What are the best practices and standards for ESG impact investing in your industry or sector?

1 Why ESG impact investing matters

ESG impact investing matters because it can help address some of the most pressing global challenges, such as climate change, poverty, inequality and human rights. By aligning your investments with your values and vision, you can contribute to a more sustainable and inclusive future for yourself and others. ESG impact investing can also offer competitive returns and diversification benefits, as well as enhance your reputation and stakeholder relations.

2 How to define your ESG impact strategy

Before you start ESG impact investing, you need to define your strategy and objectives. You need to identify the issues and themes that matter most to you and your stakeholders, and how they relate to your industry or sector. You also need to decide on the level and type of impact you want to achieve, and how you will measure and report it. You can use frameworks and tools such as the Sustainable Development Goals, the Impact Management Project and the Global Impact Investing Network to guide you.

3 How to select your ESG impact investments

Once you have your strategy and objectives, you need to select your ESG impact investments. You need to conduct due diligence and research on the potential opportunities and risks of each investment, and how they align with your criteria and expectations. You can use ratings and scores from third-party providers, such as MSCI, Sustainalytics and Refinitiv, to assess the ESG performance and impact of companies and projects. You can also use platforms and networks , such as B Analytics, ImpactBase and Toniic, to find and compare ESG impact investments.

4 How to manage your ESG impact portfolio

After you have selected your ESG impact investments, you need to manage your portfolio and monitor its performance and impact. You need to review and adjust your portfolio regularly, based on your goals and market conditions. You also need to collect and analyze data and evidence on the outcomes and impacts of your investments, and compare them with your benchmarks and targets. You can use software and systems, such as Impact Cloud, SoPact and SocialSuite, to manage and report your ESG impact portfolio.

5 How to communicate your ESG impact story

Finally, you need to communicate your ESG impact story to your stakeholders and the public. You need to share your strategy, objectives, results and learnings, and how they reflect your values and vision. You also need to be transparent, honest and accountable, and acknowledge the challenges and limitations of your ESG impact investing. You can use standards and frameworks, such as the Global Reporting Initiative, the International Integrated Reporting Council and the Principles for Responsible Investment, to communicate your ESG impact story.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?