Measurement is key. With no standardised reporting, it is critical the investment managers provide (and asset owners request) clear measurement of each investment made, however imperfect the data may be – the commitment must be there in order for the disclosure to improve.
If impact investing is to truly be considered successful, it must address the big question that came out of the financial crisis – does finance work for society or against it?
To give a positive answer, impact investment must serve the broader public.
It must be accessible, transparent and relevant in order to engage the investing public.
Hope for our planet and the people on it comes from unleashing the power of ordinary investors, giving them the tools to allocate their investments in a way which matches their ethics – only then will we truly be able to call impact investing a success.
Victoria Leggett is head of impact investing & portfolio manager at Union Bancaire Privée