What is impact investing?
Impact investing in the latest wave in the responsible investing evolution. Impact moves beyond simple exclusionary screening and recognises that through innovative financial solutions investors’ capital can be put in motion towards greater social utility while aiming to generate market equivalent returns.
The challenge of impact investing is in simultaneously delivering financial and societal returns. These two criteria are not conflicting but are both demanding. The financial targets are not token, but competitive, market rate returns. The societal objectives require a demonstration of clear, measureable benefits. Our clients hold us to exacting standards on both.
Impact strategies cover a broad range of complex social and environmental themes and in many cases harness the latest technology or pioneer delivery systems to gain efficiencies and reach those most in need.
Here we take a look into how some investments work in practice under three prominent themes across our Impact strategies.
Impact in education programmes arguably requires the greatest level of innovation. The communities most in need of education services are the ones that have the least means to pay for them. Impact investing can provide the underlying financial force in harnessing disruptive technologies to create social value in an efficient manner.
Access to healthcare is a pressing and basic human right. It has enormous potential for transformative societal change. There are several channels to achieve this change, which could include; physical infrastructure, such as hospitals and clinics; drug delivery; or R&D for vaccines.
FinTech hardly needs an introduction, but is not often viewed as a way to change the lives of low-income people, who lack not only access to financial services but also lack trust in the financial system.
The speed of disruptive technological change lends itself to a vast array of innovative solutions to improve the well-being of communities.
Find out more : RI annual report.