Industry Voice: Impact investing — why it matters now more than ever

Equity markets are vital for driving environmental and social change

clock • 3 min read

The magnitude of change and disruption experienced around the globe in 2020 was remarkable on many levels. The coronavirus pandemic enveloped the world, prompting widespread upheaval to established patterns of conducting business, communication, travel, and the daily lives of people and communities. Amid the evolving crisis, we saw the tipping of pressure points around social inequality, elevating issues like diversity, health care, education, and equality higher up the political and business agenda. Meanwhile, the world witnessed more worrying manifestations of rising pressures on the environment created by human activity.

Why does this matter now, as the world begins to emerge from the pandemic? We believe extreme events of 2020 represent catalysts that will drive a new era of accelerated action by policymakers, businesses, and society alike. For all investors, understanding the implications for their investments is more important than ever. Indeed, many are seeking to make a more active and conscious choice to favor companies that show clear leadership in sustainability, environmental, and social issues.

 

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