Measuring investment impacts

Finding an agreed measure for impact from investment has long been an issue, but the Investment Leaders Group (ILG) has now developed a framework that could enable a revolution in consumer choice in financial services.

Impacts such as job creation or natural resource consumption are often opaque to investors, with limited information available from standard information sources. To address this, ILG, in co-operation with the University of Cambridge Institute for Sustainability Leadership (CISL), has developed a new Cambridge Impact Framework.

The Framework is an attempt to make the social and environmental impacts of investment transparent to financial consumers in the same way that health and other concerns are apparent to food consumers today and relates directly with the United Nations Sustainable Development Goals. Investors can use the Framework to understand the alignment of their portfolios with the commitments of 193 countries, through six impact themes (basic needs, climate stability, decent work, healthy ecosystems, resource security and wellbeing).

The Investment Leaders Group includes Aegon, Aon, First State Investments, HSBC Global Asset Management, HSBC Bank (UK) Pension Scheme, La Banque Postale Asset Management, Nordea, Nuveen, Pimco, State Street, UBP and Zurich in its membership.

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