The purpose of impact investing is ultimately to exact positive change. By putting our money to work in a purposeful way, investing in companies that are committed to solving the world’s challenges, we can aim to have a meaningful impact.
As active fund managers, we can also target a positive impact through how we invest, as well as what we invest in. We can do this by being a good influence.
Engaging for positive impact
In the same way that impact investing is about solving challenges, company engagement is about using our voice to help shape better outcomes.
The purpose of engagement is multifaceted. One aspect is to enhance our understanding of the impacts – positive and negative – that each company has through its activities. Dialogue not only allows us to gain new knowledge and insights, but also allows us to push companies to enhance what they disclose publicly. We might also persuade them to adopt more specific or more ambitious impact-related targets.
Source: Investment Week
Author: Ben Constable-Maxwell