New CAMRADATA whitepaper explores role of Impact Investing in meeting climate and social goals
CAMRADATA’s latest whitepaper, Impact Investing, looks at how impact investors are investing for a better world, what challenges they face, and where their capital is needed the most.
The whitepaper includes insight from guests who attended a virtual roundtable recently hosted by CAMRADATA, from firms including Arisaig Partners, M&G Investments, Mackenzie Investments, Cambridge Associates, Redington and Stanhope Capital.
The report highlights that climate change is increasingly at the forefront of the global agenda, with a key focus on a ‘just’ transition to a net zero economy. Impact investing is set to play a crucial role if targets are to be met. But, even as governments and corporations alike are ramping up their climate commitments, there is much work to be done.
According to a recent study by the Rainforest Action Network, in the five years since the Paris Agreement, the world’s biggest banks – including BNP Paribas, Goldman Sachs, and JP Morgan – have financed fossil fuels to the tune of USD3.8 trillion (EUR3.2 trillion).
Sean Thompson, Managing Director, CAMRADATA, says: “Last year the theme of impact investing exploded, but rhetoric and reality are still far apart. Nevertheless, impact investors are vital in allocating capital to address the abundance of social and environmental issues facing the planet.
“Going forward there will be many investment opportunities for those keen to tackle social and environment issues that offer both reward and deliver a meaningful outcome. Our panel of experts discussed some key themes for determining impact, where investors can find ‘real’ impact and what challenges they may face.”
The CAMRADATA roundtable began with the fundamental question of whether minority shareholders in major quoted companies can make an impact. The panel then looked at where investors can find impact in both public and private markets, and the ideal amount of total assets that should be allocated to impact.
The conversation also covered the current direction of travel for impact orientated clients, the track record for approved impact funds and the importance of assessing the expertise of managers to ensure they are not greenwashing, before discussing Emerging Markets in relation to risk.
Finally, the discussion turned to the UN Sustainable Development Goals (SDGs), which for some on the panel were used as measures and to broadly categorise the impact universe. The panel were also asked whether the SDGs were sustainable once achieved.