Impact Investing Myth Exclusion
EXCLUSION
1 Exclusion grows: new & more issues (problem) & topics (ethical opinion & stand)
2 Divestment movements are growing
3 Exclusion 2.0 Scaling to (sub)sectors
4 Exclusion 3.0 Done talking
1 New issues & topics ie promoted from public lobby agenda to Shareholders Meetings agendas keep appearing. E.g. Political affiliation & views of companies on … (firearms and/or president Trump), (sex)slavery & trafficking, data security & privacy etc. Media attention, social media exposure & grassroot movements, data transparency & scientific research & journalistic investigation fuel attention for (new) issues & topics.
2 Divestment movements get bigger & more effective sparking new impact investment products. Eg Fossil Fuel & Coal are excluded from new ETP's like Vanguards 'exclusionary-screened' ESG index excluding Fossil Fuel, Nuclear Energy, conventional & controversial weapons (UN/AGTAF*) Also UN Global Compact (principes) violater(s).
*Alcohol, Gambling, Tobacco, Adult Entertainment, (civilian) Firearms).
Australian ethical investment advisor Balance Impact has a searchable database & publishes a (new) impact ETF guide. https://balanceimpact.com.au/
See also the Tobacco special in EuroSIF2018.
BOX Trumps decision to ''Pull out of Paris'' sparked commitment of asset managers with 1,5 Trillion AuM to mitigate for Climate Change. It all started with a letter to its fund managers from McKnight Foundation (2Bi US$ AuM of which 600MioUS$ impact investments). Goldman Sachs Widening & Deepening the Market (2018) in an The Economist special on ImpInv BOX
3 Exclusion 2.0: New (sub) Sectors are excluded on 'High Risk' or 'Little Social Benefit eg by ColombiaThreadneedle from it's Social Bond Fund. Contribution to the Sustainable Development Goals (Eccles & Consolandi) also inspires exclusion & asset re allocation. See next blog on Transparency
4 Exclusion 3.0 : Decades of shareholder engagement, dialogue & voting are transforming to done talking & divesting. E.g. Dutch insurer Aegon (825 BiEuro AuM) from palm oil and pension fund ABP ( E AuM) divested 4 BiEuro from tobacco & nuclear weapons.