Impact Investing / Social investment
Impact investing has multiple goals:
Firstly, impact investing is designed to make a competitive return for it's investors. It is not intended that returns would diminish when compared with traditional funds just because the investor wishes to invest in a better way.
Next, most impacts fund mangers will have a mandate to do no harm. This should be embedded into their investment ethos and practices. Most impact investing firms will outline this clearly so investors who wish to invest for impact can do so without conflict.
Finally, impact investment managers will actively seek to have a positive social impact through the companies and assets they choose to include in their social impact fund.
Some examples of positive externalities from Impact investing funds would be:
Financial Inclusion: banking services to underserved adults
Circular Economy: recycled materials
Sustainable Energy : renewable capacity increases
Food & Agriculture : risk management provided for farmland
Water & Sanitation: drinking water provided globally
Education & Employment: new sustainable jobs created
Sustainable Infrastructure: housing, commercial, transport
Health & Social Care: affordable medication and healthcare
This list is not exhaustive however, you can see how impact investing through an impact fund can generate positive social impacts as well as a competitive return for investors.
At Ethico, we are happy to advise and give clear comparisons between Impact fund managers. We can also show you how to avoid "greenwashing".
If you wish to discuss ESG in more detail please make contact and one of our advisors will be happy to discuss your options.