1. Newsroom
  2. Impact investing - Creating the future now
Menu
Insight 17.10.2018

Impact investing - Creating the future now

Impact investing - Creating the future now

The role of impact investing is to strive to solve the world’s most pressing problems by identifying compelling long-term investments.


Every day confronts us with pictures and information highlighting the dramatic changes and problems that our world is facing. Climate change, and scarce resources and drinking water supply are just the beginning of a whole series of challenges. We cannot choose simply to brush aside these concerns, which could substantially change our own lives as well as those of the coming generations. Impact investing means engaging with businesses that demonstrate a clear intention to tackle these issues and contribute to change.

What is impact investing?

footprint.jpg

Impact investing is an investment made with the intention of generating a positive social and/or environmental impact alongside financial returns.

diversity.jpg

It exists across a diverse range of asset classes and geographies.

Picto_cible.jpg

Underlying investment candidates should demonstrate a clear “intentionality” within their business model.


What are the main differences between impact investing and ESG?

ESGcriteria.jpg

ESG investing aims to create superior risk-adjusted returns by analysing a company’s environmental, social and governance factors alongside financial analysis.

issues.jpg

The basis for this is that non-financial issues often result in financial consequences, whether good or bad.

businessprofile.jpg

Creating a more complete company profile helps investors to judge where a business’s vulnerabilities and opportunities lie.


  • Although ESG factors are important in impact investing (much as fundamentals and valuations are), it is not the ESG profile that drives investment decisions. ESG is typically concerned with a business’s operations (such as employee welfare, supply-chain transparency and the structure of the board), whereas impact investing is concerned with a company’s output. Does the company generate revenue from products/services which help to address the world’s environmental and social challenges?
  • A high ESG score can exist in almost any sector. An oil exploration company with rigorous safety mechanisms, robust maintenance capex and strong employee welfare, is less likely to experience oil spills, accidents and the ensuing fines and reparations (not to mention environmental damage). It would justifiably be ranked “best in class” from an ESG perspective and is likely to be a superior investment opportunity to its peers, due to the lower risks (and therefore higher certainty in forecasts). However it would be very difficult to define this business as a “positive impact” company as, regardless of its strong ESG credentials, its revenue is derived from the extraction of fossil fuels.
UBP Responsible Investment

Funds

Positive Impact Equity

Discover our range offering

Our range offering
Head of Impact Investing

Victoria Leggett

Head of Responsible Investment for Asset Management. Victoria joined UBP in 2010 as a portfolio manager and has 15 years of investment experience. She previously worked as a European Equity Analyst at Threadneedle having started her career in Corporate Finance.

Contact us

Want to know more about responsible investment?

Get in touch with our experts

Send us an email
Senior Investment Specialist

Jean-Luc Eyssautier

Jean-Luc Eyssautier joined UBP in December 2012. Based in London he is UBP’s Senior Investment Specialist for our European equity strategies as well as being responsible for the distribution of UBP’s strategies in the UK.

Expertise

Impact investing - Shaping tomorrow

Impact investing can help shape a healthier and brighter future.

Read more
Expertise

Impact investing - Contributing to a more sustainable future

What are the key features of impact investing?

Read more

Most read

Insight 01.10.2020

COVID-19: UBP keeps you up to date

Since this coronavirus appeared, UBP has provided its clients with guidance and support as we all tackle this unprecedented global health crisis. We give you regular updates on everything from our own safety protocols and the recommendations issued by the authorities to our experts’ latest analysis on the effects of the pandemic on the world economy and financial markets.

Insight 30.06.2020

UBP Investment Outlook 2020 Reset

The Global Economy at the Crossroads

Insight 24.06.2020

Market turmoil brings new opportunities for pragmatic investors

March 2020 was difficult time for many investors, as COVID-19 spread across Europe and the US, leading to sharp sell-offs in fixed-income credit markets. While such market turbulence is not to be welcomed, its occurrence can create opportunities.

Further reading

Insight 15.10.2020

The draw of the booming fintech sector

Martin Moeller, Portfolio Manager of our newly launched strategy, shares his view on why global fintech equities are an interesting investment right now.

Insight 05.10.2020

Webinar – Opportunities in the Gold Mining Sector

On Thursday 1 October 2020, UBP's experts Norman Villamin and Peter Kinsella hosted a webinar with Evy Hambro, Global Head of Thematic and Sector Investing at Blackrock, to discuss what gold investors can expect in the quarters ahead.

Insight 01.10.2020

Investing amidst a new Fed policy regime

Spotlight - September saw the end of the US Federal Reserve’s inflation containment policy regime in place since the 1970s.