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Perspectives

Environmental, Social and Governance

Demystifying Impact Investing

Where there are unmet needs there are investment opportunities. Environmental, Social and Governance investing is a new benchmark in investing.

ESG-focused investing is no longer a “niche” market for specialists or green investors. The four key factors—the macroeconomy, investors, companies, and regulators—are all headed in this direction. Impact investing achieves the specific goal of having a positive and measurable social and/or environmental impact, as well as that of achieving financial profitability. We are witnessing a paradigm shift in finance: the need to evaluate not only financial returns but also investment goals. Businesses need to carefully consider their environmental policies and working conditions if they want consumers—who are becoming increasingly discerning and are aligned with the priorities of Millennials—to continue consuming and requesting their products and services.

This report outlines the characteristics of impact investing, identifies current trends and key market players, provides suggestions on focus sectors, and the various instruments for carrying out impact investing. Additionally, the report also spotlights impact investing activity in Latin America—the world region with third highest growth in impact investing.

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