Impact investing is becoming more mainstream as superannuation funds and institutional investors seek opportunities to make a positive impact on a social or environmental problem, says Jillian Reid of global consultancy and fund manager Mercer.
Impact investments are made with the intention of generating positive measurable social and environmental impact along with a financial return.They are a step beyond ESG screening, which takes into account the financial impact of environmental, social and governance factors on an investment but doesn’t set out to do good.
Daniel Wiseman, head of Asia-Pacific policy at the Principles for Responsible Investment , a global body aiming to promote responsible investing, says the concept of what impact investing is has evolved beyond something that was considered quite niche and confined to a couple of specific asset classes and investment styles.
Impact investing was traditionally mostly confined to private markets, private equity and alternative asset classes, where it was often easier to measure the societal or environmental impacts an investment was having. But these sorts of investments are also now stretching across debt and equity markets as well.
Reid says it’s important that positive outcomes can be measured, not only to ensure impact investments are what they purport to be, but also because quantifiable impacts make impact investing more attractive.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Four Points: Walker’s instant impact, and GWS have a giant problemTaylor Walker might never have played again. He now most likely has nine Brownlow votes after just three games since returning from suspension. | ANALYSIS by Michael Gleeson
Read more »
Sajid Javid plans review of impact of gender dysphoria treatmentData must be provided on the experience of children undergoing care, says health secretary
Read more »
Developer ICD to build Adelaide’s greenest office towerThe 15,000 square metre office tower is targeting a Six-star Green Star rating from the Green Building Council and will be powered by renewable energy only.
Read more »
Max Verstappen dominant as Ferrari suffer a disaster in ItalyThe Dutchman led from start to finish to take the victory ahead of teammate Sergio Perez.
Read more »
Dragons hold off fast-finishing Roosters to post Anzac Day victoryThe Roosters dominate the second half, but it was the Ben Hunt-inspired Dragons who run out 14-12 winners at the SCG.
Read more »
Green corridor would link Mt Annan gardens to Western Sydney ParklandsA masterplan for Mount Annan botanic gardens is examining establishing a new corridor to provide western Sydney with “beautiful connected walks and cycleways”.
Read more »