ESG webinar series: impact investing

A wise man said being clever is not being able to predict when it will rain, being clever is bringing an umbrella. Much of the discourse surrounding ESG investment , socially responsible investing and climate risk revolves around the issue rather than the solution.  

Impact investments are investments made to companies, organisations and funds with an intention to create a measurable and beneficial outcome socially or environmentally alongside gaining a financial return. It’s with the capital from impact investment funds that social and environmental issues can be addressed.

In our webinar series, we addressed the issue of what an investment portfolio that is aligned with the Paris Agreement looks like in practice. At Barnett Waddingham, we believe that far from being a ‘current issue’, the management of Environment, Social and Governance risks will be critical to investment success in the short, medium and long-term.

Impact assets or assets that are being managed to take advantage of the opportunities that climate change and ESG create will be discussed in this third in the series webinar. We discussed the different active management styles that can be used, where we see the opportunities for impact assets and how they can be accessed. We added to this by illustrating to trustees the impact on their carbon footprint by moving to a more climate aware portfolio. Crucially, we also discuss the risk and return characteristics of doing so and seek to leave trustees with the question ‘Why would you choose to remain overweight carbon and risk?’