A sustainable investing group has called on more investors to join the likes of the Netherland’s PGGM pension fund to reach UN goals for ‘impact investing’.
The Global Impact Investing Network (GIIN) is calling for investors to map investments on to the United Nations Sustainable Development Goals, which were published a year ago.
The goals are as “far-reaching as they are ambitious, and if the world is to make real progress on sustainability by the stated goal of 2030, then it must be all hands on deck”, says Amit Bouri, chief executive of GIIN.
GIIN has release a report today that showcases a number investors, including PGGM, that have invested in impact themes, such as poverty and financial inclusion.
PGGM has €8.9 billion of ‘impact’ assets under management and its objectives are climate change mitigation, access to clean water and access to food and health improvements.
The investments are in public and private equities, bonds and real assets in European and emerging markets.
GIIN says impact investments are investments made into companies, organisations, and funds with “the intention to generate social and environmental impact alongside a financial return”.
Triodos Investment Management, also from the Netherlands, showcases its Triodos Microfinance Fund in the GIIN report. The fund’s average return over three years to July 31 was 4.4%.
It invests through private equity and private debt, as well as project finance, and the firm said that by year-end 2015, the financial institutions in the fund’s portfolio reached 13 million loan clients—of which 79% were women— and served 8.5 million savers in 35 countries across Africa, Asia, and Latin America.
In an unrelated move yesterday, Richard Turnill, BlackRock’s global chief investment strategist, called for investors to focus on climate change.
“We believe climate change creates a portfolio risk and opportunity that can no longer be ignored,” he said.
Turnhill added that climate-aware investing does not have to compromise on returns and that “smallish portfolio tweaks” can make a big difference in reducing climate change risks.
BlackRock is a member of GIIN, along with numerous other financial players, including Alfi, the Luxembourg funds industry association.
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