Impact investing advisory refers to providing advice and guidance to investors and enterprises on how to conduct impact investing, which aims to generate positive social and environmental impact alongside financial returns. With the increasing attention on sustainability issues from governments, investors and businesses, impact investing is gaining popularity globally. However, many are still confused about how to practice impact investing properly. This article will focus on introducing major impact investing advisory organisations, and how their advisory services could help investors and businesses embrace impact investing and create long-term value.
The Sustainability Accounting Standards Board (SASB) develops impact investing standards
The Sustainability Accounting Standards Board (SASB), a non-profit organisation based in the U.S., is dedicated to developing a set of industry-specific ESG disclosure metrics to facilitate communication between investors and corporations on financially material and decision-useful information. SASB standards help investors and businesses measure, manage and report those sustainability factors that are likely to have material impacts on financial performance, so as to better identify and communicate opportunities to create long-term value.
SASB provides implementation guidance for adopting impact investing
The SASB standards are free to use for non-commercial purposes like reporting to investors. The key steps include: 1) Identify the industry classification; 2) Download the standards from SASB’s website; 3) Select appropriate sustainability topics and metrics; 4) Prepare reporting content with SASB implementation guidance. Investors can incorporate SASB standards to integrate ESG factors into investment decision-making and fulfil commitments as PRI signatories. The standards are widely applicable to both listed and non-listed companies managing various asset classes globally.
The Ford Foundation supports impact investing development in China
The Ford Foundation believes that applying impact investing approaches in China’s overseas investment could narrow global inequality gaps, while applying them domestically could help China achieve its carbon neutrality goal by 2060. To promote impact investing in China, the Ford Foundation Chair Darren Walker suggests: 1) Establishing alliances to catalyze China’s impact investing industry; 2) Improving narratives to build consensus and mobilize private capital for public good; 3) Building relationships between Chinese impact investors and global peers for mutual learning and sharing best practices.
China Social Enterprise and Impact Investment Forum advances impact investing
Founded in 2014, the China Social Enterprise and Impact Investment Forum (CSEIF) has translated and introduced major impact measurement and management frameworks like IRIS+ and IMM to Chinese investors and enterprises. It aims to link social enterprises, impact investors and socially responsible businesses to drive social innovation and sustainability through market-based solutions, improving lives and creating positive impact.
Impact investing advisory services provided by organisations like SASB and CSEIF could greatly facilitate the adoption and development of impact investing. By leveraging their standards, metrics, capacity building and global partnerships, impact capital could be unlocked to address pressing global crises and create long-term value for both businesses and society.