Impact Investing is one of the Sustainable and Responsible Investment (SRI) strategies.
Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return (GIIN). According to 2016 Eurosif study, the assets under management with this strategy have grown by 385% in the last two years.
Investimenti Sostenibili’s approach embraces four pillars:
- Financial return: gradual increase of capital invested over a medium-term horizon
- Intentionality: generate a positive environmental and social impact
- Impact themes: 8 themes to effectively address the most urgent challenges
- Impact measurement: quantify the environmental and social impact in total transparency
The construction of a three dimensions investment
The selection process excludes from the investment universe financial instruments issued by companies that have a negative impact on the environment and society, and states where there is no respect of human rights and individual freedom. Exclusion criteria are complemented by the inclusion ones based on ESG (environmental, social and governance) and impact analysis.
The ESG analysis rewards companies that operate in conformity with the environment and the community.
The impact analysis extends the generation of sustainable value of financial instruments considering parameters such as: competition, inclusion, innovation, intentionality, additionality and measurability.
Macroeconomic variables and fundamental analysis are also considered in the decision making process.
The goal is to evaluate each investment’s capability to address an environmental and social problem. The instrument must generate a positive and measurable value and a financial performance in line with the risk profile of the investment strategy.
The result is a portfolio built on three dimensions: Risk, Performance and Impact.
Investimenti Sostenibili identifies eight Impact Themes to support the Sustainable Development Goals of the United Nations: Natural Resource Management, Renewable Energies, Energy Efficiency, Access to Finance, Health Care, Food, Education, Sustainable Building.