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A Crucial Role for a Sustainable Future

Luc Olivier, Impact Investing Fund Manager, La Financière de l’Echiquier, outlines the opportunities available to investors through impact funds.

The changing world we live in solidifies one of our deepest convictions: finance, particularly impact investing on the listed markets, plays a crucial role in creating a sustainable, resilient ecosystem. A pioneer in listed impact investing in France, La Financière de l’Echiquier (LFDE) is firmly committed to making its contribution. In 2017, we were one of the first European asset management companies to launch an impact strategy backed by the UN’s Sustainable Development Goals (SDGs). Since then, our commitment to impact investing has only grown.

Specifically, in July 2021 we structured an impact doctrine that reflects our unique and rigorous positioning on listed impact investing[1]. This innovative and scalable doctrine takes its inspiration from the work of the Global Impact Investing Network, which we joined in 2020. It is based on three pillars – intentionality, additionality and measurability – which highlight the unique positioning of our business.

Positive impact provides access to long-term trends that carry remarkable financial opportunities. According to Better Business Better World, innovations in health, wellness and telemedicine – SDG 3 – are a US$2.845 trillion opportunity between now and 2030[2]. All these sources of growth can be captured through impact funds, which have demonstrated their ability to generate as much or more performance than the rest of the market.

We firmly believe that impact investing is here to stay and will play a crucial role in financing the US$2.5 trillion per year needed to achieve the SDGs. An estimated 91% of these requirements could be financed by the listed markets. According to the United Nations, the opportunities created by the main SDGs will reach US$12 trillion by 2030[3]. Some listed European companies are in a good position to seize them. The stakes could not be higher. The challenge is inspiring. The opportunities are immense.

[1]  Investors should note that their investment in the fund does not generate a direct impact on the environment or the company, but that the fund seeks to select and invest in companies that meet the specific criteria set out in the management strategy.
[2]  Business and Sustainable Development Commission, 2017
[3]  ibid

 

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