Investing in ‘solution providers’ to the world’s biggest issues is the key to building back better in a post-pandemic world, according to a new report from EQ Investors.
The Positive Impact report 2020 outlines the wealth manager’s approach to making a positive difference to the planet and society, as well as maximising profit, from its investments.
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Damien Lardoux, Head of Impact Investing at EQ Investors, said: “The coronavirus pandemic has reset the global economy and public opinion has shifted. There is now much wider acceptance that we need to invest in solution providers now, in order to create a future world for the benefit of all.”
The report sets out how companies in EQ’s Positive Impact Portfolios are helping to fight the coronavirus crisis and contribute towards a green economic recovery.
It says: “The economic slowdown due to the pandemic has led to record low levels of environmental pollutions and more sustainable consumption patterns. We now have the potential to rethink the path we want to take going forward. Can we create a ‘new normal’ that operates within these safe boundaries?”
EQ has signed an investor letter from to EU leaders advocating for a sustainable recovery from Covid-19. The report adds: “The Positive Impact Portfolios are full of examples of companies that will help us to build back better by solving tomorrow’s problems, today.”
Key highlights of the impact made per £1 million invested in 2019 include:
- 352 tonnes of CO2 avoided – the equivalent of taking 77 cars off the road.
- 25 tonnes of waste recycled – the equivalent of 26 households’ waste.
- 202MWH of renewable energy generated – the equivalent of 61 homes’ usage.
- 178 million litres of clean water provided – the equivalent of 1,404 households usage.
- 402 hours of school, higher and adult education delivered.
EQ’s positive impact approach reaches beyond the traditional investor, attracting a higher proportion of female investors (52 per cent) than the UK average (44 per cent).
A Good With Money ‘Good Egg’ and B Corp company, EQ says it has stepped up its engagement with fund managers to maximise impact made on four themes, which are climate action, health and nutrition, sustainable supply chains, and diversity and inclusion.
The report says: “Investors can influence companies by engaging directly with management teams and by using their voting rights to raise expectations for strategic positive change. It is vital that we hold our fund managers to account – in a wider mission to improve sustainable impacts and long-term returns over time.”