The 2022 Sustainable & Impact Investing Review, recently published by Simple, features a number of thought-provoking points for Family Offices to consider when evaluating their sustainable and impact investments.
In no particular order, the following stood out as particularly interesting outcomes of Simple’s research:
- The report explains how Family Offices can use impact investing to align a larger portion of their ethical and philanthropic priorities, generating returns and positive outcomes. It also describes how impact investing can unite multi-generational Family Offices around shared values and define their legacy.
- Family Offices are described as being in a unique position to collaborate with other stakeholders to maximise the outcomes of their impact investments. The report demonstrates how Family Offices are able to involve and mobilise their networks, advisers, data specialists, impact funds, institutional investors, banks, foundations and others, more effectively than most.
- Case studies are included, depicting how Family Offices have the flexibility to take different approaches to maximise the potential of their impact investments – from direct investments, to fund-based investments, to stewardship.
- The report continues to explain that by considering the approach, the measurable benefit and the objective behind each investment, via an adaptation of the investing spectrum, Family Offices can categorise their investments into traditional investing, responsible investing, ESG investing, impact investing or philanthropy. They are then able to manage their expectations more realistically, according to the categorisation of investment.
- Simple also outline four stages of engagement to follow within impact investing - explore, strategise, execute and evaluate – which enable Family Offices to effectively identify the stakeholders they should correspond or collaborate with during this journey.
- Family Offices are not short of options for tracking their investments. The review listed nine platforms and four frameworks that provide data to assess the ESG and impact performance of their investments, allowing Family Offices to manage their portfolios more effectively.