In the seventh episode of Fundamentals, Aoifinn Devitt, Head of Investment – Ireland, delves into the world of impact investing. She is joined by Ingrid Kukuljan, Head of Impact Investing, and Martin Todd, Co-Portfolio Manager of Impact Opportunities and Lead Portfolio Manager of Sustainable Europe.
Kukuljan explains that Covid-19 has resulted in a paradigm shift for responsible investment strategies. “It has put a focus on the critical need to build resilience in healthcare, food and water security, and across supply chains. It has also put climate change and worker rights under the spotlight,” she said.
The Impact Opportunities team only invest in companies that have a clear and measurable positive impact on the environment or society. “We want to show investors how they have contributed to making the world a better place,” said Kukuljan.
For Kukuljan, “an impact label without accountability has no value”. For that reason, the team developed a proprietary database that quantifies the impact of each holding in their portfolio. They have also identified nine impact themes that are aligned to the UN Sustainable Development Goals. Todd explains: “We analysed the 17 SDGs and 169 targets to see which of these could be addressed by public equities. We aggregated these into nine themes and use it as a framework to identify impactful companies – and new ideas.” In doing so, the team focus on businesses whose positive impacts are aligned with the growth drivers of tomorrow.
Want to find out more about impact investing? Tune in to Fundamentals.