Investments and connections can be leveraged to foster significant impact, finds study
In a world where discussions about impact strategies are gaining momentum, the importance of safe spaces and communities of trust cannot be overstated. This is according to Michael Au, the chair of Toniic, a global network of high-net-worth individuals, family offices, and foundations.
Au's interest in sustainable investing was inspired by a chance meeting with Annie Chen, an Asian impact investing pioneer. Chen's public discussions about her firm's strategy were instrumental in Au's decision to venture into sustainable investing and to pursue impact investing in a conservative space like Asia and family offices.
The latest report, titled 'The Investor's Guide to Multicapital Strategies,' compiled by the Centre for Sustainable Finance and Private Wealth (CSP) at the University of St. Gallen in Switzerland and the MIT Sloan Sustainability Initiative in the US, sheds light on pathways for wealth holders to contribute to a better world.
To mobilise a multicapital deployment strategy, the guide recommends four steps: identifying the right partners, taking targeted actions, identifying the impact strategy, and addressing practical constraints such as time, returns, or risk.
The report is based on 27 in-depth interviews with ultra-high-net-worth impact investors from Europe, North America, Asia, and Australia. Interviewees in the report discuss various ways they incorporate their systems awareness.
The guide provides future wealth holders with a framework to deploy multicapital strategies to accelerate positive environmental and social impact. These strategies include ethical approaches, transparency in decision-making, diverse voices, and accountability.
Personal networks, reputation, specialised skills and knowledge, and community links are key to bringing about positive change, but are often overlooked by impact-focused wealthy investors, the report highlights.
André Hoffmann, vice chairman of Swiss pharmaceutical giant Roche Holding, emphasizes the importance of fully committing to driving change for positive impact. Hoffmann's insights reveal that early life experiences and core values shape how all capitals are deployed.
The CSP, which has trained thousands of investors and their advisors from the Americas, Europe, Asia, and the Middle East and claims to have influenced over $30bn (€25.6bn) in assets toward impact, will host training sessions this year for future wealth holders.
Lastly, the report underscores the importance of understanding the system to be impacted for deploying multicapital strategies effectively. However, the four persons highlighted in the report as important representatives of high-quality investors aiming to achieve social and ecological impact are not explicitly named in the provided search results.
In conclusion, the guide serves as a comprehensive resource for future wealth holders seeking to deploy multicapital strategies for positive environmental and social impact. It underscores the importance of learning from others, creating a strong network, and catalysing needed initiatives where none exist.
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