In this series, M&G reviews the current and predicted future state of impact investing and identifies areas where investors could have the most impact across the globe. Initial discussions explore how investors can help combat the climate emergency, and the methods used to measure impact. Later in the series, we will focus on how investors can help deliver positive social impact, a guide on avoiding greenwashing, and what impact investing looks like outside Europe.
The value of a fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
Investing in Solutions to Address Society’s Biggest Challenges
While impact investing grows in momentum, it is important to address valid concerns regarding ‘impact washing’, or ‘greenwashing’. These refer to when companies make impact focused claims, without having any clear-cut, demonstrable evidence of real social or environmental impact.
One of the core tenets of impact investing – but also the most challenging - is impact measurement. Unsurprisingly this is an area where investors are asking for increased transparency and visibility.
ESG agendas have shot to the fore in the last couple of years and we have seen investors increasingly integrating ESG into their investment decisions. But where does diversity and inclusion sit within the realm of ESG? And why is this such an important topic?
The Covid-19 pandemic has had devastating impacts on public health and has disproportionately affected vulnerable communities around the world. As nations continue to navigate their way through this crisis, the necessity of robust healthcare systems and services have become ever more apparent.
Natural resources are becoming increasingly scarce, despite human needs growing in an ever more densely populated and urbanised world. It’s becoming more and more apparent that the world needs to rethink its relationship with natural resources and come up with new social and economic growth models that are more efficient, better balanced and more sustainable.