Impact Investing

//Impact Investing

Inside the quest to measure the impact of impact investing

How do you measure the impact of reliable weekly milk purchases on the lives of small-scale Indian dairy farmers? What if you need to compare that with the impact on American college students of courses about dating violence and sexual harassment? This is the kind of valuation challenge impact investors have been grappling with for

Capital for climate: The role of finance in saving our Earth

As we watched another Earth Day come and go, the global community's insufficient action on climate change became more disturbing than ever before. There is no issue that more urgently calls for innovation, collaboration, and investment than the climate crisis. Yet we continue to fall behind. With 17 of the 19 warmest years on record

Missing The Forest For The Trees: Can Impact Investing Shift Its Focus To Where The Big Money Lives?

What, exactly, is an impact investor? This question has been the subject of much debate and until recently, there has been a lack of objective standards to measure investors against their self-applied monikers of “impact-first” impact investors, “finance-first” impact investors, and everything in between. With the launch of the Operating Principles for Impact (“the Principles”) last month

LeapFrog Breaks Impact Investing Record, with $700M Emerging Markets Fund

LeapFrog Investments has announced the largest-ever private equity fund by a dedicated impact fund manager, surging past its $600m target to reach $700m. The new fund invests in healthcare and financial services companies – tapping into the demand from billions of emerging consumers in Asia and Africa. This fund alone targets reaching 70 million emerging

Investing for your portfolio and the planet

Headlines about the numerous environmental and social challenges that are threatening the planet often make for scary reading. Climate change, an ageing population and food sustainability are just a few of the global issues that urgently need tackling, with big brands and smaller companies increasingly waking up to these problems and the different ways they

Impact Investing Trends in 2019 Include Greater Focus On Gender

Impact investing is not just growing, it is evolving. At the same time, the definition of the practice is being shaped and molded by new products and practices, creating tension among some players about what it is and what it should be. For this article, I reached out to about 50 thought leaders and practitioners

Socially Responsible Investing Sounds Appealing, but Does it Actually Work?

Make money, do good, feel good, save the planet. That’s the pitch for socially and environmentally responsible investing. And this form of investing is a good one—clean water, not clean coal, to simplify it. Millennial investors, who don’t yet have enough money to do much with it, and family offices, which have billions at their disposal and

Best Earth Day-Friendly Robo Advisors for Socially-Responsible Investing

When it comes to investing, we tend to primarily think about our ROI – return on investment. But now that we’re surrounded by groups supporting social causes, it might be time to rethink your investment philosophy. Yes, you might be able to earn more by investing in whatever is the best investment overall–but have you

Investing for Social Impact Is Complicated. Here Are 4 Ways to Simplify It.

Investing in companies or organizations that make a positive change on society can be a bit like indulging in a vice: A lot of people might enjoy it privately, but they’re not comfortable talking about it publicly. When asked about this strategy, known as impact investing, investors typically give a lukewarm response or sidestep the

Climate emergency: Why the City needs to join the Rebellion

Hopefully we all suffered some small inconvenience as a result of the Extinction Rebellion protest. Instead of grumbling, we should all be grateful for the wake-up call.  That includes the investment community. Yet some treat token action on climate change as a burden they unwillingly have to shoulder, while others are happy to pay lip

Impact firms bet on forests as world worries over rise in temperatures

Impact investors have started raising more funds to invest in the forestry sector as devastating environmental problems caused by rising temperatures demand growing investments to reduce carbon emissions across the world. There are 34 asset managers globally who manage $9.4bn in forestry assets. In the two years to 2019, these firms raised 10 new funds

Capital for Justice: Spurring On Impact Investing for Racial Equity

Throughout this article series, it has been fascinating and encouraging to read the authors’ reflections on the importance of putting racial equity at the center of the impact investing movement—and the most effective ways of doing so at this pivotal moment. In preparing our contribution, we have been thinking about how the Ford Foundation’s use of

Investors Worried About Wealth Inequality Should Focus on Fund Manager Compensation

Since Bill McGlashan, the cofounder of a prominent social and environmental impact investing fund, TPG Rise, was charged in the recent college admissions bribery scandal, people in the impact investing community have faced another fierce round of questions about their relationships with economic inequality, power, and privilege. Joining broader criticism of philanthropy and impact investing from Anand Giridharadas, Rob

There’s an Untapped Market for ESG Investing

Some research may lead plan sponsors and advisers to believe only Millennials and women are most interested in sustainable investing, but research from Morningstar finds most investors, across ages and genders, have clear preferences for environmental, social and governance (ESG) investment products. Morningstar developed a new tool, called My Sustainability Profile. The tool is designed to reveal

A Primer on Cause Investing

In Brief Cause investing—the directing of one’s investments to companies that directly promote or embody through their conduct a particular social good—is becoming more and more prominent, especially among not-for-profits. But as organizations implement their cause investing programs, they need to be sure the relevant decision makers are all on the same page. The author

The Extinction Rebellion: How Sustainable Finance Can Help Save The Planet

Parts of London were brought to a standstill by the Extinction Rebellionlast week. The protesters seek to bring to the public’s attention the ticking time bomb that the human race faces by not addressing climate change seriously or quickly enough. The Extinction Rebellion is more an orderly assembly of rational modest citizens, many of whom have

Trump creates positive effect on socially responsible investing

Donald Trump’s surprising ascent to president of the United States has brought many unexpected effects to the financial markets. Ironically, one has been a rapid increase in interest and adoption of impact investing and other types of values-based investing. Impact investing, or values-based investing, is a type of investing that helps people and/or organizations align

Diversity and Inclusion: Turning Shared Value into Shared Success

As vital as it may seem today, the idea that corporations should meet the needs of underserved communities and integrate social good into their DNA—rather than address it separately through philanthropy—is far from common. Indeed, the need to break down the walls between profit and purpose helped spark the impact investing movement. However, our company, Prudential,

As demand for ESG investing grows, so too does the need for high-quality data

Climate change has already begun to affect business, with extreme weather, flooding, wildfires and drought threatening company assets and supply chains. As the environment evolves, companies that improve their energy efficiency and create new products and services will survive and companies that are slow to change will struggle. The financial services community is keenly aware

An investing strategy that doesn’t cost the earth

Protesters took to the streets of London this week, in the name of rebellion against governments' perceived lethargy in the face of climate change. Whether their strategy of bringing areas to a standstill actually achieved anything is doubtful. But for savers who want to bring about change in a more pragmatic way, investing wisely could