The document discusses the rise of sustainable and impact investing. It provides context on impact investments by defining them as investments that generate measurable social and environmental impacts alongside financial returns. It then introduces Reuben Teague and Shalini Vajjhala, two leading practitioners in impact investing, who will discuss their work in more detail.
16. 15
Investments from “impact
investment groups” at Prudential,
Goldman Sachs with NJEDA grant
Farmland LP and Working Farms
Capital are new funds investing in
sustainable agriculture
March 10, 2015: Just Another Day at New Jersey Future
17. 16
Investments from “impact
investment groups” at Prudential,
Goldman Sachs with NJEDA grant
Farmland LP and Working Farms
Capital are new funds investing in
sustainable agriculture
New wind finance funds are being
raised all over the US that offer
attractive fixed income returns
March 10, 2015: Just Another Day at New Jersey Future
19. 18
Jack & Jakes part of a new wave
of post-Katrina Impact Investing
March 10, 2015: Just Another Day at New Jersey Future
20. 19
Jack & Jakes part of a new wave
of post-Katrina Impact Investing
Green infrastructure funds being
raised for NYC and other cities
March 10, 2015: Just Another Day at New Jersey Future
21. Impact Investments…
… are investments made into companies, organizations, and funds with the intention
to generate measurable social and environmental impact alongside a financial return.
The Global Impact Investment Network, 2009
20
22. Impact Investments…
… are investments made into companies, organizations, and funds with the intention
to generate measurable social and environmental impact alongside a financial return.
The Global Impact Investment Network, 2009
21
23. Impact Investments…
… are investments made into companies, organizations, and funds with the intention
to generate measurable social and environmental impact alongside a financial return.
The Global Impact Investment Network, 2009
22
24. Impact Investments…
… are investments made into companies, organizations, and funds with the intention
to generate measurable social and environmental impact alongside a financial return.
The Global Impact Investment Network, 2009
23
25. Impact Investments…
… are investments made into companies, organizations, and funds with the intention
to generate measurable social and environmental impact alongside a financial return.
The Global Impact Investment Network, 2009
24
27. Traditional Responsible Philanthropy
Finance-only Impact-only
Focus on
ESG risks
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
• Ethically-
screened
investment
fund
Examples
Focus
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
28. Traditional Responsible Impact-first Philanthropy
Finance-only Impact-only
Focus on
ESG risks
Focus on
issue areas
where need
requires
partial
financial
trade-off or
subsidy
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
• Ethically-
screened
investment
fund
• CDFIs and
affordable
housing
• RWJF
“program
related
investment”
Examples
Focus
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
29. Traditional Responsible Sustainable Impact-first Philanthropy
Finance-only Impact-only
Focus on
ESG
opportunity
Focus on
ESG risks
Focus on
issue areas
where need
requires
partial
financial
trade-off or
subsidy
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
• Ethically-
screened
investment
fund
• Long-only
public equity
fund
integrating
ESG
analysis
• CDFIs and
affordable
housing
• RWJF
“program
related
investment”
Examples
Focus
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
30. Traditional Responsible Sustainable Thematic Impact-first Philanthropy
Finance-only Impact-only
Focus on
ESG
opportunity
Focus on
issue areas
where need
creates a
commercial
opportunity
Focus on
ESG risks
Focus on
issue areas
where need
requires
partial
financial
trade-off or
subsidy
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
• Ethically-
screened
investment
fund
• Long-only
public equity
fund
integrating
ESG
analysis
• Clean energy
fund
• Emerging
markets
healthcare
fund
• Microfinance
debt fund
• CDFIs and
affordable
housing
• RWJF
“program
related
investment”
Examples
Focus
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
31. Traditional Responsible Sustainable Thematic Impact-first Philanthropy
Finance-only Impact-only
Focus on
ESG
opportunity
Focus on
issue areas
where need
creates a
commercial
opportunity
Focus on
ESG risks
Focus on
issue areas
where need
requires
partial
financial
trade-off or
subsidy
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
• Ethically-
screened
investment
fund
• Long-only
public equity
fund
integrating
ESG
analysis
• Clean energy
fund
• Emerging
markets
healthcare
fund
• Microfinance
debt fund
• CDFIs and
affordable
