More investors are coming forward with ‘socially responsible’ funds, but their impact is equivocal. Could a new form of impact investment make a difference?
rise of Impact investing – "Awareness of the need for new ways of investing is growing, and there are some tentative signs that it is having some impact on investor behaviour. EIRIS, the environmental consultancy, calculates that British investors had almost £11 billion invested in ethical funds in 2012, a 10-fold increase since June 1996, and a survey by the UK Sustainable Investment and Finance Association in 2011 found “early signs of a step change in the number of … corporate pension funds that are responding to the case for responsible ownership and investment.” Across the world, investment institutions now have $13.6 trillion of assets incorporating environmental, social and governance concerns into their strategies, according to the latest report from the Global Sustainable Investment Alliance, accounting for more than a fifth of total assets under management. Investment managers responsible for $6.5 trillion of foreign capital investment have signed up to the United Nations-backed Principles for Responsible Investment, launched in 2006."
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