Sustainable & Responsible Investing
Sustainable & Responsible Investing can be illustrated by the UN Principles for Responsible Investment (PRI) which incorporate environmental, social and governance (ESG) factors into investment www.unpri.org:
Sustainable & Responsible Investing can be achieved through different strategies including:
- Exclusion (“negative screening”)
- ESG “positive screening” & selecting companies with “best-in-class” ESG practices
- Integration of ESG issues
- Shareholder engagement with portfolio companies
- ESG “Thematic” investing: e.g. identifying companies providing solutions to sustainability challenges
We raise capital for investment funds focussed on thematic investing in liquid listed equities – such funds aim to out-perform, or at least match, the performance over the medium-term of conventional funds.
The Global Impact Investing Network (GIIN) definition www.thegiin.org:
- “Investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return”
- “Impact investments target financial returns that range from below market (sometimes called concessionary) to risk-adjusted market rate and can be made across asset classes, including but not limited to cash equivalents, fixed income, venture capital, and private equity”
The Social Impact Investment Taskforce report “Impact Investment: The Invisible Heart of Markets” in September 2014 states www.socialimpactinvestment.org:
- “The impact investment market represents a huge opportunity for mainstream investors, including pension funds, sovereign wealth funds and independent investment managers”
- “Specialist intermediaries are needed to bring together investors seeking impact and the organisations that are capable of delivering it”
Impact investments are made in sectors including agro-industry, education, healthcare, renewable energy, sustainable forestry, sustainable land management and other infrastructure.