When it comes to effecting positive change, what would be the impact if foundations had the same expectations for their endowments as they did for their grantmaking? As climate and health crises close in, more foundations are turning to social investment as another way to pursue their missions. In the UK, new research has found that more than three-quarters of charitable foundations have a policy to invest their assets in line with their mission. And globally, almost 90 per cent of foundations have indicated they’re interested in social investment, according to research by Foundation Source.
It’s time to ask: what is the emerging best practice when it comes to impact investing, and how is this reflected in how foundations are investing around the world?
At the beginning of 2020, before the world was rocked by Covid-19, Cazenove Capital asked charity investors in the UK how they were investing their assets in a way that aligned with their mission and aims. Over the next decade we will have to face the ramifications of the global pandemic, whilst also tackling rising inequality and the urgent need for action on climate change. It is no wonder, then, that many foundations are asking themselves what their role is in creating this change and how they can use all of the assets at their disposal to push for progress.
The rising tide of responsible investing