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What an Impact-Focused Investment Approach Looks Like

Posted on June 19, 2023

Morningstar Sustainalytics
Morningstar Sustainalytics

 

Institutional investors and wealth managers want to incorporate an impact focus into their investment strategies for a range of reasons. Some want to consider impact as one indicator among many but not as their main goal. These investors may wish to comply with a regulation (e.g., the European Union’s Sustainable Finance Disclosure Regulation), implement a double materiality approach, or create impact-focused products to respond to client preferences. Other investors want to consider impact as a strategic objective of their investment (alongside financial returns) so they can align their investments with their values and create a unique value proposition.

Regardless of their motivations, investors can follow the five key steps outlined in our infographic below to design and implement impact-focused investment approaches. These are inspired and draw lessons from principles defined by the Global Impact Investing Network and the International Finance Corporation.

Access a PDF version of the infographic by clicking the image below or by downloading it here.

For more information on impact and what it means for asset owners, asset managers, and wealth managers, download our ebook, Why Impact Matters: Seven Essential Considerations for Investors.

Discover how impact-focused investing works and how investors can develop an impact-focused investment approach that integrates into their existing strategies


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View our new infographic to discover what an impact-focused investment approach looks like and the five key steps for institutional investors and wealth managers.

What an Impact-Focused Investment Approach Looks Like

Institutional investors and wealth managers increasingly want to consider impact in their investment decisions — for a wide range of reasons. This infographic looks at how impact-focused investing works and how investors can develop an impact-focused investment approach that integrates into their existing strategies, regardless of their motivations.