The belief that delivering positive societal impact means sacrificing return is shifting. Companies, investment managers, investors and civil society are increasingly considering their value and contribution to society as part of their business and investment strategies.
This is being driven by global shifts in the importance of agendas such as climate change, pollution, human rights and equality to businesses and investors. These present significant risks and opportunities for investors, whose returns are dependent on a thriving society and a thriving environment.
The private sector has a critical role to play in delivering a more sustainable and prosperous future - one aligned with the UN Sustainable Development Goals (SDGs).
In response, the interest in impact investments is growing rapidly.
ESG (Environmental, Social and Governance) and impact considerations are fundamental to a more sustainable economy. Investing with impact requires a focus on both ESG and Impact.
ESG: Assesses the exposure of an investment to environmental, social and governance risks. Typically focussed on operational risks rather than products/services.
Impact: Assesses the total contribution of an investment to a more sustainable future (e.g. through the lens of the SDGs). Typically focused on products/services.
Jo Kelly
Assistant Director, Sustainability and Climate Change, PwC United Kingdom
Tel: +44 7711 562486