Does impact investing in public markets work? – Triodos Investment Management

The myth that impact can only be achieved through private assets needs to be debunked.

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... Many pension funds and investors are willing to take meaningful steps in impact investing, but how and where do you invest more sustainably? The discussion about impact investing often revolves around additionality: are you, as an investor, making a demonstrable difference? In private markets, this is relatively straightforward. Without a loan or investment, a project such as a wind farm or microfinance usually cannot get off the ground.

In public markets, the situation is different: buying a share on the stock exchange does not in itself create new impact capacity or solutions. Without the issue of shares, there is no financial additionality. Nevertheless, it would be far too simplistic to write off the public market. Hadewych Kuiper, Managing Director, and Ronald Waals, Business Development Manager Institutional Markets, share their insights in this article.


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