Investing in change; sharing our love for the planet
Insights

Investing in change; sharing our love for the planet

12th February 2021

The month of February is typically associated with Valentine’s Day, so we thought we would take the time to focus on one of the most important relationships we can have – the one between us and our planet. After all, sustainability is about a conscious commitment to our surroundings and nature.

With extreme weather conditions becoming the norm, the consequences of a warming planet are unfolding in front of our eyes. As a result, many are trying to take action. So much so that many investors want to use capital to make a positive contribution to the world.

How financial firms are helping their clients to invest in change

While many financial firms offer sustainable investments to their private markets clients, some angel networks and wealth management boutiques solely focus on promoting companies that are aiming to make a positive impact. To celebrate their efforts, we want to shine a light on their work. Here are some of the clients we work with that are helping to direct private capital into companies making a positive societal and environmental change:

  • Impact and Invest. A platform that focuses on the UN’s 17th Sustainable Development Goal. To ‘revitalise the global partnership for sustainable development’, Impact and Invest provide a gateway to companies that make a positive impact. Next to showcasing a range of assets, the Impact and Invest platform also educates clients on the benefits of social and environmental investments.
  • Future Planet Capital. A global innovation investment platform that enjoys strong relationships with top universities. Their platform brings innovative projects that are focusing on technology and life sciences to their clients’ attention. All projects address society’s challenges of today, including climate change, health, education and sustainability.
  • Align 17. This open platform’s primary goal is to reduce the blockers within impact investing. More so, they want to give private wealth clients access to tailored deals that concentrate on the UN’s Sustainable Development Goals (SDGs).
  • Beyond Animal. This digital platform focuses on alternative assets and hopes to accelerate the growth of ethical, cruelty-free and sustainable projects. 

The power of capital for good

Over the years, sustainable investments’ positive environmental and societal outcomes have become more measurable. Additionally, severe climate events have caused many to review their own impact. These factors have all contributed to a record year for sustainable investing, as an increasing number of investors are financing more businesses and projects.

  • In 2020, impact portfolios started to outperform traditional portfolios, underlining the market-competitive returns. (Source)
  • The Global Impact Investing Network (GIIN) estimates that the global impact investing market size was at 715 billion USD in 2021; a 42.4% increase to the previous year. (Source)
  • In contrast to popular belief, it’s not just the younger generation of investors who drive sustainable investing. Studies found that 72% of their survey respondents, including retail and private investors from the baby boom generation, have at least some interest in sustainable investing. (Source)
  • More research is being conducted to analyse and understand the structure, the returns, and the impact behind sustainable investing funds and projects. (Source)

The impact investing community is transforming. Last year, we launched Impact Agora alongside Barclays. This initiative began to demonstrate the demand for bringing institutions and investors together to impact urgent social and environmental issues directly. Within less than a year, over 80 institutions have already joined this ecosystem and started sharing investment opportunities with a combined value of £850m. The Impact Agora initiative with Barclays demonstrates the power of collaboration when investors and firms unite for change. 

The impact investing community is thriving and as expectations on individuals and businesses continue to lean towards striving for a healthier, happier planet, it is clear that investing in change is here to stay.