As cumulative impacts of COVID-19 pandemic, climate change, and artificial general intelligence surge, many are turning to impact investing. In April 2019, Nine principles for Impact Investing were launched as a roadmap for investors seeking to transition their portfolios. These principles include impact measurement, transparency, and accountability, offer investors a structured method to assess the social and environmental impact of their investments.
The Impact Principles apply broadly to impact investors and investment portfolios across diverse sizes, asset types, sectors, and locations. They serve as a tool for evaluating and aligning investment portfolios with environmental, social, and governance (ESG) considerations. The saying “capital decides” , underscores the significant influence investors wield in shaping the direction of economies and societies.
Integrating principles for impact investment into investment strategies, investors can ensure that their financial resources contribute to initiatives that generate positive outcomes for society and the planet. This assessment is also underpinned by multi-stakeholder focus. Read further Assessing Impact through multi-stakeholder lense
Before implementing these principles, several key considerations are essential to ensure a smooth and effective transition. Read further Balancing Profits, People, and the Planet: The Triple Bottom Line Approach
