In a world looking to emerge from the Covid-19 pandemic and address the overuse of natural resources, impact investing is one of the fastest-growing investment approaches. It offers opportunities that are not only socially and environmentally beneficial but also financially rewarding.
In this video, Yalis Torretta, impact investing specialist, explains the concept of this approach to investing, its key characteristics, and the unique opportunities it presents.
The long-standing belief that sustainable investments are more resilient in times of crisis has proved to be true during the Covid-19 pandemic. In a world looking to emerge from the most devastating pandemic in a century, the case for building a better, more sustainable and resilient ‘normal’ is clearer than ever.
Preventing further pandemics by protecting wildlife and forests, for example, would cost just 2% of the estimated USD 11.5 trillion damage so far known to have been caused by Covid-19. Moreover, according to the World Economic Forum, actively tackling the global nature crisis could create 400 million jobs and USD 10 trillion in business value each year by 2030.
It is perhaps not surprising, then, that investors are increasingly interested in having a positive impact on the environment and society through their investments.
The fastest-growing approach to doing so is impact investing. Impact investing goes beyond considering ESG factors and intentionally seeks to generate both a financial return and have a measurable positive impact on society or the environment. Impact investing is not an asset class, nor is it tied to any particular asset class. Many impact investments strive to achieve financial returns that match those of traditional investments, and the number and scope of impact investments available is steadily increasing.
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We are at a critical juncture when it comes to investing in Planet Earth. This special report looks at addressing the overuse of natural resources, one of the key focuses of Julius Baer’s impact investing approach, and shares the experiences, knowledge, and expertise of industry leaders.
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