RAISE Impact is an impact investment strategy dedicated to investing in growth companies that are both profitable and committed to building a more sustainable future [c375691b]. The strategy's Co-head, Aglaé Touchard Le Drian, highlights how ESG considerations are integrated into every stage of the investment cycle and act as an effective lever for value creation [c375691b]. The article emphasizes the importance of ESG integration at RAISE Impact, stating that it is not at the expense of financial returns but rather a driver of value creation [c375691b]. The strategy aligns with the growing expectations of Limited Partners (LPs) and companies for meaningful returns from ESG integration [c375691b]. RAISE Impact has allocated dedicated professionals to handle ESG and impact matters, providing individualized support to portfolio companies [c375691b]. The article also mentions the integration of impact criteria into compensation structures to align incentives with ESG commitments [c375691b]. ESG considerations are integrated into decision-making processes at every stage of the investment cycle, with the involvement of an impact committee [c375691b]. The article highlights the value creation levers of ESG integration, including operational excellence, enhanced stakeholder relationships, and anticipation of compliance costs [c375691b]. Impact investing is seen as a key opportunity for the private equity industry, as more investors seek positive social and environmental outcomes alongside financial returns [c375691b]. Impact investing allows the industry to support innovative solutions to global problems and encourages long-term value creation through financial and operational support [c375691b].
Neeraj Aggarwal, associate director at Australian Impact Investments, discusses the evolving field of impact assessment and the importance of 'impact DNA' in recruiting candidates [54b1bcec]. Impact investing is defined as investments made with the intention to generate measurable social and environmental impact alongside financial returns [54b1bcec]. Aggarwal emphasizes the need for tangible and measurable impact, and the importance of having a measurement framework in place [54b1bcec]. He also mentions the Impact Spectrum, which categorizes impact investments into three classes: avoiding harm, benefiting people, and contributing to solutions [54b1bcec]. Aggarwal's role involves conducting due diligence on private market investment opportunities and evaluating funds and direct investments for impact, risk, and return [54b1bcec]. He gives an example of working on the Energy Transition Fund, which invests in technologies for the transition to net zero [54b1bcec]. Aggarwal highlights the opportunity to define one's role in the new field of impact investing and mentions that subject matter knowledge can compensate for a lack of investment background [54b1bcec]. He explains that impact DNA is about authenticity and one's motivation to enter the impact sector, and shares his own story of being inspired by his experience working in rural India and his Hindu faith [54b1bcec]. Aggarwal concludes by emphasizing the importance of understanding one's purpose and the impact they want to make [54b1bcec].