The 2020 biannual Sustainable and Impact Investing (SII) survey highlights the growth of the space over the last two years. Of the 202 survey respondents, 61% reported engaging in sustainable, ESG, and impact investing compared to 36% in 2018. Respondents use a variety of tools to implement SII in portfolios, the most popular are ESG integration and impact investing in social equity and resource efficiency & climate change.
Sustainable and Impact Investing
Environmental, social, and corporate governance considerations are integral to investing, for both risk management and long-term return potential. To that end, we integrate ESG and sustainability factors across our investment platform by assessing all material information to help our clients make prudent investment decisions.
Our sustainable and impact investing team, and our firm more broadly, take an integrated, customized approach to building portfolios that reflect our clients’ specific impact and mission objectives, without making concessions on returns. We employ a broad range of impact investing strategies, seeking to finance long-term, market-driven solutions to real societal challenges. We aim to invest in the future, eliminate greenwashing, lean into underappreciated or mispriced areas of the market, stay ahead of change, and align portfolios with fundamental long-term economic value.
We are a signatory to the UN Principles for Responsible Investment (PRI) and the Task Force for Climate-Related Financial Disclosures (TCFD).
We also partner closely with leading industry networks and impact-related affinity groups to help advance the volume of investment opportunities, create connections in the industry, and expand access to quality research and thought leadership.
We are investors, not scientists; however, investors would be wise to consider climate science in their investment decision-making process.
Our Latest Insights
In 2018, we reviewed the state of social equity investing, with a focus on racial equity investing. The themes we highlighted then are even more relevant today. In this paper, we discuss the renewed sense of urgency around racial equity investing and put forward three actions investors can take to address the inequities inherent in our society.
As 2020 comes to a close, we expect some key investment drivers to persist into next year. While our views speak to many different challenges confronting investors, including the poor bond yields on offer, the fate of US-China relations, and where to find growth, they are rooted in the belief that 2021 will be a year of healing for the global economy.
In this episode, we discuss the heightened focus on sustainable investing as well as a few key trends that will have implications for investment portfolios. We also talk green-washing within the industry and how to identify asset managers who are incorporating sustainability into their investment process effectively.
Sustainability trends—including climate change, multi–stakeholder driven society, resource degradation, demographic challenges, and technological revolution—have already impacted investment performance. Investors that incorporate these risks and opportunities into their decision-making frameworks are likely to be better prepared for the future than their peers.
This paper discusses recent trends in US commercial real estate fundamentals and looks ahead to what might be in store for the remainder of 2021. Overall, we are reluctant to sound overly bullish about the broad asset class, as the outlook for some sectors is unclear. Still, for investors looking to immediately deploy capital, we highlight two categories of opportunities.
In this edition of VantagePoint, we review the drivers of inflation globally and conclude that widespread inflation concerns are likely overdone. For investors concerned about the risks of inflation, we refresh our analysis on the complex relationship between asset classes and inflation and dig deeper into the implications of higher inflation on equities.