Impact Investing is the strategy of aligning the investment assets of an organization with its mission, and intentionally seeking to impact that mission while earning a prudent, market-level rate of return.
Substantial research has been developed in Socially Responsible Investing (SRI) and for integrating Environmental, Social and Governance (ESG) factors in the investment decision-making process. Prudent fiduciaries can incorporate ESG factors and other community objectives in their investment considerations so long as the investments can be expected to earn a similar return at a similar level of risk as standard or traditional investments of the same type. Below are links to resources with additional information and research on impact investing.
Investment Strategy:
- Understanding the Impact Investing Trend (Georgette Wong – Curator & Creator, Take Action! Conference Series & President, Correlation Consulting)
- Insight into the Impact Investment Market (J.P. Morgan)
- Solutions for Impact Investors: From Strategy to Implementation (Rockefeller Philanthropy Advisors)
- A New Foundation for Portfolio Management (Leslie Christian sponsored by RSF Social Finance in partnership with Portfolio 21 Investments)
- Integrating ESG in a Quantitative Equity Model (Marie-Alan Aladin, Portfolio Manager at Chancel Blue)
- The Wrong Type of Snow: Risk Revisited (Towers Watson)
- Initiative for Responsible Investment UN PRI Conference Summary (David Wood/Jay Youngdahl)
- Mission-Related Investing: A Policy and Implementation Guide for Foundation Trustees (Rockefeller Philanthropy Advisors)
- Developing a Responsible Investment Policy (BlackRock)
Scaling Impact Investing:
- Impact at Scale – Policy Innovation for Institutional Investment with Social and Environmental Benefit (Insight at Pacific Community Ventures & The Initiative for Responsible Investment at Harvard University supported by Rockefeller Foundation)
- Gateways to Impact – Industry Surveys of Financial Advisors on Sustainable and Impact Investing (Rockefeller Foundation, Calvert Foundation, Hope Consulting, Deutsche Bank, Envestnet & Veris Wealth Partners)
- Insights and Innovations – A Global Study of Impact Investing + Institutional Investors (Correlation, Take Action! 2012, The Secretary’s Global Impact Economy Forum, The California Endowment & River Star)
- Investing for Social & Environmental Impact (Monitor Institute)
- Solutions for Impact Investors: From Strategy to Implementation (Rockefeller Philanthropy Advisors)
- Shifting the Lens – A De-risking Toolkit for Impact Investment (Bridges Ventures & Bank of America Merrill Lynch)
- Scaling U.S. Community Investing – The Investor-Product Interface (Global Impact Investing Network & University of New Hampshire Carsey School of Public Policy)
- Reclaiming Fiduciary Duty Balance (Rotman International Journal of Pension Management)
- Millennials Will Bring Impact Investing Mainstream (Authored by Joe Emerson & Lindsay Norcott – Stanford Social Innovation Review)
- Global Green Cities of the 21st Century – Shaping the Cities of Tomorrow: Key Findings from the Global Green Cities of the 21st Century International Symposium (A Bay Area Council Economic Institute Report September 2012)
- Capital Markets for Impact at Scale: Showcasing Institutional Impact and Community Investing – Proceedings from A Convening at the Federal Reserve Bank of San Francisco Held October 1st, 2012 (Insight at Pacific Community Ventures & Rockefeller Foundation)
- Breaking the Binary: Policy Guide to Scaling Social Innovation April 2013 (Schwab Foundation for Social Entrepreneurship & World Economic Forum)
- A Portfolio Approach to Impact Investment: A Practical Guide to Building, Analyzing and Managing a Portfolio of Impact Investments (J.P. Morgan)
Community Development:
- Capital Markets for Impact at Scale – Showcasing Institutional Impact and Community Investing: Proceedings from a Conference at the Federal Reserve Bank of San Francisco Held October 1, 2012 (Rockefeller Foundation & Insight at Pacific Community Ventures)
- CalPERS for Calfornia 2010 – Supporting Economic Opportunity in California (CalPERS)
- The Metro Area Impact of Affordable Housing in San Francisco, California – Income, Jobs and Taxes Generated (NAHB and Enterprise)
- White Paper on the Theory, Economics, and Practice of Public Benefit Zoning November 2014
- Toxic Transactions: How Land Installment Contracts Once Again Threaten Communities of Color – July 2016 (Authored by Jeremiah Battle Jr, Sarah Mancini, Margot Saunders, and Odette Williamson – NCLC)
- Linking Anchor Institutions to Outcomes for Families, Children and Communities (community-wealth.org)
- How Can we Pay for a Healthy Population? – Innovative New Ways to Redirect Funds to Community Prevention (Authored by Jeremy Cantor, Leslie Mikkelsen, Ben Simons, & Rob Waters – Prevention Institute)
- Community Equity Capital: The Opportunities and Challenges of Growth December 2010 (Authored by Ben Thornley – Insight at Pacific Community Ventures)
- Community Development Investment Review (Federal Reserve Bank of San Francisco)
- A Note on Social and Impact Investing (University of California Berkeley Haas School of Business)
- A New Anchor Mission for a New Century – Community Foundations Deploying all Resources to Build Community Wealth November 2014 (Authored by Marjorie Kelly and Violeta Duncan)
Placed-based Impact Investing:
- Place Capital: The Shared Wealth that Drives Thriving Communities (Authored by Ethan Kent – PPS)
- Creative Placemaking: Integrating Community, Cultural and Economic Development March 2012 (Authored by: Leonardo Vazquez – The National Consortium for Creative Placemaking)
