Do you want to make a difference in the world through how you invest? Impact investing can be a powerful way to affect positive social and environmental change and generate investment returns. It’s one of the three specific approaches within sustainable investing (along with exclusion and integration) and is currently one of the most vibrant and innovative segments of financial markets.
CIO Wealth Management Research (CIO WMR) presents Doing well by doing good: Impact investing , which outlines the what, why and how of impact investing. Three important criteria that CIO WMR uses to distinguish impact investing include:
- Intent—Explicit intentions by the creators of the investment solution to generate a positive impact and sustainable financial performance
- Measurement—Utilizing specific metrics and benchmarks to ensure specific measurements of investment results
- Verification—Establishing proof that invested capital was positively correlated with the intended outcome
The growing interest in impact investing has also given rise to an increasingly diverse array of asset classes and innovative, collaborative funding structures. Find out more in this compelling new report and discover a wide range of impact investing opportunities, including those aligned with the U.N.’s Sustainable Development Goals.
We can help you target specific areas where you want to make a difference and incorporate this approach into your individual investment strategy. Connect with your UBS Financial Advisor or find one today.
Previous issues on Sustainable investing