Позитивные изменения. Том 3, № 4 (2023). Positive changes. Volume 3, Issue 4(2023)

Impact Investing as an Object of Research. Digest of Publications for the Second Half of 2023

Elizaveta Zakharova

DOI 10.55140/2782–5817–2023–3–4–112–125

The second half of 2023 witnessed a surge in scholarly interest in impact investing, covering diverse topics from the influence of ESG factors on investment choices and the exploration of social investor behavior through identity theory to the use of big data to assess the social impact of enterprises and the creation of innovative investment instruments. This digest presents a selection of publications that have shaped the discourse in this rapidly evolving field.

Elizaveta Zakharova

PhD student, Department of Social Sciences, National Research University Higher School of Economics

From July to December 2023, academic papers on impact investing, researchers delved into the significance of policy and international cooperation in addressing environmental and social issues and promoting sustainable economic growth.

Many authors noted a shift in global investor focus from solely financial activities towards effective impact investing. Efforts were made to understand how impact investors decide on capital allocation. New attention was given to the social identity and investment approaches of ‘family investors.’

One article concluded that the most significant aspect of a company’s social impact is not its profits, but the value people place on its products or services. Yet another paper addressed concerns about the ‘overburden’ of impact indicators.

Researchers conducting bibliometric analysis identified promising future research areas for advancing impact investing: ecosystem development, decision-making strategies for investors, stakeholder involvement in projects, attracting institutional players, creating innovative financial tools, standardized accounting and reporting methods, and tackling the problem of impact washing. They also highlighted the unresolved issue of inconsistencies in the interpretation, terminology and concepts of impact investing across disciplines.

Studies show that Impact Investment Funds (IIFs) are a valuable resource for socially oriented organizations seeking funding. For instance, one study found that the IIFs in Australia have a more conservative and profit-focused approach to investing, while Italy prefers more impact-oriented investments. This research also proposed an ‘ideal’ impact investing process tailored to the sector’s specifics.

There is a new development in Big Data processing and machine learning, as these technologies are being applied to predicting companies’ SDG indicators.

Lastly, the book titled “Impact Investing for a Sustainable Planet” was published in the end of 2023, which details the EcoEnterprises Fund’s strategies for investing in expanding industries. The authors aim to assist investors in supporting entrepreneurs in scaling business models that maximize positive impact outcomes and offer practical advice for impact investors.

1. IMPACT INVESTING AND SUSTAINABLE GLOBAL VALUE CHAINS: ENABLING SMALL AND MEDIUM ENTERPRISES SUSTAINABILITY STRATEGIES

Tommaso Ferretti

Dissertation, October 2023

AIB Insights

Improving the sustainability of SMEs in developing and emerging economies, which represent the vast majority of the population of MNCs’ supplier networks, is fundamental to achieving the Sustainable Development Goals. However, SMEs often lack viable financing options to invest in their sustainability. Emergent impact investing seeking social, environmental, and financial returns aims to address this financing gap. How does impact investing influence sustainability in the global value chains of MNCs? Studying the nexus between impact investing and the strategies of SMEs in Latin America’s coffee and forestry sectors, it is provided new insights into how the modes of financing suppliers’ production activities improve GVC sustainability.

https://clck.ru/37Hpdc

2. IMPACT INVESTING FOR A SUSTAINABLE PLANET: INSIGHTS FROM ECOENTERPRISES FUND

Tammy E. Newmark, Michele A. Pena Book, December 2023 Routledge

Impact Investing for a Sustainable Planet guides investors in supporting entrepreneurs to scale business models which maximize positive impact outcomes, including climate- and nature-based solutions. EcoEnterprises Fund is a long-standing leader in the impact investing industry, which helps advance sustainable entrepreneurial ventures and promote environmental stewardship in Latin America.