Laura Skiles’ Post

Is it time to reconsider the definition of impact investing? So far it has been left to market participants to self-identify and to a variety of industry-led initiatives to check whether investors are ‘walking the talk’. Now regulators are proposing new rules for using the term ‘impact’ in investment product labels. In his latest blog, our Head of Impact, Matt Ripley takes a look at what defines and differentiates impact investing as a strategy. We'd love to hear your thoughts. #ImpactInvesting #Impact #SocialImpact #Finance #Sustainability #ImpactManagement #ImpactMeasurement #ImpactReporting #ImpactVerification

Ahead of The Global Impact Investing Network's conference next week, our Head of Impact, Matt Ripley, poses the question: is it time to reconsider the definition of impact investing? What are your thoughts? Read the full blog here: https://lnkd.in/e2zb4BvF #ImpactInvesting #Impact #SocialImpact #Finance #Sustainability #ImpactManagement #ImpactMeasurement #ImpactReporting #ImpactVerification #GIIN #GIIN2023

The Complete Guide To Impact Investing

impact investors seeking market-rate returns reported lower levels of difficulty in impact investing—compared to traditional, non-impact investing—than did impact investors who were targeting lower financial returns.

Impact Investing: The pursuit of profitable, & purposeful investing!💰 Impact investing's strength lies in its unique capacity to generate financial returns while simultaneously fostering positive social and environmental change, a quality that sets it apart as a beacon for conscientious investors navigating the complexities of today's financial markets. Despite the turbulence and challenges faced in the world of finance, impact investing stands as a steadfast and potent tool for conscientious investors. In this insightful article, explore: 📊 How Impact Investing differs from ESG 🌍 Opportunities that span diverse asset classes 💡 The art of aligning financial goals with ethical values 🔗https://lnkd.in/gvgk5xaN #PurposefulWealth #EthicalFinance #FinancialStrategy

Benefits of, Challenges in, Lessons from and Future of IMPACT INVESTING

Investors are increasingly interested in sidestepping the profound anti-ESG sentiment. An interesting Investment News article outlines why impact investing can offer a more compelling avenue for investing with intention.

Impact investing has emerged as a dynamic investment approach that aims not only for financial returns but seeks to make a positive difference in society and the environment. In this blog post, we provide an overview of the impact investing industry, focusing on practical insights for investors. Learn about the rise of impact investing, its market dynamics, goals, and challenges. 👉 https://lnkd.in/dT-6FwJf #ImpactInvesting #InvestmentBanking

What the Future Holds for Impact Investing The world of finance is not just about numbers and charts; it’s about people, communities, the environment, and the future. Impact investing, a topic covered in this recent conference, is a concept that’s gaining momentum globally, perfectly illustrates this connection. By strategically investing funds in ventures that have a positive social, environmental, and financial impact, it aims to transform the investment landscape. https://lnkd.in/gB29TCaA #impactinvesting #SustainableFinance #esg #socialimpact #ethicalinvesting #SDGs #ResponsibleInvesting #socialresponsibility #SustainableInvesting #changemakers #cleanenergy #HealthcareEducation #financialinstitutions #genderequality #GlobalImpact #esginvesting Financial Services Development Council Laurence Li U.S. Department of Energy (DOE) Robert Whitmore P.E., CFPS Wikipedia, the Free Encyclopedia

Love Fran Seegull’s insights & perspective here, but also I’m an idiot so I had trouble wrapping my head around this paragraph: “We are also looking more closely at beta risk. Research shows that beta drives 75% to 95% of all portfolio returns. Moving beyond modern portfolio theory ponders the impacts of business and investment decisions on entire systems, like society and our planet. We’re starting to focus more on inequality as a systemic risk, understanding that we may need a different set of tools and frameworks than those used to consider environmental factors.” I asked the robot to parse it out for me. Now I get it. Thank you, Robot. Oh, here’s what the robot said: “Fran Seegull is highlighting an advanced concept in investment theory related to risk and returns. Here’s a breakdown of her statement: 1. **Beta Risk**: Beta is a measure of volatility or systemic risk of a portfolio in comparison to the market as a whole. A beta greater than one indicates that the investment is more volatile than the market, while a beta less than one means it is less volatile. 2. **Importance of Beta**: Seegull points out that research suggests beta accounts for a significant majority (75% to 95%) of investment returns. This implies that broader market movements tend to dictate the performance of a portfolio more than specific stock selections or timing. 3. **Beyond Modern Portfolio Theory (MPT)**: MPT is a foundational financial theory that considers how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk. Seegull suggests moving beyond MPT to consider the broader impacts of investments. 4. **Impact on Systems**: She is advocating for an investment approach that takes into account the effects on society and the planet, not just financial returns. This reflects a growing trend in finance that recognizes that business and investment decisions can have significant positive or negative impacts on the world at large. 5. **Inequality as Systemic Risk**: Inequality is being recognized as a risk that affects the whole system. This means that extreme disparities in wealth and opportunity can lead to social and economic instability, which in turn can impact investment returns. 6. **Need for New Tools and Frameworks**: Finally, Seegull is calling for new methodologies to assess and address these systemic risks. Traditional financial tools focus on quantifying risk and return without necessarily accounting for social and environmental outcomes, so new frameworks are needed to evaluate and incorporate these broader impacts into investment strategies. Seegull's perspective reflects a shift toward sustainable and responsible investing, where the true cost and value of investments are measured not just in financial terms but in their wider societal and environmental impact.”