Fiera Capital’s Post

#esg & #impactinvesting : what lessons can the financial inclusion draw from other sectors?   I am close to completing the 6-month #FrankfurtSchool ESG & Impact Investing course that provides a great perspective on impact investing. After many years working in #inclusivefinance , this is inspiring to challenge where we stand today.   In this article written for Inclusive Finance Network Luxembourg InFiNe.lu, I am sharing here insights from the real estate sector.   I find it insightful to look at what traditional sectors are doing for two reasons. 1) closing the gap between where we stand and the Sustainable Development Goals (#sdgs ) requires all actors to change their practices; 2) the practices adopted by well-established actors may be inspiring for financial inclusion.   Looking forward to sharing thoughts on this topic, with my colleagues from Grameen Credit Agricole Foundation , Cerise SPTF, as well as peers from the financial inclusion sector… or other sectors!

The growing popularity of sustainable investing poses challenges for fiduciaries in a complex investment environment. The pros and cons of ESG investing have been debated in the management of university endowments, retirement funds and private wealth management. Pros include better alignment with beneficiary values, identification of companies with sustainable practices, potential reduction of long-term investment risks, and evidence that ESG investments can perform as well or better than traditional investments in the long run. Cons include complexity in implementing ESG criteria, potential for lower returns compared to traditional investments, lack of standardization in ESG criteria leading to inconsistencies and confusion, and differing views on appropriate ESG criteria among beneficiaries. http://spr.ly/6047TfofX #ESGinvesting

🌱 Despite setbacks in 2022, appetite for #ESG investment amongst #PensionPlans remains robust with powerful tailwinds expected thanks to the evolution of capital markets. Discover the Amundi's opinion ⤵

5 out of 7 of the first ever graduate course on system-level investing is a wrap (hat tip to Columbia | SIPA, the Sustainable Investing Research Initiative (SIRI), and Caroline Flammer for making this a flagship offering). During this session my co-instructor Jon Lukomnik and I explained to students how system-level thinking is not a separate activity; it can be well-integrated into traditional investment policies and practices like Investment Belief Statements, Asset Allocation, Portfolio Construction, Stewardship and Engagement, Manager Selection, Proxy Voting, etc. Jon, our TA Geetika M., and I had another embarrassment of riches/expert perspectives as we were joined by joined by Rodney Foxworth (Worthmore) and Jessica Matthews (J.P. Morgan Private Bank and a returning guest lecturer from last semester). Jessica’s name will be familiar to anyone that has followed TIIP over nearly a decade. She has informed more of our projects than I can count, and is currently serving on the working group guiding TIIP’s soon-to-be released report on measuring system-level progress (hat tip to Fran Seegull of Tipping Point Fund on Impact Investing, who guest lectured last week and whose organization is funding the measurement project). Jessica covered a lot of ground, but emphasized the role a massive platform like J.P. Morgan Private Bank plays in the financial system (and the important signals that such an institution sends to the overall market) as well as the significance of bringing financial advisors more into the fold (an often overlooked stakeholder group), one that TIIP has focused on in collaboration with groups like CFA Institute, Money Management Institute, and Investments & Wealth Institute). [ Read more about the measurement project here: https://lnkd.in/eQCS3vA4 ] Rodney, who has played a similar guiding role in TIIP’s work; most recently as Co-Chair of TIIP’s Racial Equity Working Group with Renaye Manley, MBA of SEIU. Drawing from his experiences at Common Future as well as his current shop Worthmore, Rodney reflected on how investors need to rethink investment practices, incentives, and approaches if we are to center historically excluded populations in decision making—doing so is not just morally important, it is also critical for the resiliency of the economy. To do so Rodney reinforced the need for investors to ensure racial equity at U.S. corporations and financial institutions, and contribute to the development of racially equitable social structures. [ Read more about the “Introduction to Racial Inequity as a Systemic Risk” report here: https://lnkd.in/eXZR7PnV ] Next week Jon, Geetika and I will be joined by N. Maguette Diop of SEIU, Mirtha Kastrapeli of ISS ESG, and Anna Snider of Bank of America for the class on utilizing advanced techniques. #impactinvesting #responsibleinvesting Want to learn more about the course or TIIP? DM me.

