MICROCAPITAL BRIEF: Impact Investing at a Crossroads Raising Awareness, Expanding Product Offerings, Sound Metrics and Mainstreaming Were Among Key Themes at “5th Annual Impact Conference at Sustainatopia 2014”

Panelists at the recent Fifth Annual Impact Conference at Sustainatopia in the US city of Miami, Florida, showed consensus on some of the short-term steps needed to develop the impact investing sector toward becoming a mainstream, investable asset class that is attractive from a risk-reward perspective. These steps include: raising awareness about the sector for both retail and institutional investors; creating customized financial products and investment channels that accommodate a range of investor liquidity profiles and investment mandates; promoting transparency; refining and harmonizing quantitative and qualitative metrics to measure impact; and promoting effective public-private partnerships to create a supportive and sustainable ecosystem. Panelists suggested that, based on their experience, they were encouraged by the potential of the industry and agreed that the private sector would be the key driver of its development. Ms Abigail Noble, Head of Impact Investing Initiatives at the Swiss nonprofit World Economic Forum, also underscored the importance of everyday consumers in promoting growth in the industry, suggesting that “All of us can do our part by talking about impact investing, by asking our wealth managers or banks for socially responsible investment [products]…if more people ask, hopefully they [banks and asset managers] will offer more products and the field will begin to move.”

The conference was hosted by Florida-based sustainability consulting firm DvK and included keynote speeches made by Ms Bina Venkataraman, Senior Advisor on Climate Change Innovation to the Executive Office of the President of the United States; Ms Jenn Pryce, Chief Executive Officer of the US-based Calvert Foundation; Mr John Rosser, Founder of Sustainatopia; Mr. Yalmaz Siddiqui, Director of Environmental Strategy at US-based retailer Office Depot; and Ms Libby Bernick, Senior Vice President at UK-based Trucost, a provider of data on corporate environmental impact.

Topics covered in the break-out sessions included: empowering women through investment; alternative investment models for nonprofit and for-profit organizations; the future of impact investing; recent developments in microfinance and microinsurance; investing in alternative energy; models for public-private partnerships; and “developing business accelerators and fostering ecosystems for good.”

For a comprehensive list of the conference attendees and topics covered in the keynote speeches and discussion groups, you may visit the event website at: http://www.connectionmiami.com. For a list of the 2014 Sustainatopia Honors award winners, you may visit: http://www.sustainatopia.com/wed-april-16/sustainatopia-honors-14. For additional information, you may contact the organizers via email at info[at]connectionmiami.com or by telephone at +1 561 251 9941.

By A’kos Szebeni, Research Associate

Background on Organizer:

Dvk L3C is a privately-held sustainability consulting firm founded in 2005 and based in Tampa, Florida, USA. Each year, Dvk hosts Sustainatopia, a week-long event focused on financial, social and environmental sustainability. Financial information on Dvk is unavailable. DVK is a low-profit limited liability company (L3C), a hybrid business entity designation available in some US states that combines certain legal and tax characteristics of traditional, for-profit, limited liability corporations with certain benefits that nonprofit institutions receive by virtue of their commitment to a social mission.

Sources and Additional Resources:

Sustainatopia, “5th Annual Impact Conference – Miami,” http://www.connectionmiami.com

MicroCapital, March 24, 2014, “Dvk to Host “5th Annual Impact Conference at Sustainatopia 2014,” April 16 – 18, 2014, Miami Beach, Florida, USA,” https://www.microcapital.org/microfinance-event-dvk-to-host-5th-annual-impact-conference-at-sustainatopia-2014-april-16-18-2014-miami-beach-florida-usa/

MicroCapital, March 18, 2014, “Global Sustainable Finance Network (GSFN) to Host Global Sustainable Finance Conference 2014, June 12 – 13, 2014, Karlsruhe, Germany,” https://www.microcapital.org/microfinance-event-global-sustainable-finance-network-gsfn-to-host-global-sustainable-finance-conference-2014-june-12-13-2014-karlsruhe-germany/

MicroCapital, February 26, 2014, “Triple Bottom Line Investment to Host “TBLI Conference,” May 29 – 30, 2014, New York, USA,” https://www.microcapital.org/microfinance-event-triple-bottom-line-investment-to-host-tbli-conference-may-29-30-2014-new-york-usa/

MicroCapital, March 26, 2013, “Dvk to Host 4th Annual Impact Conference at Sustainatopia, April 17-19, 2013, Miami Beach, Florida, US,” https://www.microcapital.org/microfinance-event-dvk-to-host-4th-annual-impact-conference-at-sustainatopia-april-17-19-2013-miami-beach-florida-us/

MicroCapital, March 6, 2012, “Benefit Corporation Type Allows Companies to Balance Societal Benefit, Profits,” https://www.microcapital.org/microcapital-brief-benefit-corporation-type-allows-companies-to-balance-societal-benefit-profits/

MicroCapital, April 15, 2008, “Legislation Introduced in North Carolina and Vermont for the Proposed “Low-Profit Limited Liability Company” (L3C) Could Mean New Funding Options for Development Organizations Including Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-story-legislation-introduced-in-north-carolina-and-vermont-for-the-proposed-low-profit-limited-liability-company-l3c-could-mean-new-funding-options-for-development-organizations-in/

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