Mainstreaming Sustainable and Impact Investing
Impact investing is an investment approach across asset classes that can reconcile shortcomings in traditional financial markets and create transformative societal impact. Previously, Phases I and II of the Mainstreaming Impact Investing Initiative examined the growth of impact investing, challenges facing the sector, and competitive strategies investors can use to get involved.
Now, Phase III is focusing on how sustainability and impact considerations can be factored into traditional investment analysis. The work will explore the potential benefits of impact beyond the intrinsic value to society and the environment – benefits which may come in the form of decreased risks or increased returns – as well as how these are incorporated into investment decision-making. Additionally, Phase III will assess the use of risk-return-impact profiles as a more effective and thorough means of evaluating and communicating impact investments.
The Mainstreaming Impact Investing Initiative seeks to increase the flow of capital into impact investments. Phase III will do this by providing better information on the relationship between risk, return, and impact – information which will allow investors to more accurately target both impact and financial returns from investments. The work will utilize qualitative and quantitative analytics and involve engagement of investors, social entrepreneurs, public sector officials and academics.