December 06, 2022
The popularity of environmental, social, and governance (ESG) investments has been met recently with heightened public scrutiny as investors have begun to question the legitimacy, efficacy, and measurability of ESG. Whereas ESG is often positioned in the market as a strategy for driving better outcomes for people and planet, it is, in reality, a framework for evaluating how environmental, social, and governance factors can impact a company’s financial performance. The interpretation and application of ESG investing has varied across the industry in ways that have left ESG investors without clearly defined criteria around what constitutes an ESG investment or how that investment contributes to social and environmental outcomes.
How, then, should investors seek to invest in alignment with their values? At GEM, we believe that impact investing—when done well—can offer a more intentional and stakeholder-centered solution. Impact investing prioritizes outcomes on people and the planet alongside financial returns, and utilizes a rigorous and consistent measurement framework that provides investors with clarity and confidence around how their investments can deliver meaningful positive impact.
As Matt Bank discussed with Institutional Investor, institutions should avoid the comparison game as endowment return season gets underway and focus instead on simply running their own race.
Many OCIOs remain divided on the issue of scale: some believe it is necessary for growth, others believe it can inhibit the search for alpha. Matt Bank shared his views with Pensions & Investments.
As part of Pensions & Investments’ OCIO Special Report, Matt Bank discussed how a crowded OCIO universe has presented challenges for institutions seeking to vet the right outsourced provider.
Let’s start a conversation about how we can help.
