Looking beyond the buffet: Having impact funds and values on the menu is a recipe for success

Deep Dive into impact investing

Annual general meetings and the associated shareholder votes are traditionally staid affairs, judged more by the quality of the buffet lunch than the debate among the owners of the business.

This stereotype was smashed recently when a hedge fund gained a surprising victory at Exxon and made headlines in the process. Frustrated by the attitude of Exxon's management to climate change, a small fund (Engine No. 1) which controls just 0.02% of Exxon's shares, secured the election of three board directors, conferring significant influence over the future direction of the company.   Engine No. 1 is part of a growing breed of impact funds that use the capital they invest to support communities and the environment as an additional objective alongside that of delivering returns for...