New pathways to achieve social and environmental goals: How leading corporations use impact investing to align capital and purpose
This report examines how leading corporations use impact investing to pursue environmental and social goals. It contains case studies of companies such as PayPal and Schneider Electric, showcasing their impact investing practices and strategies.
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OVERVIEW
The report examines how several leading corporations have leveraged impact investing to pursue socio-environmental objectives. PayPal and Schneider Electric, among others, demonstrate a range of successful impact investing use cases that promote environmental sustainability, community development, and healthcare innovation.
The report highlights the importance of collaboration with investors having similar sustainability goals. For example, Schneider Electric partnered with Development Financial Institutions (DFIs) to create impact funds for clean energy access in Africa. Similarly, TELUS Corporation created its Pollinator Fund for Good to invest in purpose-driven startups that align with the company’s four key pillars, which include transforming healthcare for seniors and women’s health.
The report suggests companies establish dedicated impact funds framed around specific sustainability goals, managed by both internal teams and third-party managers. Major benefits of such investments include the creation of long-term business value, the attraction and retention of technical expertise and talent, and regulatory compliance. Anglo American, for instance, formed an internal impact investment team that engaged in exploration to launch a purpose-driven impact fund.
The report emphasises the need for companies to carefully match their unique financing needs with appropriate investment vehicle structures, said to be a vital step in the successful implementation of impact investing. Overall, the case studies showcased here provide valuable lessons on how to integrate impact investing into a broader sustainability strategy, ensuring maximum societal and environmental impact.