Impact investing in private markets

Access to affordable housing and staples, such as clean food and water, are fundamental requirements of a healthy community. Impact investments made in this area include these basic needs as well as the increasingly important issues of financial wellbeing, digital inclusion and sustainable transport. Investments in these areas can substantially contribute to eradicating poverty.

Education and health are recognized as human rights; nevertheless, they remain out of reach for a significant portion of the world’s population. Our focus on wellbeing and empowerment includes investments in these areas, as well as promoting inclusion and equality in all its forms. Initiatives encompass supporting education for girls, promoting life-saving maternal healthcare and equipping the next generation of entrepreneurs from disadvantaged backgrounds with the skills they need to succeed.

Reporting is resource-intensive but vital in helping to ensure you are on track to achieve your goals. Effective reporting also separates genuine impact strategies from those created by clever marketing departments (also known as “greenwashing”).

By having a clear view of your whole impact investing portfolio, you can hold your asset managers accountable and keep an eye on progress as you work towards your ESG goals.

Although there have been notable advances in standards and measurement tools, there are relatively few mandatory reporting requirements. As a result, there can be discrepancies in methodologies.

We encourage investment managers to report at an underlying company or asset level consistent with the Impact Management Project’s Five Dimensions of Impact. This framework gives you confidence in the manager’s impact intention and level of detail adopted.