Impact Investing

What is Impact Investing

Impact investing arises in response to the growing awareness on the issues of sustainability and social equity, providing an alternative to traditional models of investment and development

Impact investing is growing steadily while accommodating the needs of new categories of responsible and ethical investors, interested not only in financial returns but also in the pursuit of social impact . According to the latest report of the Global Impact Investing Network (GIIN), the amount of resources managed in the sector worldwide is more than 200 billion dollars.

Making investments tied to intentional andmeasurable social or environmental goals and, at the same time, generating an economic return for investors. This is impact investing.

What is Impact Investing

Impact investing refers to those investments with a measurable and intentional social impact that, in different forms, lay between philanthropy and sustainableand responsible investments. Specifically, impact investment is:

Finance First

In cases where investors aim to achieve a social impact and achieve a market return

Impact First

Investors have the goal of achieving a social impact while the return targets are below market expectations, with the limit on therestitution of capitalinvested

Traditional finance
Maximizing financial income
Responsible Investments (SRI)
Excluding securities of companies that are harmful to the environment and/or society
Sustainable Investment (ESG)
Prevalence of titles of virtuous companies according to "ESG" principles
(Impact investing) Finance First
Measurable social impact or market returns
(Impact investing) Impact First
Measurable social impact and calmed returns
humanitarianism
Grants and donations
Financial return targets
Capital refund
Lost fund
Negative screening criterion "SRI"
Ethical screening policy "ESG"
Positive screening criteria: positive impact (e.g. social, environmental, etc.)

Visit the investment activity section to learn more about our investment approach

Impact investing can be realised through a variety of instruments belonging to different asset classes, which may differ in terms of risk level, expected returns and implications for the invested company
FIXED INCOME SECURITIES

Debt instruments giving entitlement to receive a pre-determined flow of future payments (e.g. coupons and repayment of capital)

Examples and applications:
  • Green Bonds to fund environmental projects
  • Social Bonds
  • Bonds to subjects with a social vocation
Private Equity

Investments in risk capital of private companies that require an in-depth process of data research and analysis

Examples and applications:
  • Shares of social enterprises, in the origination of or traded on specific platforms
  • Shares of unlisted funds
Public Equity

Shares issued by (socially-driven) listed companies traded on a secondary market, with public information

Examples and applications:
  • Stocks of established companies, listed on liquid markets
  • Shares of listed funds
Assets

Investments in tangible goods such as real estate, renewable energy plants or even forests

Examples and applications:
  • Integrated System of Social Housing Funds in Italy
  • Solar panels, wind turbines, geothermal plants
Hybrid Tools

Intermediate instruments between debt and equity used primarily for investment in unlisted companies or other types of organisations

Examples and applications:
  • Convertible bonds
  • Social Bonds
  • Revenue Partecipation Agreements