Making a positive impact in listed equities
As part of our continued commitment to sustainable wealth management for our clients, UBP has expanded its responsible investment expertise into impact investing. We are firmly of the view that the financial sector has an essential role to play in creating a sustainable economy.
What are the benefits of impact investing?
1. Aligning investors’ financial goals with their values
Impact investing’s accessibility is key if we are to make a meaningful difference, and every investor must be able to reach their financial goals while upholding their values. Capital markets and listed equities have the potential to be huge engines of positive change, as they can boost the accessibility of impact investing to the general investing public.
2. Supporting companies with a clear intention of positive impact and a high potential for growth and profitability
The ever-increasing pressure to find innovative solutions and technologies which can allow humans and the planet to live in harmony is translating into strong investment inflows for the enablers of these goals. Identifying and supporting these companies is a key tenet of impact investing, as they should be best placed to grow faster and more profitably in the long term than the broader investment universe.
Increasingly, the United Nations’ 17 Sustainable Development Goals (SDGs) are being used as a roadmap for impact investing.
Impact measurement is key
A cornerstone of impact investing is the measurement of non-financial performance, i.e. the impact an investment has alongside financial returns. This allows the end investor to have a much more complete picture of the performance of their holdings.