Impact investing set for sizeable allocation increase
In the next three years, 71% of global institutions and professional investors plan to up their allocations to impact investments. That’s according to research conducted by Vontobel. It’s positive to read that so many institutional and professional investors plan to allocate more to impact investments in the coming years, with decarbonisation one of the driving forces. But the forever challenge in sustainable investing is greenwashing.
The only way to truly combat greenwashing is with full transparency, an industry-standard methodology, and a proper engagement strategy. Funds that are not fully transparent on holdings, or how holdings have made it into a fund, or cannot articulate their process, are obvious red flags.
We launched the CIRCA5000 impact ETFs on the London Stock Exchange this year and have built our ETFs with full transparency in every sense on holdings and process. The methodology is anchored in the Impact Management Project’s framework, which is the industry standard for impact investing, and takes an active approach to our engagement policy.
You can learn more about our methodology on our pro-investor site.