As we move deeper into the #energytransition, sustainable investing strategies will only become more important - institutional asset owners seem to understand this -- with an emphasis on climate, the energy transition and DEI : "Results from the Coalition Greenwich Emerging Trends in Sustainable Investing Best Practices and Wildcards for Institutions Study shows nine out of 10 institutional investors in North America and Europe expect to be investing sustainably or working toward the goal of introducing sustainable investment practices into their portfolios within the next five years. In fact, implementing sustainable investing across portfolios with full integration is projected to grow to three times today’s level in five years." #ESG #sustainableinvesting AGF Investments Intentional Endowments Network Astrid M Ciarallo William Boardman Dorien Nunez Garrett Ashley Sorelle Ngatchou #institutionalinvestors #endowments #foundations #JEDI #DEI #justtransition #climaterisk https://lnkd.in/e69jkgXc

🌱 Embracing the Power of the Private Sector in Impact Investing In my recent post, I highlighted how impact investments have the power to create a positive impact on our world. Now, let’s shed light on the potential of private sector involvement in driving positive change. Often, public funding and philanthropy are assumed to be the primary sources of capital for social and environmental initiatives. However, I believe that private capital can also play a significant role in impact investing, contributing to meaningful solutions. The private sector plays a critical role in driving impact initiatives, and here's why it matters: 🔹 Bridging the Finance Gap: The World Economic Forum's article on climate adaptation finance highlights a substantial finance gap that requires urgent attention. Private capital has the potential to fill this gap and mobilize the necessary resources to address pressing global challenges. 🔹 Blended Finance for Greater Impact: Collaborative approaches that blend public and private funding offer scalability to critical and global initiatives. By connecting venture capital and private equity with public-sector initiatives, we unlock opportunities for impactful investments that benefit all. 🔹 Government and Private Sector Collaboration: The collaboration between government and private sector is crucial for driving large-scale impact. Combined resources have the potential to tackle complex challenges more effectively and to involve all stakeholders. 🔹 Building a Sustainable Future: Sustainable investing trends are shaping the future of finance. Check out the valuable insights from the following article written by Schroders, or the article by the World Economic Forum: 👉 Schroders: https://buff.ly/3YgQ8ER 👉 World Economic Forum: https://buff.ly/3k4ZaVe #ImpactInvesting #SustainableFinance #PrivateEquity #ESG

“In the UK, the market for socially responsible investing is expected to grow by 173%, reaching £48 billion by 2027.” In a recent article, Proactive Investors posits that UK investors are becoming increasingly conscious of ESG issues. This is changing the real estate investment landscape for the better, and encouraging other industries to follow suit. Read more about this positive trend here: https://bit.ly/49AW0xq

