Impact Investing for Pensions

Sustainable bonds – including green, social and sustainability-linked bonds – are seen by investors as a key tool for climate transition. But better standards are needed to create a level playing field.

There is massive shortage of affordable housing in the UK and the characteristics of the asset class are ideal for institutional investors. Pension funds are attracted to the prospect of stable long-term income to match liabilities.

Private debt investments in emerging markets are still considered high risk by some institutional investors, but blended finance solutions and other structures are attracting the interest of some of Europe’s largest pension funds.

Place-based investing is now central to social impact investing in the UK and gaining strong pension fund support. Many of the lessons learned there can be applied elsewhere in Europe.

We talk to the national advisory boards (NABs) for impact investing in France, Germany and Italy to find out how the landscape for pension fund investment in impact is evolving.

We talk to the national advisory boards (NABs) for impact investing in the Netherlands, the UK and Sweden about their views on how local pension funds are embracing impact investing.

Larger asset managers are responding to UN policies on biodiversity with new investment strategies targeting deforestation, land regeneration and more sustainable agriculture and farming practices.

The ‘E’ and the ‘S’ in ESG are intrinsically linked. But how we define, deliver and measure social impact? asks Shuen Chan, head of responsible investment and sustainability at LGIM Real Assets.

Impact bonds, which go by many names, use private capital to help countries address societal problems more cheaply and effectively. Experts say investor interest is high, and there is an expansion of regions and themes.

Sir Ronald Cohen, the world-renowned venture capitalist, philanthropist and driving force behind the impact investing movement, explains why he believes impact-weighted accounting is key to a more sustainable capitalism.