Institutional and private equity investors are becoming increasingly conscious of the social and environmental impact of their investment decisions, as well as the financial returns, amid a global push on reducing carbon emissions and boosting corporate responsibility. But as impact investing starts to gain more traction among investors, greater benchmarking of its performance is now needed
International impact investor Angela Homsi is so passionate about making a difference that, nearly 36 hours after the birth of her first child, she was back working. For Homsi’s daughter was born the day she and her business partner – and husband – launched the commercial operations of their renewable-energy company, Ignite Power. Ignite uses
People often believe that natural disasters won’t happen to them, but life has many surprises. A hurricane, tornado or flood can quickly turn one’s life and home upside down. It’s not always possible for residents to prepare for these occurrences, which makes rebuilding a challenge. However, people don’t have to be left out in the
When it comes to investing, financial returns and social considerations did not always go hand in hand. In fact, businesses went through a phase of prioritising profit maximisation at the expense of everything else, including the environment and community. However, the pendulum is slowly swinging the other way as impact investments, which support businesses that
The acronym ‘ESG’ refers to a broad range of environmental, social and governance criteria which investors are increasingly using to analyse companies alongside traditional financial metrics. Purists may disagree, but ESG has generally come to be understood as a catch-all term for the broader theme of ethically and socially responsible investing. Typical issues that fall
KEY POINTS ESG investing — or strategies that take a company’s environmental, social and governance factors into consideration — grew to more than $30 trillion in 2018, and some estimates say it could reach $50 trillion over the next two decades. These strategies, which include impact investing, are not new, but momentum is growing as
Increasingly, many investors have been choosing to put money where their values are — into a growing array of products that fall broadly into the category of environmental, social and governance investing, often called ESG investing for short. If you're thinking about investing in ESG products, here are some tips to keep in mind and traps to
Sustainable investing is one of the most rapidly growing parts of the market, increasing from $23trn in 2016 to $31trn last year. And impact investing is one of the most rapidly growing parts of sustainable finance, doubling each of the past two years to $502 billion in assets under management according to the Global Impact Investing
At the crossroads of technology, innovation, and sustainability, artificial intelligence has the ability to make a dramatic impact on ESG investing—that is, accounting for environmental, social, and governance risks and opportunities in investing. While AI can unearth key data for investors seeking sustainable investments, discerning unreliable information will be a key challenge and humans will not be replaced any
Socially responsible investing funds or SRI funds are a way to grow your investment portfolio while doing something for the greater good. For example, you might invest in funds that advance social causes, encourage better corporate governance or promote a healthier, cleaner environment. In short, socially responsible funds allow you to make a positive difference in the
Individuals seem increasingly keen to invest in ventures that create social impact, and crowdfunding platforms are making this easier than ever. But there is a catch. Unlike professional investors or major foundations which rely on hard data and cost-benefit analyses, retail investors often base decisions on the emotional connection they feel in an investment opportunity.
Big U.S. companies are increasingly talking up environmental, social and governance factors on earnings calls—and betting that investors increasingly concerned with social responsibility will reward them for it. Twenty-four companies in S&P 500 mentioned the acronym “ESG” on earnings conference calls between June 15 and Sept. 14, double the number that cited the term in
If you’re wealthy and you care about the world, then sustainable or ESG (Environmental, Social and Governance) investing allows you to put money where your mouth is. Sustainable or ESG investing means that portfolios flow into sustainable funds or companies which provide a healthy return while making the world a better place. But in practise
More investors in the U.S. want to generate positive social or environmental impacts, as well as financial returns, with their assets, but a study out Wednesday morning by Fidelity Charitable shows that financial advisors haven’t caught up with their client’s wishes. The Fidelity Charitable survey of 175 financial advisors found only 41% have talked with
Last month, leaders at some of the world’s largest companies took the notable step of redefining the purpose of a corporation, adopting a “modern standard” for corporate responsibility that promotes “an economy that serves all Americans.” The 181 CEOs who signed the statement from Business Roundtable, an association of chief executive officers headed by JPMorgan Chase’s
The smallest of the institutional investors, endowments and foundations at $2 trillion in global assets under management have historically had an outsized influence on the trajectory of investment management. The investment goal of ensuring that the endowment’s rate of consumption can be sustained and relatively limited liquidity needs—typically about 5% of the average of the endowment’s value
Climate change is real and is having a sizable, immediate impact on how investments are evaluated. ESG — environmental, social and governance criteria used by investors to evaluate a company’s operations — is what brings sustainability and profitability together in today’s new era of investments. We’re already seeing the result: In 2018, 26% of all professionally managed assets (a
The promise of being the base for Amazon’s second headquarters was great — so great, in fact, 238 cities jumped into the intense, year-long competition. Contenders had so much faith in the impact they promised robust urban transit systems, tax breaks, talent pipelines and infrastructure support. I saw this first-hand locally, where three counties in
Sustainable investing is the process of investing in sustainable companies or funds. Some people call this ESG (Environmental, Social and Governance) investing, others simply "ethical investing". Whatever the terminology, this form of investing money, usually by institutions or high net worth individuals (HNWIs: people with a net worth over $1 million), is supposedly changing the
“Do ETFs, REITs and mutual funds still make sense to invest in if the planet won’t survive ’til our retirement?” So read an Instagram DM from a friend earlier this year. The reasoning was fairly clear: A recent report from the United Nations indicates that climate change is harming the world’s food supply to a catastrophic degree,