Measuring Impact:
Infrastructure:
- Infrastructure Investment Outreach Review: Laying the Groundwork for Collaboration October 15, 2012 (CalPERS)
- 21st Century Infrastructure: Keeping California Connected, Powered, and Competitive (Bay Area Council Economic Institute)
Philanthropy, Grants and Impact Investing:
- The Giving Code: Silicon Valley Nonprofits and Philanthropy Full Summary (Authored by Alexa Cortes Culwell and Heather McLeod Grant – Open Imapct)
- Mission-Related Investing for Foundations and Non-Profit Organizations – Practical tools for mission/investment integration (Trillium Asset Management)
- Mission-Related Investing – A Policy and Implementation Guide for Foundation Trustees (Rockefeller Philanthropy Advisors)
- Grantmaking Strategies Executive Summary (Silicon Valley Community Foundation)
- Effective Giving Thrives Here – 2015-16 Impact Report (Silicon Valley Social Venture Fund – SV2)
- Driving Impact Through Donor Advised Funds: Community Foundations as Catalysts for Impact Investing (Authored by Bert Feuss & Maggie Cutts – Impact Assets & Silicon Valley Community Foundation)
- A Case Study Expanding Philanthropy: Mission-Related Investing at the F.B. Heron Foundation (Southern New Hampshire University School of Community Economic Development)
- 360-Degrees for Mission – How Leading European Foundations Use their Investments to Support their Mission and the Greater Good May 2011 (Authored by David Imbert & Ivo Knoepfel – MISTRA)
Impact Managers Reports:
- RSF Quarterly Winter 2017 (RSF Social Finance)
- RSF Quarterly Fall 2016 (RSF Social Finance)
- Public Equities as Impact Investments (Authored by Nikita Singhal – ClearBridge Investments)
- Investing in Sustainable Real Estate (Sonen Capital).pdf
- CRA Qualified Investment Fund – Second Quarter 2010
- AFL-CIO Housing Investment Trust – Investing Pension Capital to Create Summer 2010 (AFL – CIO)
Impact Investing Strategies and Tools: Case Studies and Examples:
- Time to Act: Closing the Racial Achievement Gap (Silicon Valley Community Foundation)
- The Future of Food: The Investment Case for a Protein Shake up (FAIIR & ShareAction)
- Sustainable Investments in Health: Prevention and Wellness Funds – A Primer on their Structure, Function, & Potential (Prevention Institute)
- Stormy Future for U.S. Property/Casualty Insurers: The Growing Costs and Risks of Extreme Weather Events – A Ceres Report September 2012 (Authored by Cynthia McHale & Sharlene Leurig)
- Navigating Climate Risk: Ceres’ Primer for Family Offices September 2013 (Authored by Lindsey E. White – Ceres)
- Market for Social Impact Investing by Private Equity Funds Stands at $4 Billion in the United States July 2012 (Authored by Tom Woelfel, Ben Thornley, Beith Sirull – Insight at Pacific Community Ventures)
- Making an Impact through Active Equity Ownership 2017 Impact Report (ClearBridge Investments)
- Leveraging Resident Services Programs in Affordable Housing as Partners in Health Care Transformation (Capital for Health Families & Communities)
- Increasing Impact and Enhancing Returns: Integrating Publicly Traded Water and Agribusiness Equities into Impact Investor Portfolios (Authored by Steve Falci & Jed Emerson – Impact Assets & Kleinwort Benson Investors)
- Income and Impact: Adding Green Bonds to Investment Portfolios (Authored by Amy Hauter – Brown Advisory)
- Impact Investing for Rural Wealth Creation: Investing for Financial Returns and Community Impact (Authored by Majorie Kelly with Jessica Norwood)
- Impact Investing 2.0: The Way Forward – Insight from 12 Outstanding Funds FULL REPORT (Insight at Pacific Community Ventures, CASE, ImpactAssets)
- From Potential to Action: Bringing Social Impact Bonds to the US (McKinsey & Company)
- Fossil Free Investing – February 2015(Authored by Jennifer Sireklove – Parametric Engineered Portfolio Solutions)
- Factory Farming: Assessing Investment Risks (FAIRR a Coller Initiative)
- Beyond Fossil Fuels: The Investment Case for Fossil Fuel Divestment (IMPAX Asset Management)
ESG Integration:
- WHITE PAPER from AXA Investment Managers – Piloting ESG Integration (AXA Investment Managers)
- The Investing Enlightenment: How Principle and Pragmatism Can Create Sustainable Value through ESG (Robert G. Eccles, Ph.D. and Mirtha D. Kastrapeli – State Street)
- The Calvert Responsible Index Series: Efficient Market Exposure with a Responsible Approach (Calvert Investments)
- Sustaining Sustainability: What Institutional Investors Should do Next on ESG (Authored by Jonathan Bailey, Bryce Klempner, & Josh Zoffer – McKinsey & Company)
- Sustainability Disclosure is Helping Drive Investment Decisions, Harvard study finds. (Authored by: George Serafeim – Calvert: An Eaton Vance Company August 2017)
- Performing for the Future: ESG’s place in investment portfolios. Today and tomorrow. (ESG Institutional Investor Survey & State Street Global Advisors)
- Financial Performance of ESG Integration in US Investing (Principles for Responsible Investment)
- ESG/Sustainability Institutional Investor Market Developments (Authored by Sarah Bernstein – PCA October 2015)
- ESG Integration Insights Omnibus 2017 (Sustainability Accounting Standards Board)
- Creating Sustainable Value: Progress through Partnership 2013 ESG and Citizenship Report (KKR)
- A Legal Framework for the Integration of Environmental, Social and Governance Issues into Institutional Investment October 2005 (Freshfields Bruckhaus Deringer)
- 2018 ESG Trends to Watch January 2018 (Authored by Linda-Eling Lee & Matt Moscardi – MSCI)