Public equity impact investments are becoming increasingly popular for investors looking to generate financial returns while creating positive social and environmental impact. This type of investing typically involves purchasing stock of companies with a positive social or environmental mission, or investing in funds with a similar focus. In this article, we will provide an overview of public equity impact investments, and share some examples of investment offerings on Impact Capital Partners.
Before getting into public equity impact investments, let’s start with a brief introduction on impact investing.
Impact Investments are investments made in social enterprises or investment funds that seek to generate positive social and/or environmental impact alongside a financial return. As opposed to SRI and ESG investing, which rely on exclusionary practices to screen out harmful investments, impact investing aims to bridge the altruistic principles of philanthropy with traditional investing. You can learn more about the differences between these types of investing in our article SRI vs. ESG vs. Impact Investing.
Depending on the strategic goals of the investor, impact investments can be made in frontier, emerging or developed markets, and can target a range of financial returns from commercial (“market”) returns to concessional (“below-market”) returns. Impact investments can also be made through various asset classes, and can focus on varying impact themes.
According to the Global Impact Investing Network’s October 2022 report, the impact investing market currently exceeds $1.16 trillion in assets under management. In April 2019, GIIN estimated the market size at $502 billion and by 2020 that estimate had grown to $715 billion.
Public equity impact investments are investments made in publicly-traded companies that have the potential to generate positive social or environmental impact alongside financial returns. These investments can take a variety of forms, such as direct investments in public companies, stock purchases in companies with a positive social or environmental mission, or investments in funds that specialize in socially responsible investing.
Public equity has been used to finance a wide range of socially and environmentally impactful companies. Below you will find some examples of public equity impact investments listed on Impact Capital Partners.
At Impact Capital Partners, our mission is to connect institutional capital with the growing impact investment market to address the world’s most pressing challenges. By utilizing impact investments, institutional investors are able to generate positive, measurable social and environmental impact alongside a financial return. We are constantly finding new impact investment opportunities in both emerging and developed markets, targeting market-rate returns. Schedule a call with us HERE if you’re interested in learning more about our impact opportunities.