Impact Investing

//Impact Investing

Impact investing explained

Impact Investing entails investing in companies and organisations which seek to produce a positive social and environmental impact as well as generating a financial return. There are many types of impact investing funds which influence many different sectors in both developed and emerging markets. Certain considerations relate to impacting investing decisions. These are: ESG (environment,

Sustainable investing: can you do well by doing good?

Ireland’s sovereign wealth fund is set to divest from fossil fuel stocks, the Church of Ireland has pledged to do likewise by 2022, while Norway’s $1 trillion sovereign wealth fund, the world’s largest, doesn’t invest in tobacco shares and has proposed steering clear of oil and gas stocks. Sustainable investment is becoming increasingly mainstream, but

Sustainable Investing for Institutions: A Case Study

Sustainable investing is at once intuitive and confusing; it seems like the right thing to do, but there are many different ways to do it. It promises a contribution to solving global issues, but perhaps at the expense of investment returns. It represents new risks, opportunities, and ways of doing business in a rapidly changing

Development-impact bonds are costly, cumbersome—and good

If a girl in a poor country goes to school, she will probably have a more comfortable life than if she stays at home. She will be less likely to marry while still a child, and therefore less likely to die in childbirth. So, not surprisingly, there is an Indian charity that tries to get

ESG managers raise alarm as Earth Overshoot Day is passed

Earth Overshoot Day passed on 1 August which means we have now used more nature resources than can be renewed for the entire year. At Citywire Selector we constantly hear how environmental concerns are rising higher and higher in terms of investors' priorities, with finance becoming an increasingly important part of driving this agenda. Citywire-rated managers Thomas Sørensen and Henning

3 Steps Cleantech Startup Investors Can Take For Greener Returns

Even if you don’t know the first thing about climate change, it’s likely that you’ve heard of Al Gore’s documentary An Inconvenient Truth. When the film was released in 2006, climate change took the mainstage and the investment world saw business opportunities in the clean technology sector. That same year venture capital funds invested $1.75 billion into cleantech startups,

Investment needed to #SaveOurOceans

Circulate Capital was launched earlier this month to direct investment at innovation tackling the devastation being caused by plastics in the ocean. With the prospect that “by 2050 oceans could contain more plastics than fish (by weight)” – according to one report – there is an urgent need for impact investment that supports solutions designed to avert this doomsday

The future of impact investing is here

As we continue to function in a growing global economy and the population continues to expand, businesses and corporations are taking a more active role in problem solving. I am not referring to concerns about internal auditing, supply chain challenges or language barriers. Instead, companies and individuals are taking a more significant role in solving

How to Get an Impact Investor’s Attention

Conservation managers and entrepreneurs who are looking to make their projects stand out as investment opportunities should be sure to supply the information that investors want. Impact investing experts interviewed by Conservation Finance Network expressed a surprising lack of interest in most impact metrics and measurements aside from carbon sequestration. They instead indicated that they

How to Attract the Socially Conscious Investor

In any industry, the guiding principle for a CEO is simple: Don’t run out of money. For established companies, this means managing profits and losses for the benefit of stakeholders; for growth-stage businesses, it means finding investors to finance your next big move. If balancing these goals is keeping you up at night, rest assured

The Next Step in Impact Investing: Breaking the Shackles of Extractive Thinking

An increasing number of investors—individuals and institutions alike—are deploying capital in more socially and environmentally conscious ways. Under the present economic system, which endlessly extracts natural and capital resources, and leads to ever greater wealth concentration, that’s a shift worth celebrating. Yet even impact investments rarely stray from the conventional investment approach that prioritizes capital

How ESG investing entered the mainstream

The term “late capitalism”, first used by German economist Werner Sombart in the early-1900s, is coming back into vogue. The phrase is increasingly being used to describe the problems facing the modern global economy. These include gaping inequalities of wealth, stagnant real wages, aggressive and convoluted tax avoidance by global corporations, surveillance by tech firms, abuses of

How impact investing can tackle the plastic crisis

Whether we like it or not, plastic is useful. And it’s versatile, used daily to keep food fresh, make contactless payments, hold shopping and to brush our teeth. Yet, despite a turning point in public attitudes towards waste, plastic continues to litter streets, rivers and oceans, and is causing irreversible damage to the planet. As organisations

Religious Institutions Are Becoming More Involved in Sustainable Investing

The roots of sustainable and responsible investing (SRI) can be traced back to religious movements. As early as the 18th century John Wesley, the founder of Methodism, recognised the extent to which the use of money was the second most important aspect of New Testament teachings. Quakers are often considered the founders of SRI and

Looking Past the Labels

People putting their money into environmental, social and governance (ESG) investments might be in for disappointment, Greenchip Financial’s John Cook said. ESG funds, which select companies for their broader environmental and social impact on top of performance, include a lot of big names whose business has little to do with reducing pollution, Greenchip president Cook

Looking for a competitive edge? Embrace diversity

Diversity-lens investing is one of the fast-growing categories of sustainable and impact investing. The goal of these strategies, which integrate gender and other diversity factors to identify and invest in companies with heterogeneous leadership teams, is to improve returns and promote more equality at companies — or both. How fast are these strategies growing? In

Impact investing needs to break out of its niche

In the 10 years since the term was coined, impact investing has seen incredible success with a swell of support from governments and investors all over the world. But while it is easy to look at this momentum and interpret the growth of the industry as a triumph, when we start to look at the

When will “socially responsible investing” become just “investing”?

This year marks the 10th anniversary of the global financial crisis, bringing with it an inescapable reminder of the power of the finance industry. While many tangible things have changed over the past decade—from stricter regulation to big banks’ leadership ranks—more subtle, yet no less consequential, shifts are also underway in the financial world. It