In recent years, investors have sought ways to align their values with their investments while maintaining a competitive rate of return. Impact investing represents an increasingly popular way of achieving this, with the Global Impact Investing Network (GIIN) estimating that $715bn’s worth of investor capital is now invested with the view of generating impact.
Within the realm of public equities, investors have typically sought to generate impact by proactively allocating capital to solutions companies who offer products and services that help solve many of the world's challenges we face - such as climate change or a lack of access to clean water and sanitation. Investors hold the belief that this proactive provision of capital to solutions companies should, over time, enable them to improve their cost of capital and competitive position versus those companies on the opposite side of the transitions taking place. In addition, given the size...
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