4.3 Roadmap Step 2 – Stages of Impact Investing Engagement
Once a mainstream investor determines a vision for impact investing, what might potential stages of involvement look like? There are numerous ways in which a mainstream investor can engage with impact investing. This is simplified here into three stages of engagement as seen in Figure 9.
Figure 9: Stages of Engagement
Spotlight – Pilot
UBS took interest in the Development Impact Bond, liking the concept but not seeing clear proof of its viability. Therefore, rather than developing a vehicle for client investment, UBS felt that its corporate client foundation (Optimus Foundation) may be the appropriate entity to test the waters and do the proof of concept. If successful, UBS may choose to replicate it at much larger scale and then open it up to client investments.
Spotlight – Accelerate
Zurich Insurance Group has placed “Responsible Investment Champions” within asset management and investment teams to serve as conduits to communicate strategy and to share new ideas and feedback with the Responsible Investment Team. Furthermore, they serve as ambassadors for the overall strategy and field questions from teammates. This structure enhances the overall culture around responsible investment and impact investing by closely aligning with the core business groups.