Mainstreaming Impact Finance

November 13, 2019

Major Momentum and Gaps in the Transformation of the Financial Industry

 

A few weeks ago, the Business Roundtable – a group composed of leading American CEOs – made headlines by announcing that they were shifting from shareholder primacy (putting their shareholders first) to a commitment to all stakeholders. The move signaled a new level of mainstream corporate interest in sustainable business – but it wasn’t the first sign of this evolution. In the world of finance, the past few decades have seen a slow shift from more traditional investments to socially responsible investing (SRI), ESG (environmental, social and governance as three central factors to measure the sustainability and ethical impact of an investment), and about a decade ago, to impact investing.

 

These three types of investments can be loosely grouped under the banner of “sustainable finance.” But despite the significant progress made in sustainable finance since the 1970s, challenges remain. A few weeks ago, the Business Roundtable – a group composed of leading American CEOs – made headlines by announcing that they were shifting from shareholder primacy (putting their shareholders first) to a commitment to all stakeholders. The move signaled a new level of mainstream corporate interest in sustainable business – but it wasn’t the first sign of this evolution. In the world of finance, the past few decades have seen a slow shift from more traditional investments to socially responsible investing (SRI), ESG (environmental, social and governance as three central factors to measure the sustainability and ethical impact of an investment), and about a decade ago, to impact investing. These three types of investments can be loosely grouped under the banner of “sustainable finance.” But despite the significant progress made in sustainable finance since the 1970s, challenges remain.

 

 

A Major Gap in the Sustainable Finance Model

 

Some large companies are very good at showing that they have good governance, and that within the company they are sustainable and responsible. The problem is that…(…)

 

 

Full article available here: https://nextbillion.net/mainstreaming-impact-finance-momentum-and-gaps/ 

 

 

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