The terms ESG, SRI and impact investing are often used interchangeably, and whilst there are indeed similarities and overlaps, the three investment approaches are quite distinct. Impact investing was born on the private equity markets but it is becoming increasingly important for public markets, and these can learn a lot from their private counterparts, especially from the perspective of achieving sustainable development goals.
The COVID-19 pandemic has thrown social vulnerabilities into sharp relief and today’s investors are keen to see their capital have an impact and generate innovation. This is particularly important in emerging markets, where impact investors can effect real change. However the biggest boost for impact investing can be found in the future: for the next generation, impact investing is a much more important and obvious approach to the markets.
Simon Pickard
Chairman of UBP’s Impact Investment Committee
Kanini Mutooni
Member of UBP’s Impact Advisory Board