IMPACT INVESTING

Investments “made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return.

March 2018

Partners Group Launches Investment Strategy focused on the UN’s Sustainable Development Goals

Partners Group, the global private markets investment manager, has launched a dedicated investment strategy that will address global social and environmental challenges by investing exclusively in line with the United Nations Sustainable Development Goals (UN SDGs).PG LIFE has the dual mandate to achieve attractive risk-adjusted financial returns alongside measurable, positive social and environmental impact.

The UN introduced the 17 SDGs in 2015 to act as a framework for the global community’s sustainable development priorities until 2030. Since they were launched, Partners Group has through its dedicated direct investment programs invested an average of more than USD 1 billion annually on behalf of its clients into companies and assets pursuing a strategy consistent with certain of the SDGs.

More about PG LIFE

 

 

What steps can Inclusive Innovators take to get on the radar of impact investors?

 

This growing awareness around issues of sustainability has led to an expansion of the field of impact investing. In the process, investors have been developing better and better strategies and products for their portfolios, while companies presenting themselves to investor networks have had to step up their games and show that they are concerned about inclusive growth.

Investors have now moved to quantifiable metrics. No matter what metrics you use, show me tangibly how you’re impacting lives, how you’re impacting the environment and prove that by innovating you contribute to Inclusive Growth.

One mistake not to make is to think that they will be treated differently because they’re changing the world—that the benchmarks will be looser or more charitable when investors look at them. Investors expect good performance, solid growth, profitability, and the ability to sustain growth. Convincing investors that you have a sound business strategy and operations management.

Inclusive Growth Drivers: The Anatomy of a Corporation - White Paper by Morgan Stanley , Institute of Sustainable Investing

 

Companies have far-reaching impacts on society and economic growth through the decisions they make about their employees, products and services, operations and management practices. By considering implications of those choices on inclusive growth, corporations can contribute to economic gains that are broad-based and sustainable over time, while achieving business benefits through new market opportunities, reduced costs and enhanced investor interest.

Corporations can influence inclusive growth through choices across all functional areas of a business, including:

Human Resources

Choices about diversity, hiring and staffing practices, labor relations, and training and professional development affect employee financial and physical wellbeing, innovation and the overall success of the businesses. Companies can build inclusive work places with job security, good working conditions, and/or profit sharing, either directly or through value chains.

Products and Services 

Decisions here can consider the needs of more and newer consumer segments, products can be marketed and sold in fair ways, and customer needs can be more broadly considered from concept and design through the life of the product. By creating accessible and affordable products that meet critical needs in healthcare, infrastructure, education and other sectors, companies can contribute to a more inclusive consumer economy.

Operations Management

Operational decisions affect how goods and services reach end customers, and how workers are treated throughout the supply chain. They also give small and diverse suppliers an opportunity to participate in economic growth. By monitoring working conditions and working with suppliers to build capabilities, companies can deepen relationships and create a more reliable supplier base.

Firm Governance and Management

Sound governance and transparent management practices promote corporate ethics, long-term thinking and consideration of all stakeholders—including but not limited to shareholders. Companies can also use their political and social capital to influence the policy environment in ways that promote inclusive policies for labor, trade, taxes and fair market competition.

FULL WHITE PAPER HERE