What does it mean to live in a three-dimensional investment world? Well, this concept is taking the typical two-dimensional modern portfolio theory framework of risk-return and adding the third dimension – social and environmental impact. 3D portfolio optimisation could well be the best mechanism for encouraging mass adoption of impact investing, for example the ESG for Investors open-source tool.
This approach to impact investment was discussed at our Impact Investing Adopters Forum quarterly all-stakeholder event in February with Cushon, Aon and Tikehau Capital. Please see the write up of the discussion here.
If you want to start the process of reviewing your pension fund’s impact and determining your impact investment beliefs, including setting impact objectives such as net zero / Paris Alignment or using the United Nations Sustainable Development Goals, Pensions for Purpose can provide your trustees and in-house teams with independent advisory training sessions to help navigate these concepts and your approach. Please get in contact. Our last session with the East Sussex Pension Fund focused on the spectrum of capital, use of the United Nations Sustainable Development Goals and the Impact Investing Principles for Pensions.
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