The recently released Responsible Investment Benchmark Report 2019 reinforces that a responsible approach to investing – one that systematically considers environmental, social and corporate governance (ESG) and/ or ethical factors across the entire portfolio – represents a significant part of the Australian and New Zealand’s finance sector and is becoming the expected minimum standard of good investment practice.
In Australia, the responsible investment market in 2018 grew to $980 billion, 44% of total professionally managed assets under management. In New Zealand, this number grew to $188 billion, which is 72% of total professionally managed assets under management.
During the same period, Impact Investment market in Australia recorded a $10 billion investment while impact investment in New Zealand grew to $1 billion.
The opportunity for the Finance sector to play a major role in partnering to deliver some of society’s most urgent social and environmental challenges is real. We need the financial sector to align with the social purpose sector to deliver impact on our most important challenges.
We are seeing a growing impact investment sector aiming to deliver significant intentional social and environmental impact that is critical for our societies. The role that the finance sector plays is important and key to delivering significant impact.
Although the finance sector has not traditionally partnered with the social purpose sector, there is a real opportunity to work together on projects that require significant capital where there is a clear financial return and a measure social or environmental impact.
What we offer
Impact Architects as an intermediary can bring the finance sector and the social purpose sector together to maximise social and environmental impact. The power of what can be achieved is clear and a real commitment to work together will unlock capital for a better society.
It is important for any organisation considering impact investment to consider how they will identify priority projects and programmes and determine the ability of these projects to generate a revenue, as well as how they will measure social value. Clarification of these details is an important feature of the initial assessment work. This requires an investor-centric approach.