Impact Investing in Listed Equities
A report from the Global Impact Investing Network details a menu of impact strategies in listed equities that can deliver tangible impact in the real economy.
There is no single, easily identified indicator that immediately qualifies a listed equities strategy as impact rather than as a sustainable strategy. This paper presents a number of innovations that were identified within funds, but based on the decade of impact investing experience, none of these individual innovations on their own will unlock positive change in the real economy. The transition from a sustainable investing strategy to one that intentionally generates positive impacts through its investment strategy depends on a number of coordinated changes across the investment process.
To create a portfolio that goes beyond standard-issue ESG, inventors must refocus the entire investment process, from strategy definition and portfolio selection to performance measurement and engagement.