Methods of finance and investments that combine financial returns with societal returns are growing every more popular, and an increasing number of our clients need professionals with experience in sustainability, impact and/or blended finance solutions. The number of firms specializing in sustainability – including captive funds and specialist divisions at asset managers, banks, pension funds and NGOs – is growing rapidly. This form of financing and investing is characterized by a significant bias towards emerging and frontier markets and adapting specific forms of investments to meet specific needs, e.g. private equity, direct loans, mezzanine.
Sustainable, Impact en Blended Finance & Investments
What is impact investment?
Impact investment means investing in companies, organizations and funds with the aim of generating a quantifiable benefit for society and/or the environment, as well as a financial return. Sustainable investing and financing have become commonplace in recent years – so much so that we could no longer do without them.
Evaluating the societal impact of investments includes looking at issues such as:
- Does a company ensure safe working conditions and provide good/fair remuneration for its employees?
- Is there a policy against discrimination?
- How does a company handle its own suppliers?
- What is it doing to eliminate child labour from its production process?
- Is the company susceptible to corruption? What are its lobbying activities?
- How are the board and supervisory board appointed? Do they set a good example, in terms of the business and/or private spheres?
- How transparent is the company regarding its policies and activities? What is its business ethos?
- How does the company ensure data security and data privacy?
- Does the company take account of the impact of its suppliers?
- Does the company ask its own employees to take responsibility for sustainability in the private sphere?
An ecological impact evaluation can include the following points:
- What is the company’s vision for the energy transition?
- What is the company doing to reduce CO2 emissions, water usage and waste?
- Does the company have an impact on biodiversity and/or sustainable food production?
- Does the company recycle?
- Does the company report on its own impact on the environment?
- Does the company ask its own staff to take responsibility for their ecological impact in the private sphere, too?
- Head of Private Impact Equity & Debt - International Impact Investment Management Firm
- Impact Investment Team Lead - Impact Investment Firm
- Senior Impact Investment Manager Debt Equity - International Impact Investment Firm
- Director Impact Partnerships - International Development Finance Company
- Managing Director - Impact Investment Firm
More information about Sustainable Investments?
Please contact Marc Hamel.