Contributing to lasting impact
Measuring the impact of investments in human capital can be difficult, but it is vital for impact investors to overcome the challenge. Indeed, “measurability” is a key differentiator between impact and other forms of responsible investing.
By identifying key impact indicators, we can gauge a company’s progress towards realising an SDG. As well as quantitative metrics – such as, in the case of an education provider, the number of students enrolled and the proportion using loans – there are indicators of the quality of outcomes – analysis of graduate earnings and employment rates, for instance.
Where companies can effectively deliver improved skills and knowledge, and widen access to the opportunities that further learning can open up, they can empower individuals and their communities to thrive.
By playing a part in levelling the playing field, I believe investors in these companies can aspire to have a lasting positive impact on global society, while also pursuing sustainable financial returns over the long term.
About Ben Constable-Maxwell
Ben is Head of Sustainable and Impact Investing, M&G. He joined M&G in 2003 as an Investment Specialist supporting the Global Equities team. He then moved to the Corporate Finance and Stewardship team in 2013, where he began focusing on corporate governance and ESG at international companies. Ben has been responsible for developing the incorporation of ESG in M&G’s investment processes and sits on M&G’s Responsible Investment Advisory Committee, which oversees Responsible Investment activities at M&G including the firm’s membership of the UNPRI. Ben graduated from the University of Newcastle-upon-Tyne with an Honours Degree in Classics before spending four years in the Equities team at Invesco Perpetual.
