Community

How Your Investment can Build a Sustainable Business Ecosystem

With a new norm ahead of us–one defined by global interdependence against the backdrop of climate emergencies and the COVID-19 pandemic–it’s more important than ever that conscious investors play a role in the path forward. The failure of the COP26 summit where world leaders could not put aside their own interests to act for the good of the world showed that it’s up to each individual to take action to build a resilient future for everyone.

Impact investing can progress the UN Sustainable Development Goals

The United Nations adopted Agenda 2030 in 2015 as an ambitious universal agenda to address the world’s most pressing problems. The UN describes the Global Goals as the “World’s To-Do List” to ensure that humankind progresses together toward an equitable and sustainable future where no vulnerable groups are left behind.

“A core feature of the SDGs is their strong focus on means of implementation—the mobilization of financial resources—capacity-building and technology, as well as data and institutions.”

[United Nations Global Goals]

With the right impact investment, you commit your dollar to creating a positive impact while providing returns on your investment. The rising environmental and social consciousness of investors is growing evidence for the resilience dividend in the markets. Not only are consumers demanding accountability for business practices in what they buy, but for several years, climate change has also been topping the charts of what the next generation of consumers is concerned about.

Investors have not lagged behind with a growing demand for environmental, social, and corporate governance (ESG) taking precedence in 2021. Reuters reported a record $649 billion invested into ESG-focused funds worldwide in 2021.

Climate disasters and the onset of the pandemic are responsible for what some people call the sustainability disruption—where embracing risk and innovating solutions demand inclusivity versus considering financial benefits alone.

But what does this mean for your next investment?

Good risk management is good impact management

If investors, businesses, donors, and ecosystem actors want to drive transformational change, they need to re-assess how they view and manage risk through a framework that goes beyond the traditional binary risk-return approach. The new norm will require us, enterprises and investors, to make financial, operational, and commercial decisions through a more holistic Risk-Return-Impact approach.

IIX has been working with a proprietary Risk-Return-Impact (RRI) framework for over a decade, and it has played a key part in our innovations unlocking over US $233M in private sector capital by showing investors how investing in enterprises with a focus on impact reduces the risk profile of their portfolio and creates real verified impact.

Our approach leverages on the ground data and analytics to provide businesses and investors with comparative, standardized information so that they can create risk mitigation strategies, make capital allocation decisions, and more effectively and transparently drive capital towards where it is needed the most. We’ve now digitized this framework so it is accessible online through IIX Values for anyone to use, and so that it can be deployed quickly and effectively.

What’s Next?

If you’re an investor committed to making a difference and progressing the SDGs, there are ways to put your dollar to work. Access the next generation of impact enterprises that are vetted, investor-ready, and on track to deliver verified impact objectives targetted to move the needle on the Global Goals.

Click here to learn more and join us at our next investor showcase for an exclusive peek at our live deals.

Impact Partners 3.0 is an innovative, FinTech crowdfunding platform by IIX Impact Partners integrating digital impact assessment with data analysis for the first time. Having unlocked US$ 233M in capital for impact since 2008, Impact Partners 3.0 is democratizing capital flows by providing data-driven matchmaking to deliver investment solutions for enterprises and investors alike.

IIX and the Australian Government Department of Foreign Affairs and Trade Launch Blended Finance Solutions to Benefit 2.5 Million Lives in Asia Pacific by 2023

SINGAPORE AND CANBERRA [September 15, 2021] – Impact Investment Exchange (IIX) and the Australian Government’s Department of Foreign Affairs and Trade (DFAT) announced today the launch of three blended finance solutions to boost resilience and drive investment to small and medium-sized businesses and underserved women in the Asia-Pacific. With AUD2.75 million in funding from the Australian Government, IIX will unlock an additional AUD18 million through the catalytic use of the funding.

Read more

World’s First Listed Gender Lens Impact Investing Security, IIX Women’s Livelihood Bond 1, Matures

July 6, 2021 – SINGAPORE – Impact Investment Exchange (IIX)’s Women’s Livelihood BondTM 1 (WLB1), the world’s first gender lens and impact investing instrument to be listed on a stock exchange (the Singapore Exchange), matured on July 6, 2021. With all coupon payments and principal payments made on time, even throughout the COVID-19 pandemic, the Bond provided investors with an annual return of 5.65% from 2017-2021. The WLB1 is the first issuance of the US$150M Women’s Livelihood Bond Series, a series of innovative debt securities that creates sustainable livelihoods for over 3 million underserved women across the Asia-Pacific and other emerging markets. In addition to its strong financial performance, all social performance targets, including targets for increased financial inclusion and financial resilience, were met or exceeded, demonstrating the sustainability of the bond’s underlying portfolio throughout the pandemic.

Read more

IIX Foundation partners with Green Cross to bring women to the forefront of climate action

August 18, 2020 – SINGAPORE AND PANAMA –  IIX Foundation (IIX), a registered 501(c)3 organization dedicated to building a more inclusive world, has partnered with Green Cross (GC), a global non-governmental organization addressing the combined challenges of environmental security, poverty and environmental degradation, to bring women to the forefront of climate action.

Read more

Bangladesh-based clean energy firm SOLshare successfully closes US$1.1M financing round with support from IIX Impact Partners 

SINGAPORE, 3 July 2020 – IIX Impact Partners – the world’s most successful debt and equity crowdfunding platform for impact investing – has supported Bangladesh-based off-grid solar energy firm SOLshare in closing a US$1.1 million financing round. Investors include innogy New Ventures LLC – the venture capital investment arm of the German utility firm innogy SE— the investment arm of Portuguese utility firm EDP Ventures, as well as new angel investors from around the world. Funding will be used to bring smart solar microgrids to off-grid, underserved communities in Bangladesh, putting SOLshare on track to positively impact 2.5 million people by 2023.

Read more

Innovating justice: needed & possible – Report of the Innovation Working Group of the Task Force on Justice

IIX’s Managing Director Robert Kraybill participated in the Innovation Working Group of the Task Force on Justice, which published the report “Innovating justice: needed & possible” on 6 February 2019. The Innovation Working Group was asked to review the evidence of unmet justice needs, explore the potential for innovation, explore the investment possibilities for promising innovation areas, provide parameters for enhancing innovation for SDG16.3, and to make recommendations on these matters to the Task Force on Justice. Read the report here.

Read more

Innovative Finance for Sustainable Peace: Speech at 72nd UN General Assembly

The following speech was delivered at the 72nd United Nations General Assembly by IIX founder Durreen Shahnaz to launch the Innovative Finance for Sustainable Peace Initiative. The 5-year initiative leverages the power of financial markets to unlock $1 billion to drive forward sustainable peacebuilding efforts across the globe by creating systemic social-economic resilience.

Read more