Impact Investing & how do we 'define' it: Summary

Hosts: 

Ram Gorlamandala, Founder, Tat Capital & Fiona Macintyre, Founder/Impact Architect, Forming Impact

Guest Speakers: 

Munib Madni, CFA, Founder Panarchy Partners, Simon McKenzie (Mac), Director, Bridge Institute, Zarmeen Pavri, Senior Impact Advisor

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As mentioned in our earlier update, Tat Impact was launched with a mission to enhance the supply of human capital and power the impact investing sector, by equipping men and women with unparalleled access to world class data/intelligence/mentorship and accreditation. As part of this initiative, our five-part masterclass series in the impact niche touches upon the theme of 'WATCH' - Words, Action, Thoughts, Character, Heart. 

The first session on 'what are the right words to define Impact Investing' was held on 8 September, 2020 over Zoom, and we have had a phenomenal response and energy. We have four more masterclass sessions lined up, where our expert panel will adress the below topics: 

1. What actions should be taken to promote Impact Investing
2. How to ensure that Impact Investing remains high on the radar of the investor
3. How do you identify the character of an Impact Investment professional
4. How can we ensure one’s heart and mind are united towards a common goal of creating a difference in society through Social Enterprises & Impact Investing

Summary:

• Intent to generate positive, measurable environmental and social impact alongside financial returns in emerging as well as developed markets.
• Over the last twenty years, impact investing has started to grow steadily and slowly, seeping into the mindset of the investor and stake holder community. There is a conscious movement from shareholder capitalism to stakeholder capitalism, and therefore a shift away from the investment return model that has worked so far.
• India has seen over 50 investors putting over $5 billion into impact projects, touching the lives of over 60 million people. It has seen a growth of 14% annually, thus destroying the myth of lower returns, if impact investing is undertaken by large enterprises.
• The Global Impact Investing Network (“GIIN”) is a non-profit 501c(3) organization committed to increase scale and effectiveness of impact investing. It builds critical infrastructure and supports activities, education, and research that facilitate development of a strong impact investing industry.
• In the current scenario, with the pandemic and all the global repercussions seen, it calls for all of humanity to strive to make the shift towards impact investing.
• Investors who are inclined towards a positive societal impact can direct their money and efforts to rebuild businesses, increase access to basic services such as health, housing, and education, restore quality jobs, etc., during the pandemic and also in the recovery phase.
• Many advisers and fund managers are now advising clients and investors with tangible evidence that putting their money into social impact investing will be profitable and less risky than traditional markets.
• Millenials and Gen Z will determine the future of impact investing in the next 25 years: whether investments become more ethical and sustainable, or add to the coffers of the wealthy. 90% of millennials seem to switch to using brands with a cause, and this could translate into their investment pattern too. Gen Z has increasingly shown interest in environmental issues like global warming, ocean plastic, deforestation, buying organic, recyclable, eco-friendly, cruelty free products.
• Impact investing bridges the gap between traditional investing and projects involving ESG. Examples of areas where impact investing can be used are sustainable development, telehealth, carbon capture and climate change.
• It is vital that the leaders, people at the top change their mindset and show their commitment to projects which are impact based.
• Intent towards impact investing is clearly seen, as more and more awareness is setting into people world-wide. Change is bound to happen provided we react to the mindset and shift in thought process from measuring success of a project in monetary terms to overall results affecting people, nature, and the world at large.