The latest Schroders Institutional Investor study is worth a read. 770 global institutional respondents spread across pension funds, insurance funds as well as endowments and foundations, stemming from 36 locations worldwide, managing $35trillion AUM's, give you a good picture on what this group is thinking: 👇 👇 👇 🔘 Generally, investors target sustainability and private assets amid energy transition opportunities as inflation concerns remain 🔘 >50% of respondents worry about impact of geopolitical uncertainty and inflation, leading them to invest in companies with more localised #supplychains, both in public and private markets 🔘 In the next two years, 35% of respondents expect to increase allocations to private assets, as two thirds of respondents believe the asset class will offer best opportunities to get involved in key trends such as the #energytransition or #impact investing, in addition to being a deeper source of diversification 🔘 Around 50% of global investors believe that infrastructure/renewables are best placed to capture energy transition investment opportunities in the medium-term, leading them to plan to increase allocations to the asset class 🔘 67% of global respondents think it is likely or highly likely that the energy transition will spur investment in innovation, creating significant investment opportunities. 🔘 The majority of investors believe sustainability and impact strategies will support their objective of achieving long-term financial returns, however , institutional investors require more support from their external managers to help navigate their sustainability and impact investing objectives, particularly regarding measurement of impact. 🔘 The majority of investors believe sustainability and impact strategies will support their objective of achieving long-term financial returns (e.g. this is simply good business) and 43% highlight having a positive impact on people and planet as being one of the top drivers for sustainable investing 🔘 60% believe having an impact which is easily measured and understood to be the most important criteria when considering an allocation to impact-focused investments. 🔘 >50% of respondents identified a lack of standardisation in terms of measurement, process, tools and metrics etc to be the biggest obstacle for investing in private assets strategies focused on sustainable investing Really good study, again pointing to the direction of asset owners in regards to sustainability. Good stuff Andrew Howard, Nils Rode, Johanna. Read in full here: https://lnkd.in/d7879UU2 Download here: https://lnkd.in/dAkFPFRU #esg #sustainability #transition #privatemarkets #climate #biodiversity #financialmateriality

Independent UK property organisation Assissted Living Project managing director Thomas Williams joins us to discuss ethical #RealEstateInvestment and the impact socially-minded investment can have. "The rise of the UK’s collective social consciousness is redefining the private investment landscape. There’s a growing appetite for investing personal wealth where it not only has positive financial return, but a positive impact on society," Williams writes. "According to the latest ESG Attitudes Tracker from The Association of Investment Companies (AIC), more than half (53%) of private investors consider Environmental, Social, and Governance (ESG) factors when deciding where to invest. "This shows that investors are increasingly savvy and are choosing to invest in ways that support sustainable and responsible business practices. They're not just looking for financial gains; they want their money to do good things for the world too..." More at #Proactive #ProactiveInvestors #ESG #EthicalInvesting #REIT #SustainableInvesting http://ow.ly/5jtL105kc2T

Throughout the summer, our judging panel carefully reviewed and considered the vast number of entries we received for the ESG Investment Leader Awards. Without them, it would not have been possible to curate our shortlist of finalists and we look forward to welcoming them to the Awards Ceremony on 2nd November to crown our 2023 winners!   Don’t miss out. Book your tickets today: https://lnkd.in/eMTdE2c3   With special thanks to our judges: 🔹 Sally Bridgeland FIA FRSA BSc ARCS, Chair at Local Pensions Partnership Investments 🔹 Emma Douglas, Senior Stewardship Analyst at BT Pension Scheme Management 🔹 Cléo Fitzsimons, Head of Responsible Investment, Pension Insurance Corporation plc 🔹 Aileen Mathieson, Group Chief Investment Officer at Aspen 🔹 Maria Nazarova-Doyle, CFA, Global Head of Sustainable Investment at IFM Investors 🔹 Corrado Pistarino, Chief Investment Officer at Foresters Friendly Society 🔹 Anand Rajagopal, Private Markets Sustainability Lead at Phoenix Group 🔹 Nimisha S Sodha, Responsible Investment Lead at Just Group plc 🔹 Aria Goudarzi, Experienced ESG Data & Reporting Lead 🔹 Stephen Millar, VP, Head of EMEA at Baron Capital 🔹 Tedd Moya, Oxford Martin Fellow at University of Oxford 🔹 Katie Zolnierz, Director, Investor Relations & ESG Reporting at JTC Group 🔹 Rupert Davies, Group Sustainability Manager at Foresight Group 🔹 Arun Kelshiker CFA, CAIA, Advisory Board at Cambridge Sustainable Investment Partners 🔹 Michael Marks, Head of Investment Stewardship & Responsible Investment Integration at Legal & General Investment Management (LGIM) 🔹 David McNeil, Head of Responsible Investment Research at Insight Investment   #ESGawards #ESGILE23 #ESGinvesting #ESGexcellence #insurers #pensionfunds #assetmanagers #awardsceremony