Thread by @BDavisBriz, Looking forward to what should be an interesoting conversation on how we [...]

Looking forward to what should be an interesoting conversation on how we can shape our economic system to deliver better environmental & social outcomes through impact investing #ImpactInvesting https://twitter.com/AsiaScotlandIns/status/1381582051728621576

https://twitter.com/AsiaScotlandIns/status/1381582051728621576

First, @mtpurbrick welcomes delegates to webinar and gives potted biographies of the two speakers, as well as describing the evolution from "social investments" to "impact investments" #ImpactInvestment

Next, @stewart_langdon & @sirronniecohen open a discussion about impact investment & how investment can do what Sir Cohen calls “doing well, doing good” #ImpactInvestment

Cohen says that this career in #VentureCapital had seen “well to do people helping other well off people become richer”, which widened the gap between rich & poor #ImpactInvestment

Cohen noted that we had empowered people to enrich themselves & improve their own lives, but had not done something similar for those who wished to improve other’s lives. Describes how this led him to create the Social Impact Bond #ImpactInvestment

Cohen says the #Coronavirus has caused a “paradigm shift” on thinking around investment, with inequalities being exposed by the virus #ImpactInvestment

Langdon & Cohen then discuss the concept of “Impact Capitalism”. Cohen says “measurement of impact” will be “the next frontier” for investors. Showing how investments will benefit lives & environment will allow investors to better judge impact of companies #ImpactInvesting

Cohen cites research showing that certain sectors “deliver more in environmental damage” than they do in stakeholder dividends. By moving towards “impact-weighted accounts” we can improve transparency and change investor & corporate behaviour #ImpactInvesting

Cohen argues “this is the only way we can compare companies when it comes to environmental or social impacts” #ImpactInvesting

Cohen argues that our post- #Coronavirus will see “a disruption to investors’ portfolios not seen since the rapid uptake of technology” as innovative, socially-minded companies (eg TESLA) will take on established industries with a green or social agenda #ImpactInvesting

Langdon asks how Impact Investment goes beyond ESG. Cohen argues Impact Investment is more standardised, shows an intention to promote positive change & measures that progress #ImpactInvesting

Innovations such as Big Data also makes it easier to measure impact which, Cohen argues, is another reason why Impact Capitalism’s time has come #ImpactInvesting

Langdon asks if there is a “trade off” between sustainable business models & economic/profitable growth. Cohen argues there are numerous examples of the two “going hand in hand” #ImpactInvesting

Cohen gives an example of a company producing talking

s that help visually impaired people “see” text by turning text to speech & reading texts into the ear of the wearer - “a profitable company doing a social good” #ImpactInvesting

Cohen also argues Impact Investing makes economic sense as unsustainable/polluting companies will fail to attract talent & ∴ become less innovative & becoming unattractive to investors #ImpactInvesting

Cohen argues that outcomes-based investment is much more impactful than traditional philanthropy. Gives the recipient a sustainable growth plan & provides a return on investment for investors - a “win/win scenario” #ImpactInvesting

Cohen argues that there is enough robust data on impact bonds “to know what works”, believes now that such models will become more prolific as the global economy recovers from the #Coronavirus pandemic #ImpactInvesting

When asked about next steps, Cohen says investors need to familiarise themselves with the social & environmental impact of their portfolios & to actively engage with companies with a negative impact to see if they have active transition plans #ImpactInvesting

Turning to companies, Cohen believes that many more companies will publish transition plans, both in moving towards #NetZero, but also for greater #Inclusion & #Diversity in their workforce #ImpactInvesting

Finally, Cohen says consumers also have a role to play, & believes that many consumers will become more demanding of companies, particularly on issues of environmental impact of their products & services #ImpactInvesting

The webinar then moves on to a Q&A session #ImpactInvesting

When asked how to change corporate behaviour, Cohen believes many business leaders have “vague notions of doing *something*” but lack the tools to act. Impact investment will give businesses the tools to actively address negative impacts #ImpactInvesting

Cohen stresses that Impact Investing is moving away from a system of capitalism “where businesses cause problems in their search for profits” to one where it is “businesses that are proposing solutions” #ImpactInvesting

Cohen is asked how to differentiate between “inherently impactful sectors” (eg green energy) & “inherently negative sectors” (eg aviation). Cohen agrees that there will be different challenges faced by different sectors, calls for a pragmatic approach #ImpactInvesting

Using the example of #Aviation, Cohen agrees “we do not want to get rid of flying”, but argues that innovative aviation companies (eg Hydrogen or “Jet Zero”) would be much more attractive to investors vs polluting companies #ImpactInvesting

An attendee says many experts cited by Cohen are

& how can impact investing be made more accessible to

. Cohen agrees current gender equality initiatives are “essential but not sufficient” #ImpactInvesting

Latest Threads Unrolled: