As the appetite for impact investing grows among institutional asset owners, The Global Impact Investing Network (GIIN) sheds light on what defines an effective impact approach. A recent position paper from GIIN presents case studies of South Yorkshire Pension Fund, Dutch PGGM, Zurich Insurance, and MassMutual, showcasing a trio of strategies they share: 1️⃣ Defined Impact Priorities - Each investor has set clear priorities that align with their beneficiaries’ values, ensuring their investments address specific social or environmental needs. 2️⃣ Portfolio-Wide Opportunities - Identifying impact investments across asset classes enables a diversified yet focused approach. 3️⃣ Dual Focus on Returns & Outcomes - These institutional investors balance financial goals with meaningful, positive real-world outcomes aligned with their chosen impact priorities. GIIN’s Director of Institutional Engagement, Christian Rosenholm, emphasises the growing interest and potential influence institutional asset owners hold in impact investing. Currently, only 1% of global capital is dedicated to impact strategies; increasing this could significantly drive progress on global challenges. 👉 “If we can get to 5%, if we can get to 10%, we’ll have solved a lot of things,” Rosenholm notes. These insights offer a valuable blueprint for institutions keen to make a measurable difference through their portfolios. #ImpactInvesting #InstitutionalInvesting #SustainableFinance #GIIN
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Good to see The Global Impact Investing Network new institutional asset owner report featured in Impact Investor. I hope the report will inspire more institutional asset owners to get engaged with impact investing and those already engaged to expand further across their portfolio. You can find the report here https://lnkd.in/epx9Pzh9 The report highlights four institutional asset owners from the U.K., Europe and the U.S. — South Yorkshire Pensions Authority , PGGM Investments, Zurich Insurance and MassMutual — each of which has a distinct approach to impact investing. These examples show how defining impact priorities and systematically identifying investment opportunities across asset classes can help delivering both attractive financial returns and positive social/environmental outcomes all in the interest of the beneficiaries. George Graham, Piet Klop, Danielle Brassel, Liz Roberts, Lynda Radosevich, Emily Litt, Sean Gilbert, Amit Bouri, Dean Hand https://lnkd.in/dZpAYNg9
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When it comes to impact investing for institutional asset owners, there is no one-size-fits-all solution. But four case studies of large institutional investors by The Global Impact Investing Network show three features they all have in common, writes Danielle Rossingh. #impactinvesting #institutionalimpact https://lnkd.in/eA6FYHhE
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What to ask your asset manager: Developmental impact investing https://lnkd.in/ddyS6gGN Angelique K., Head: Sustainable Investment Practices at Futuregrowth Asset Management, gives guidance on the most important questions to ask your asset manager when it comes to impact investing.
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Hardly present in the impact investing market two years ago, pension funds and insurance companies now account for 48% of global #impact assets under management, according to the GIIN's latest research. A dramatic shift in the type of investors that provide the impact money around the world is under way – read our article to find out more: https://lnkd.in/gCAMCHxU The Global Impact Investing Network | Amit Bouri | Dean Hand #impactinvesting #GIINForum2024
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What exactly is place-based impact investing and why should institutional investors care? Our Senior Programme Manager Mark Hall breaks down this growing investment approach in a new Q&A with Pioneers Post. Key insights: ➡ Place-based impact investing goes beyond just investing in a location - it's about understanding local needs and generating intentional, measurable outcomes ➡ UK pension funds could unlock £20bn annually by allocating just 5% of assets to local impact ➡ Success stories include Cheyne Capital's affordable housing for Manchester key workers and Cornwall Pension Fund's local renewables portfolio The momentum is building as investors are seeking to address regional inequalities while generating stable returns. Learn more about getting started with PBII in the full article: https://lnkd.in/eY-RNtqc. #ImpactInvesting #PlaceBasedInvesting #RegionalDevelopment
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Wealthy individuals, family offices, and foundations continue to be the driving force in impact investing as institutions face 'steeper than expected' learning curve on impact investing, shares AsianInvestor. Despite impact funds now regularly raising $1 billion-plus and giant asset owners like Dutch pension giant ABP targeting huge impact portfolios, in general, institutional investors continue to face a steep learning curve. Read more about it here: https://lnkd.in/grSgFAaD If you're a family office principal or foundation investor interested in impact investing, reach out for a consultation today:https://lnkd.in/gHkC8YAF #impactinvesting #sustainablefinance #familyoffice #SFi
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Place-based impact investing (PBII) is all about backing communities directly, focusing on specific places to create real, measurable change. It's not just about profits; it’s about purpose—like building affordable housing or enhancing local healthcare. Investors are working hand-in-hand with councils, local groups, and community leaders to ensure investments align with what matters most to each area. It's great to see this growth in investment products targeting positive local outcomes. Read more on Pioneers Post: https://lnkd.in/enGV7mHz
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Interested in place-based impact investment? The Impact Investing Institute (our National Partner colleague on GSG Impact) has released a report highlighting developments over the past few years in the UK (since its major study in 2021) – offering valuable insights for impact investors here in Australia. This new report highlights: ✅ The emergence of a place-based impact investment (PBII) market, with increasing awareness and adoption of PBII as an approach and the allocation of capital to place-based impact. ✅ How government is using public funding to leverage private finance for local impact. ✅ The work being done to connect investors to opportunities. ✅ Some of the barriers that are holding back PBII from reaching greater scale. ✅ Some of the pathways to scale and spread PBII. And the good news is progress is being made: 1️⃣ The supply of capital seeking place-based impact investment is increasing. 2️⃣ There is an increasing demand for impact capital. 3️⃣ The enabling infrastructure to support PBII is being built. Read the report 👇 #ImpactInvesting #SustainableDevelopment #communityengagement #EconomicGrowth
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Institutional Asset Owners (IAOs) are showing a growing interest in generating measurable positive impact while meeting their targeted financial outcomes and obligations. However, according to the New York-based Global Impact Investing Network, only about 1% of the total capital managed globally by all types of investors is currently allocated to an impact strategy. Creating an isolated envelope or impact portfolio within a large pension or insurance portfolio is convenient as a starting point, but some IAOs are already adopting a more integrated approach and looking for ways to embed these impact outcomes into their overall strategy. Using an "impact lens" as part of a holistic portfolio construction approach allows to: - deploy capital within and across all relevant asset classes to pursue more impact opportunities than is possible with a narrow mandate; - achieve a higher degree of diversification within impact investing strategies; - deliver greater impact alongside financial returns in the interests of beneficiaries. Here are some interesting findings from the cases analysed in this paper: - “…the investments made within the impact investing strategies fully align with the institutionally defined risk-return profiles and thresholds. There is no trade-off made;” - “…a well-defined social or environmental problem linked to geographical priorities (e.g., local pension authority and immediate community) or underlying market focus (e.g., insurance and community resilience);” - “…each impact strategy is built on a specific priority that has a geographic dimension, a target group and an ambition for contributing to a specific change or outcome.”
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👉 💚 📈 Impact linked compensation Impact linked compansation helps impact fund managers to turn their intention into reality. Thanks a lot World Economic Forum, for giving me the opportunity to shed light on this important topic. Check out the link to the article below. #ChiDeepImpact, #ImpactVC, #Intentionality John Dutton, Allison Voss, Ross Chainey
Implementing #impact-linked compensation in impact investing fosters greater accountability among fund #managers, limited partners and other #stakeholders. Read more: https://lnkd.in/dSefYURM Christin ter Braak-Forstinger, Dr., LL.M. Chi Impact Capital UpLink - World Economic Forum
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