How to invest for impact

There are several steps that one can take when building a portfolio for impact.

The first guiding principle is defining what impact you wish to achieve – through any single investment, or through a portfolio of investments. Without defining the intended impact, or the outcomes that you seek, it is impossible to measure and report the extent of our success.

Thematic examples might include: energy, circular economy, sustainable agriculture, or green real estate.

The next step is for each outcome to define the problem, goals and look at how different asset classes can be in delivering this outcome. You can measure this across an AIMs framework (Additionality, Intentionality, Measurability, and Scalability).

Finally, you can put it all together in a multi-asset, multi-impact portfolio.

Sustainable Agriculture Theory of Change

References:

https://sonencapital.com/impact/our-approach-to-impact-investing/