IMPACT INVESTING
WHY IMPACT INVESTING?
The existential challenges of our time demand more than business as usual. Impact investing is the essential approach that channels resources into solutions that deliver measurable social and environmental change alongside strong financial returns. The future depends on investments that work for people and the planet.
Unleashing the power of capital for good is the most powerful way to effect real lasting change .
Beginning our impact investing journey in 2016, we didn’t limit ourselves to certain sectors, impact themes or geographies, but rather how we could maximise our impact generally. Our portfolio is now over 90% invested in either ESG or impact investments and we are constantly seeking ways to move towards 100% impact. More recently however, we have focused our investments to three key areas of climate investment - 1. Land Use. 2. Waste Management and 3. Materials and Resources. This more focused approach allows us to focus and maximise our impact
We use the following three prong approach in all our investing;
OUR APPROACH TO IMPACT INVESTING
SOURCING
Selecting investments or fund managers that share our philosophy of planet first.
DUE-DILIGENCE
A critical review of an investments claims and impact potential and the risks and opportunities beyond the financial and legal Due Diligence is essential. While investments always start with an assessment of impact risk and return, financial risk and financial return are also closely considered.
MONITORING
Regular analysis of the impact of our investments is carried out to ensure they are always achieving the intended social and environmental returns.
To be considered impact, an investment must also satisfy the four core characteristics developed by the GIIN:
1 INTENTIONALITY
Intentional desire to contribute to measurable social or environmental benefit. Impact investors aim to solve problems and address opportunities.
3 MANAGE IMPACT PERFORMANCE
Communicating performance information to support others in the investment chain to manage towards impact.
2 USE EVIDENCE AND IMPACT DATA
Investments cannot be designed on hunches, and impact investing needs to use evidence and data where available.
4 CONTRIBUTE TO THE GROWTH OF THE INDUSTRY
Use shared industry terms, conventions, and indicators for describing their impact strategies, goals, and performance. They also share learnings where possible to enable others to learn from their experience as to what contributes to social and environmental benefit.