Deep Dive: Impact investing different to ESG

Creating jobs is key

Nick Parsons, head of ESG at Thomas Lloyd Group, dives into impact investing.

Measuring impact is neither an art, nor a science, and requires a carefully considered blend of qualitative and quantitative metrics to judge the ‘additionality' of an investment; the extent to which it has brought about change - both positive and negative - which would not otherwise have occurred. In line with SFDR, an investment must equally demonstrate that it has a positive impact, and that it does no harm. By its very definition therefore, impact must necessarily involve the injection of new money into the economy. In this important respect, the development of real assets is crucial...