with an opportunity to participate in a growing market of sustainable companies. By offering the strategy to a broad range of investors, from institutional to retail, DPAM ensures that impact investing becomes accessible and scalable.

Impact measurement and management

The DPAM L Equities World Impact strategy uses a rigorous impact measurement and management approach to ensure that investments align with its sustainability objectives. DPAM applies a comprehensive ESG screening process to assess the environmental, social, and governance performance of the companies it invests in. The strategy specifically focuses on quantifiable impact metrics tied to the United Nations Sustainable Development Goals (SDGs), evaluating how each company contributes to addressing global challenges. These metrics help gauge the tangible impact of the fund’s investments on society and the environment. To manage this impact, DPAM employs a continuous monitoring and reporting framework, ensuring that the portfolio remains aligned with its intentional goals over time. The fund’s performance is tracked not only by financial returns but also by impact outcomes, with periodic reviews and transparent reporting to stakeholders. This approach enables DPAM to adapt the portfolio when necessary, ensuring that the investments continue to deliver on both their social impact and financial objectives.

Additionality

The additionality of the DPAM L Equities World Impact strategy lies in its ability to generate competitive returns while investing in companies that address global sustainability challenges. The fund targets companies that are poised to capitalize on long-term trends. This dual objective allows for a balance of profit generation and positive societal impact, creating additional financial value alongside traditional market returns. DPAM implements a comprehensive engagement policy aimed at fostering ongoing dialogue and long-term accountability with investee companies. This approach ensures continuous monitoring of ESG performance, encourages sustainable practices, and supports alignment with the fund’s broader impact and stewardship objectives.

More information

• Duolingo
• DPAM
• DPAM sustainable investment strategy