impact investing

/Tag: impact investing

Reducing risk, extra returns, and being nice with it. That’s ESG

FOLLOWING last week’s column on Environmental, Social and Governance (ESG) investing, what are the issues to look out for when screening for the best returns and best funds to choose? In the ‘beginning’, we had ethical funds, sustainable funds and socially responsible funds. Now we have the term ESG. Ethical funds avoided anything that did

New investment for businesses to tackle ocean plastics crisis

Plastic pollution is creating an environmental crisis in the oceans. According to the United Nations (pdf), more than 8 million tonnes of plastic enter the water every year, killing up to 1 million sea birds and 100,000 mammals, turtles and fish. Unless significant action is taken, the amount of plastic in the seas will triple by 2025. New

How social entrepreneurs made an impact at Davos 2019

Over 3,000 leaders, including more than 50 heads of state, last month descended on the mountain town of Davos for the World Economic Forum’s Annual Meeting 2019, under the theme Globalization 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution. Among them were a delegation of 20 pioneering Schwab Foundation Social Entrepreneurs, coming

Impact Investing Isn’t Just For The Rich – We All Have A Part To Play

As one of my New Year’s resolutions, I’ve introduced my children to an excellent idea I heard once at an event on gender lens investing (which is, by the way, a whole other interesting angle I’ll come back to at another time!). Basically, the idea is that when your children get pocket money or Christmas

The surge of socially responsible investing

STANDING next to a plaque in the pure silent outback of Australia, the statement opened with ‘when the first Europeans came here…” with no mention of the indigenous people who had lived there for 45,000 years before. They say history is written by those in power, but it's also written in the present tense in

Winning At Climate Change Investing

As strange as it might seem considering the increasingly frightening data and scientific studies being published nearly data (Greenland's Melting Ice Nears a 'Tipping Point,' Scientists Say - NY Times, Oceans warming faster than expected: scientists - Reuters), the effects of climate change are not yet thought of as “Bad” by most Americans. Despite your humble correspondent’s best

Impact investing is driving the most exciting emerging technologies

Last week, Adam Draper, Managing Director at Boost VC, the Sci-Fi pre-seed fund, tweeted he was looking for Ocean-related tech startups. “The Ocean is the oldest frontier, and it’s time to solve global problems with the latest technology,” he wrote, followed by “I’m obsessed, and want to profitably help the planet.” You might not have pegged Boost VC as an

U2’s Bono and TPG Launch Company to Measure ‘Impact Investments’

Bono and TPG are teaming up to try to prove that investments meant to benefit society at large do what they purport to do. The U2 frontman and his business partners at the U.S. private-equity firm announced a new company called Y Analytics, which will use a method they developed to measure social and environmental change created

How Impact Investing Can Amplify Philanthropic Efforts

For years, philanthropy and investing have been treated as separate disciplines—one championing social change, the other financial gain. The idea that the two approaches could be integrated in the same deals once struck most philanthropists and investors as far-fetched. Not anymore. Impact investing, which seeks to generate social and/or environmental benefits while delivering a financial

Socially conscious investing has quadrupled in the past decade

Investors like their money to make money. But increasingly, according to a new report from the Harvard Business Review, they expect it to do good, too. In 2010, environmental, social, and governance (ESG) investments made up approximately $3 trillion of all professionally managed assets. As of the beginning of last year, that number had quadrupled to $12

Are Investors Finally Starting To Care About Social Impact?

In the investing world, there's always a hot new narrative. The narrative typically takes the form of an innovative product, a sector rotation or an "inevitable" theme. One narrative that I've been particularly interested in for the past couple of years is that of ESG investing. Environmental, Social and Governance (ESG) is the discipline of

The State of Socially Responsible Investing

In 2007, the European Investment Bank issued its first green bond, a EUR 600 million equity index-linked security, whose proceeds were used to fund renewable energy and energy efficiency projects. A year later, the World Bank followed suit, and by 2017, over $155 billion worth of public and corporate green bonds had been issued, paving

How to Evaluate Socially Responsible Investing

FINDING SOCIALLY responsible investments is easier than ever before, but questions still remain around just what impact these investments are actually having. A responsible fund may call itself a low-carbon exchange-traded fund, but how much carbon is it actually mitigating? "The challenge for impact investors is it can be hard to understand what's actually going on in

This healthcare giant invests millions in affordable housing to keep people healthy

In an East Oakland neighborhood on the verge of gentrification, when an affordable apartment complex went up for sale–and tenants there risked steeply rising rents–Kaiser Permanente, the largest private integrated healthcare system in the U.S., helped put up the money to buy the building and keep rent low. It’s the first impact investment for the

Why it makes sense to invest in companies with a healthy gender balance

Sustainable investing – where investors focus on socially conscious investments that aim to build a better world – has been gaining traction over the past few decades. In 2016, one dollar in every five was invested ethically, totalling $8.7 trillion (Dh31.95tn), according to the SIF Foundation, the Forum for Sustainable and Responsible Investing based in

If 2018 Was the Year of ESG investing, What Will 2019 Bring?

Forty years ago the Institute for Community Economics, led by Robert Swann in Cambridge, Massachusetts, launched the first investment fund with positive criteria. Until that time investment screens used negative criteria– no alcohol or tobacco stocks, for instance. Today, sustainable investment has evolved from negative exclusion to positive inclusion. Now, 90 percent of institutional investors globally believe ESG (environmental, social and

This Brewery Staffed By Gang Members Is a Case Study In Measurable Impact Investing

It was a few days before Christmas 2015, and George Taylor could not believe what he was reading. Shane Simpson, a 16-year-old in Wilmington, North Carolina, had been killed in a gang-related drive-by shooting. Taylor didn’t even know his city had gangs, and he was so shocked and saddened by the killing that he vowed

Moving Beyond the Trade-Off Debate

Impact investing is on the rise. It has grown from a nascent concept into a sizable and sophisticated sector with more than $228 billion invested, representing a fourfold increase since 2014. More generally, the Global Sustainable Investing Alliance reports nearly $23 trillion in assets using socially responsible investment strategies. The trend is clear: Everyone from