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Is Sustainable Investing Moving Into the Mainstream?

Sustainable investing, which incorporates environmental, social, and governance (ESG) criteria into investment decisions, has been gaining more attention among both individual investors and asset managers in the world’s largest institutions. These are investors who are heeding urgent challenges, like climate change, and seeking investment solutions that can deliver real impact. And they’re seeing that proactively

Creating sustainable capitalism

Responsible investing has long been a term in investment vocabulary. Until recently, however, it was on the periphery: a feel-good activity for ethically minded investors, but not a mainstream concern. However, this is changing. Responsible investment strategies are now becoming mainstream. The Principles for Responsible Investment membership now represent assets under management (AUM) in excess of

Ignore Sustainable Investment at Your Own Peril

Evidence is mounting that ignoring environmental, social and governance (ESG) issues will expose investments to the kind of risk that will ultimately undermine their value, erode returns and possibly even lead to the collapse of the companies or other assets involved. And as sustainable investing goes mainstream worldwide, institutions, fund managers, credit rating agencies and

Untapped Opportunities: How Is Impact Investing Poised to Grow?

Demand for sustainable impact investments has grown exponentially over the past decade. Morgan Stanley reports in 2017 that 75% of individual investors were interested in an ESG (Environmental, Social and Governance) approach, and among these investors, 84% of women and 86% of millennials are leading this demand. The Forum for Sustainable and Responsible Investment and Global Sustainable Investing Alliance reported sustainable

As Investors Try To Be More Ethical, Some Find No Escape From Businesses They Detest

If you're an investor with ardent social beliefs — and you aspire to put your money where your mouth is — you're in luck. Today, on Wall Street and beyond, socially responsible investment options abound. For those distressed by gun violence, new weapon-free funds divert dollars from firearms manufacturers and large gun retailers. If climate change is

Family Foundations Today Want to Make an Impact

The influence of a younger generation of philanthropists on U.S. family foundations is moving these charitable organizations into more intentional, issue-focused giving and has led to greater diversity in governing boards, according to the Trends 2020 study from the National Center for Family Philanthropy (NCFP) released on Wednesday morning. The study, conducted in collaboration with Bank of

The highs and lows of creating the world’s first social stock exchange

The world is coming around to social stock exchanges (SSEs). In just the past few months, Scotland, Jamaica, and now India have thrown their hat in the ring to launch their own platforms, all with the hope of solving one of the greatest challenges to social capital markets: the need to connect capital to socially-minded

Planet, People Concerns Driving Investors Towards Impact

Concerns about health care and climate change are driving an increase in impact investing, according to a recent study by American Century Investments, a global asset manager based in Kansas City. The highest percentage of United States respondents, 30%, said healthcare and disease prevention and cures mattered the most to them for impact investing. The environment and

Making research ‘business as usual’ in impact investing

The call for more thoughtful evidence-use has recently hit a crescendo in impact investing, with high-profile actors showcasing methods for incorporating secondary research into due diligence. This attention to research speaks partly to a growing awareness that much of the data that companies generate on their own fail to pass muster as impact evidence. As Jane Reisman,

The Best Impact Investing Apps

Mobile investing apps are becoming “must haves” these days, and their popularity is expected to increase in the coming years. And that’s not the only investing trend that’s on the rise. Another is impact investing. Put these two trends together, and you’ll find a bevy of investing apps available for purpose-minded people. Traditionally, people invested

Here Is What 1200 Of The World’s Leading Impact Investors Focus On

This week saw the gathering of 1200 global impact investors and professionals in Amsterdam for the 10th annual Global Impact Investing Network Forum. The forum, where a wide range of impact investment topics are tabled, began with barely a hundred attendees. Now, ten years later the growth seems to be directly related to various areas garnering societal attention

At Harvard B-School, lessons for impact investors

Harvard Business School is known for guiding the next generation of financial leaders through compelling case studies in management, innovation and global intelligence. Now the curriculum includes impact investing, which incorporates positive environmental, social and governance values into investment decisions. Vikram Gandhi, a senior lecturer, developed the course “Investing in the 21st Century: Return, Risk

What Is Impact Investing, And How Do You Measure It?

As responsible investing (RI) moves into the mainstream, investors are increasingly looking for strategies that go beyond traditional environmental, social and governance (ESG) principles to produce measurable benefits for people and the planet. In response, many RI programs are now expanding to embrace what is known as “impact investing” strategies. While traditional responsible investing aims

Socially Responsible Investing (SRI): Implications For CEOs

Socially Responsible Investing (SRU) is mostly the same as regular investing. Funds are still allocated, and returns are still made. The key difference is that SRI takes other non-monetary factors into consideration. Some types of SRI seek to discourage certain industries its investors disagree with. Others simply invest in companies or areas that they are passionate

Crowdfunding for Impact?

Individuals seem increasingly keen to invest in ventures that create social impact, and crowdfunding platforms are making this easier than ever. But there is a catch. Unlike professional investors or major foundations which rely on hard data and cost-benefit analyses, retail investors often base decisions on the emotional connection they feel in an investment opportunity.

More Companies Are Making Noise About ESG

Big U.S. companies are increasingly talking up environmental, social and governance factors on earnings calls—and betting that investors increasingly concerned with social responsibility will reward them for it. Twenty-four companies in S&P 500 mentioned the acronym “ESG” on earnings conference calls between June 15 and Sept. 14, double the number that cited the term in

Wealthy Investors Question Paths To Sustainable Investing

If you’re wealthy and you care about the world, then sustainable or ESG (Environmental, Social and Governance) investing allows you to put money where your mouth is. Sustainable or ESG investing means that portfolios flow into sustainable funds or companies which provide a healthy return while making the world a better place. But in practise

Financial Advisors Lag Behind Clients on Impact Investing

More investors in the U.S. want to generate positive social or environmental impacts, as well as financial returns, with their assets, but a study out Wednesday morning by Fidelity Charitable shows that financial advisors haven’t caught up with their client’s wishes. The Fidelity Charitable survey of 175 financial advisors found only 41% have talked with

Impact investing is hot right now. Here’s why

Last month, leaders at some of the world’s largest companies took the notable step of redefining the purpose of a corporation, adopting a “modern standard” for corporate responsibility that promotes “an economy that serves all Americans.” The 181 CEOs who signed the statement from Business Roundtable, an association of chief executive officers headed by JPMorgan Chase’s