The history of impact investing
Historically, the investment community might have argued that risk-adjusted financial returns must be sacrificed to achieve positive social and environmental impact. However, recently impact led investing has become a popular choice for investors who want to achieve social and environmental goals while earning a financial return. The UK has emerged as a leading player in the impact investing sector, with a thriving community of impact investment leaders dedicated to making a positive impact via impact investing companies.
Successful impact investments seek to make a positive impact on society and the planet, while still earning a return on their investment often using an impact investing framework. Legal & General takes an impact-led approach to investing. We believe that socially orientated investing can directly address some of the most pressing societal demands — and deliver superior risk-adjusted returns.
Sustainable impact led investing
Primarily, investors need to understand long term social and environmental needs, for example: tacking housing problems, community needs and the move to net zero. We make an analysis of place-based needs, run high quality community engagement, and devise a strategy designed to meet those social, economic, and environmental needs. If investors target these areas precisely and with the right type of investment, the social need for homes, and infrastructure will de-risk and enhance the financial returns generated.
Social impact led investing: examples
In Oxford, Legal & General have a joint venture partnership with Oxford University. We have invested £4 billion: creating assets from world-leading space for cutting-edge, life-changing research. Being an impact led investment, this will help retain talent in the city, whilst providing the facilities for world-leading research and innovation, as well as much needed housing for University and College staff.
Contact
For partnership enquires:
publicsectorpartnerships@landg.com
