Impact Matters, from Footprint to Handprint

IDEAS Connect | Issue 10, Febuary 2022

Home > IDEAS Connect > Impact Matters, from Footprint to Handprint

February 2022

Where investors previously thought only in terms of risk and reward, they can now add a third dimension of oversight to their portfolios: Impact (social and/or environmental outcomes). Growing numbers of investment options – across both public and private markets – are making Impact Investing more accessible. Importantly, the industry is coming up with standards for measuring and reporting impact.

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It’s time for investors to protect biodiversity, which is falling fast due mainly to human activity. Biodiversity is one of the nine “planetary boundaries” that humanity must respect and protect to maintain life on Earth. By exceeding planetary limits, we are disrupting the functioning of ecosystems. To tackle the accelerating rate of biodiversity loss, investors can play an important part by integrating biodiversity-related aspects into their investment processes. 

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Recent crises including the Covid-19 pandemic have led to a renewed focus on social issues such as inequality and social exclusion – the “S” in ESG. This is where the concept of “inclusive capitalism” is gaining steam as part of a more inclusive approach to economic growth. It should be addressed alongside climate change and planetary boundaries. The paper discusses why inequality is a problem for everyone and outlines a framework for inclusive capitalism.

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The increased prominence of sustainable investments should not be seen as a mere marketing hype. IDEAS Connect Issue 7 highlights the trend towards ESG and presents a major academic study, which examines the link between ESG and financial performance. Our Sustainability experts provide their views on why “ESG investing is here to stay”.

IDEAS CONNECT ISSUE 7

#GreenGrowth is relevant to the achievement of the United Nations' Sustainable Development Goals (SDGs) that are inter-connected. IDEAS Connect Issue 6 talks about the transition towards #GreenGrowth and introduces two approaches that make SDGs investable and create positive impact: (1) SDG-aligned investing and (2) Impact investing.

IDEAS CONNECT ISSUE 6

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