United StatesThis year we celebrate a decade of measuring and reporting the impact of our investments beyond financial returns.
Investing in the opportunities arising from the transition to a more sustainable economy is attractive to asset owners with narrowly defined fiduciary duties, but it also appeals to those asset owners who are seeking to achieve positive, measurable non-financial impact outcomes through their investments.
Our tenth annual Impact Report
We continue to advance our proprietary reporting of the environmental and social impact delivered by the companies held in Impax portfolios through the development of new metrics and the refinement of our methodology to ensure it is robust.
This year, we report the avoided greenhouse gas (GHG) emissions associated with the activities of our investee companies, as well as key metrics for environmental impact and the alignment of portfolio company revenues, by strategy, to the UN Sustainable Development Goals.[1]
Additional and extensive climate-related reporting, metrics and narrative on climate and GHG emissions can be found in our Impax Climate Report 2024.
We continue to enhance our reporting of social impact using meaningful metrics that align with the Impax Social Taxonomy, a proprietary framework that has been developed to classify companies that we believe are enabling social inclusion and development, and where positive outcomes or impacts can be measured.
This year, we are pleased to have introduced three additional social impact metrics that quantify the number of patients treated, individuals provided with access to finance, and individuals digitally connected through the activities of our investee companies. This complements our metric introduced last year that quantifies the positive impacts associated with investee companies that supply consumers with healthy and nutritious food, from alternative proteins to fruit and vegetables.
A permanent work in progress
Companies have made great strides in the quantity and quality of their measurement and disclosure. But overall, their reporting remains patchy and inconsistent, especially beyond GHG emissions disclosure. We continue to make the case for stronger reporting of environmental and social impact through our engagement with companies, regulators and standards-setting bodies.
Enhanced disclosures ultimately enable us to make better informed, risk-adjusted investment decisions and to target our stewardship and company engagement activities where we believe they can have the greatest effect. Over time, they also enable us to continue improving the breadth and depth of our impact reporting.
Explore the latest impact reporting for our investment strategies in the Impax Impact 2024 report:
[1] The UN Sustainable Development Goals (SDGs) encompass 17 sets of targets to be met by the world’s economies by 2030. For further information, please visit https://www.un.org/sustainabledevelopment/sustainable-development-goals