The Singapore state fund recently bought into impact investing specialist LeapFrog, and is eyeing more investments that combine strong financial returns with a positive social effect.
While gender lens investing metrics are still lacking, some experts say that rushing out a strict taxonomy at an early stage could constrain growth for the budding sector.
Danish pension plan PBU may have backed a Southeast Asia women-focused fund for commercial reasons, but it is in a small minority of asset owners making such investments.
Impact investing aims to identify businesses and organisations pursuing purpose-led activities serving the needs of the global economy and environment. A thematic approach to impact investing seeks to identify opportunities created by pressing issues that can be identified as megatrends – including climate change, access to water and pandemics.
The pandemic has challenged local communities to such an extent that family offices are switching their priorities in terms of impact funding.
Besides supporting pension funds in achieving their financial goals, impact investing can be an attractive way for pension funds to achieve the dual objectives of incorporating sustainability requirements into investments and providing diversification benefits, says Philipp Müller, BlueOrchard’s chief executive officer.