Beyond ESG to real impact: Creating and monitoring an impactful portfolio
A focus on metrics, definitions and terms begs the question: How do we understand the fundamental purpose of our capital?
TWO months ago I made the argument for the need to think more deeply regarding the purpose of capital, instead of relying on basic ESG (environmental, social, governance) metrics that do not achieve real impact. The feedback I received from philanthropists, charitable foundations, and other impact-minded investors said: “We couldn’t agree more! But how do we do this?”
There’s clearly a demand for understanding, implementing, and measuring the real impact that investments in a portfolio have, while not having the process end up as a way to simply get charged additional fees in ESG-compliant investment products.
I thought of chronicling the path to creating and monitoring such a portfolio by seeking the assistance of one of the global leaders in impact investing, Jed Emerson, to create a long-term legacy.
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