Weekly Impact Investment Market Update: October 19, 2018

Impact Investing & ESG
 

IFC Releases Draft Impact Investment Guidelines
Investors have welcomed new guiding principles for impact investing intended to turbocharge the sector — but some question whether the International Finance Corporation, which developed the rules, is the right institution to be leading the effort.

Why Companies Must Manage Environmental, Social, and Governance Risks
Wharton’s Witold Henisz, Katherine Klein and Sherryl Kuhlman discuss how ESG risks impact companies’ bottom lines.

The Politics of Impact
An excerpt from Jed Emerson’s The Purpose of Capital: Elements of Impact, Financial Flows, and Natural Being

Why ESG is Not a Flash in the Pan
As a concept, ESG investing has been around for some time. Every so often it has had its moment in the spotlight before disappearing into the shadows along with other so-called ‘investment fads’.

Demand Grows for SEC Rules on ESG Disclosure
As investors routinely push public companies to address ESG in terms of long-term shareholder value, a determined group of institutional investors and ESG advocates think the time is right for the Securities and Exchange Commission to mandate a uniform approach to how companies disclose and manage potential risks.

Third-Party ESG Ratings Evolving for Investor Needs
As institutional investors increasingly demand that money managers integrate environmental, social and governance factors into portfolios, third-party ratings used to inform decisions are under development, evaluation and in some cases reconstruction.

ESG Wake-Up Call for Pension Laggards
Policymakers are trying to steer more UK schemes towards sustainable investing.

How Investors Can Save the World, One Dollar at a Time
Sustainable investing allows you to invest with your conscience: You embrace companies that promote social and environmental good, while avoiding businesses that don’t share the same ethics.

 

United States & Europe
 

US Named the World’s Most Competitive Economy
The U.S. is ranked most competitive economy for the first time in a decade.

Europe’s Most Stable Economy Says It’s Time to Share the Wealth
The Czech Republic must distribute its growing wealth more widely, and even a cooler economy won’t stop higher social expenditure and investment, according to the country’s finance chief.

 

Developing Economies
 

Five Reasons to Buy Emerging Markets
While the U.S. stock market remains overvalued, emerging markets have become cheap.  With the divergence in performance between U.S. stocks and emerging market stocks in 2018, the risk/reward profile of owning emerging market stocks rather than U.S. stocks has rarely looked so attractive.

Kenya: Economic Growth Looking Up – World Bank
Kenya’s economy is projected to grow by 5.8 per cent next year supported by strong remittance inflows and rising household income from agriculture harvests and lower food prices.

Kenyan Workers Ranked Fourth in Africa, World Bank
The future of Kenya’s workforce seems bright with the country’s future personnel ranked the fourth on the continent.

Worldwide: Economy on the Rise in Latin America
The United Nations along with the Economic Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC) has issued the 2018 Economic Survey of Latin America and the Caribbean.