Investors create impacts on society and the environment at a number of different levels.
(1) Impact through deciding which economic activities receive capital
This is determined by investors' strategies - in particular, the choice of sectors, regions or countries, and the choice of whether to invest in early-stage riskier ventures or later-stage ones.
(2) Positive or negative impacts through policies and practices adopted in investments
This is determined by what investors do to manage social and environmental risks arising in the chosen sectors and geographies.
(3) Impact on the long-term stability of the financial system as a whole
This depends on whether the investors are seeking a sustainable level of financial returns and making decisions with the long-term health of people, the environment and the economy in mind.
Impact Value works with investors and NGOs at all of these levels. For example, we -
(a) work with impact investment funds - including development finance institutions and charitable foundations - to help them design their investment strategies so that they can maximise their impact, and to help them monitor and evaluate that impact to enable feedback for learning and improvement
(b) work with investment managers to review the resilience of their portfolio in the light of social and environmental trends
(c) work with private equity investors to help them put in place policies and processes to manage environmental, social and governance (ESG) issues and to articulate, measure and report on their impact
(d) work with think-tanks and NGOs on addressing some of the wider systemic barriers to sustainability in the financial markets