We dream about the future with abundance for our children and the next generations. We envision continuous innovation in the delivery of basic services to every individual in living in an environmentally sustainable and thriving world.

The four key characteristics of an impact investor as summarized by GIIN are as follows:

Intentionality – The intent of the investor to generate social and/or environmental impact through investments is an essential component of impact investing.

“These investments are made into enterprises and funds that expand access to critical goods and services, and/or generate positive impact through their operations. For example, investors may seek to use investments to increase access to financial services, education, healthcare, affordable housing or quality employment by underserved populations. Investors may also invest in solutions aimed at mitigating the negative effects of climate change and environmental degradation. Investor activities may be focused in developed or emerging markets or both.”

Investment with return expectations – Impact investments are expected to generate a financial return on capital and, at a minimum, a return of capital.

“Grants are not expected to return capital and therefore are not impact investments. Grants however can play an important role in enabling impact investing – for instance, through incubating early-stage business models, providing certain forms of credit enhancement, providing technical assistance, or funding needed research and development.”

Range of return expectations and asset classes – Impact investments generate returns that range from below market (sometimes called concessionary) to risk-adjusted market rate.

“Impact investments can be made across asset classes, including but not limited to cash equivalents, fixed income, venture capital and private equity. Impact investors may also earn fees through the provision of catalytic instruments such as guarantees. Investors’ return expectations and the instrument(s) in which they invest reflect their intent and are typically driven by the economics of the investment. For instance, some may wish to support higher risk early-stage social enterprises in challenging markets or invest pursuant to various regulatory mandates, often with concessionary returns; others may choose to finance the expansion of proven business models to reach scale or invest in credit enhanced transactions, in the expectation of market or near market-rate returns.”

Impact measurement – Commitment to measure and report the social and environmental performance and progress of underlying investments in order to ensure transparency and accountability.

“Investors’ approaches to impact measurement will vary based on their objectives and capacities, and the choice of what to measure usually reflects investor goals and, consequently, investor intention. In general, components of impact measurement best practices for impact investing include:

– Establishing and stating social and environmental objectives to relevant stakeholders

– Setting performance metrics/targets related to these objectives using standardized metrics wherever possible

– Monitoring and managing the performance of investees against these targets

– Reporting on social and environmental performance to relevant stakeholders”

At Camomile Impact Community, we dream about the future with abundance for our children and the next generations. We envision continuous innovation in the delivery of basic services to every individual in living in an environmentally sustainable and thriving world.

– A grant-making charity;

– A supplementary Corporate Social Responsibility (CSR) marketing exercise, unless it explicitly pursues the achievement of social or environmental impacts;

– Mission-related investments (or sustainable investments) which incorporate environmental, social and corporate governance (ESG) criteria into investment analysis and portfolio construction across a range of asset classes and yet do not have an intention to pursue a social or environmental value explicitly.

While two out of three respondents principally target risk-adjusted, market rates of return, there is widespread acknowledgment of the important role played by below-market-rate-seeking capital in the market (GIIN, 2017).

Impact investments exists across a wide variety of products, asset classes and sectors. A recent survey forecasts that by 2025 the global impact investment market will be worth $2 trillion (GIIN).

On a global scale, impact investments under management were worth about USD 715 billion in May 2021 (GIIN, 2021).

Impact investments can be made in both emerging and developed markets, and target a range of returns from below market, to market rate.

On September 25th 2015, 193 Member States of the United Nations adopted a set of goals to end poverty, protect the planet and ensure prosperity for all as part of a new sustainable development agenda. Each goal has specific targets (169 targets in total) to be achieved over the next 15 years.

For the goals to be reached, everyone needs to do their part: governments, the private sector, civil society and people like you.

Areas of critical importance for Humanity and the Planet:

"The Global Impact Investing Network (GIIN) recognizes the global importance of the UN Sustainable Development Goals. As the world’s largest network of asset owners, asset managers and others involved in directing capital to investments that generate positive social and environmental impact alongside financial returns, the GIIN welcomes the unique role that impact investing will play in achieving these goals and building a sustainable future.

We urge all investors to contribute directly to the SDGs’ success. One group in particular is ready to heed the world’s call: impact investors.

Many private sector players have been deepening their impact from supporting business models that do less harm (e.g., using ESG principles to filter out businesses hat harm the environment or have poor working conditions) to making impact investments and building businesses that actively deliver solutions to global issues.

For years, and in some cases decades, impact investors around the world have been demonstrating the full potential of the private sector to drive progress in areas such as affordable housing, access to financial services, and sustainable energy—impact areas that very clearly line up with SDGs".