The importance of impact investing is underscored by both growing needs and good returns during these early days of the COVID-19 pandemic, says Marisa Drew, CEO of the Credit Suisse Impact Advisory and Finance Department in a recent Barron’s column.
Like most of us, she’s been scouring worldwide news and financial reports as she considers the pandemic’s long-term implications. Although governments and philanthropic giants have leapt into action to stem the spread of the virus and stabilize economies, these sources alone won’t be enough to address the immediate and long-term conditions and consequences of this pandemic.
Even before this threat, we faced a “multi-trillion-dollar annual financing gap” if we were to address the planet’s greatest environmental and social needs by 2030, as outlined in the 17 United Nations Sustainable Development Goals, Drew explains.
“Over the past few weeks, it has become clear to me that we need to treat this global crisis as a call to action for the private sector to use the power of our for-profit investment dollars,” she says. It’s critical that we “rethink how we can direct our capital in a more impactful way.”
We used to expect governments, scientists and activists to address the complicated threat of climate change, she said, until the effects threatened to affect us individually. “Similarly, investments in social infrastructure – be it access to health care, clean water, education, and affordable housing – have been predominantly left in the hands of governments, development banks, and a relatively concentrated group of philanthropists. … As we are seeing with this (COVID-19) crisis, (however), underinvestment in social systems can be just as personal to all of us and just as swift, as crippling, and as catastrophic as ignoring climate change.”
We can still do well while doing good, early signs show, as many of the impact investments Credit Suisse follows are still showing strong performance. These include investments in sectors including “online education, telemedicine, localized regenerative farming, and essential service delivery that is not reliant on long complicated supply chains.”
Matching investment cases for impact with the ability to create social and environmental improvements is key. “Perhaps what this is highlighting,” Drew says, “is a reflective awakening to the notion that the social and environmentally targeted themes underpinning impact investments are ultimately fundamental to a well-functioning, prosperous global economy.”
Let’s digest that optimistic view on these days when so much bad news dominates the headlines.
The importance of impact investing is underscored by both growing needs and good returns during these early days of the COVID-19 pandemic, says Marisa Drew, CEO of the Credit Suisse Impact Advisory and Finance Department in a recent Barron’s column.
Like most of us, she’s been scouring worldwide news and financial reports as she considers the pandemic’s long-term implications. Although governments and philanthropic giants have leapt into action to stem the spread of the virus and stabilize economies, these sources alone won’t be enough to address the immediate and long-term conditions and consequences of this pandemic.
Even before this threat, we faced a “multi-trillion-dollar annual financing gap” if we were to address the planet’s greatest environmental and social needs by 2030, as outlined in the 17 United Nations Sustainable Development Goals, Drew explains.
“Over the past few weeks, it has become clear to me that we need to treat this global crisis as a call to action for the private sector to use the power of our for-profit investment dollars,” she says. It’s critical that we “rethink how we can direct our capital in a more impactful way.”
We used to expect governments, scientists and activists to address the complicated threat of climate change, she said, until the effects threatened to affect us individually. “Similarly, investments in social infrastructure – be it access to health care, clean water, education, and affordable housing – have been predominantly left in the hands of governments, development banks, and a relatively concentrated group of philanthropists. … As we are seeing with this (COVID-19) crisis, (however), underinvestment in social systems can be just as personal to all of us and just as swift, as crippling, and as catastrophic as ignoring climate change.”
We can still do well while doing good, early signs show, as many of the impact investments Credit Suisse follows are still showing strong performance. These include investments in sectors including “online education, telemedicine, localized regenerative farming, and essential service delivery that is not reliant on long complicated supply chains.”
Matching investment cases for impact with the ability to create social and environmental improvements is key. “Perhaps what this is highlighting,” Drew says, “is a reflective awakening to the notion that the social and environmentally targeted themes underpinning impact investments are ultimately fundamental to a well-functioning, prosperous global economy.”
Let’s digest that optimistic view on these days when so much bad news dominates the headlines.