WHY IMPACT INVESTING
Like SRI and ESG investing, Impact investing is a subset strategy of Sustainable investing. Our comMitment is to back companies that not only score well on ESG, but create impact towards the SDGs
ESG: Environmental, Social and Governance.
ESG factors are considered in every aspect of our economy with a goal of maintaining the values and concerns of a sustainable future as a priority. ESG is particularly important for Socially Responsible Investing (SRI) because it allows investors to see activities and risk areas of a company instead of only relying on profitability factors when they direct their capital.
Assessing ESG factors in investment decisions allows you to see just one side of the story; Impact investing adds another layer of to that story. An investor first evaluates the ESG risks of a potential company, and then puts an emphasis on identifying if the business model has integrated intentional positive impact on stakeholders as part of its activities. One way we measure this is by seeing how the company aims to address the United Nations Sustainable Development Goals (SDGs).
What is driving the growth of impact investing?
Here are some Global Impact Investing NETWORK (GIIN) Survey Results:
80% of the owners of impact capital reported exceeding their financial expectations according to the Global Impact Investment Network
In the market
There is a transfer of wealth to Millennials and women with different values
Strong Impact Performance
99% of the survey respondents noted that they have met or exceeded their expectations since inception
Key factors that set impact investment apart from
other sustainable investment practices include :
- Intentionality of social and environmental impact
- Strategy to reach the desired impact
- Investor’s contribution to the impact
- Measurement of the impact
- Transparent reporting of the impact