Even in Nordics, where sustainable investing has become mainstream, the word impact sounds a little intimidating.
Those for whom impact is the most unattractive don’t even believe that investors can generate positive impact without sacrificing returns. For some others, impact remains a far-away promise, something an investor may achieve in the long-term, but “we are not there yet.”
Investors need to see proof, a track-record of positive impact. Then, they ask for terms that are equivalent to traditional investments. Finally, they may wish for the same liquidity terms and legal structures. And even then… institutional portfolio managers may struggle as they wonder which investment bucket they should allocate this impact investment from.
What then, we asked the managers we met, can make for an investment that is not so difficult? Can we find impact investments that are just normal? A no-excuse product that investors can just buy and direct capital towards solving global issues?
Institutions need to get used to the idea by dipping their toe into investments that can fit into their allocations easily. Once they see the positive effects of their investments, they may be tempted to take another more daring step. To help us break down the barriers to impact one constraint at a time, we assembled expert managers and engaged investors to discuss Easy Impact.
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