Understanding Impact Investing
Impact investing refers to investments made with the intention of generating positive, measurable social and environmental impacts alongside a financial return. This type of investing has gained popularity as more investors look to align their portfolios with their values and contribute to societal benefits.
Maria Teresa Zappia's Role in Impact Investing
Maria Teresa Zappia, CEO of BlueOrchard Finance and impact head at Schroders Capital, plays a pivotal role in advancing impact investing. Since joining BlueOrchard in 2008, she has focused on emerging markets and development economics, emphasizing the integration of financial and social objectives. Her work is crucial in helping investors understand that not all thematic investments qualify as impact investments unless they include specific impact key performance indicators (KPIs).
Evolution and Strategy in the Impact Investment Market
Since the acquisition of BlueOrchard by Schroders in 2019, Zappia has concentrated on developing a comprehensive investment framework catering to a mainstream asset manager. This framework aims to enhance sustainability and impact across various asset classes, promoting global product offerings with significant benefits for both people and the planet.
Addressing Investor Demand
Zappia highlights the growing demand from investors for impact objectives, particularly within infrastructure debt and private equity. She observes an increased interest in funds focusing on climate solutions, driven by investors' emphasis on social responsibility and environmental sustainability.
Challenges in Impact Measurement
One of the main challenges Zappia identifies is the confusion between sustainable and impact investing. Many still incorrectly assume that a thematic investment inherently achieves impact without measurable outcomes. Another misconception is that achieving impact might compromise financial returns. Zappia actively addresses these issues, reinforcing that investors can achieve both financial and impact returns.
Future Prospects in Impact Investing
Looking ahead, Zappia is optimistic about the increasing commitments to climate initiatives, such as net-zero transitions, which encourage more capital towards impactful mandates. However, she acknowledges the need for further development in areas like biodiversity and climate mitigation.
Innovative Reporting and Integrity
Recently, Schroders published its first impact report, aggregating data from across its impact strategies. This initiative, led by Zappia, illustrates the firm's commitment to scaling its impact offering with integrity and rigor, setting a new industry standard for comprehensive impact measurement and reporting.
In conclusion, Zappia's leadership in impact investing not only advances this sector but also sets a benchmark for integrating financial and social objectives, fostering a more sustainable and equitable future.
