With no single industry framework to follow, one size really does not fit all, given the breadth of the impact investing choices available to them.
The feedback we have received from intermediaries and clients is that they want impact data which reports a direct link between the money invested and the environmental outcome. As an example, each year we report quantifiable data on four environmental outputs which relate directly to our philosophy – to invest in companies benefiting from the transition to a more sustainable global economy.
The metrics we report include:
- renewable electricity generated
- water treated, saved or provided
- materials recovered/waste treated
- net CO2 emissions avoided,
As demand for impact investing from clients continues to grow, there are key questions for intermediaries to consider.
First, intermediaries must decide what their client actually wants from their investments in terms of positive impact, whether this be an interest in investing in a particular environmental solution or avoiding certain stocks for moral reasons.
They also must assess whether the client’s current investments align with these needs and how easily these needs can be met. And finally, can the fund manager really provide evidence of this through clear, specific, and quantifiable data?
Meg Brown is executive director, marketing and business development at Impax Environmental Markets
