The MII Portal was established to develop and disseminate the concepts and methodology for an approach to investment analysis characterized as Mainstream Impact Investment.
Mainstream Impact Investment (MII) focuses on the mainstream markets but adopts a much more holistic approach that recognises the essential interdependence between the economy, society and the environment.
Its an approach that creates wealth at competitive rates by investing in well governed businesses operating in mainstream markets, that reduce the environmental impact of creating value for society. I’m referring to businesses that are strategically managing their social and environmental impacts; i.e those that are aware of the negative consequences of their activities and are doing something about them and in so doing, are breaking the link between economic growth and environmental destruction – uncomfortable bed fellows that have gone hand in hand since the start of the industrial revolution.
So let’s be under no illusion; the objectives of Mainstream Impact Investment are no different than those of any other well managed fund. The aim is to create wealth for investors at competitive rates. However, in practice, this is achieved by integrating rigorous financial analysis with sustainability research.
This approach just makes good business sense. By analysing how businesses mitigate or adapt to disruptive macro-economic factors and the negative consequences of their own activities, helps analysts build a more robust case for their investment decisions. A key difference is that analysts will discriminate against those that see sustainability and business as competing agendas or as a compliance exercise.
Adopting an MII approach means looking for businesses that are fundamentally structured so that economic success is not undermined by the negative consequences of their own activities. In one sense, analysts are looking for business leaders who know how to break the link between economic growth and environmental destruction.
Join the conversation at the MII Portal.