housing
• RWJF
“program
related
investment”
Examples
Focus
Impact Investing
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
32. Traditional Responsible Sustainable Thematic Impact-first Philanthropy
Finance-only Impact-only
Focus on
ESG
opportunity
Focus on
issue areas
where need
creates a
commercial
opportunity
Focus on
ESG risks
Focus on
issue areas
where need
requires
partial
financial
trade-off or
subsidy
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
Competitive returns
• Ethically-
screened
investment
fund
• Long-only
public equity
fund
integrating
ESG
analysis
• Clean energy
fund
• Emerging
markets
healthcare
fund
• Microfinance
debt fund
• CDFIs and
affordable
housing
• RWJF
“program
related
investment”
Examples
Focus
Impact Investing
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
33. Traditional Responsible Sustainable Thematic Impact-first Philanthropy
Finance-only Impact-only
Focus on
ESG
opportunity
Focus on
issue areas
where need
creates a
commercial
opportunity
Focus on
ESG risks
Focus on
issue areas
where need
requires
partial
financial
trade-off or
subsidy
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
Competitive returns
High-impact solutions
• Ethically-
screened
investment
fund
• Long-only
public equity
fund
integrating
ESG
analysis
• Clean energy
fund
• Emerging
markets
healthcare
fund
• Microfinance
debt fund
• CDFIs and
affordable
housing
• RWJF
“program
related
investment”
Examples
Focus
Impact Investing
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
34. Traditional Responsible Sustainable Thematic Impact-first Philanthropy
Finance-only Impact-onlyThe New Paradigm
Focus on
ESG
opportunity
Focus on
issue areas
where need
creates a
commercial
opportunity
Focus on
ESG risks
Focus on
issue areas
where need
requires
partial
financial
trade-off or
subsidy
Pure
fiduciary
focus
Focus on
an issue
area where
need
requires
100%
financial
trade-off
Competitive returns
High-impact solutions
• Ethically-
screened
investment
fund
• Long-only
public equity
fund
integrating
ESG
analysis
• Clean energy
fund
• Emerging
markets
healthcare
fund
• Microfinance
debt fund
• CDFIs and
affordable
housing
• RWJF
“program
related
investment”
Examples
Focus
Impact Investing
• Princeton
University
Endowment
• RWJF
Endowment
• Grants to
operating
non-profits
• RWJF
grant
Impact Investing sits within a “Spectrum of Capital”
35. 34
There has been an explosion of players in the last decade
Source: Accelerating Impact, a report prepared by E.T. Jackson and Associates and commissioned by The Rockefeller Foundation
36. Hearing from two leading practitioners
35
REUBEN TEAGUE
Director, Social Investments Program, Prudential Financial, Inc.
Reuben Teague is responsible for sourcing, underwriting and managing
investments that meet Prudential’s social value criteria while providing risk-
adjusted financial returns. The Social Investments Program manages a portfolio of
more than $300 million in investments and typically originates between $50 million
and $75 million in transactions annually.
SHALINI VAJJHALA
Founder and Chief Executive Officer, re:focus partners
Re:focus partners operates as a social entrepreneur, designing integrated, resilient
infrastructure systems and developing new public-private partnerships to align
public funds and leverage private investment for vulnerable communities around
the world.
Notas del editor
Some are raising philanthropy to invest in emerging markets, others have traditional fiduciary investors. Some are playing catalytic roles in emerging industries, others are providing working capital finance to the under-banked.
Reuben…
Prior to joining Prudential in 2013, Teague was co-founder and principal of Green Coast Enterprises, a triple-bottom-line real-estate development and project management firm based in New Orleans. He participated in the development of over 1,000 units of sustainable, hazard-resilient affordable housing and over 50,000 square feet of commercial space aimed at restoring needed community resources to the greater New Orleans area. He previously was an adjunct professor in Tulane University’s Master’s of Sustainable Real Estate Development program.
Shalini
Before starting re:focus partners, Ms. Vajjhala served as special representative in the Office of Administrator Lisa Jackson at the U.S. Environmental Protection Agency where she led the 2011 US-Brazil Joint Initiative on Urban Sustainability. Previously, she served as deputy assistant administrator in the Office of International and Tribal Affairs at the EPA and as deputy associate director for energy and climate at the White House Council on Environmental Quality. She joined the Obama administration from Resources for the Future, where she was awarded a patent for her work on the Adaptation Atlas.