PARTNER CONTENT
Impact Investing: how to avoid worst-case scenario Impact investing addresses key social and environmental challenges. It fills funding gaps and combines financial return with positive outcomes, and more often than not, fosters innovation.
IMPACT INVESTING VS. SUSTAINABLE FINANCE Impact investing and sustainable finance are often used interchangeably, but, while related concepts the two practices are quite different, with nuances critical to understand given the urgency for change.
048049_PUB_PUBLI IQEQ.indd 48
• Sustainable finance incorporates environmental, social, and governance (ESG) considerations into investment decisions. It may be seen as a broader term encompassing various financial activities. The primary aim of sustainable finance is to integrate ESG considerations into financial decision-making to promote long term sustainability. • Impact investing directs capital to projects that generate positive social and/ or environmental outcomes alongside financial returns. Impact is anchored on the concepts of intentionality, additionality, and measurability (France Invest, 2021).
Crédit
As global challenges like climate change, biodiversity loss, rising inequalities and general unrest intensify, aligning financial returns with social and environmental impact has never been more important. This article will explore the nuances of impact investment strategies, highlighting the critical role of innovation and collaboration in achieving a sustainable future.
IQ-EQ (Luxembourg) S.A.
Francesco Cavallini Client Relationship Director Regional Head of Sustainable Finance, Continental Europe at IQ-EQ
04/07/2024 16:53