Feeling the heat: Overheard at the Global Impact Investing Network investor forum

  • "In just 10 years we’ve built an industry,” declared the GIIN’s Amit Bouri. “But we need to move capital at a vastly different scale” to meet the many challenges we face.

Index Impact: Passive investors are actively tilting stock indexes toward sustainability

  • Major institutional investors are moving to change the indexes. The world’s largest pension fund, the Government Pension Investment Fund of Japan, has moved $40 billion in its equities portfolio from a traditional passive index based on market capitalization to one weighted for environmental, social and governance themes and, in particular, de-carbonization. 
  • If it takes hold, the change could trigger a massive shift in assets and, over time, reward companies that make faster transitions to the low-carbon economy and punish those that move slower.

Corporate accountability is key to the success of ‘stakeholder capitalism’

  • Increasing accountability to employees, customers, suppliers and communities shouldn’t mean decreased accountability to shareholders. Especially when some shareholders are the ones who have been arguing on behalf of the interests of those other stakeholders.