Home / Knowledge / News / Investors still lukewarm on social impact investing in Africa
Investors still lukewarm on social impact investing in Africa
14
Dec '10
Many institutional investors are now monitoring the social impact of their portfolios, but the majority simply negatively screen out “bad” investments, according to research conducted by This is Africa magazine, a part of The Financial Times, on behalf of the Rockefeller Foundation.

A representative sample of investors from Europe and North America were polled on their exposure to emerging markets; the attractiveness of Africa within the wider emerging markets; their understanding of socially responsible investment and the social impact of investments; the relationship between socially responsible investment and financial returns; and their knowledge of impact investing as an asset class.

39 percent of investors surveyed said that they monitor the social impact of their investments. 60 percent of this sample take a negative screening approach, and 40 percent actively try to achieve a social return on investment. Sovereign-backed pension funds and foundations are well ahead of their commercial rivals in terms of impact investing.

42 percent of the investors that were surveyed said that they would be interested in developing a greater understanding of the positive social impacts. However, many investors expressed scepticism over the measurement techniques and standards used to measure impact and called for standardisation of the industry.

Several also highlighted that their fiduciary responsibility precluded them from moving into impact investing until the link between social return and financial return is adequately demonstrated. As one UK pension fund manager said: “Our fiduciary responsibility is to provide returns for members. We are not here to be philanthropic. That's someone else's job: governments, charities and foundations.”

23 percent of investors did suggest that they would take lower rates of return for a proven social impact, however, in general these were state-backed funds.

“This research shows that investors are increasingly aware that they can achieve both financial and social returns on their investments, rather than simply limiting the potentially negative impacts by cutting out so-called vice assets,“ said This is Africa editor, Peter Guest. “However, many have very reasonable concerns that the evidence base for the anecdotal link between financial and developmental return on investment is still quite slim, and that the standards used to measure development in both the private and public sectors probably are not as rigorous as they might be used to.”

This is Africa


Must ReadView All

Apparel/Garments | On 23rd Jun 2017

Alfredo Grassi to develop graphene-enhanced workwear

Alfredo Grassi, manufacturer of customised protective clothing,...

Courtesy: IMRG

Apparel/Garments | On 23rd Jun 2017

UK online retail sales up only 10.2 pc YoY in May 2017

UK online retail sales were up 10.2 per cent year-on-year (YoY) in...

Courtesy: Radicigroup

Textiles | On 23rd Jun 2017

Radici Chimica focuses on business continuity

Radici Chimica SpA, a strategic RadiciGroup company, is keen on...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search