This week saw the Impact Investing Academy travel to Bristol for their ‘Agents of Change’ event that showcased the research of leading experts to a selection of financial advisers from across the country.
Kit Leahy, Impact Analyst at Worthstone, began the morning by discussing Worthstone’s research into fund labelling and unearthing the truth behind ESG labelled funds. Different aspects of a variety of labelled funds were scrutinised for their Worthstone rating, ESG scores, positive impact and avoidance of harm ratings. Surprisingly, ESG funds fell short in almost every category with the most intriguing development being that they scored third worst in terms of their ESG score.
Following on from Worthstone’s fund labelling discussion, Royal London’s Senior Responsible Investing Manager, Beth Goldsmith showcased her team’s research into the understanding of meaningful metrics with a focus on outcome rather than impact. Beth provided numerous examples of what meaningful metrics would look like to advisers and clients and the processes that will help achieve better, sustainable outcomes.
After a short break, the presentations were restarted with an interesting perspective from Mathew Jennings, Investment Director at Fidelity International. Matthew highlighted the positive impact that engagement with business can bring and discussed how facilitating improvement in companies is more beneficial than excluding them from funds entirely. The main argument for this being that a deeper understanding a companies ESG approach will allow progress to be made in the sustainability issues of the business and in the returns for investors.
The parting show came from M&G’s Head of Impact Investing, Ben Constable-Maxwell as he gave an insight into the progress being made to reach the 2030 deadline for the Sustainable Development Goals (SGDs). Ben’s presentation gave a fantastic oversight of the situation and left the adviser’s present knowing that even though progress has slowed, momentum can be rebuilt even in a period of economic and social difficulty.
Overall, the morning proved to be an insightful and engaging discussion surrounding the issues and possibilities impact investing can bring. Appreciation must go to all the speakers that made such concise yet informative presentations that both peaked intrigue and answered questions on a selection of related topics.
The roadshow rendition of ‘Agents of Change’ was a fantastic appetiser to Worthstone’s flagship annual Impact Investment Academy event happening at BAFTA’s HQ in London on the 16th November. This is an event that IFA Magazine will once again be attending, with the recommendation that any advisers interested in the practicalities and possibilities of impact investing do the same.
