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  • 1.  Infographics: Impact Investing

    Posted 24-10-2023 09:50
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    Infographics: Impact Investing 

    Good morning community!

    Just before our  monthly community online meetup this Thursday with Raisa Beliard from BII on Impact Investing, I thought I'd share the infographics on Impact Investing.

    Do we have impact investors as members in the community? What would you say are the key opportunities that you are finding currently?



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    Aya Pariy
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  • 2.  RE: Infographics: Impact Investing

    Posted 25-10-2023 12:29

    Hi, impact investor over here! 

    Good tailwinds for impact investing in general. In our case (Aptimus Capital Partners), we see opportunities mostly in environmental topics, which has good fundamentals. The exception would be natural capital related investment, which investment thesis are harder if you look for double digit returns. Good social investments in terms of financial returns are harder to find, if you invest in developed markets you have little more than education, health and silver economy related investments (and about the latter, not much is impact). 



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    Salvador Doncel
    Impact Engagement
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    Original Message


  • 3.  RE: Infographics: Impact Investing

    Posted 26-10-2023 09:47
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    Thank you Salvador!

    I wonder if other members have experience in natural capital investing and how the impact is actually measured there?

    Good morning community, don't forget that we are meeting @Raisa Beliard today during our monthly networking zoom at 1 pm to discuss development finance and impact investing. Look forward to seeing you there!

    Here's the blog that I found from Friends Provident Foundation in collaboration with WHEB Asset Management about measurement of impact in listed equities.

    See you later!



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    Aya Pariy
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    Original Message


  • 4.  RE: Infographics: Impact Investing

    Posted 28-10-2023 07:29
    Does anyone know how the level of capital deployed in SIBs has grown since 2014? It seems the niche was growing initially but depended on government policy so would be interesting to see if the sector has grown either in the UK the leader in the area or internationally.

    Sent from my iPad


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  • 5.  RE: Infographics: Impact Investing

    Posted 28-10-2023 08:49
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    Morning David,


    I hope you are well

    Regarding your message

    Are you referring to Social Impact Bonds?

    If so, my impression was that they fell out of favour partly because they were not really considered bonds. Rather they were considered more like equity because their total returns were variable and not certain as conventional bonds

    My understanding is that SIB's have been succeeded by Social Bonds (ICMA SBP) since 2016. Social Bonds became popular with Responsible Investors because they are Use of Proceeds bonds, investors know how 100% of their money will be used (on social projects eg affordable housing, gender eqaulity, etc) and investors receive a regular report which increasingly includes impacts

    More than US$200bn have now been issued in Social Bonds

    Just my impression

    Hope this helps a bit



    Best regards
    Chris







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    Social-Bond-Principles-SBP-June-2023-.pdf   981 KB 1 version
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  • 6.  RE: Infographics: Impact Investing

    Posted 28-10-2023 09:06

    Chris

     

    Very true about the financial return profile of the bonds.  Capital very much at risk and interest unpredictable but technically not equity. 

     

    What interested me about the article was the infographic explaining the financial flows the stakeholders that could be identified and the governance/oversite built into the eco system.  I wonder if the social bonds are actually much different a similar financial flow and social impact info graphic with stakeholder participation would be interesting.   Making it more like a bond would mean the project would be more like a commercially/non profit managed recipient with an ability to either itself or via guarantors de-risk the capital risk of the bond.

     

    Do you know any sources of info for the SB market and particularly review of how the ecosystem operates and validates its integrity.

     

    Cheers

    David

     




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  • 7.  RE: Infographics: Impact Investing

    Posted 29-10-2023 20:41
    Dear David ,


    I hope you are well

    Thank you for your message

    I think one noticeable difference is the size of markets

    The infographic states I believe the SIB market to be about $100m whereas just one Social Bond from the World Bank amounts to $8bn

    Social Bonds are like conventional bonds and have been historically regulated in the same way. However they have additional features

    In terms of integrity, there are the stock exchanges of course, and London, Luxembourg, etc try to be leaders here

    There are the Social Bond Principles whose requirements help to reduce the risk of Social washing

    Then there are third parties eg
    1. The big four accountancy firms that could offer assurance statements
    2. Second party opinion providers eg Sustainalytics
    3. ESG rating providers, etc

    In terms of graphics, the GSSS market is several trillion $ and I’ve seen 120 slide training decks from training companies like WeESG , ICMA, etc

    In terms of data, there are providers like Environmental Finance Data, Refinitive, etc who should cover Social as well Green I believe

    I hope this helps a bit



    Best regards
    Chris




    Sent from my iPhone


    Original Message


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