Impact Investing Market Map

Transcription

1 Impact Investing Market Map Presentation organised by PRI and SPTF Facilitators: Kurt Morriesen, Senior Manager of Alternative Investments (UNPRI) Leticia Emme, Director Operations & Social Investor Working Group (SPTF)

2 Agenda 1. Introduction 2. Impact Investing Market Map Key goals, objectives and project focus Target audience Project development and implementation Benefits to the investment community and PRI 3. Consultation Process Key goals and objectives Steps of the consultation; and expected results and impacts 4. About the working groups 5. Next steps Types of working groups Dos and Don ts

3 Impact Investing Market Map Introduction

4 Impact Investing Market Map Key goal and objectives Goal To bring more clarity to identify impact investing companies and thematic investments so that asset owners and fund managers can better assess opportunities in this market Providing a basic and practical methodology to identify impact companies based on themes Objectives Defining key thematic investments/businesses Presenting common KPIs used to measure performance of targeted thematic investments

5 Impact Investing Market Map Project focus Overall, the project targets mainstream (high liquidity and maturity) impact investing projects, businesses, including listed equity firms and medium and large infrastructure projects Niche impact investing market Typical impact businesses (social enterprises, start ups, SMEs) Mid and large size impact companies Listed or unlisted companies that generate revenues wile creating direct impacts to society and the environment Mainstream companies Companies that focuses on financial returns only. Social and environmental impacts are not part of their businesses model

6 Impact Investing Market Map Thematic investments/businesses covered in project

7 Impact Investing Market Map Target audience Trustees Asset Owners Fund Managers Impact companies

8 Impact Investing Market Map Project development and implementation The Impact Investing Market Map is organised in 5 basic elements A B C D E Common definitions Criteria to identify impact businesses Common KPIs to track performance Align definitions with the UN - SDGs Financial criteria do identify impact businesses

9 Impact Investing Market Map Project development and implementation We studied and aligned each of the 10 thematic investment definitions with one or more UN Sustainable Development Goals indicators and KPIs A B We reviewed more than 120 studies, UN Conventions, reports and papers to provide a basic and robust definition of a specific thematic investment/businesses We created a financial criteria for each thematic investment based on more than 190 resources provided by global indexes (MSCI, FTSE) and companies benchmark studies C D We designed a practical methodology/criteria based on more than 200 references, studies, and methodologic indexes from market leaders

10 Impact Investing Market Map Some considerations IT IS NOT A STANDARD The project gives investors a methodology to begin identifying impact investing companies IT IS NOT A FRAMEWORK The project focuses on existing information about impact investing companies based on thematic investments IT FOCUSES ON IMPACT INVESTING COMPANIES, NOT FUNDS The project targets companies and businesses (real economy) that operate in the impact investing field The project targets mainstream (high liquidity and maturity) impact investing companies, including listed equity firms and medium and large infrastructure projects.

11 Impact Investing Market Map tool What in the tool? Providing a globally recognised definition of what the thematic investment is Outlining the business types with products and services that fall under the definition. Identifying the relevant certifications and initiatives of good business practice.

12 Impact Investing Market Map tool Specifying the thematic and financial conditions required for business practice to result in valid impact outputs.

13 Impact Investing Market Map tool Highlighting the relevant questions that asset owners, funds of funds managers and fund managers can refer to as part of their work Suggesting basic common indicators already used by organisations in the industry to successfully track impact (this section is yet to be completed.

14 Consultation process Impact Investing Market Map consultation process The tool is a living feature and its effectiveness depends on further review and input from valued expert stakeholders such as yourself.

15 Consultation process Key goals and objectives Goal The main goal of the consultation process is to complete and improve the Impact Investing Market Map methodology and tool Objective 1 To achieve this goal, our first objective is to launch a successful consultation process with our PRI signatories (80 key signatories) and stakeholders (25 key stakeholders) Objective 2 Review and validate all ten thematic investments and methodology Objective 3 Complete the remaining items missing in the IIMM, such as common KPIs, Q&A section, and any other relevant information

16 Consultation process Steps Consultation process: registration We ll invite key PRI signatories and stakeholders to visit the website of the consultation process and sign in one of the working groups Second meeting/call The second meeting/call focuses on informing on the main results of the previous steps. The core of this meeting is to agree on the key points highlighted in previous meetings and discuss areas for improvements. 16 Start Here Organise the working groups We will organise the working groups on themes and send then information about the next meetings and the resources/material for the meetings Review of working groups inputs PRI will organise, categorise, and filter the inputs of the working group members Last review of working groups inputs PRI will review working groups inputs and include relevant inputs on the final version of the document to be reviewed by PRI s E&S AC End First meeting/call The first meeting will focus on presenting a specific thematic investment, discuss the group dynamic (rules of the working group) and expected goals, and discuss the tasks and work organisation Working group inputs Members of the working group will be invited to share their thoughts, ideas, and inputs in an online form 16

17 Consultation process Expected results and impacts 17 Review the tool Validation of the tool Active engagement Support the impact investing industry

18 About the Working Groups Types of working groups Communicate to our signatories about this project Share your thoughts and ideas to improve this project

19 About the Working Groups Do s and Don ts The good is the enemy of the best Voltaire We re looking to find consensus We would like to focus on solutions It is up to you to define your role in this project Our goal is to work on tangible and practical inputs/solutions Don t be mean to your fellow participant Don t talk in sweeping generalities We are not focusing on niche impact investments We are not trying to create standards, rules, knowledge hubs, etc Don t over commit yourself

20 Next steps We will send you information of the next working groups meetings Get informed about the Impact Investing Market Map We will share with you an online form so you can send your comments, inputs, suggestions Please feel free to contact us to learn more about the consultation process