Why does impact investing make commercial sense?

This post was originally published on this site

The challenges that listed companies now face from the intense institutional focus on their environmental, social and governance strategy are fascinating.

Simon French, chief economist at the broker Panmure Gordon, recently warned against investors using “blunt instruments” to assess compliance. He argued for a more nuanced approach than simply “invest or divest” decisions, with company boards encouraged to make appropriate improvements over time.

From talking to the public company non-execs I know, corporate ESG box ticking is distracting from crucial boardroom discussions on strategy and execution. But for private companies — the space in which I operate — that shouldn’t detract from the underlying benefits of doing the right thing. Turning what is an instinctive approach for many into a clearly communicated set of policies